Attorney general wants to triple Blackwell's penalty

Last Updated: July 02. 2011 5:32PM

Doug Guthrie/ The Detroit News

Detroit? Michigan's attorney general has asked a Wayne County judge to triple a jury's verdict in a civil lawsuit and force Highland Park's former emergency financial manager to pay more than $841,000 for taking $264,000 from the cash-strapped city.

Arthur Blackwell II in January saw criminal embezzlement and misconduct charges dismissed, but earlier this month on nearly identical arguments in a civil lawsuit filed by the attorney general, was found to have wrongfully tapped city accounts to pay himself what he claimed were back wages he was owed.

Attorney General Bill Schuette now wants Wayne County Circuit Judge Robert Colombo Jr. to apply state law that allows the tripling of the jury's verdict, plus interest and other court costs, according to court documents. A hearing on the proposal is set for July 8.

Blackwell had taken the job in 2005 on an agreement with then-Gov. Jennifer Granholm that he would manage for $1 per year the city his father once served as mayor.

He testified at the trial that after the first year, he got a verbal agreement from Granholm to change the contract. Before he was fired in 2009, the state had started paying him more than $130,000 a year. Jurors determined Blackwell improperly diverted hundreds of thousands from the city's coffers to compensate for the time in 2006 and 2007 he claimed he should have been paid $11,000 per month.

Wayne County Prosecutor Kym Worthy brought criminal embezzlement and misconduct charges against Blackwell in 2009 but they were dismissed in January by a judge who ruled Blackwell had authority from the state and city to pay himself.

Worthy has asked the Michigan Court of Appeals to overturn Wayne County Circuit Judge Cynthia Gray Hathaway's action. A decision on whether the court will hear the prosecutor's argument and reinstate the criminal charges is pending.

Assistant Attorney General Michael Murphy had told jurors at the lawsuit trial that during the same period Blackwell told state authorities he couldn't afford to continue the $1 per year deal, he had received "millions" for his stock in Greektown Casino and paid about $1 million for a restaurant in Southfield. Blackwell also testified about winning and losing large sums gambling.

Blackwell's lawyer Ben Gonek told jurors during the lawsuit trial that his client was betrayed by Granholm, who wasn't called as a witness at the trial. Gonek described Blackwell as the "political road kill" left behind at the close of Granholm's administration.

Gonek said this week he will oppose the attorney general's efforts to triple damages, and also will ask the judge to punish the state for even asking.

Gonek also said an appeal of the verdict will be filed with the Michigan Court of Appeals soon, based on his contention that the city should have sued, not the state attorney general.

Blackwell remains the appointed chairman of Highland Park's Police and Fire Commission.

dguthrie@detnews.com

(313) 222-2548

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Source: http://detnews.com/article/20110702/METRO/107020365/1409/rss36

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