Leigh Greden: A Pattern of Conflict of Interest, Influence-Peddling, Misappropriation of Funds and Campaign Finance Law Violation
By Tom Wieder,
Ann Arborites are accustomed to spirited and hard-fought politics worthy of a much larger city. What we seldom see are examples of corruption or serious questions about the personal integrity of our candidates and local officials. Third Ward Councilman Leigh Greden, who is seeking re-election this August, is, unfortunately, an exception to that tradition. He has engaged in a pattern of improper conduct that disqualifies him from continuing to hold public office.
Broadway Village: Conflict of Interest, Influence Peddling and Questionable Campaign Contributions
The Broadway Village project being developed in the “Lowertown” area of Ann Arbor is one of the largest private developments ever undertaken in the city. It needs numerous approvals from the Ann Arbor City Council. The developer of Broadway Village, Strathmore Development Co., is represented by Miller Canfield, the large corporate law firm for which Greden works.
Given this fact, Greden should have nothing whatsoever to do with the Strathmore project. Unfortunately, that has not been the case. In addition, he has taken a large amount of campaign contributions from individuals with an interest in Broadway Village.
Greden’s work at Miller Canfield – representing management in employment matters – has nothing to do with real estate development. Despite this, early in 2006, Greden called Washtenaw County Drain Commissioner Janis Bobrin, asking to set up a meeting for, in his words, “his client,” Strathmore, to discuss flood-plain issues regarding the project.
The meeting was held and included Greden, two representatives of Strathmore, Commissioner Bobrin, Bobrin’s deputy and two City of Ann Arbor employees, who are ultimately accountable to Greden and fellow councilmembers. Though Greden’s client received no special treatment, Greden’s mere presence at such a meeting represents a conflict of interest.
Since Greden’s legal work has nothing to do with this kind of issue, the only reasonable conclusion is that Greden, his client, and/or his bosses at Miller Canfield sought to exploit his status and contacts as a public official.
When first asked about this meeting by a reporter from The Ann Arbor News, Greden denied that he asked for it to be held. When it became apparent that his story would be contradicted, he told a second reporter that he had, indeed, asked for the meeting to be set up at the request of “his client.”
Publicly, Greden has acknowledged the obvious conflict of interest and tried to appear as if he were avoiding it. When a $40 million bond issue came before Council regarding the Strathmore project on June 5, 2006, he abstained from voting. He didn’t mention that he already had worked on behalf of the developer.
Greden received a large amount of campaign contributions for his unsuccessful 2006 State Representative campaign from a dozen people with direct financial interests in the Broadway Village project.
Greden’s earliest contributions included the maximum allowed by state law from the original promoter of Broadway Village, developer Peter Allen and his wife, and from an architect working on the project, Connie Dimond. McKinley Associates, the large landlord and developer, is the leasing agent for Broadway Village. Greden received significant contributions from three members of its Board of Directors.
The most interesting of these contributions is the one from Albert Berriz, CEO of McKinley. According to public records, Berriz has given over $20,000 in recent years to a number of state and federal Republican candidates and committees, including the maximum to George W. Bush, and “not a dime” to any Democratic candidate running for a state or national level position until Greden.
Miller Canfield hosted a Lansing fundraiser for Greden on June 27, 2006. Other than several Miller Canfield attorneys, the only contributors were six individuals associated with developer Strathmore – three principals of the company, two wives of principals and one of its staff attorneys, none of whom lives anywhere near Ann Arbor. Each gave $100, the maximum amount that can be given without listing the contributor’s employer, so none of these contributors was identified in Greden’s finance reports as being associated with Strathmore.
Greden also received $3,000 from Miller Canfield’s Political Action Committee.
Misappropriation of Ann Arbor City Democratic Party Funds
In the spring of 2005 Greden approached the Ann Arbor City Democratic Party Chair Susan Greenberg about the possibility of holding a fundraising event for the Party. The money was to go into a Political Action Committee (PAC) which the Party could use to support local candidates. In an email, Greden described what he had in mind:
“I envision doing exactly what we do for Labor Day picnic - nothing different. People write checks to the Party, and none of the money is ever given to candidates. It’s not a fundraiser for candidates. Instead the City Party spends the money on advertising during the election.
The chair agreed and, just days later, emails were sent to Democrats on the City and County membership lists saying: “The Ann Arbor Democratic Council Members, the Mayor and the Ann Arbor Democratic Party invite you…” and “Come to a fundraiser hosted by the Ann Arbor Democratic Party, the Mayor of Ann Arbor, and the Ann Arbor Democratic City CouncilMembers!” At Greden’s suggestion, a phone bank was set up to invite people to the event. The callers said: “Hello! I’m calling from the Democratic Party here in Ann Arbor. …The Ann Arbor Democratic Party is having a fundraiser and we are inviting all Democrats.”
To receive the money, Greden registered an independent political committee with the Secretary of State called Ann Arbor Democrats Fund (AADF). Greden was listed as Treasurer at his home address. He also opened a bank account in the name of the AADF.
Approximately 70 people attended the event on May 20, 2005. Greden reported to the Secretary of State that the AADF received 68 contributions, totaling $2,558.76. Contributors included at least 16 people who were Democratic elected officials or Party officers.
None of the money collected, and none of the records of the AADF or its bank account, were turned over to Party Chair Greenberg, or any other representative of the City Party. No report was given to party officials regarding the results of the fundraiser.
There were particular circumstances that caused the Party chair not to be more aware of the circumstances surrounding the AADF. During the entire time that the fundraising event was under discussion, her husband was gravely ill. He died just days before the event, she did not attend it, and she did not think about the event again after his death.
Unknown to Party officials and to virtually all of the AADF’s contributors, the AADF began to expend some of its funds. $250 went to the 2005 City Council primary campaign of Steve Rapundalo. Ironically, Rapunadalo’s primary opponent, Eugene Kang, attended the May 20 event and contributed, while Rapundalo did not. $250 went to Rapundalo’s 2005 general election campaign, $200 to Greden’s 2005 campaign for re-election to City Council, and $500 to Chris Easthope’s 2006 primary campaign for City Council.
The Ann Arbor City Party’s Bylaws require it to be neutral in primaries, so giving Party funds to primary candidates is not permitted. Greden claims that a “board” was set up to make the expenditure decisions. He says that it consisted of him, his State Representative campaign manager Margie Teall, his campaign Treasurer Leah Gunn and his Council colleague Chris Easthope.
During his 2006 primary campaign for State Representative, Greden claimed an endorsement from the Ann Arbor Democrats Fund. This sounded like an official entity of the Party and suggested that Greden had official Party support. Many, if not most, of the contributors to the AADF actually supported Greden’s opponent, Rebekah Warren.
Greenberg had never been informed of the AADF’s activities or its claimed board membership. After learning of the history of the AADF and of the details of the money raised and spent, Greenberg wrote to Greden in August, 2006 asking him to pay to the Party the amount received by the AADF at the May, 2005 fundraiser.
It took two more letters and the scheduling of a resolution at a City Party meeting demanding repayment before Greden finally repaid the full amount and surrendered the records of the AADF to the City Party.
Greden told Greenberg that “the funds raised at the fundraiser were not the property of the Party,” and that the funds were not intended for the Party’s use, contradicting everything he had said before the fundraiser. He gave no alternative theory regarding who the money belonged to or what its intended use was.
Greden said that he was raising money for the Party, used the Party’s name and resources to raise it and then denied that it was the Party’s. He used the money to support candidates of his own choosing, including himself, ignored Party neutrality rules and tried to make it look like he was officially endorsed by the Party. When exposed, he had to be pressured to pay the money back to the Party.
Campaign Finance Law Violations
In July 2006, just a few weeks before the State Representative primary, the AADF received $500 in contributions from Greden campaign Treasurer Leah Gunn and her own campaign fund. Gunn had previously donated the maximum allowed by state law to Greden’s campaign - $500. Less than three weeks later, on Primary Election Day, Greden’s campaign reported that it received $500 from the AADF. If the $500 from Gunn was received by the AADF with the understanding that the AADF would give those funds to Greden’s campaign, it would be a violation of Michigan campaign finance law, punishable by a fine up to $1,000 and up to 90 days in jail.
It was only after last summer’s Democratic 53rd District State Representative primary election that Greden’s misappropriation of Ann Arbor City Democratic funds became apparent. It is now clear that his ethical problems exhibit a continuing pattern of improper conduct that disqualifies him from further support by Ann Arbor voters. Clearly the best choice for Third Ward voters on August 7 is his opponent, LuAnne Bullington.
Tom Wieder is an attorney and Ann Arbor City Democratic Party activist for over 35 years.
Leigh Greden recusing himself again:
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