Ex-Macomb Prosecutor Smith gets 1 day in jail for corruption; critics call it a 'joke'

Pontiac — Former Macomb County Prosecutor Eric Smith on Wednesday was sentenced in Oakland County Circuit Court to one day in jail with the time already served and four years probation for embezzling forfeiture funds, which critics quickly labeled "a joke."

Smith, 56, walked out of court as a free man after he faced up to 12 months in jail after pleading guilty to state charges last month of official misconduct in office, tampering with evidence and conspiracy to commit forgery. The plea was part of a deal offered by the office of Michigan Attorney General Dana Nessel that dropped seven of the initial counts against Smith, a fellow Democrat.

Smith also is required to pay $25,000 in restitution, an $8,000 fine for committing misconduct in office and complete 750 hours of community service. Oakland County Circuit Judge Nanci Grant signed an order requiring Smith to forfeit a large portion of his pension.

Smith apologized to the people of Macomb County in court Wednesday afternoon but said none of the drunken driving forfeiture funds went directly to him. The former prosecutor also insisted the state's prosecution reflected a "disagreement about how money should be spent."

"It's a pretty good deal for him," said Grant, who was assigned the case after all Macomb County Circuit judges recused themselves. "If the chief goal was to remove him from his position of power because he was corrupt, I believe that that was done."

"The reason people say what they do about politicians is just for this reason. For those of us who are doing everything possible to abide by the law, be ethical, be moral — it just takes one person to taint us all."

Smith resigned three and a half years ago after a Michigan State Police investigation revealed that he had embezzled over $600,000 in drug and drunken driving forfeiture funds intended for law enforcement. Smith used the money to install a personal home security system from Weber Security Inc., throw parties and buy gifts. He has since been disbarred as a lawyer, and the $25,000 restitution will go toward the Macomb County Prosecutor’s drug and operating while intoxicated forfeiture accounts.

In court last month, Smith admitted to acting with corrupt intent and spending money in accounts under his control in ways "other than was permitted by law" on multiple occasions starting in 2014. He also acknowledged tampering with evidence and planning to forge documents after the Macomb County Circuit Court subpoenaed Weber Security Inc. for invoices paid using forfeiture funds.

Smith had planned to create a falsified invoice for the installation of a security system at his office to hide that it was installed at his personal residence, according to the state. He worked with William Weber, owner of Weber Security Inc., who already pleaded guilty to related offenses and cooperated in Smith's prosecution.

Macomb County Commissioner James Perna, R-Clinton Township, said Smith's sentence sends the wrong message.

"Nobody wants to go to jail, but if you do wrong, you gotta pay the price. I think it's a joke," Perna said. "I don't think that what Eric got was fair to the voters of Michigan and especially Macomb County."

He was joined by state Sen. Jim Runestad, R-White Lake, who has argued Nessel offered Smith a "sweetheart deal."

"There is no justice in this deal," Runestad said in a news release. "The people of Michigan, and especially the residents of Macomb County, deserve full restitution for the stolen and misappropriated funds. Mr. Smith should have been prosecuted to the fullest extent of the law."

Nessel criticizes pension decision

Nessel defended the deal while noting at the time of his plea that Smith "severely abused his position of power. She had asked that all of Smith's $82,000-a-year pension be forfeited, but Grant allowed him to keep much of it. The pension will be reduced by $25,600, Assistant Attorney General Mike Frezza indicated in court, meaning it will be about $46,000 annually.

The Public Employee Retirement Benefits Forfeiture Act only allows for the forfeiture of pension benefits accrued after the first act that resulted in a conviction, which in Smith's case was in March 2014, the attorney general said in a news release, adding that Smith's being allowed to retain any portion of his pension demonstrates that the law is "badly inadequate."

"I would encourage our legislative partners to revisit the statute that has limited our prosecutorial ability to remove the full pension benefits of such a prolific thief of public dollars and public trust," Nessel said Wednesday.

Smith was elected as Macomb County prosecutor in 2004 and resigned in March 2020 as federal corruption charges were looming. He previously pleaded guilty to federal charges of obstructing justice in 2021 after an FBI investigation found that he used $75,000 in campaign funds for personal use and pressured a friend and two colleagues to lie to federal officials. He served over 300 days in federal prison and was released to confinement in January.

"You (Smith) have already served time. Frankly, whether I think you should have served more time is not up to me," said Grant, adding that she has received threats regarding Smith's plea deal.

A 'disagreement' about spending

Smith apologized in court Wednesday afternoon but said he didn't directly receive any of the drunken driving forfeiture funds that were spent. Funds were used to throw an office Christmas party, purchase an advertisement in the Fraser High School yearbook, cover funeral expenses for a close relation of an office employee, purchase iPads for his children's classmates and donate to churches fighting drug abuse, homelessness and domestic violence, according to Smith and his attorney, John Dakmak.

"I'm being prosecuted for trying to prevent crime," said Smith, referring to the money spent on churches and to fight domestic violence and homelessness. "It just drives me crazy."

The former prosecutor said he had the home security system installed after a defendant appeared on his front lawn, which he felt endangered his family.

"This is a disagreement about how money should be spent," Smith said. "I apologize, but it's not my responsibility to put my family's life at risk to protect the county."

When asked why the paperwork suggested the security system was installed at Smith's office, rather than his home, he said, "You have to ask Bill Weber why he did it. I don't know why he did that." Smith has been ordered to have no contact with Weber.

"It never happened that way," Smith said. "There's plenty of things that I could have done better. ... But none of this was done by me in a closed door."

Grant said she has received threats over the years, but it has never occurred to her to ask the county to pay for a personal security system or gifts for her staff.

Why Smith avoided a trial

After the sentencing, Smith told reporters he accepted the plea deal to avoid putting his family through a public trial.

"Today, I walk out a courtroom paying $25,000, which is more than I should pay because no money was taken," Smith said. "But then I'm free. This is all behind me. ... I gotta protect my family like I tried to do with my home security system, but I got prosecuted for it."

The former prosecutor said he could have fought the charges, but the state had cut off his main source of income when his pension payments were frozen.

"And then how much is how much is the trial costs? Hundreds of thousands of dollars."

During the sentencing, Assistant Attorney General Frezza noted that the public was "protected ... from further harm" when Smith resigned within days of the Attorney General's office filing criminal charges. He noted last month that Smith lost his law license.

Frezza also argued that roughly $12,200 of the county's funds went directly to Smith in the form of the home security system and campaign expenditures.

"(The restitution) will more than double that," Frezza said.

He also requested that the court impose five years of probation and $25,000 in fines. Grant cut a year off the probation request and $17,000 from the recommended fine.

The sentence didn't satisfy Macomb County Commissioner Don VanSyckel, R-Sterling Heights, who said Smith "blatantly" broke the law as the county's chief law enforcement official, and the plea deal didn't hold him to a "high standard."

VanSyckel added that forcing Smith to pay $25,000 in restitution was not "very much of a deterrent to keep our public officials on the straight and narrow."

hmackay@detroitnews.com