Former House Speaker Aide Accused of Embezzling State Grant Money for Health Park Project

Prosecutor Says Legislative Aide 'Enriched Himself' With $820,000 in Public Funds

David Coker Jr., a Clare businessman who once served as an aide to Michigan House Speaker Jason Wentworth, faces felony embezzlement charges after prosecutors allege he misused more than $820,000 of state grant money intended to build a health and wellness park.

Assistant Attorney General Kelli Megyesi told Lansing 54-A District Court Judge Kristen D. Simmons Wednesday that Coker "enriched himself" through the Complete Health Park project, spending grant funds on personal vehicle loans, precious metals, and land purchases.

In the week after Michigan wired nearly $10 million to a nonprofit tasked with building a health and wellness park in Clare, the man who pushed for the project used more than $71,000 of the grant money to pay off three vehicle loans and spent another $77,000 at a car dealership, according to court testimony.

Coker has pleaded not guilty to multiple felony counts including embezzlement of $100,000 or more, abuse of public money, and acquiring or maintaining a criminal enterprise. The charges carry a potential sentence of up to 20 years in prison.

How Money Allegedly Flowed Through Coker's Business Interests

According to court testimony, Coker transferred money through IW Consulting, a limited liability company he owns and operates. State forensic accountant Alex Ungren testified that he flagged "questionable" fund transfers because they exceeded the $212,000 threshold that the state grant allowed Coker to make annually from the project.

The roughly $630,000 tracked by Ungren was far in excess of what may have been allowed. Coker's spending allegedly included:

• Over $71,000 to pay off three vehicle loans
• Another $77,000 at a car dealership
• Nearly $200,000 on land along M-10 in Farwell
• Purchases of precious metals and coins

All told, Megyesi said Coker controlled more than $820,000 of the roughly $9.9 million the state sent to Complete Health Park on Jan. 9, 2023.

Defense Argues No Attempt to Hide Consulting Arrangement

Defense attorney Joshua Blanchard told the judge in Wednesday's hearing that Coker's spending was immaterial because the health park's nonprofit board had approved a contract with Coker's consulting firm.

There never was an attempt by Mr. Coker to hide (his role) with IW Consulting. The (health park) board knew about it, Blanchard said.

Blanchard argued that Darrell Harden, a state Department of Health and Human Services grant administrator assigned to the Complete Health Park project, never asked if IW Consulting was tied to Coker. When Harden eventually did ask for the contract between IW Consulting and the nonprofit, Coker gave it to him.

Coker's attorney said the state's corporation records show Coker was the principal behind the company since 2020.

There are no secrets about it. He was never asked about it by HHS, Blanchard said.

Prosecutors Highlight Duty to Disclose Conflicts

However, Harden testified in an earlier hearing that Coker told him he "was not making any money on the project." Prosecutors noted the grant agreement with the state says it was the duty of Complete Health Park to "immediately notify" the state of any conflicts of interest.

Megyesi said the conflict was clear: Coker, who drafted and signed invoices for IW Consulting on behalf of the Complete Health Park, wore too many hats.

He "ran all the meetings" of the nonprofit that received the grant and approved his consulting fees, Megyesi said, alleging he had purposely appointed board members with limited knowledge of financial matters and pushed an agenda that benefitted him.

Michigan Attorney General Dana Nessel's office led a two-year investigation into a $25 million state budget earmark for a health park in Clare.

Additional Allegations Include Concealing Criminal History

The testimony Tuesday included details on how money allegedly flowed from the Complete Health Park nonprofit to accounts controlled by Coker and his family across two different financial institutions.

Megyesi also said Coker failed to inform state officials about a past criminal conviction of Anthony Demasi, who helped him draft a feasibility study for the project. Coker sent $150,000 to a foundation controlled by Demasi on Jan. 9, 2023, the day the health park received its infusion of state money.

Coker was charged with various crimes last May after state police raided his home in Clare.

Judge to Decide Whether Case Goes to Trial

Judge Kristin D. Simmons will decide next month whether there is enough evidence to send the case to trial, Blanchard said. Simmons has been asked to rule that enough evidence exists for a trial, a decision she said she'll make May 7.

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