Former Michigan House Aide Accused of Embezzling $820,000 in State Grant for Clare Health Park

A former legislative aide to a Michigan Republican House speaker is facing felony charges after prosecutors say he embezzled over $820,000 from a $25 million state grant intended to build a health and wellness park in Clare.

David Coker Jr., who served as an aide to then-House Speaker Jason Wentworth, transferred money through a consulting firm he owned and spent it on personal vehicle loans, precious metals, and land in rural Clare County, according to court testimony in Lansing.

"His non-disclosure was an attempt to defraud and cheat," Assistant Attorney General Kelli Megyasi told 54-A District Judge Kristen Simmons at the close of a two-day preliminary examination to establish probable cause for embezzlement charges against Coker.

The case involves Complete Health Park, a nonprofit project that received an initial installment of $9.9 million from the state in January 2023. About $820,000 of that was transferred to Coker's consulting business, IW Consulting, shortly after.

A forensic accountant working for Attorney General Dana Nessel's office testified that Coker spent some of the roughly $820,000 in consulting fees on car payments, gold and rare coins, as well as land in Farwell in rural Clare County.

"The money used to make that payment came from money from the state of Michigan grant," Alex Ungren, the forensic accountant, said during the March 17 hearing.

Ungren also noted that Coker spent more than $10,000 at a bullion store and about $15,000 at a rare coin store from his personal bank account. After Coker was initially charged last May, Nessel's office said it seized several silver bars from Coker's home that ranged in weight from 10 ounces to 100 ounces, platinum bars, silver bullets, and American Eagle buffalo and gold proof coins.

The Legal Case

Coker was charged by Nessel's office last May with seven counts in relation to the $25 million earmark grant, which was sponsored by Wentworth in the fiscal year 2023 state budget.

The charged counts include:

• Criminal enterprise
• Three counts of false pretense of $100,000 or more
• Two counts of embezzlement of $100,000 or more
• A violation of the state's safekeeping of public moneys law

The embezzlement charges carry a penalty of up to 20 years in prison.

Coker's attorney, Josh Blanchard, rejected the prosecution's arguments, noting that Coker was transparent when asked about his ownership of IW Consulting, which received $820,000 for alleged work related to the project.

"I don't see how it can be embezzlement when the principal knew of the transfer and signed a contract saying we will make that payment," Blanchard said.

Coker acknowledged his involvement with IW Consulting when asked about it by the Michigan Department of Health and Human Services and the nonprofit board was aware of Coker's involvement when they approved a contract between Complete Health Park and IW Consulting.

Consulting Fees and Salary Caps

The contract contained provisions barring Coker, as an employee of Complete Health Park, from earning more than the state's executive level II pay — about $212,000. The $300,000 transfer alone would have eclipsed that, according to the attorney general's office.

Blanchard argued Coker wasn't an employee of Complete Health Park; instead, he was a contractor to the organization not subject to the salary cap. Blanchard said the payment consisted of about $182,000 for a feasibility study and $638,000 for an agreed-upon 7% consulting fee.

"If the money was legally received by IW Consulting, what happened with it after that is none of the state's business," Blanchard said.

State Officials and Nonprofit Oversight

Darrell Harden, a state Department of Health and Human Services grant administrator assigned to shepherd the Complete Health Park grant, testified that Coker told him he "was not making any money on the project."

Harden also testified in an earlier hearing that Coker told him he was not making any money on the project. However, 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 — that 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.

Nonprofit Board Oversight

Shannon Taylor, a local Clare accountant who signed off on Complete Health Park's initial financial status report to the state in December 2022, told the judge she "was far too trusting and didn't ask a lot of questions."

Taylor said she had been approached by Coker, who was an acquaintance in Clare, to help with accounting for the health park project. She ultimately declined in January 2023 because she felt she didn't have the experience needed.

"I didn't ask a lot of questions because I didn't know the questions to ask because this is way out of my league," Taylor said.

She said she signed off on a financial status report in December 2022 as a "placeholder" until the company found an official, permanent accountant. She said she hadn't actually reviewed the report but understood it to be a projection of how the project dollars may be spent.

Timeline of Events

The state planned to spend $25 million on the health park through an earmark added to a state budget by Wentworth in 2022. Two days after Bridge Michigan first asked about the grant in May 2023, the state said it had paused all spending amid "red flags."

Coker was charged with various crimes last May after state police raided his home in Clare. He has pleaded not guilty to the charges.

Judge Kristin D. Simmons is scheduled to announce her decision on May 7 on whether Coker should go on trial for his alleged crimes in circuit court.

Coker's purchases included paying off three vehicle loans and spending money at a car dealership. In April 2023, he spent nearly $200,000 on land along M-10 in Farwell.

Broader Context

The case has drawn attention from Michigan lawmakers and media outlets. Coker's former nonprofit board reportedly approved a contract with IW Consulting that paid him 7% of the project's cost.

The prosecution argues Coker handpicked an inexperienced nonprofit board and initial accountant who could be guided to approve a lucrative contract for IW Consulting.

Next Steps

The state has seized evidence including silver bars, platinum bars, silver bullets, and American Eagle buffalo and gold proof coins from Coker's home.

Judge Simmons will decide next month whether there is enough evidence to send the case to trial. Coker maintains he was transparent about his consulting arrangements and that the nonprofit board approved payments to his firm.

The case highlights concerns about conflict of interest disclosures and oversight of state grant recipients in Michigan.