Former Macomb treasurer Derek Miller pleads guilty in embezzlement case

A former Macomb County treasurer, who also served as chief of operations for ex-Prosecutor Eric Smith, pleaded guilty Wednesday to a misdemeanor charge in the forfeiture fund embezzlement case that centers around his former boss.

Derek Miller, 38, is the third defendant to plead in the case after businessman William Weber and Smith's former chief assistant prosecutor, Benjamin Liston. Weber and Liston pleaded guilty in 41-B District Court in Clinton Township a year or more ago and are awaiting sentencing.

Miller, who resigned from the county in February, pleaded guilty to the 90-day misdemeanor charge of a public official refusing/neglecting to account for county money.

A sentencing date of Aug. 10 is set, but that date may be adjourned if Smith's case isn't wrapped up by then. As part of his plea, Miller is agreeing to testify, if necessary, at all future proceedings in the case against Smith.

If the plea is accepted by the court and Miller fulfills the terms in the plea agreement, the state attorney general, at sentencing, will dismiss the two felony charges against Miller, according to the agreement. Miller "will not be sentenced to incarceration, and the People will not object to Defendant's request for relief under MCL 771.1(2)," which deals with probation and delayed sentencing and could see the eventual dismissal of the case.

Miller briefly answered yes or no questions posed to him from the judge and the state prosecutor about the signed plea agreement.

Oakland County Circuit Judge Nanci Grant, who is handling the cases after Macomb County judges recused themselves, previously denied a motion to quash the two felonies against Miller.

Prosecutors allege Miller suggested changing the Employer Identification Numbers on the accounts in question.

According to the plea agreement, Miller said to Smith and others in June 2018 that the numbers on two of the accounts could be changed to numbers that were not associated with the county.

It states Miller "further acknowledges as true and will testify that the purpose of changing the EINs of these accounts was to secret or hide from the Macomb County Treasurer, the Macomb County Department of Finance, the external accounting auditor for Macomb County, the Macomb County Board of Commissioners, and ultimately the public, the financial specifics or facts concerning these accounts holding public county funds and to refuse the accounting of these public monies, in violation of law."

It states Miller "also acknowledges as true and will testify that Eric Smith agreed to this scheme or conspiracy" and requested Miller to go to the bank holding these accounts with Smith's former administrative secretary, which Miller did.

The plea agreement also states Miller "acknowledges and will testify that later, in November of 2018, he verbally refused the Macomb County treasurer's request to change these accounts EINs back to county-associated EINs, and further refused to transfer these accounts to the county treasurer's custody, in violation of law."

More: Ex-Macomb prosecutor Eric Smith at sentencing says he made very poor decisions, choices

More: Former Macomb chief assistant prosecutor pleads guilty to misdemeanors

Smith is facing 10 charges in the probe, with state prosecutors alleging he embezzled hundreds of thousands of dollars from his former office's drug and forfeiture funds for personal and unauthorized business expenses during the course of several years.

In April, one of his attorneys, John Dakmak, told Grant there have been some conversations about a potential resolution in the case.

Assistant Attorney General Michael Frezza on Wednesday requested another pretrial be set should an agreement be reached with Smith, though he said prosecutors don't have one at this time.

A pretrial is set for June 29, the day before Smith, 55, of Macomb Township, is to surrender to the Federal Bureau of Prisons in an unrelated federal case in which he pleaded guilty to obstruction of justice charges after he was accused of stealing money from his campaign fund in a kickback scheme.

Last month, a federal court judge in Detroit signed an order for a new date for Smith to surrender to federal prison — on or after June 15, but no later than June 30.

Smith was sentenced Feb. 16 to 21 months in federal prison and initially was to report within 90 days of his sentencing, or in mid-May. He pleaded guilty in federal court in January 2021 after being accused of stealing just under $75,000 from his campaign fund from 2012 to 2019.

More: Ex-Macomb prosecutor Eric Smith is a free man for a little longer

The delay for Smith to surrender was made because his attorneys didn't have a "clear status" of his embezzlement case, Dakmak previously told the Free Press.

Dakmak asked Grant on Wednesday if both sides could appear before her before the June 29 court date if there is cause. Grant said that would be no problem and "that's a phone call away." A final pretrial date was set for Aug. 24.

Dakmak previously acknowledged the request with the federal court was "not the norm, but each case is its own circumstances and characteristics. It's appreciated when a judge considers the uniqueness of any particular case."

Smith served as a longtime prosecutor in Michigan's third-most populous county, overseeing everything from low-level misdemeanors to notorious cases, including Stephen Grant, who killed and dismembered his wife in a case that made national headlines.

He resigned on March 30, 2020, less than a week after he was charged in the embezzlement probe.

Liston pleaded guilty to three misdemeanor charges of willful neglect of duty by a public officer holding public trust in September 2020. State prosecutors said he used some of the funds for personal laptops, travel expenses to his Arizona residence and a piece of sound equipment.

As part of the plea agreement, Liston will be sentenced to 60 days in the county jail, will relinquish his law license in Michigan and will pay nearly $16,000 in restitution to the county. He also has to cooperate in the ongoing prosecution of the embezzlement case, including to testify truthfully about Smith.

Four felony charges filed against Liston will be dropped as part of the plea agreement that he signed.

More: Businessman: Ex-Macomb prosecutor tried to 'disguise' security work done at his home

Weber, owner of Weber Security Group, pleaded guilty in June 2021 to a misdemeanor charge of conspiracy to commit a legal act in an illegal manner. He admitted to falsifying an invoice at Smith's request for a security system installation at Smith's home to make it appear that it was installed at the prosecutor's office in Mount Clemens.

The Attorney General's Office said Smith asked Weber to produce the false invoice in response to a subpoena in a pending circuit court action.

Contact Christina Hall: chall@freepress.com. Follow her on Twitter: @challreporter.

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This article originally appeared on Detroit Free Press: Ex-Macomb treasurer Derek Miller pleads guilty in embezzlement case