Judge freezes nearly $6,900 a month pension of ex-Macomb County prosecutor Eric Smith

A circuit court judge froze a nearly $6,900-a-month pension that ex-Macomb County prosecutor Eric Smith has been receiving since 2020.

The Michigan Attorney General's Office requested the pensions of Smith and his former chief of operations Derek Miller be frozen in a petition filed in the embezzlement case, which involves the misuse of drug and forfeiture funds in the prosecutor's office.

Oakland County Circuit Judge Nanci Grant, who is handling the case after Macomb circuit judges disqualified themselves, signed a freeze order Friday, according to court records.

The order freezes any retirement benefit associated with or payable by the Macomb County Employees Retirement System (MCERS) for Smith or Miller until further order of the court.

Authorities said Smith and Miller were participants inMCERS prior to their resignations from the prosecutor's office. Smith resigned March 30, 2020, less than a week after he was charged in the embezzlement probe. Miller resigned last month.

The Attorney General's Office said Smith had been collecting a pension or benefit from MCERS, including for the time after 2012 when it alleges the embezzlement began.

Smith was collecting $6,897 per month and also had already received $116,134 in an annuity cash payout from the retirement system, according to court records, which state: "(h)e withdrew this on February 29, 2020 .... This is after (Michigan State Police's) criminal investigation became known, which was at latest by April 8, 2019 when MSP notified the County of its criminal investigation and requested ceasing its parallel investigation."

"The benefit Smith is now collecting was funded by the taxpayers," court records state. He began drawing the monthly pension check of $6,897 effective April 3, 2020, according to court records.

John Dakmak, one of Smith's attorneys, said he didn't know the petition was filed and the Attorney General's Office presented it without defense attorneys present.

"We weren't given the opportunity to respond by statute," he told the Free Press on Wednesday. "I suppose the attorney general is allowed to do this. It's a temporary freeze order during the pendency of this case. There is no final determination at this time."

More: Ex-Macomb County Prosecutor Eric Smith arraigned in embezzlement case

More: Oakland County judge assigned embezzlement case of ex-Macomb prosecutor Eric Smith

The Attorney General's Office said it is authorized by statute to seek an order freezing a defendant's retirement benefit. It indicates that state law says that if a defendant who is convicted or pleads either guilty or no contest to certain felonies related to service as a public employee, "a court must forfeit his retirement benefit," according to court records.

Smith and Miller were bound over to circuit court in the embezzlement case Feb. 4. Smith was sentenced Feb. 16 to 21 months in federal prison in an unrelated case in which he was accused of stealing money from his campaign fund in a kickback scheme that operated while he was prosecutor.

Dakmak said freezing Smith's pension "is of great concern" for Smith's wife and three children.

"He paid into that program. He had filed for retirement as allowed," Dakmak said of Smith. "I presume anybody that suddenly loses $6,800 a month (that) is going to cause concern for those who rely on it."

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

Court records state Miller, 38, may seek to collect or withdraw money from MCERS, adding "(i)f he does not, a freeze order does not impact him, and thus a mere prudent precaution that does not prejudice him."

Miller's attorney, Steve Fishman, could not be reached for comment.

The Attorney General's Office said in court records that payments by MCERS "drains monies from the retirement system. Payment of any benefit is a loss to the retirement system."

"Smith is now being paid a pension based on time after 2012, when he began committing his crimes. He also took cash from the retirement system, evincing intent to avoid a forfeiture order," according to the records.

Smith is facing 10 counts in the embezzlement case and Miller is facing two charges. They are to return to court April 13.

Smith, 55, is accused of embezzling hundreds of thousands of dollars from his former office's drug and forfeiture funds for personal and unauthorized business expenses, including a security system at his Macomb Township home, donations to churches and gifts for employees.

Two others snared in the probe have pleaded guilty and are awaiting sentencing.

More: Former Macomb chief assistant prosecutor pleads guilty to misdemeanors

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

Smith served as prosecutor for more than 15 years and as an assistant prosecutor for many more years before that. Miller also is a former county treasurer.

Assistant Attorney General Michael Frezza told the judge during an arraignment earlier this month that his office had not heard from Smith's attorneys concerning any plea negotiations but that it had some preliminary discussions with Miller's attorney.

Fishman, who represents Miller, told the court at that time "in all likelihood" he would be filing a motion to quash.

Smith is to report to the U.S. Marshals within 90 days of his sentencing in mid-February in U.S. District Court in Detroit. He pleaded guilty to obstruction of justice charges in federal court in January 2021 after being accused of stealing just under $75,000 from his campaign fund from 2012 to 2019.

More: Prosecutor suspended for role in kickback scheme in Macomb County

More: Ex-Macomb official Dino Bucci dies 5 months before sentencing in federal corruption case

Smith also was sentenced to immediately pay a $20,000 fine, to be supervised for 18 months upon release from federal prison and to forfeit $69,950 he received from the kickback scheme.

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

Support local journalism. Subscribe to the Free Press.

This article originally appeared on Detroit Free Press: Judge freezes Ex-Macomb prosecutor's nearly $6,900 a month pension