Highland Park's state overseer charged with theft

A man appointed by Michigan Gov. Jennifer Granholm to rescue Highland Park from insolvency was charged Wednesday with embezzling $264,000 from the impoverished Detroit enclave.

Arthur Blackwell, 56, was expected to be arraigned Thursday in Highland Park District Court. Wayne County Prosecutor Kym Worthy said Blackwell misused his position by collecting city funds to which he wasn't entitled, and ignored a request to repay it.

"He abused his power to enrich himself," Worthy said.

An attorney for Blackwell, Ben Gonek, said his client committed no crime and a civil court should settle the dispute. Blackwell filed a lawsuit Wednesday in the Michigan Court of Claims saying the state owes him $100,000.

"Each side is claiming they are owed money. There was nothing criminal in this at all," Gonek told The Detroit News.

The state took over Highland Park's finances in 2001, after past pension obligations and an eroding tax base sent the city into deep debt. Granholm put Blackwell in charge of Highland Park's finances in 2005, and he was fired in April over the disputed payments.

Asked whether Blackwell's appointment was a good one, Granholm responded: "I don't support wrongdoing."

The state returned control of Highland Park's finances to local elected officials and department heads in July but said a financial emergency declared in 2001 remained in place.

Blackwell faces four felony charges, including embezzlement of $100,000 or more, embezzlement by a public official and misconduct in office. He also faces a misdemeanor count related to a claim he used public money for himself.

Embezzlement of $100,000 or more is punishable by up to 20 years in prison, while embezzlement by a public official carries up to 10 years in prison. Misconduct in office is punishable by up to five years behind bars.