Records: State worker embezzled $1.5 million from environment, energy department
LANSING — A former state worker is accused of embezzling $1.5 million from the Department of Environment, Great Lakes, and Energy.
As a part of his job as an environmental quality specialist, Joseph Pettit, 49, of Lansing, helped facilitate the posting of bond money from companies that wanted to drill or operate a mineral well in Michigan, a Michigan State Police trooper wrote in an affidavit that led to criminal charges. He also would help return bond money to those companies when the well changed owners or if operations stopped.
Pettit is accused of creating fake vendor accounts and passing hundreds of thousands of dollars of legitimately posted bond through to his personal bank accounts, according to police. The companies were usually long-term well operators or defunct companies that forfeited the bonds and likely wouldn't discover the bond had been cashed, according to police.
His attorney, Stuart Shafer, did not immediately respond for comment.
From 2018 to 2020, Pettit is accused of doing this 18 times, totaling $855,690, according to court records.
Officials suspect losses from 2013 through 2016 as well, but are not able to prosecute those because of the statute of limitations, according to a news release from the Michigan Attorney General's Office.
"This case is a reminder that my office treats it very seriously when anyone abuses the system for their own gain,” Attorney General Dana Nessel said in a statement. “I am grateful to EGLE for their cooperation and diligence in ensuring those who violate the public trust are held accountable and in working to ensure something like this never happens again.”
Pettit also is accused of forging direct voucher requests and passing them off as true so the Michigan Department of Treasury would pay him, according to records. Records say he did this four times in 2019.
In total, Pettit is accused of embezzling about $1.5 million from the state. He had worked for EGLE since 1996.
EGLE became aware of potential discrepancies in September and contacted Michigan State Police to begin an investigation, according to a news release from the AG's office.
“Our discovery of potential crimes was immediately referred to law enforcement, and we continue to provide them everything they need to ensure justice is done on behalf of the State of Michigan,” Liesl Clark, EGLE director, said in a statement provided in the news release. “We are also doing everything we can to prevent this from occurring again, including strengthening internal financial controls to provide even greater checks and balances against fraud.”
Pettit is charged with three counts of embezzling $100,000 or more, four counts of uttering and publishing and one count of using a computer to commit a crime.
“We hold ourselves to the highest standards of government ethics at EGLE and that starts with vigilantly stewarding public funds,” Clark said in a statement. “So when an employee disregards department values and violates the public trust, it harms not only Michigan’s 10 million residents who count on us to use their resources wisely to protect the environment and public health, but also fellow members of the EGLE team who dedicate their lives to that mission."
Pettit was hired by the Michigan Department of Health and Human Services in January 2020, said spokesperson Bob Wheaton. He recently was on unpaid medical leave until the department was made aware of the charges and since has been placed on an unpaid suspension pending the outcome of the charges.
Contact reporter Kara Berg at 517-377-1113 or kberg@lsj.com. Follow her on Twitter @karaberg95