Former Rep. Brian Palmer pleads no contest in Ponzi scheme

Former state Rep. Brian Palmer, a Romeo Republican, pleaded no contest Friday to neglect of duty by a public official, the Michigan Attorney General’s office announced.
Palmer, 64, of Romeo, entered the plea in connection with his role (while serving in the Legislature) in assisting two other men operate a $9 million Ponzi scheme that defrauded more than 150 persons between 2006 and 2012, the attorney general said.

A no-contest plea means the accused neither admits nor denies wrongdoing. The plea is treated as a guilty plea for purposes of sentencing. Palmer was sentenced Friday on the misdemeanor charge to one year probation and ordered to perform 320 hours of community service. He also was ordered to pay fines, fees and court costs totaling $405. 

“Public officials are sworn to uphold the law,” said Attorney General Bill Schuette. “Those who break the public trust should face the consequences.”

Palmer, who served in the House from 2002-08, participated in a scam in which he used his position as an elected official to assist operators Jeffrey Ripley, 61, of Sparta, and Danny VanLiere, 62, of Grand Rapids, in operating as API Worldwide, Inc. The firm promised huge returns on investments but never delivered. 

Prior to his involvement with API, Palmer had invested $400,000 with Ripley on an unregistered security, authorities said. Ripley lost Palmer’s $400,000 but he assured the former Bruce Township board member that he would get his money back if Palmer helped him with API.
Palmer met with potential investors on behalf of Ripley and API. With the knowledge that Ripley was attempting to circumvent the Securities Act, Palmer did not report the conduct to proper authorities.