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Fundraiser for Warren Mayor Fouts prompts campaign finance violation investigation

'It's a blatant display of the rules apply to everyone else except me.'
Posted at 6:23 PM, Feb 20, 2023
and last updated 2023-02-20 23:51:53-05

(WXYZ) — In 2020, nearly 68% of the voters in Warren chose to limit the number of years elected officials could serve in office to no more than three terms. Despite that decision, Mayor Jim Fouts has filed to run for re-election anyway.

And that’s not all. A recent fundraiser he held is now being investigated by both the Secretary of State and the 7 Investigators.

On the snowiest day of the season, while Warren’s mayor was telling his residents to stay off the streets, the Committee to Elect Jim Fouts was hosting a fundraising party for his re-election campaign at a Warren banquet hall.

Even though Warren has a three-term limit rule in its charter, Mayor Fouts has decided to run again for a fifth term.

This invitation for that re-election party on January 25th shows the cost to attend the fundraiser ranged from $125 to $1000.

That same day, Fouts put out a notice declaring a snow emergency for later that night. It even says: “All city employees will be called upon to work mandatory overtime.”

Despite that call for help from staffers, sources have identified several of the mayor’s appointees and employees that our undercover camera captured as they arrived at the fundraiser. City attorneys, the head of the building department, the head of parks and recreation, and the police commissioner all showed up.

Some Warren police officers were even called to the scene during the storm after a woman peacefully picketing Fouts was asked to leave.

City officials say the head of the Department of Public Works and the Department of Public Services director — who oversee the division in charge of snow removal — were also in attendance.

“All hands on deck, except if he has a fundraiser that day,” said Warren resident Tom Craig.

Craig says he isn’t just mad that city employees were allegedly wining and dining while streets and sidewalks needed to be plowed, he says he’s frustrated because the city charter prevents Fouts from running again.

“It's a slap in the face,” said Craig. “It's a blatant display of the rules apply to everyone else except me.”

Craig is one of the 41,319 voters who overwhelmingly passed an amendment to the city charter in 2020 that limits all Warren elected officials — including the mayor —
to just three terms in office.

Fouts was in the middle of his fourth term when the charter was amended.

And even though nearly 68% of the voters approved the term limits, on January 30th Fouts officially filed to run for a fifth term.

“He knows the rules. He just doesn’t seem to think they apply to him,” said Craig.

So Craig filed this complaint with the Secretary of State, alleging the Fouts fundraiser violated campaign finance laws.

The state’s Bureau of Elections is now investigating.

“You can't expend funds if you're not eligible for re-election. He’s not,” said Warren City Council Secretary Mindy Moore.

Moore is one of several council members who regularly spar with Fouts.

“It is very disrespectful [to the voters]. I believe the mayor has said the city is his life and his wife. Well, I think the residents are ready for a divorce,” said Moore.

This memo from Fouts’ City Attorney says term limit rules don’t apply to the mayor because they can’t be applied retroactively. Attorney Ethan Vinson said “voters may not have understood a ‘yes’ vote on the proposal” would have barred Fouts from running again.

“The charter language is clear that it applies to all years previous to the amendment. So, this is just ridiculous,” said Moore.

According to meeting minutes, Vinson’s the legal opinion is what the city clerk relied on to add Fouts to the ballot at an Election Commission meeting held at 7 in the morning last November.

“Nobody knew about it. It was a secret,” said Moore about that meeting. “This is this is unheard of for anybody to get pre-certified before they file for to run for office.”

“It's revolting. It's disgusting. It's close to a subversion of the process,” said St. Clair Shores-based attorney Kurt O’Keefe.

O’Keefe has advocated for term limits all over the U.S. and is the legislative liaison with the Convention of States. He calls the decision to ignore the will of Warren voters disrespectful.

“What he's saying is you voted 2-to-1 to have me not run again. I don't care what you want. I'm too important,” said O’Keefe. “That's not what democracy is supposed to be.”

As for the fundraiser, Fouts says none of the city workers at his fundraiser were responsible for plowing during the snowstorm and he says they got the city cleared in record time.

Tom Craig disagrees.

“There was a snow emergency and everyone was there... including the guy in charge of the snowplows, and the guy in charge of the plowing the snow at the city parks, which didn’t get done for four days after it snowed,” said Craig.

Mayor Fouts would not talk to us on camera, but he did tell the 7 Investigators he thinks he was “grandfathered in” so the term limits rule in the city charter doesn’t apply to him. Meanwhile, the city council is filing a lawsuit to challenge the election commission pre-certifying the mayor to be on the ballot.

If you have a story for Heather, please email her at hcatallo@wxyz.com