Subpoenas released in Detroit Land Bank investigation

Posted at 3:52 PM, Dec 30, 2016
and last updated 2016-12-30 18:36:43-05

Two subpoenas were released today in the federal investigation into spending at the Detroit Land Bank.

They reveal more than 30 people associated with the demo program who's emails, texts and phone records were requested in the FBI probe--putting into perspective the scope of the investigation.     

Top executives from the Duggan administration and Land Bank are named.

"The federal government is truly looking at key figures in Mike Duggan's administration," said critic and activist Robert Davis.

Davis went to court to fight for the documents release.

"Because its public money involved, the public has a right to know how its being spent or misspent," Davis continued.

Despite protests from the feds, a judge ruled in his favor.

Sources tell Action News demo bids are a big focus of the investigation.

This fall, an audit found almost a million bucks improperly billed to cover up demo work overages, not covered by federal funds.

That's in addition to this federal investigation into overall practices.

The funds continue to flow, but are under tighter scrutiny now.

The land bank released a statement responding to today's news:

An administrative subpoena is a mechanism used to obtain documents and both the DLBA and the DBA have fully cooperated and complied with the request.  We will continue to do so.   In cooperation with SIGTARP, the DLBA withheld the subpoena based on the ongoing nature of the investigation.   The December hearing before Judge Allen gave us clear guidance and we are releasing the subpoena in accordance with Judge Allen’s Opinion and Order.