State Attorney General Nessel takes over Complete Health Park investigation

By Pat Maurer
Correspondent

After more than a year of questions, many still unanswered, the only proof that Clare could be the site for a new health campus in Clare is a sign on top of a hill just west of the Clare North Industrial Park.
The fate of a $25 million grant establishing a “Complete Health Park” north of the City of Clare is still unsure. Now the Inspector General for the Michigan Department of Health and Human Services Director Elizabeth Hertel has turned the investigation over to State Attorney General Dana Nessel who will investigating questions about both the grant and the process used to secure it as well as the distribution of grant funds already released to the non-profit.
The grant funds, awarded to the reportedly non-profit group, “Complete Health Park,” which was developed by Director David Coker, Jr. of Clare, have been frozen by the Michigan DHHS while an investigation into the group, and its leader, is conducted.
The investigation began with an article in the Clare County Review published in the spring of 2022, which reported community concerns and uncovered information about the new park and raising questions about the non-profit group – Complete Health Park, established by David W. Coker, Jr, of Clare in June of 2022.
It garnered state-wide attention after Bridge Michigan, a statewide magazine, saw the Review article and used some of the Review’s information (with permission) to write their own first article (of many) about the grant, those involved and the questions that led to an investigation.
A quote from Rep. Jason Wentworth R-Farwell at that time said, “The new community complex in Clare is a new one-stop shop concept, It brings healthcare services, recreation and community events together in one place. Connecting those services will create new opportunities for the community, make healthcare easier to access and give everyone new options on how to find the care they need.”
Wentworth told Bridge Michigan that Coker, once an aide in his Lansing office, was fired some time in 2019 before he [Wentworth] began working on the concept of a health complex for Clare County and before it was included in the State budget. (According to information from the House, Coker left the state office in 2019.) According to a Bridge article, Wentworth said he had his office email DHHS (The Department of Health and Human Services) telling them to make sure this was a competitive grant process with an open request for proposals.
An April, 2023 article in the Review reported that $3.5 million, a portion of the $10 million grant funds that were released before the investigation began, were used to purchase slightly less than 71 acres from Clare Northern Group on the north side of Clare last year, reportedly as a location for the new health complex.
An owner of Clare Northern Group, Steve Stark, reported that the property, located on the north side of the City, was purchased by David Coker, Jr., representing the nonprofit he established entitled “Complete Health Park”.
Clare Northern Group is owned by Michigan State Representative Tom Kunse, his father Ron Kunse and Stark, his brother-in-law. The sale was made before Kunse was elected in November, 2022 to fill the timed-out seat of Jason Wentworth, who was the former Speaker of the Michigan House. It was finalized just after he took office in January.
The property was originally purchased by Clare Northern Group in 2006, Kunse said. He said, “We sold property to a non-profit, at market valuation, with high hopes for the project. Every entity that has reviewed the facts has concurred that I have done nothing wrong.” He said he sought legal advice before completing the sale. Later he and 34th District State Senator Roger Hauck initiated an investigation into the use of the grant funds after concerns were raised in the community.
In April Kunse said, “However, serious concerns about the development have been brought to our attention by community members which has given us pause. We have proactively shared those concerns with the appropriate officials and will continue to monitor this situation. Protecting taxpayer money is our top priority.”
A June 5th email said he had not received any new information on the investigation. He said, “Unfortunately it’s out of my hands now.”
In an interview April 24th, Wentworth said, “I fought hard for state funding to create an integrated wellness facility in Clare County, and I hope the people running this project handle it correctly. All too often, we are left behind when the state puts real money behind improving access to overall wellness and healthcare. But this plan would create a place where residents can find recreational activities, youth sports, and physical, behavioral, and mental healthcare providers all in a one stop shop. It is even supposed to include low or no-cost entry for low-income families and host regional sporting tournaments to draw families from all over the state to Clare County.”
Wentworth continued, “I secured that appropriation when I was the Speaker of the House before it was turned over to the state health department to do a competitive grant process to ensure a fair and independent bid process. My role ended there, and I was not at all involved in procurement. This initiative could be a major benefit to everyone living in Clare and Northern Michigan.”
Wentworth told Bridge Michigan, a statewide magazine, that Coker, once an aide in his Lansing office, was fired some time before he began working on the concept of a health complex for Clare County and before it was included in the State budget. (According to information from the House, Coker left the state office in 2019.)
Bridge Magazine, in an article by Jonathan Oosting, said that after Kunse heard concerns from Clare County residents about the way the grant money that was allocated for the project was being spent, he and Senator Hauk participated in meetings with the MDHHS officials about the situation, saying “We need to look into this.”
Questions from the Review about who is on the board of directors for the Complete Health Park, the size and scope of the projected project, its design, and more have gone unanswered by Coker, as have other questions about the investigation into the project. Further grant funds were frozen in April until the investigation is complete.
In an email on June 8th replying to a request from the Review, Coker wrote, “I was just told that the MDHHS should be getting with us by next Friday [June 15] with the direction of the project.”
He has not responded to any further emails about the investigation or responded (on the record) to questions including: “Are you the Director, or the Executive Director of the Complete Health Park? Is the investigation complete? And what is the official result? Who is on the Board of Directors? Do you have your non-profit designation from the IRS? Please send correct information on what is planned (not necessarily finalized) for the new health park, what it will possibly encompass – and hopefully a list of amenities. Also, an estimate of the size of the facility (square feet) and an estimate of when construction will begin and when it will be completed.”
Some of those questions have been answered through other sources.
Under the nonprofit status requirements, there’s no record that Form 1023, which is an application as a nonprofit organization with IRS [the US Department of Treasury] was ever filed in spite of the letter requesting it that was sent by the newspaper last June.
A post on “Bizapedia” says Complete Health Park, a Michigan Domestic Non-Profit Corporation was filed on June 2, 2022 (filing number 802867485). The registered agent listed is David W. Coker, Jr., who is reportedly the “director” of the new non-profit.
The resident agent named in the LARA document for the park is David W. Coker, Jr.
The application to MDHHS from Complete Health Park lists a project start date last December and an end date of this fall with a project cost of $25,000,000.
It lists Anthony Demasi, (with a Mt. Pleasant address) as the Program Director; Dave Coker (with a Clare address) as Director; and Shannon Taylor (also of Clare) as Financial Officer. Demasi was taken off the project in February, after federal charges for fraud were filed against him.
Another Board Member – John Gross – resigned after concerns about the project were raised, an article in the Detroit News said.
A requirement of the state funding, the “feasibility study,” (62 pages long dated October 1, 2022) was prepared by Anthony Demasi and Paul Heuschele of Goldman Advisors, LLC/Goldman Advisors Group, LLC in Mt. Pleasant. That Company is also known as Hoya Capital Management, LLC of Mt. Pleasant, according to a LARA Corporations Online Filing System.
Demasi, who is under a recent federal indictment for credit card fraud and has a lengthy record of fraud schemes dating back more than a decade, filed a lawsuit in April against Coker and the Complete Health Park for unpaid work provided by Goldman Advisors Group for work on the project.
According to a Bridge article, the “initial court filing by Goldman Advisors claimed Coker first contacted Demasi about the Complete Health Park project in May, 2021, a year before the grant appeared in the state budget, and that Coker allocated $1.8 million in funding ‘for himself’.” The Bridge article said that a letter from Coker’s Lawyer, Joshua Blanchard, called Demasi ‘a disbarred lawyer and convicted federal fraudster’ and said that he misrepresented himself as legal counsel.
Demasi is represented in the lawsuit by Charles Chamberlain Jr.
Bridge also reported that “before freezing additional grant transfers in late March, the state said it had reimbursed the Complete Health Park nonprofit a total of $233,000 for salary and wages, marketing, space costs, supplies and materials and other miscellaneous costs.”
Coker was also the Agent for State Advising LLC, also included in the health care project, which he established in 2018 and has since turned over to a family member.
Bridge said “the bulk of the initial payout, $5.4 million, was earmarked for the FED Design/Builders of Gladwin as an upfront payment to initiate construction of the planned health and fitness park in Clare…”
The goal for the beginning of construction, according to a Bridge interview with FED president Brock Dennings, is the summer of 2024.
The Grant agreement between the MDHHS and Complete Health Park lists the Budget Period from December 1, 2022 to September 30, 2023 for the “Integrated Wellness Facility Development – 2023. It lists Complete Health Park as the Grantee.
The MDHHS Contract Manager is Darrell Harden, Section Manager. Shannon Taylor is listed as the Grantee’s Financial Contact for the agreement. It lists the Responsible Staff as “Project Coordinator” but does not give a name.
The (proposed) budget listed in that document lists salaries:
*Accountant: $120,000;
*Director: $85,000;
*Secretary: $41,000;
*Consultant: $150,000;
*Attorney: $150,000;
*Executive Director: $150,000; and
*Web Developer: $25,000.
Fringe Benefits total $158,620, and the total for Employee Travel and Training (including air fare, lodging, per diem meals, expenses and conference center fees) totals $29,625.00. Listed for payroll services (Harrison & Newman CPA) and for Audit Services (Weinlander Fitzhugh) are $10,000 each.
Cloud Services and Website costs were listed at $14,500; budgeted for land purchase – $3,750,000; building insurance was $55,000 in the budget; Property Build-out has a budget of $16,520.000; Bowling Alley Equipment was listed at $1,500,000.
An External Consultant is budgeted at $1,450,000.00; auto insurance is listed at $4,000 and meetings at $30,255.00 for a total of other expenses at $1,450.00.
Vehicle and maintenance of a vehicle was listed at $85,000; and aquatic facilities was proposed at $272,000.00, making a total for Capital Expenditures for Equipment and other – $18,377,000.
Program Expenses/Total Direct Expenses are listed at $25,000,000.
Total (proposed) Expenditures added up to $25,000,000.