Statement


“PALMER WAS VICTIMIZED BY OTHERS, AND
FALSELY ACCUSED”

There are accusations on the Internet that Palmer was involved in wrongdoing while a member of the Michigan House of Representatives.  These accusations are completely false, and have damaged his reputation. Palmer has retained counsel to seek reparation for these false charges, and has filed the appropriate lawsuit in U.S. Federal court. Anyone who wishes can speak to legal counsel, Frank D. Eaman, can do so at 313-221-1100.

Palmer served this State for more than three decades with distinction and honor, both in the business world and as a State Representative, where he served in Lansing for four terms, seven years, from 2002 through 2008.

During his service in the Michigan State House of Representatives (36th District), he was Majority Whip from 2002-2006. He also served as the Chairman of the Education Committee for four years, and was a ranking majority member of the House Commerce Committee and Tax Policy committees.

Brian Palmer’s Innocent Relationship with API Worldwide, Inc.

In 2006 Palmer was approached by businessmen who had just formed a company known as API Worldwide, Inc. (API). Palmer’s business office staff and attorneys were simply asked to provide sample business document templates in order to assist them in their pending business activities. Unfortunately, believing their business ventures to be legitimate, and because a longtime successful, Grand Rapids businessman who Palmer believed to be honorable, owned the firm, he agreed to have his business (and corporate attorneys) provide assistance and support for their new venture. Palmer wants to make it clear that he was asked to assist companies and businessmen that he believed to be honorable, not in his capacity as a state legislator, but as a debtor, and someone who had been involved in the business world for over 30 years. He had no knowledge at the time that API would eventually be charged with launching a fraudulent business.

Why would Palmer do this, you ask? Well, these men owed one of his businesses a debt in excess of $430,000, and they led him to believe that if they started this new business, they would be able to repay the business debt. The debt was never repaid. as Palmer was deceived by these men, just as were many investors.

Little did Palmer know that by providing simple assistance to businessmen to start up a business, the principals of API, in the course of promoting their business, would claim that he endorsed their investments. This claim was completely false – Palmer NEVER endorsed their business at any time, or their investments, or authorized them to use his name in connection with their business.

When Palmer discovered that principals of API were using his name without his authorization to promote their business, he immediately instructed the principals of API to cease and desist using his name in any of its business dealings. They apparently ignored this request and continued to use his name without authorization. On three occasions, over a period of five years, Palmer instructed his attorneys to send Cease & Desist Letters to the principals at API, demanding they cease using his name in connection with their business. He eventually discovered that they had ignored all of his lawyers’ letters, and continued to use his name without any authorization.

In 2007, Palmer discovered the continued unauthorized use of his name in an email that was sent to his Lansing office by an alleged partner/investor in API. he immediately reported the unauthorized use of my name to Michigan House of Representatives staff, and staff of the Michigan Attorney General’s Office.

Palmer was never intimately involved in any business of API, and had no knowledge of the business strategies being pursued with investors by API. He never advised API or its principals as to investment or solicitation strategy, nor was he ever aware of the fundamentally fraudulent nature of API’s investment business. Palmer never called an investor of API knowingly, never solicited an API investor, never took money from an API investor, and never talked to an API investor from the House floor in Lansing with an API provided cell phone, as claimed. Palmer never made a penny from any API investments; in fact, his businesses lost in excess of $430,000, from a pre-existing business loan to these businessmen, and from additional expenditures made on their behalf.

Brian Palmer – Victimized by API’s Business Activities

Palmer was one of the officially listed victims of the illegal activity of API and its principals, with API or its principals having defaulted on loans made to them by me. A Victim’s Letter that Palmer received on March 27, 2012, from the Attorney General’s Office, signed by Suzan Sanford, Division Chief, Corporate Oversight Division, confirmed his status as a victim of API. Subsequent letters were sent to Palmer by the Attorney General’s Office, requesting submission of documentation of funds that he was owed by API and associates. His business submitted those documents.

Mr. Palmer’s “No Contest” Plea to an Innocuous Minor Misdemeanor and is fined $100

In September 2010, because they owed Palmer’s business substantial funds, API principals provided his office with an API-issued cell phone which was made available to him for approximately six months. This cell phone, which he never requested, was received long after Palmer had left the legislature. He never used a cell phone from API during his tenure as a legislator. In fact, Palmer was one of the state representatives who helped create and enforce the House Caucus leadership rules banning cell phones on the House floor in Lansing.

Palmer admits that his business accepting this cell phone was a mistake on his part, but, again, he accepted the phone without any knowledge of API’s alleged fraudulent activities. He accepted the phone as a good-faith gesture on the part of API, that they had realized they were indebted to his companies, and wanted to keep him informed.

During their investigation of API (in which Palmer completely cooperated, meeting with investigators from the Attorney General’s Office when requested), some individuals in the Attorney General’s Office “added two and two and got five” – they examined the assistance Palmer’s company’s attorneys and professionals initially provided, the apparent continued use of his name by the principals of API, and the fact that Palmer reported that he was sent a cell phone, and somehow came to the flawed conclusion that he must have been involved with API’s alleged fraudulent activity while a state legislator. Nothing could have been further from the truth. The truth is that Palmer NEVER used his position in the House of Representatives to advance the interests of API, and NEVER spoke on an API-provided cell phone while serving in the House.

There was no evidence that Palmer ever violated any securities law or any rule of conduct in the State House of Representatives, because he had done neither. Nonetheless, despite the fact that Palmer was a documented victim of API, and under threat of a misguided prosecution by the Attorney General’s Office, he followed the advice of his attorney, and agreed to plead “no contest” to a minor an innocuous misdemeanor offense, Neglect of Duty by a Public Official, to end the Attorney General’s investigation into any association with API.

Palmer wants to emphasize that this charge in no way accused him of being involved in a “scheme,” and if it had, he never would have pled “no contest” to the minor charge, since he did nothing to knowingly assist any such scheme. He now regrets allowing counsel to convince him to entering this no-contest plea, because of the subsequent sensationalized false press release stemming from an innocuous charge resulting in a $100 fine and minor misdemeanor, which he had only considered to be a nuisance and distraction at the time.

Attorney General’s Press Release: False Attacks on Mr.Palmer for Alleged Neglect Issues He Did Not Participate In

On the heels of his acceptance of a very minor misdemeanor, a Press Release issued by the Michigan Attorney General’s Office on December 20, 2013,  attacked him in ways neither he nor his attorney could possibly have anticipated. When Palmer saw this press release, he was completely astonished, and proceeded to engage legal counsel to address his grievances with the Attorney General concerning this Press Release, which contains many false allegations.

The press release asserts that “Palmer used his position as an elected official to assist Ripley and VanLiere [principals of API] in their ponzi scheme involving API Worldwide, Inc.” This assertion is completely false. The Attorney General’s Press Release also claims that Palmer invested in an unregistered security with API. This assertion, too, is completely and absolutely false. The Attorney General’s Press Release further claims “To circumvent state security laws, Palmer assisted Ripley by providing documents to make the scheme appear legitimate and signed investment guarantees for API.” This assertion is also completely false. The template “documents” forwarded were sent by his business office on one occasion in 2006, as originally provided to Palmer’s office by his accountants and attorneys, and were standard samples of generic loan agreements. These forms were not provided by Palmer’s staff and attorneys for the purpose of borrowing funds from others or receiving funds from investors, or in any way establishing an unregistered securities or a financial scheme.

Palmer is now demanding from the Attorney General that he remove this press release from his website, retract the false allegations, and apologize for accusing Palmer of things he did not do. Particularly, we are demanding that the Attorney General affirm the following:

•Palmer NEVER used my position as an elected official to assist the ringleader of a $9 million Ponzi scheme.

•Palmer  NEVER violated any securities law.

•Palmer NEVER called an investor in API knowingly.

•Palmer NEVER promoted, recommended or endorsed API investments to an API investor, and NEVER solicited an API investor.

•Palmer NEVER received any money from an API investor.

•Palmer NEVER signed any investment guarantee with respect to the targeted API company, owned by Mr. Doug Kacos.

•Palmer NEVER spoke to an API investor from the House floor in Lansing.

•And, most importantly, Palmer NEVER provided any knowing assistance to a Ponzi scheme.

The damage done to Palmer’s reputation by this press release was significant. The name “Brian Palmer” and “ponzi scheme” have been linked together as a result of this false press release. However, there is absolutely no basis in fact whatsoever to believe that he EVER assisted anyone in any alleged “ponzi scheme.”