ESCANABA — No charges will be filed by the city of Escanaba against suspects accused of stealing nearly $29,000 during a failed redevelopment project for the site of the former Delta County Jail.

The $28,949.14 worth of funds related to a state grant went missing during the city’s relationship with Proxima Management Group, which had publicly stated its intent to build a $23 million hotel and mixed-use development on the sites of the former jail and Delta County Chamber of Commerce. As part of the process, the city had established a working relationship with Proxima with regards to grant funding.

According to a press release issued by Escanaba Public Safety late Monday, the city received an email on Dec. 28, 2020 that appeared to be from Proxima with an invoice attached asking for the $28,949.14 to be paid out directly to a vendor. After the city wired the money and the invoice was paid, it was discovered that Proxima’s email had been had been hacked. The IP address used during the hacking was from a location in Cape Town, South Africa.

An investigation was launched by the Escanaba Public Safety on Jan. 12, 2021. Almost exactly eight months after the investigation was launched, the city issued a press release on Sept. 10, 2021, stating it had sent a letter to Proxima notifying the developer the city was exercising the 60-day notice of termination required by the development agreement between the two parties.

At the time of the release, Marc Tall, who served as the city’s mayor, said there had been no contact from Proxima for about eight months.

“Regardless of the Covid-19 pandemic, the Council members felt that due to the lack of any progress for two years on the removal of the old County Jail, and the absence of any communications from the developers for many months, that the agreement between the City and Proxima should end,” read the release in part.

With the assistance of the FBI, the Escanaba Public Safety continued to investigate the incident. The investigation ultimately led to an elderly woman in California, who was the recipient of the money. The FBI made contact with the woman, and as the investigation progressed, it was discovered she had been involved with similar scams in the past.

The case was officially closed last Thursday, following a closed session during the regular city council meeting. The motion to close the case, which was made by Mayor Mark Ammel and supported by the rest of the council, stated the action was made on the recommendations of both Public Safety Director Rob LaMarche and the city’s attorney, Lisa Vogler.

“The investigation has been closed due to the location of the suspects and logistics of getting the suspects to Delta County for possible prosecution,” the press release issued by Public Safety Monday said.

The first public statement about the investigation came in October of 2021 when resident James Hellerman attended a council meeting and called for the resignation of former council members Ralph Blasier and Tall, claiming the two men were covering up the investigation to better their reelection bids.

“Heads need to roll. Something needs to be done because Escanaba has been marked before and taken and marked again and taken. And Escanaba doesn’t need to be a mark for people to come and just take money. It needs to be known that the problem is solved. Something needs to happen,” said Hellerman.

Neither Tall nor Blasier were reelected to the council, but City Manager Patrick Jordan has repeatedly cited the fact the investigation was ongoing as the reason for not releasing information about the case.

However, there is one thing the city has been adamant about since the case first became public.

“It has been absolutely ruled out that anyone from the city was involved in anything,” City Manager Patrick Jordan told the Daily Press last month. ” … There’s been no evidence, no implication, nothing that anyone at the city was involved.”

Monday’s press release echoed Jordan’s statements.

“The investigation failed to reveal any involvement or fault of City employees or local individuals. However, as the victim of this ‘scam’, the City has taken steps to prevent this from happening again,” it read.

The release went on to say the incident is what the FBI refers to as a “business email compromise.” The FBI provides more information about these scams and tips for prevention online at https://bit.ly/3HHOnIz