Thread by @JordanChariton

🚨EXCLUSIVE: Prosecutors were on the verge of filing major #FlintWaterCrisis racketeering charges against govt officials—for financial fraud that led to the crisis— b4 MI AG Dana Nessel took office, fired prosecutors, & "let it go."

By me + @Charlieleduff theguardian.com/us-news/2022/j…

@Charlieleduff The RICO charges—often used against organized crime/mafia—would've charged state officials over an allegedly fraudulent bond deal that allowed the broke city of Flint to borrow nearly $100 mill to join the new KWA water pipeline & temporarily use Flint River while KWA was built..

@Charlieleduff But when AG Nessel took office, she fired prosecutors on verge of pressing RICO charges & restarted Flint investigation.

“Nessel let it go,” Eric Mays, Flint City Council chair, said. "Was it a lack of political or legal will? I cannot say. But it bothers me to this day..."

@Charlieleduff Documents show the prosecutors who were on the verge of filing RICO charges had “reasonable cause to believe that corrupt transactions" had occurred related to the KWA pipeline Flint signed on to join.

Prosecutors were investigating bribery, racketeering, and false pretenses...

@Charlieleduff Beyond Nessel's investigation not pressing RICO charges, her handpicked prosecutors dropped financial fraud charges in 2019 against Flint emergency managers appointed by ex-MI Gov. Rick Snyder.

Those officials were recharged in 2021 but the financial fraud charges were gone...

@Charlieleduff Sources say if RICO charges had been filed, the state of MI faced the potential of hundreds of millions in liability over the allegedly fraudulent KWA pipeline bond deal since the AG's office signed off on an allegedly fraudulent environmental order that allowed the bond deal...

@Charlieleduff Sources also note that JPMorgan & Wells Fargo, who underwrote bonds for Flint to join KWA pipeline, also faced potentially hundreds of millions in liability if RICO charges went forward for failure to ensure the Flint water plant was equipped to safely treat Flint River water...

@Charlieleduff Ex-MI AG Bill Schuette—who launched the original Flint investigation for which prosecutors were on the verge of filing RICO charges before new AG Nessel fired them—told us:

"We had a strong team" and "very aggressive approach in terms of the charges you’re talking about"...

@Charlieleduff As an AG candidate, Nessel slammed the Flint investigation & hinted at overhauling it. In a 2018 email we obtained, MI GOV candidate Gretchen Whitmer tells a concerned Flint resident she didn't agree w/ Nessel.

“I see it though and will talk to [Nessel]" Whitmer wrote...

@Charlieleduff We asked AG Nessel why:

-Her revamped Flint water investigation didn't press RICO charges that prosecutors she fired were on verge of filing

-Why she dropped other financial fraud charges

Nessel: "The prosecution team reviewed all the evidence and pursued all viable charges"

@Charlieleduff Both AG Dana Nessel and Michigan Governor Gretchen Whitmer are up for reelection in November. Now entering year 8 of the ONGOING #FlintWaterCrisis, residents still complain of rashes, hair loss and other ailments from the city’s drinking water...

As well as still unsafe water.

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