Attorney General Dana Nessel has big troubles, but the Loon of Lansing is too busy suing Donald Trump and making sour-faced TikTok videos to notice the storm clouds.
It has to do with her gal pal Traci Kornak, a personal injury lawyer and treasurer of the Michigan Democratic Party. Kornak was accused two years ago by the director of a Michigan old folks home of trying to bilk her elderly, brain-damaged client of $30,000 by filing fraudulent insurance claims in the name of an 86-year-old Grand Rapids woman by claiming that Kornak’s daughter was providing extra nursing care.
Months after the insurance scam fell through, Kornak took money from the woman’s account anyway. Nessel knew this, since Kornak had admitted as much to Nessel’s investigator and Nessel was in possession of that report.
“When asked how her daughter was paid,” the investigator wrote in her incident report, “Kornak stated her daughter was paid out of the ward’s funds and then she sought reimbursement for the ward via invoices submitted to State Farm.”
Nessel’s office never spoke to the home’s director, who blew the whistle, nor did her office ever speak to the woman whose money allegedly was taken.
More alarming, Nessel’s staff turned over the active case file to Kornak, despite the fact that the case was still ongoing and Kornak was the suspect.
This information has never been reported and comes by way of banking records and documents obtained under the Michigan Freedom of Information Act.
Storm Clouds
A sprawling two-year financial crimes investigation in Kent County that has its origins in Kornak’s alleged $30,000 withdrawal of the old woman’s savings is coming to a head, with possible charges coming as early as next month.
What will become of Nessel should those charges be filed against her friend and colleague? The one she let slip through her fingers? Would Nessel face obstruction of justice charges? Would she be impeached?
Rough Waters
Kornak, it is alleged, tried to bill for extra nursing time for the old woman that Kornak’s daughter supposedly provided, though there are no records that her daughter ever stepped foot in the nursing home.
According to the nursing home’s lawyer, Kornak faked documents using the home’s tax ID number. Once the scam was uncovered, the nursing home returned the nearly $30,000 check to State Farm. Months later, Kornak withdrew the funds from the old woman’s account.
It should be noted that Kornak worked on Nessel’s 2018 transition team.
After I appeared on Tucker Carlson’s program in July 2022 and exposed the allegations, Nessel’s office opened an investigation. Director of Financial Crimes Scott Teeter was so worried about the obvious conflict of interest that he drafted a memo informing staff that he was constructing an ethical firewall.
“I believe it would create the appearance of impropriety for AG Nessel to access information about this investigation,” Teeter wrote.
“Specifically, if the Department of Attorney General declined to seek charges against the suspect, it might appear that the professional relationship between Attorney General Nessel and Traci Kornak had influenced the investigation.”
And that is precisely what happened, according to the internal documents. In December 2022, Nessel forwarding along four investigative reports to her staff that she was not supposed to have.
“Ms. Kornak has contacted me regarding this matter,” wrote Nessel. “Mr. [redacted]’s allegations are apparently holding up a judicial appointment for her in Kent County. She has requested the documents from our investigation.”
When Nessel subtly pressured her staff to expedite the documents to Kornak, an argument erupted within her office.
“This file is not closed yet,” one staffer wrote.
“This file does have a conflict wall,” wrote another.
Nevertheless, that active case file was forwarded in part to Kornak. That afternoon, Nessel’s chief deputy Christina Grossi abruptly resigned.
Two weeks later, the case was dropped for a “lack of victim,” even though the old woman and the nursing home director were never interviewed.
At least not by Nessel. But they were interviewed by detectives from the Kent County Sheriff’s office, who have been compiling a sprawling case for two years.
If authorities do bring those charges, at least one nursing home resident in Michigan would get some justice.
Charlie LeDuff is a reporter educated in public schools. Follow him on X @Charlieleduff.
