Highland Park, MICHIGAN

INDICTED
Arthur "Art" Blackwell, 56, described as "a longtime friend of Gov. Jennifer Granholm," was charged with embezzling $264,000 from the struggling municipality. He had been appointed by Gov. Jennifer Granholm to rescue the town from insolvency. He was arraigned October 8.

Blackwell has been charged with embezzlement of $100,000 or more; embezzlement as a public official over $50.00; common law offenses - misconduct in office and refusing to turn over money to a successor.

Blackwell was appointed by Gov. Granholm in 2005 to bring the city of Highland Park out of financial trouble. A taxpayer lawsuit alleged that Blackwell cut a backroom deal with the state to secretly pay him $11,000 a month, or $132,000 a year.

Blackwell was removed from office in April.

It is alleged that Blackwell Blackwell has collected total payments of $187,000 from the state and $308,000 from the city. Blackwell has collected total payments of $187,000 from the state and $308,000 from the city.