Former Macomb County District Attorney Eric Smith and Ben Liston’s lawyer friend were both angry with him when they learned Smith’s former chief of staff had spent thousands of dollars from a fund not accountable for audio equipment and moving costs.

Attorney Dove Lustig testified Thursday at Smith’s court hearing in the state theft and racketeering case against him in 41B District Court.

Lustig said Smith told him during a meeting at a Tim Horton’s in Shelby Township that Liston had used thousands of dollars from the fund for the rental of U-Haul and other expenses for his move to the retirement in Arizona and the audio equipment for Liston’s parallel career as a musician.

“He (Smith) said he was upset with some of the refund requests and the reasons for Ben,” Lustig said. “He wasn’t happy with it. He was pissed off.

Lustig, who was Liston’s tax attorney, said he “got in his (Liston’s) face” about the expenses.

“I expressed my dismay about this. I told him I thought it was dirty. I didn’t like it and thought it stank, ”Lustig said, adding that Liston“ came right back into mine ”.

“He had an argument with me,” Lustig said. “He has a strong will and a strong head. He told me to my face that it would not work for the equipment of his group and that there would be (repercussions). He’s a musical scholar and I trusted what he said.

Regarding the moving expenses, Liston told him that even though he had retired from the office, he was doing consulting work for Smith so he could justify it.

Lustig said it seemed legitimate but told Liston he would have to reimburse the money for the equipment.

“My recommendation was, I don’t care if it’s legal or not, I want you to refund the money,” he said. “We don’t want anything to do with it. I certainly had problems with the (audio) equipment.

Liston was also charged with crimes with Smith and pleaded guilty to three misdemeanors in exchange for his testimony against Smith on Friday. He also agreed to relinquish his license to practice and pay close to $ 16,000 in compensation.

Lustig testified on day six of Smith’s preliminary examination on allegations that he spent tens of thousands of public dollars on an alleged slush fund that racked up $ 1.8 million over a seven-year period. ending in 2018. The account was funded primarily through drunk driving and drug confiscations. . Smith, 55, is charged with racketeering, five counts of embezzlement by a public official and four other counts.

Officials at the state attorney general‘s office said the money should be spent for law enforcement or victims’ rights purposes, and the money provided to nonprofits should involve a contract or benefit received by the county.

The fund has since been canceled.

One of the three co-defendants is Derek Miller, Smith’s former COO, who is charged with two low-level crimes on charges he tried to hide the accounts from authorities.

Lori Addelia also testified Thursday. Former Smith’s administrative secretary, she held and distributed over 1,000 checks and collected over 1,000 receipts during her tenure as of 2010. Addelia continues to work in the Money Orders division office.

Addelia testified about several thousand dollars donated each year to dozens of churches in Macomb County, with annual Christmas parties in the office costing around $ 1,000 to $ 1,500 each time by the Fern Hill County Club, l Smith’s $ 1,000 ad in the Chippewa Valley High School directory, “Things Souvenir” gifts for several employees leaving the office, $ 4,600 for 10 mini iPads for the elementary school attended by his children, thousands of dollars donated to Weber Security Group and pens labeled “Eric Smith One Tough Attorney” and whistles worth about $ 1,500 given to seniors, all paid for by the fund.

Some of the checks were written directly to the recipients and some were written to a credit card, most commonly Addelia’s American Express card, for a refund of a purchase.

Addelia, a longtime friend of the Smith family, said that when she took office, her predecessor asked her to write the checks for the drinking and driving account, which contained most of the l ‘money, unless otherwise instructed. She said she couldn’t recall if Smith specifically told her that writing checks was part of her job.

“I don’t remember him actually saying those words,” she said. “He just told me that Chris (the former employee who is now deceased) will explain to you what your duties are.”

Addelia, who was also granted immunity from prosecution, was questioned by Deputy Attorney General Mike Frezza: “If he told you to write a check, would you?”

“He was my boss,” she replied.

For retirement gifts, Smith would tell her, “Lori, make sure you go get her something,” she said, adding that she was allowed to sign Smith’s name “regularly” on the cards. checks.

She said she would usually pay a free bill if it was less than $ 1,000. If she was over that amount, she checked with Smith or James Langtry, a former great aide to Smith.

“If an unusual request came up, I would ask Eric or Jim if it was appropriate to go to the county to pay,” she said.

Regarding church donations, state attorneys say Smith donated $ 500 to each of the 37 churches, on average, for a total of $ 55,500 over the three years from 2014 to 2016.

Addelia said she selected churches, all Christian, to receive the money by “searching the phone book” and other sources, and sent a letter with the donation. She said some of the pastors or priests wrote thank you notes in response.

She added that while most Christmas parties were hosted in the office by Fern Hill, a party in 2015 was held at the Premier Sports Club and Eatery in Ciccarelli on Hayes Road in Shelby Township, where Smith’s wife worked.

Another year, Smith accepted a check for $ 775 to Cappuccino Man to provide a “coffee bar” for a special event at Fraser High School, where Addellia’s daughter was graduating, the day before or after graduation. diplomas “after I gave him a pitch that kept the kids off the streets. She agreed with Smith’s attorney, John Dakmak, that the event is being held to discourage potential underage alcohol use.

Addellia also testified that she wrote several checks to William Weber’s security company, one for $ 7,100 for the installation of a security system in Smith’s Macomb Township home. Smith allegedly asked Weber in March 2019, after the Michigan State Police investigation began, to create a fake invoice to show that the work had been performed at the DA’s office in the County Administrative Building in Mount Clemens.

Addelia said she wrote other checks, but Weber was often late to deliver the invoice. At one point, she wrote three checks with no refunds before telling Smith she would stop writing them, she said.

Weber was charged with four felonies but pleaded one misdemeanor in return for his testimony earlier in the hearing and his agreement to pay nearly $ 24,000 in restitution for the installation of just nine of the 23 cameras. security he was supposed to install at the county administration attorney’s office. Building in Mount Clemens.

Addelia also said she prepares a budget synopsis for the account each year and “sent it to Lansing”, referring to the state government.

Miller, who began serving in the Smith administration in February 2018 – just months before county officials began reviewing the fund – is accused of attempting to hide the funds from authorities by changing the numbers. account.

Addelia said she drove with Miller at Chemical Bank in June 2018, but this was only to add Miller as a signatory to the accounts to replace Liston, who retired in February 2018. Langtry testified that Miller suggested changing the numbers.

The hearing is expected to end on Friday, but Judge Cynthia Arvant will not render a decision until a later date allowing lawyers to submit legal briefs.