Federal prosecutors say three people tied to the Wayne County Treasurer’s office schemed to strip struggling homeowners of their properties, prompting criminal charges that expose how inside access and manipulated foreclosure lists can be used to profit off vulnerable Detroit-area residents.
Federal prosecutors have charged three people in connection with a broad bribery scandal tied to the Wayne County Treasurer’s office. One of the accused is former deputy treasurer Kevin Kelly, who also owns Kelly One Investments and was charged on Tuesday. Authorities say the scheme targeted homeowners by using improper favors and inside access to remove properties from tax foreclosure lists.
Prosecutors said Kelly conspired from May 2023-October 2023 with Detroiter Jontae Jackson, a former taxpayer assistant in the Wayne County Treasurer’s office, and Detroiter Zina Thomas, director of home ownership programs for the United Community Housing Coalition, a Detroit nonprofit that helps low-income residents stay in their homes.
The alleged scheme involved Kelly paying money to Jackson and Thomas to remove properties from the Wayne County tax foreclosure list and enrich themselves. Thomas would facilitate a private sale, and the properties would be flipped or transferred to others, according to the government.
“During the scheme, Kelly acquired at least 15 properties off the foreclosure list with an aggregate value of approximately $1,033,800,” Assistant U.S. Attorneys John Neal and Ryan Particka wrote in the criminal case.
The charge carries a maximum sentence of 20 years in federal prison. Prosecutors say Thomas allegedly supplied fake documents uploaded into the county’s Property Tax Administration system so Jackson could pull properties off the foreclosure list. Thomas “paid Jackson for each property Jackson removed from the tax foreclosure list that Thomas was later able to sell or transfer to another person or entity,” prosecutors alleged.
Investigators say Kelly allegedly paid for inside information that let him identify and zero in on specific properties that were ripe for removal from the foreclosure list. Prosecutors contend those transactions allowed properties to be diverted into private deals and then flipped or transferred, leaving homeowners without their houses and little recourse. The figures cited by the government put the visible takings in the low seven figures, a stark example of how access can be turned into profit.
The state further alleges that “on at least one occasion, after consultation with Thomas, Kelly provided false and fraudulent identification documents to a title company in an attempt to remove a cloud on the title of a property he was attempting to resell.” Those accusations, if proven, point to deliberate attempts to paper over stolen titles and repackage properties for resale. Federal prosecutors are treating the case as more than paperwork errors; they describe coordinated payments and transactional schemes.
If there were ever an argument against property taxes, this story would fit the bill. Beyond the policy debate, the case underscores a practical danger: when local officials or people with inside access can alter tax records, homeowners are exposed to theft and fraud. That vulnerability hits those with the fewest resources hardest, which should concern anyone who believes in secure property rights.
This prosecution is a test of accountability for public servants and the officials who enable them. Republicans arguing for stronger safeguards and transparency will point to this case as evidence that the system needs reform to protect citizens from predatory deals. As the legal process moves forward, the focus will be on evidence, witnesses, and whether the alleged transactions can be traced from inside access to outside profit.
