Michigan controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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Michigan financial and payroll scandal
Contemporary reporting attributed the company’s failure partly to serious financial mismanagement. Newspapers alleged that the reported labor force included many nominal employees and that four officials received substantial improper payments through a so-called “velvet payroll.” Two officials were convicted of embezzlement, and another was imprisoned for using the mails to defraud banks. The allegations and convictions damaged the company’s reputation while it was already burdened by debt.