Two Muskegon Heights City Council members are facing criminal charges after a raid on City Hall led investigators into transactions involving publicly owned property. Derrick Collins is accused of purchasing public land while serving as an elected official without disclosing his interest or recusing himself from the vote. Fellow council member Lashae Simmons faces a charge of willful neglect of duty involving a separate property transaction.
The investigation followed a July 23rd, 2026, search of the Michigan city’s government building involving the DEA, FBI, IRS and Michigan State Police. Investigators examined more than 7,000 digital items and conducted interviews. Muskegon County Prosecutor D.J. Hilson announced the charges on October 27th. The review covered land transactions involving elected officials, their relatives and other members of city government.
Collins’ case involves a property at 2301 Reynolds Avenue, while Simmons’ charge concerns a transaction involving 3327 Eighth Street. Hilson’s memorandum withheld further details about those pending cases until evidence is presented in court, citing Michigan’s rules governing public statements about ongoing litigation. The memorandum separately addressed other property deals that investigators examined without bringing criminal charges. Both defendants are presumed innocent unless proven guilty.
In the memorandum reproduced by FOX 17, Hilson wrote that the charging decisions don’t end the investigation. Additional information remains subject to review. He said investigators were continuing to examine several areas that were omitted from the public memorandum. Hilson also reviewed the city’s process for selecting winning property bids, which considered proposed homeownership, whether the bidder already lived in the city and the amount offered.
WOOD TV reported that Collins faces a felony, while Simmons’ charge is a misdemeanor. Collins was arraigned October 26th and released after posting a $2,000 bond. His attorney, Michael Oakes, denied that his client violated the law, saying, “Mr. Derrick Collins maintains his innocence.” Oakes said the defense intended to challenge the prosecution’s evidence and present its own.
Property records reviewed by WOOD showed the Reynolds property was transferred from the city to Collins’ son through a quitclaim deed in February 2025. Hilson said the council vote authorizing the transfer occurred in 2021. Collins’ wife told the station that the family had owned the house for five years before selling it for $115,664 at a profit. The deed referenced a purchase agreement but listed no price.
Investigators also examined a bid submitted by Simmons’ son for the Eighth Street property. According to a search warrant affidavit cited by WOOD, he was named the winning bidder despite 14 higher offers. The station noted that city rules do not automatically award properties to the highest bidder; sales require final approval through a council supermajority. Five of the seven council members must vote in favor.
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Watch WOOD TV’s report on the charges here:
The review also uncovered an earlier warning about awarding public property to council members’ immediate relatives. WUVS 103.7 The Beat reported that then-interim City Manager Melvin Burns raised those concerns in a January 29th, 2025, memorandum to Mayor Bonnie McGlothin. Burns cited municipal ethics guidance in explaining his objections. That warning was forwarded to council members on April 16th, 2025, before subsequent votes involving relatives.
City Attorney Te Smith’s work on a property deed also came under scrutiny. According to the memorandum, Smith acknowledged preparing a deed connected to the Collins transaction and presenting it to the mayor. Hilson found insufficient evidence to establish criminal wrongdoing by Smith but said the information would be sent to the Michigan Attorney Grievance Commission for an independent evaluation of whether further investigation was warranted.
Hilson recommended bringing the Muskegon County Land Bank into the process of selling the city’s remaining properties. The agency indicated it was willing to help facilitate an auction involving 20 properties still owned by Muskegon Heights. The prosecutor called for stronger oversight of transactions and more complete government records. He urged the city to work with the county agency to ensure a transparent auction free from collusion.
Featured image credit: screengrab from the embedded video.