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untanglingwebs
El Supremo
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Topic: Detroit Corruption case linked to Flint
untanglingwebs
F L I N T O I D
Former 2nd Ward Councilman Edward L Taylor was a Vice president in AA Capital Partners in Detroit, which was run by Orecchio, the Chicago businessman listed in the story.
Taylor never disclosed this employment, although it was required under City ordinance, and even refused to acknowledge this job during his initial divorce actions. Although he spoke from the council floor about his employment no one ever challenged him. It really did not come out until angry pension board members, of which Taylor was the council appointee, spoke out when he wanted to bring in investors and disclosed hia relationship to AA Capital Partners. Flint's pension fund refused to participate.
Taylor and mays fought to bring a casino to Flint and AA Capital Partners was in the business of investing in casinos also.
And Taylor is not the only councilman tht has not disclosed employment, non profit associations and business ventures. Several council have been linked to alleged fraud and kick backs for zoning, liqour licenses etc.
The Detroit Carpenters Union was one of several unions that lost pension funds in this scheme.
Last Updated: May 17. 2011 1:17AM
Former carpenters' union boss pleads guilty to taking kickbacks[/b
]Robert Snell / / The Detroit News
Detroit— The former head of the Michigan Regional Council of Carpenters pleaded guilty Monday in federal court to accepting kickbacks from a casino consultant and a Chicago businessman who donated $10,000 to ex-Mayor Kwame Kilpatrick's nonprofit foundation.
The former union official, Walter Ralph Mabry, reached a plea deal with prosecutors that could send him to prison for 21 months.
But defense lawyer Arthur Weiss argued Mabry should spend no more than six months in prison when he is sentenced Aug. 16 by U.S. District Judge Arthur Tarnow.
"We will pursue corruption whether it occurs in City Hall, public schools, federal agencies or labor unions," U.S. Attorney Barbara McQuade said in a statement. "When labor leaders abuse their positions for personal gain, they rob the working men and women they were entrusted to represent."
The plea comes more than a week after Mabry, 65, was freed from federal prison after serving a sentence for receiving illegally discounted work on his Grosse Pointe Park home.
"He doesn't have the resources to go to trial and he doesn't have the physical strength to go to trial," Weiss said.
"He's still suffering the ravages of cancer and his family doesn't want him to go through the rigors of a trial."
In this case, Mabry was charged with fraud in connection with kickbacks he received from April 2004 through September 2006.
They were paid by casino consultant Joseph "Roxy" Jewett and John Orecchio, a Chicago businessman, according to federal records.
Orecchio told investigators he got an audience with Kilpatrick after writing a $10,000 check to his nonprofit foundation, the Kilpatrick Civic Fund.
Kilpatrick then took the unusual step of personally appearing with Orecchio before a city pension board while Orecchio made a pitch for a multimillion-dollar investment in his company, records show.
The pension fund approved the investment, though it did not ultimately go ahead.
As part of his plea deal, Orecchio was cooperating with a federal investigation into Kilpatrick, his civic fund and two public Detroit pension funds.
Mabry admitted he accepted $5,000 to $10,000 in hotel and entertainment expenses.
The judge will decide if Mabry also agreed to take $266,000 as an additional kickback in exchange for his decisions related to the Carpenters' Pension Trust Fund investment in a casino.
If so, Mabry could face a longer prison sentence.
"Embezzling union resources and accepting kickbacks systematically robs union monetary assets and decreases benefits to all members," Andrew Arena, special agent in charge of the FBI in Detroit, said in a statement.
Post Tue May 17, 2011 9:55 am
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F L I N T O I D
From Labor Pains:
Just the usual: Union fraud in Detroit (even Kwame is involved)
Thursday, October 29th, 2009
Detroit’s citizens (and union members) can’t catch a break. Former Mayor Kwame Kilpatrick is even involved in this one too.
According to the Detroit News, the general vice president of Local 324 of the International Union of Operating Engineers John M. Hamilton allegedly received multiple kick backs for investing millions in a Chicago-based investment firm. The Detroit News explains:
An Illinois businessman told the FBI he arranged for an inflated price to be paid for the home of a Detroit-area union official in return for the union investing $65 million of its pension funds with his company.
John Orecchio of AA Capital Partners told federal investigators there was “a quid pro quo” between the Operating Engineers Pension Fund investing the money with his firm in December 2003 and Orecchio arranging for an inflated price to be paid for the home of John M. Hamilton, business manager and general vice president of Local 324 of the International Union of Operating Engineers, according to documents obtained by The Detroit News.
In July, Orecchio, a partner in the Chicago-based investment firm, was charged in federal court in Illinois with fraud and embezzlement. He is accused of misappropriating $24 million of the funds invested with his company by the Operating Engineers and other clients. He has had conversations with the FBI since at least 2006, and the charges are pending. Hamilton did not respond to telephone and e-mail messages Monday seeking comment.
The News reported Saturday that Orecchio told the FBI he wrote a $10,000 check in 2005 to the Kilpatrick Civic Fund, a nonprofit corporation controlled by the former mayor, to get an audience with Kilpatrick to “pitch” a $20 million city pension fund investment in AA Capital. [...]
Orecchio told investigators from the FBI and the Office of Inspector General of the U.S. Department of Labor that he spent a lot of money “wining and dining” Hamilton before and after the union made its $65 million pension fund investment with AA Capital.
To get rest of the story, read it here in The Detroit News. There’s even a story involving Kwame, Las Vegas, and Oscar De La Hoya. You can’t miss it.
Image courtesy of sultmhoor.
Posted in Center for Union Facts, Crime & Corruption, EFAC, News | 2 Comments »
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Post Tue May 17, 2011 10:12 am
untanglingwebs
F L I N T O I D
Chicago Equity Fund CEO Indicted in Union Pension Scam | National ...Jul 31, 2009 ... John A. Orecchio, now 43, is co-founder and CEO of AA Capital Partners, ... and Millwrights Local 1102, each based in the Detroit area. ... $8.3 million of its massive $150 million pension fund to AA Capital Partners. ...
nlpc.org/.../chicago-equity-fund-ceo-indicted-union-pension-scam - Cached [PDF] UNITED STATES OF AMERICA v. JOHN A. ORECCHIOFile Format: PDF/Adobe Acrobat - Quick View
AA Capital Partners, located at 10 S. LaSalle Street, Chicago,. Illinois, was incorporated by defendant JOHN A. ORECCHIO as a Delaware ...
www.justice.gov/usao/iln/pr/chicago/2009/pr0722_01a.pdf - SimilarEx-money manager says Detroit-area union official got favors ...Oct 27, 2009 ... A review of documents obtained by The Detroit News indicates that John Orecchio of AA Capital Partners said in exchange for the Operating ...
www.mlive.com › Detroit News - Cached - Similar
Post Tue May 17, 2011 10:19 am
untanglingwebs
F L I N T O I D
Plante Moran has audited Flint and other Flint entities for years. This is what can happen when a firm becomes too closely linked to the entity they audit.
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Yet Another Wall Street Stripper Case
Written: March 2, 2010
Harry Markopolos (one of my heroes) recently lambasted the culture of lawyers at the Securities and Exchange Commission (“SEC”). In Markopolos’ view, a key problem, perhaps even the seminal problem, at the SEC is a lack of mathematicians, accountants, and other finance professionals. The rebuffed Madoff whistleblower argues that lawyers can’t decipher financial statements and have waylaid the federal regulator. In more stark terms, he said that lawyers poisoned the SEC – he also calls many of them “idiots.”
I understand where Markopolos’ anger comes from. Been there, done that. However, I refuse to accept his thesis that if there were simply more number-crunchers at the SEC that the failures to competently investigate and examine Wall Street would cease. See, Harry, the fish stinks from the head down. http://www.brokeandbroker.com/index.php?a=blog&id=319
Lo and behold, this falls into my lap this morning.
In the Matter of Gerard A. M. Oprins, CPA and Wendy McNeeley, CPA (Release Nos. 34-61607, AAER-3116; File No. 3-13787, March 1, 2010):
ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO SECTION 4C OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 102(e) OF THE COMMISSION’S RULES OF PRACTICE
http://sec.gov/litigation/admin/2010/34-61607.pdf
T&E Or T&A?
After an investigation by the SEC’s Division of Enforcement and the Office of the Chief Accountant, the regulator instituted public administrative proceedings against two CPAs (Oprins and McNeeley) – the ultimate Wall Street number crunchers – for allegedly improper professional conduct during Ernst & Young LLP’s (“Ernst & Young”) independent audits of the 2004 financial statements for AA Capital Partners, Inc. (“AA Capital”), an investment adviser registered with the Commission, and the AA Capital Equity Fund (“Equity Fund”), one of AA Capital’s affiliated private equity funds. During the audits, Oprins, the engagement partner, and McNeeley, the manager, allegedly learned that AA Capital’s president, director and co-owner, John Orecchio (“Orecchio”), purportedly had borrowed $1.92 million in funds belonging to AA Capital’s clients between May and December 2004 to pay a personal tax liability arising from his ownership interest in AA Capital’s private equity funds. In fact, Orecchio had allegedly invented the story about the so-called “tax loan” to conceal his ongoing misappropriation of client assets for his personal use.
Among the more lurid allegations in this matter, the SEC alleges that shortly after he co-founded AA Capital in 2002, Orecchio began spending lavishly on travel and entertainment. Among my favorite parts of his business plan was the SEC’s claim that in August 2003, Orecchio began a relationship with a woman who performed at a Detroit strip club.
When the SEC says that she "performed" at the club, I'm not exactly sure what to infer. Perhaps she performed audits, but I'll have to look into that question further. Apparently ever the civic-minded man, between 2003 and 2006, Orecchio spent substantial amounts of money on his mistress and her family. Although the SEC doesn’t exactly spell-out how the strip club performer transitioned from an entertainment professional to Orecchio’s mistress, I suspect that I can leave that transformation to your imagination.
Alas, the cost of maintaining mistress-strippers seems to be plagued by inflation (now, c’mon! get your mind out of the gutter) because starting in 2004, Orecchio allegedly began siphoning money from client trust accounts to fund his lavish lifestyle. I don't know about you, but I've always wanted a lavish lifestyle. There's just something about that opportunity that has an enticing ring to it. Maybe there are some available on Craigslist?
Anyway, between 2004 and September 2006, Orecchio allegedly misappropriated more than $23 million in client funds, including at least $5.7 million under the guise of a purported “tax loan.” Like how many lap dances are we talking about here? In hindsight, Eliot Spitzer paid Ashley Dupre what?... a measly $4,300 for an hour? Can you imagine the bill if Spitzer and Orecchio had ever joined forces? Of course, then you have to wonder if those two playboys would have tossed a couple of bucks towards, let's say a sitting governor, I don't have one in mind, you use your imagination, and maybe that state elected official could make some phone calls to make any problems go away. You know -- come to think of it -- that's a great idea for a screenplay. Lemme make a note here.
So... getting back to our story, in May 2004, Orecchio allegedly told his CFO that he needed to borrow money to pay a significant tax liability based on his ownership interest in an affiliated private equity fund and a failure by Ernst & Young to timely file certain tax returns. At Orecchio’s direction, the CFO withdrew $602,150 from client trust accounts and then wired the money to Orecchio’s personal bank account. Through the balance of 2004, the CFO allegedly made four similar disbursements to Orecchio in the amount of $1.92 million – the amount Orecchio claimed was needed for his IRS estimated taxes (in reality, the amount owed was about $25,000). By October 2005, the CFO allegedly made at least 20 such disbursements in the amount of $5.7 million.
CPAs vs. Lawyers: Sudden Death Overtime But No One Ever Scores
Okay – great, nary a lawyerly type in sight at this point. If Markopolos' theory is correct, the Ernst & Young audit staff should nail Orecchio and the affiliated companies. The tip off to the auditors will certainly be the fact that Orecchio never signed any loan documentation for his purported “tax loan” and never agreed to repay the “tax loan” with interest. Also, there is the simple fact that a call to the IRS will disclose no such liability. It's just a matter of asking the right questions, punching in the numbers, having fresh batteries in the calculators, and running the spreadsheets.
Oops!!!
[b]Ernst & Young's seven-member audit team including McNeeley, as the audit manager, Oprins, as the engagement partner, an independent review partner, two senior auditors and two staff members embarked upon their on-site review. After learning about Orecchio’s purported “tax loan,” the SEC alleges that Oprins and McNeeley largely relied upon the CFOs’ unsupported assertions and documentation about Orecchio’s purported “tax loan” as sufficient evidential matter. Pointedly, the audit team did not
obtain any documentation reflecting Orecchio’s tax liability or the terms of the “tax loan;”
discuss the “tax loan” with Orecchio;
take steps to confirm Stevens’ statements that Orecchio “made a payment to the IRS for $1,921,050” or that the “tax loan” would be repaid by Orecchio or the IRS during 2005;
take steps to assess the collectability of the “tax loan;” and
discuss Orecchio’s tax liability with their colleagues in Ernst & Young’s tax department who prepared the tax filings for AA Capital and its affiliated private equity funds.
G.I.G.O.
So, you see, Wall Street’s desultory regulatory scene is not simply the fault of mathematically challenged lawyers – there are more than enough finance professionals who are regularly daunted by uncovering fraud. And if the high-priced talent at Ernst & Young comes up short, what do you expect from the lower-priced civil service talent? I suspect that if you transplanted all the CPAs from the top auditing firms into the SEC and the Financial Industry Regulatory Authority (“FINRA”) that things would still be in the same sad state as they are. It’s not that all lawyers at the SEC are screwing things up – it’s the incompetent ones (along with the cronies and toadies) who derail effective regulation. It’s not all CPAs – it’s the lazy and incompetent ones who screw things up.
Garbage in, garbage out.
Post Tue May 17, 2011 10:25 am
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Investor lived dual life on plundered cash
June 16, 2010 7:14 PM
For four years, John Orecchio spent part of his life as a well-respected banker, husband and devoted father of three young children living in a two-story house with white pillars on a tree-lined Arlington Heights street.
The rest of the time, court records show, he posed as a high-rolling millionaire who drove a Bentley, collected thoroughbred racehorses and traveled on private jets to Las Vegas and tropical islands with his young fiancee, a former dancer whom he met during frequent visits to a Detroit strip club.
His dual life was supported by a seemingly bottomless pool of cash plundered from union pension funds. A University of Notre Dame graduate who earned an MBA from Northwestern University's Kellogg School of Management, Orecchio pleaded guilty in February to embezzling millions of dollars from a handful of Michigan pension funds through his investment company, Chicago-based AA Capital Partners. He is slated to be sentenced in federal court Thursday.
In all, Orecchio, 44, stole more than $24 million from six unions to prop up his charade, which devastated the lives of colleagues, clients, family and friends, court records and interviews show.
He might have gotten away with it if, in 2006, investigators from the U.S. Securities and Exchange Commission hadn't started poring over the books of AA Capital Partners, a boutique investment firm catering to union pensions that was founded by Orecchio and a partner in 2002.
Now the investment banker is facing more than nine years in prison and tens of millions of dollars in fines and restitution payments. He lost his wife and all his posh possessions, with the psychic toll leading to a suicide attempt and brief hospitalization, court records show.
His story adds to a history of abuse in a corner of the U.S. retirement system where 17 million blue-collar workers and tradesmen have more than $675 billion set aside in multi-employer union pension plans.
"Anyone who would steal money from hardworking people deserves the full ramifications of the law," said Rich Davis, the newly elected president of the Michigan Regional Council of Carpenters, one of the pensions Orecchio stole from. "This has had an impact on people's retirement."
Under federal sentencing guidelines, Orecchio could have received a maximum of 25 years in prison for one count of wire fraud and one count of stealing from an employee benefit plan. But he is expected to receive a much lighter sentence Thursday in large part for cooperating with ongoing federal corruption investigations into union officials in Detroit.
Documents filed in federal court point out that Orecchio placed more than 150 phone calls to union officials that federal authorities recorded and that he wore a wire during 20 in-person meetings with union representatives.
His cooperation helped lead to the indictment of Julian "Roxy" Jewett, a Las Vegas resident who pleaded guilty in January for giving kickbacks to a former trustee of the Michigan Regional Council of Carpenters in exchange for requiring Orecchio to hire Jewett's firm as a consultant on a deal to develop a Hard Rock casino in Biloxi, Miss. Jewett received a year of probation.
The former trustee, Walter Ralph Mabry, had already been found guilty and sentenced to two years in federal prison in 2006 for receiving about $120,000 in free union work on his home in Grosse Pointe Park, Mich. No charges have been filed in connection to the Orecchio case.
John Tesija, an attorney representing two pension funds for Michigan carpenters that together invested $96 million with AA Capital, said union officials have been cooperating with authorities.
"Both funds have strongly supported prosecuting Orecchio and are cooperating with a number of federal agencies," he said.
Orecchio has said he tried to bribe former Detroit Mayor Kwame Kilpatrick -- who went to prison for obstruction of justice in 2008 -- in return for a chance to pitch the Detroit Police and Fire Pension Funds on investing with AA Capital, according to FBI reports quoted in news stories out of Detroit late last year.
Reports filed by receiver Scott Porterfield, who was appointed by a federal judge to assume control of AA Capital in 2006, say Orecchio spent about $1 million in pension funds to make political contributions and donations to politically connected charities in Michigan.
Pleadings filed by Orecchio's attorney, William Zeigelmueller, say Orecchio's crimes were sparked by his "wining and dining" of union officials, which eventually "spiraled out of control." Zeigelmueller declined to comment for this story.
Indeed, court documents show that Orecchio spent lavishly on travel and entertainment during his four-year scheme. Orecchio used $2.5 million from the pension funds for sporting events, including luxury box seats at Bears, Blackhawks and Detroit Red Wings games; another $1.5 million went to high-end hotels, first-class plane tickets and "client events."
Millwrights Local No. 1102, another union with a pension fund that was bilked by Orecchio, claims in a 2007 lawsuit that an unnamed senior vice president of Merrill Lynch -- hired by the pension fund as an investment adviser -- recommended that the union invest with AA Capital while failing to disclose that the executive had received lavish gifts from Orecchio. Merrill Lynch's attorneys vehemently deny the allegations, saying the union sought out AA Capital on its own.
Yet the bulk of the money Orecchio embezzled went toward stoking his millionaire image, according to court records. Along the way, he took up with a 27-year-old dancer who worked at Crazy Horse Detroit, a strip club where Orecchio took clients.
Although he never owned a stake in the club, court records show that Orecchio used $180,000 in pension money to rehab the establishment in exchange for making the dancer a manager. Orecchio eventually proposed to her and bought her a horse farm in Michigan and about $1 million worth of jewelry.
He also bought property in Las Vegas and Michigan, including a home for the dancer's mother, all while supporting his wife and three children in Arlington Heights, records show.
Orecchio embezzled the money under the noses of his partner, Paul Oliver, who owned half of AA Capital, and Mary Elizabeth Stevens, the firm's CFO, who approved millions of dollars' worth of expense reports and made wire transfers to accounts controlled by Orecchio without proper documentation, court records show.
Orecchio, Oliver and Stevens were all sued by either the SEC or the Department of Labor or both and have been barred from overseeing retirement funds or publicly traded companies. Orecchio, meanwhile, was slapped with a $50 million civil judgment in a case filed by the Labor Department.
Although the SEC has declined to say what triggered its investigation, examiners quickly found that AA Capital had $7 million in expenses and just $2 million in revenue and that about $5 million had been misappropriated. The agency then filed suit in federal court to remove AA Capital's managers and appoint a receiver, who has spent years and millions of dollars untangling the fraud.
Of the $194 million invested with AA Capital by union pension funds, Porterfield so far has recovered about $100 million by selling assets and collecting on fidelity bonds taken out on investment funds managed by the firm.
-- Jason Grotto
A Tribune Newspaper website
Chicago's Blog Network: www.chicagonow.com
Post Tue May 17, 2011 10:32 am
untanglingwebs
F L I N T O I D
SEC Complaint: AA Capital Partners, Inc. and John A. Orecchio
In addition to its fraudulent conduct, AA Capital Partners has failed to ...
http://www.sec.gov/litigation/complaints/2006/comp19826.pdf - Cached
Post Tue May 17, 2011 10:40 am
untanglingwebs
F L I N T O I D
Background for Edward Taylor
Employment History
AA Capital Partners Inc
Board Memberships and Affiliations
Member
National Association of Securities Professionals
City Councilperson and Trustee
City of Flint Michigan
Education
MA Degree
Eastern Michigan University
BS degree
Eastern Michigan University
Edward L. Taylor, Vice ...
www.aacapitalpartners.com, 17 Feb 2006 [cached]
Edward L. Taylor, Vice President.
Mr. Taylor joined AA Capital in 2003 and focuses on marketing and client relations.Previously, Mr. Taylor held various municipal and educational positions in California and Michigan.He was a City Councilperson and trustee for the City of Flint Michigan for 13 years.Mr. Taylor earned MA and BS degrees from Eastern Michigan University.He is a member of the National Association of Securities Professionals.
ts3tc1hh@rt3cm3r3f3rb3w
Post Tue May 17, 2011 10:46 am
untanglingwebs
F L I N T O I D
Even before Williamson, an FBI agent often came to city council and just sat in the audience watching the council. He always sat where the council could easily see him and with no one else around him.
I have heard Alex harris discuss the Flint corruption with council, so why couldn't the FBI get more than Makokha in their corruption cases? Previous council members had enough complaints about requiring kickbacks. And then the US Attorney kicks Poplar free with just a slap on the wrist.
Post Wed May 18, 2011 6:53 am
untanglingwebs
F L I N T O I D
Detroit mayor Dave Bing pledges to get tough on corrupt spending
May 18, 2011 | 17Comments
Detroit Mayor Dave Bing pledged "swift and serious action" over mishandled money. Twitter
BY STEVE NEAVLING
DETROIT FREE PRESS STAFF WRITER Filed Under
Local News
City of Detroit
Related Links
Editorial: Tough response to furniture scandal could help Detroit
Money to help poor people buys furniture for Detroit department
Detroit Mayor Dave Bing said Tuesday that he suspects wider abuses of federal grants at the city's Human Services Department after the Free Press revealed the agency spent more than $200,000 on furniture from money that was supposed to help clothe and feed low-income people.
Bing pledged "swift and serious action" against anyone who mishandled the money. The City Council plans to hold a hearing on the issue today.
"The reality or appearance of abuse of grant dollars is unacceptable and will not be tolerated," Bing said in a statement to the Free Press. "Our most vulnerable citizens deserve and will receive better."
Bing's comments came after two audits found that the city mismanaged more than a dozen federal grants worth more than $100 million last year -- all of which were to help low-income people.
Records show the city's human services department used federal stimulus money to issue a no-bid, $1.2-million contract last year to Detroit nonprofit Clark & Associates to staff a food and clothing bank.
But in September, the department spent $210,344 to furnish its offices and waiting room at 5031 Grandy and billed Clark & Associates to cover the expense, records show.
Head of nonprofit says he had no clue about misspent money
The head of the nonprofit that signed off on a $210,000 expenditure said he thought the money was being used for food and clothing banks, not to outfit city offices with furniture.
"I was under the impression that (the money) was going to the food pantry and clothing boutique," said Timothy Ballard, director of Clark & Associates in Detroit. "When we got the furniture bill, we saw that it went to the offices instead."
Officials in Detroit's Human Services Department didn't return calls Tuesday to confirm Ballard's account of the misspending.
Records show the department gave Clark & Associates a no-bid, $2.1-million contract last year that was to be used only for hiring 33 full-time workers to staff a food pantry for poor people and clothing boutique for people seeking jobs.
Although the purchase of furniture is barred under the contract, Ballard said he signed off on it because a city official told him the money would be spent to furnish and improve the food and clothing banks.
An investigation by the council's Research and Analysis Division found that the furniture spending "appears to be outside of the four corners of the grant application."
The council is to meet at 9 a.m. today to discuss the contract, following criticism Tuesday from city Planning and Development Director Robert Anderson, who said the city has mismanaged more than $25 million in community block grants.
"The findings are troubling," Anderson said.
Two city audits and a federal review last year concluded that the Human Services Department mismanaged more than $100 million in federal money for lower-income residents.
In the first indication from the city that the problems likely go deeper than the furniture purchase, Mayor Dave Bing said Tuesday that his office is looking at broader abuses in the Human Services Department and pledged to clean up any mismanagement.
The furniture issue came to light when a union leader for some of the department's employees told council members that the department appeared to have violated city ordinances by hiding the furniture purchase in a service contract.
"We know about the history of no-bid contracts in the city," said Greg Murray, vice president and administrative representative of the Senior Accountants Analysis and Appraisers Association. "This is how the deficit increases."
By hiding the furniture purchase in a service contract, Murray said the department managed to spend money on itself at a time when the city is slashing wages, employee benefits and services.
It's still unclear whether all of the furniture ended up in city offices because department officials have declined to comment.
In October, the city issued another contract to Clark & Associates in the amount of $694,201 to provide the same services, records show.
Contact Steve Neavling: sneavling@freepress.com
Post Wed May 18, 2011 7:10 am
untanglingwebs
F L I N T O I D
When Flint Council got a Department of Energy grant that went through the proper bidding process, the grant was to go to a company with 17 years experience in the field and had worked with most cities in South east Michigan.
When the former CEO of Greater Eastside Community Association (GECA)made her presentation for the grant, her documents showed Greg Eason's application as CEO for the new company. The office was the same as that shown for GECA, Jackie Foster had worked for Greg Eason at Career Alliance and then later also worked for Fields at GECA. She now works for the City of Flint and reports only to Flint City Administrator Eason.
James Ananich was a previous President of GECA before he became a councilman for the 7th ward. He did not disclose this relationship before his election or for the year as required after his electon. He had signed a loan as president of GECA for $100,000 on the old bank building on Franklin although the location dictated the building was probably not worth the value. Ananich also signed documents to get a tax break on the building saying the building was used for storage. Later GECA held garage sales out the building after their flea market on Franklin.
Ananich decided not to run for council again as he was going to run for the term limited house seat of Gonzales. He stopped the energy contract from going through. The contract stalled and the amended contract did not pass until the new council was seated. Then Kate's company Advanced Solutions got the contract. Her claim to fame for her recently created company was that she (not GECA)built 2 energy efficient homes on Delaware.
She did not discuss the MSHDA communications alleging she had possibly given a Burton builder an unfair advantage and this was one of her partners in the new grant. Nor was it mentioned that Josh Freeman, re-elected for the 4th ward Councilman, was the registered Agent and President of the now nonfunctioning GECA. During the city lawsuit against GECA Freeman signed documents placing liens on the properties owne by GECA and signed the equipment over to kate Fields in lieu of salary and vacation pay owing. With no disclosure, Advanced Solutions and kate got the contract for the grant.
Recently Freeman signed the Franklin Avenue office property back to the land bank. The Land bank had made numerous decisions to allow GECA to remain although payments on the land contract were scarce and they never filed formal arrangements for eviction. It's nice to have friends in high places like the Kildees and others.
A whistleblower lawsuit is now ongoing as part of this,
Post Wed May 18, 2011 7:53 am
untanglingwebs
F L I N T O I D
Flint's findings are also troubling. Poplar, upon being made President of the council, took the Grants Committee away from Nolden and gave it to Loyd. fianally after doing little, Loyd resigned and the committee was given back to Nolden. Nolden is serious about getting to the bottom of this ongoing problems with Flint's grants. Eason is resisting Nolden's requests for information but Nolden is not afraid to go to HUD for answers. Detroit and Flint are not that far apart.
Last Updated: May 18. 2011 1:00AM
Detroit's block grant program in disarray
Planning chief says city could lose $5.7M in funds
Darren A. Nichols / / The Detroit News
Detroit — The city is "failing" its administration of federal block grant funds and could lose $5.7 million if officials don't get the troubled program under control, a top city official said Tuesday.
Planning and Development director Robert Anderson came on board in January and since then has investigated the grants that go to nonprofits and other agencies for affordable housing, anti-poverty programs, infrastructure improvements and other programs.
He told the City Council he's uncovered a mess: The city hasn't been in compliance with U.S. Department of Housing and Urban Development rules for two years and routinely commits to groups funding that isn't there.
Detroit must scale back the funding by about $40 million, Anderson said. That's a potential blow to groups that rely on the money to improve neighborhoods and deliver social services. And it raises questions about whether residents are receiving services that were promised.
"The findings are troubling," he said. "We've got a failing program. The mayor has made it very clear that continued failure is not an option. There are too many people in this community that are counting on us to deliver these services, and we are not doing it well. It has taken us a whole generation to get us where we are. We've had our share of failures. Now it's time to seek some answers."
Detroit officials are in negotiations with federal counterparts to make sure the city doesn't lose the $5.7 million. The Detroit News couldn't reach HUD officials for comment Tuesday.
Dan Lijana, a spokesman for Mayor Dave Bing, said: "The administration has launched an internal investigation into this matter. Swift and serious action will be taken."
Anderson said he has assembled a task force that has examined nearly 2,000 line items of funding since the mid-1990s. The group includes two former analysts from HUD, and its work should wrap up in about a month.
Some early findings:
The city distributes $5 million each year more in block grant funds than it actually receives, leaving some recipients without funding, Anderson said.
The city borrowed from a $53 million demolition program, and called it a floating loan. It now owes about $13 million to the federal government.
Officials allocated $27 million in grants for a home repair program to groups that can't do the work.
Groups have asked for about $105 million for programs, but about $34 million will be allocated this year.
"It took all of us to get in this; it'll take all of us to get out of it," Anderson said.
Council President Pro Tem Gary Brown called the findings "troubling" and said it would be devastating to send any money back to the federal government. The city already faces a $155 million deficit.
"It's troubling to have as many needs as we have in Detroit and not to have that funding utilized in a more efficient and effective way," Brown said.
"It looks like we're moving in a direction to get it straightened out. I am cautiously optimistic that we won't lose any money and we'll make it a more effective program in the future."
Councilwoman JoAnn Watson criticized the department because it's not using 10 percent of the funds to hire city residents, as required by law.
"All of it is vulnerable if we don't do what the federal government says we're supposed to do, which is hire Detroit residents and give contracts to Detroit residents," Watson said.
"We're not doing it, not to the degree we should. It should not be status quo."
Also Tuesday, City Council staffers released a report that found $200,000 in block grants was used to buy furniture for the city's Human Services Department offices.
The money came from a $1.1 million community service block grant contract with the Department of Human Services to Clark & Associates to provide a food pantry and clothing boutique for low-income residents.
Clark & Associates also used block grant funds to pay its staff $236,000 in overtime. Its officials were unavailable for comment Tuesday.
Greg Murray, a city union leader, said the purchases "send the wrong message."
"People are being told to stay within their budget, but you have departments spending money like a drunken sailor, further obligating the city to money it doesn't have," Murray said.
East side community activist Mike Fisher said the funding process has become political.
"Block grant dollars are essential to a lot of programs," said Fisher, a former executive director of the Detroit Community Initiative.
He applied for block grant funds for years, but stopped because the process got too politicized. "They are important dollars for economic development. All of the pitfalls have been the favorite son statuses. The pet projects may not have been the best use of dollars."
Post Wed May 18, 2011 8:01 am
untanglingwebs
F L I N T O I D
Many are talking about the Detroit and the MSU connection in many contracts currently being awarded by the City of Flint and conjecture revolves around Eason's work in Detroit for several years after Career Alliance.
Now Advanced Solutions is afiliated with Greening Detroit. Not much is known bout Greening Detroit as it is fairly new. Their office has been traced back to a company owned by Lawyer and Real estate Investor Anthony Randazzo.
However there is no Greening Flint as indicated in this attached website description. The closest I can find is an MSU video production on environmental issues in Beecher and attributed to Flint and dayne Walling. Can anyone say potential campaign materials?
In All Categories About Us Photo Gallery Pressroom Dirt Talk Green News You Can Use Metro Communities Grassroots Blog Natural Wellness Renovating Detroit Shop T
Advanced Solutions Group LLC
2804 N. Franklin Avenue
Flint, MI 48506
Contact: Kate Fields
Phone: 810-908-0366 Cell or
810-233-7300 Office
katefields@aol.com
--------------------------------------------------------------------------------
Company Description
As Energy Specialists, Advanced Solutions Group LLC (ASG) offers a multitude of services for residential, commercial, institutional and governmental customers.
We provide Consulting Services for: Strategic planning, grant identification, writing, packaging, submission and reporting, project planning, implementation, management and reporting, program development, implementation, management, marketing and reporting, curriculum development and training, energy assurance planning, training, management and reporting, RFP development and administration, bid preparation, packaging and submission, cost and feasibility analysis for energy initiatives, organizational capacity analysis, energy audits (residential, commercial), government liaison for energy initiatives, and GSA schedule preparation
We provide Construction Services for: Energy audits and energy efficiency construction retrofits, weatherization (single-family, multi-family, commercial), and renewable energy technologies installation (solar, geo-thermal, solar-thermal)
We provide assistance with applications, documentation and processing of: Michigan Saves residential energy retrofit loans, residential and commercial utility rebate programs (ASG is a Consumers Energy Allied Trade Partner), and federal and state energy financial incentives
SIGNIFICANT PAST PROJECTS:
ASG principal (Kate Fields) developed Energy Star Certified single-family homes; both new construction and rehabilitated. These homes were built for low-to-moderate income families utilizing HUD Block Grant funds from the City of Flint and the Michigan State Housing Development Authority (MSHDA).
Assisted GreeningDetroit.com with City of Flint approval for GreeningFlint.com
Provided three Externships for graduates of American Green Careers; experience provided with residential energy audits.
City of Flint Energy Efficiency and Conservation Block Grant (EECBG). Secured the grant, prepared (accepted by DOE) Energy Efficiency Conservation Strategy (EECS) and developed an additional Comprehensive Strategic Energy Plan for the city. Many energy experts were utilized for research and analysis of relevant energy topics in order to prepare the comprehensive strategy and EECBG allocation recommendations. This work was presented in a five-day series of seminars which you will find posted on this web site. Although they were geared to the City of Flint, most seminars offer generic information for anyone interested in energy or “Green” initiatives.
Topics included:
Day One – Energy and Green Jobs
Welcoming Remarks
Introduction to EECBG
Green Jobs
Michigan Energy Legislation(Renewable Portfolio Standards, Net Metering and Feed-in-Tariffs)
Smart-Grid
Brownfields
Day Two – Energy Efficiency and Conservation
Energy Efficient Building Practices including Energy Audits
LEED Building Practices
City Of Flint Facilities Energy Audits and Rebates
Energy and Building Automation
Day Three – Renewable Energy
Renewable Energy Generation
Renewable Energy Ordinances
Alternative Fuels
Day Four – Energy and Green City Operations
LED Traffic and Street Lighting
Alternative Transportation
Waste-to-Energy (Recycling, Reuse and Energy Recovery)
Green Purchasing Policies
Day Five – Funding Energy and Green Initiatives
Financing Municipal Energy Projects
Potential “Other Grants” Funding
Proposed: Flint-Genesee Energy Coalition
The EECBG Strategic Plan: Synopsis, Prioritization and Recommendations
Concluding Remarks
Comprehensive Strategic Energy Plan – Vision of Flint as a Sustainable CityCURRENT PROJECTS
CURRENT PROJECTS
BIOGRAPHY OF KATE FIELDS
© 2009 GreeningDetroit.com All Rights Reserved.
View our Privacy Policy, Terms and Conditions, Disclaimer.
Website Maintained by Matt Oberdier
Home About Us Become Listed Contact Us Endorsements and Supporters Commercial & Industrial Buildings Green Homes Metro Communities Network with us:
Post Wed May 18, 2011 8:14 am
untanglingwebs
F L I N T O I D
Advanced Solutions Group LLC | Greening Detroit
2804 N. Franklin Avenue Flint, MI 48506 Contact: Kate Fields Phone: 810-908-0366 Cell or 810-233-7300.
http://www.greeningdetroit.com/advanced-solutions-group-llc/ - 27k - Cached - Similar pages
Green jobs for Flint and Genesee County - Greening Detroit
Advanced Solutions Group, LLC by. American Green Careers, LLC ...
http://www.greeningdetroit.com/wp-content/uploads/2010/08/Green-Jobs.pdf - - Cached - Similar pages
Post Wed May 18, 2011 8:27 am
Dave Starr
F L I N T O I D
quote:
untanglingwebs schreef:
Even before Williamson, an FBI agent often came to city council and just sat in the audience watching the council. He alsways sat where the council could easily see him and with no one else around him.
I have heard Alex harris discuss the Flint corruption with council, so why couldn't the FBI get more than Makokha in their corruption cases? Previous council members had enough complaints about requiring kickbacks. And then the US Attorney kicks Poplar free with just a slap on the wrist.
Maybe the feds in Flint are dirty, too.
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Post Wed May 18, 2011 8:27 am
untanglingwebs
F L I N T O I D
quote:
Dave Starr schreef:
quote:
untanglingwebs schreef:
Even before Williamson, an FBI agent often came to city council and just sat in the audience watching the council. He alsways sat where the council could easily see him and with no one else around him.
I have heard Alex harris discuss the Flint corruption with council, so why couldn't the FBI get more than Makokha in their corruption cases? Previous council members had enough complaints about requiring kickbacks. And then the US Attorney kicks Poplar free with just a slap on the wrist.
Maybe the feds in Flint are dirty, too.
That thought has crossed my mind!
Post Wed May 18, 2011 8:35 am
Last edited by untanglingwebs on Sat Nov 26, 2016 7:45 pm; edited 1 time in total |
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untanglingwebs
El Supremo
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Topic: Gov wants Transparency -doesn't happen in Flint
untanglingwebs
F L I N T O I D
The Governor is holding out more revenue sharing money for transparency in government along with other conditions. Council has been trying to get information about recent HUD monitoring reports for months. Recently a citizen filed a Freedom of Information with HUD and made them available to council. Eason's explanation, which outraged council, was that he could not get answers from HUD so that his staff could explain the results to council. He also told them they would not understand the monitoring results of the Neighborhood Stimulus Program monitoring reports. That is strange as most council asked the right questions about what they had read.
Kudos to Nolden, 3rd ward Councilman and Grants Committee Chairman, for bringing the hard issues to council. He understands that council cannot make informed decisions when they are kept n the dark by walling and Eason.
Eason blames HUD and HUD's Steve Spencer for Flint's current problems, although he admits all of the staff in his reorganization are new and in training to learn HUD ru;les, policies and procedures. He also did not seem to know that MSHDA has had an embedded staff helping for over a year and claimed the only outside person was one of the two Office of Inspector General audit staff that has been in City Hall for well over a year.
When HUD stated in the May 20th monitoring report that the city did not work with them for over a year in solving some serious issues, Eason had the audacity to proclaim HUD had not gotten back to him. He claimed he begged and pleaded HUD for HUD to give tthem help and thank God there is a new regional director.
Good luch with the transparency issue. Some departments are already approaching a budget deficit as the conditions Walling and Eason promised the council would be met have not occurred. The unions have not met the concessions Walling wants. There appears not to be any movement or meetings as citizens complained to Flint risk manager investigate why Union REp Franklin Greene was never at work and always at home, when they were told that investigations of union officials were ignored by the administration.
Flint working on Gov. Rick Snyder's transparency, consolidation, compensation reforms
Published: Sunday, August 21, 2011, 10:01 AM
By Kristin Longley | Flint Journal The Flint Journal
FLINT, Michigan — The city of Flint is racing to meet Gov. Rick Snyder’s deadlines for government reforms in the hope of getting more funding from the state.
Local municipalities have to put the governor’s “best practices” in place if they want to win back a portion of the state-shared revenue that Snyder cut in his budget plan earlier this year.
In Flint, the cut initially equaled a hit of about $8 million to the budget, but officials are hoping to get some of it back by meeting the three deadlines.
First up is the “transparency” mandate for local municipalities to publish online a citizens guide to its finances by Oct. 1.
Finance Director Michael Townsend said the city is on track to meet the deadline.
“We just have to input the numbers and have those up on the website,” said City Councilman Joshua Freeman, chairman of the council’s finance committee. “That was a pretty easy hurdle to get over.”
By Jan. 1, local governments have to submit a plan to consolidate services that will result in a savings to city taxpayers.
Townsend said the city is still examining ways it can cut and consolidate, and said the plan is expected to be submitted on time.
He said some things the city already has done — such as combining the once-separate budget and finance departments — may also count toward that requirement.
“It’s as long as there were savings attached to it,” he said.
Finally, the city by May 1 has to develop a plan to change employee compensation in future labor union contracts.
The plan has to show the city will cap its employer contribution to employee retirement packages; reduce the multiplier used to calculate pensions to 1.5 percent or 2 percent; prevent “pension spiking” by limiting the amount of paid leave and overtime that can be included in the pension formula; and require employees to pay at least 20 percent of their health care premiums.
“It appears we have to submit a plan that basically says how we could meet that criteria moving forward,” he said.
Post Mon Aug 22, 2011 6:36 am
untanglingwebs
F L I N T O I D
Tonight Eason and his minions took a multimillion dollar contract to council for Charles Young as an add on. That way there is no record of it unless you buy the minutes of the meeting. Add on resolutions do not show up on coulcil agendas and Flint has not had minutes during walling's administration.
What transparency?
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untanglingwebs
El Supremo
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untanglingwebs
F L I N T O I D
This case has been very quiet lately and has the potential to cost the city a lot of money.
The Citizen's Service Bureau was formed in 2006 and as thos article shows, Darryl Buchanan, then council president, was instrumental in the creation of the CSB. Could this have been an NAACP move to promote more blacks in the police department? It was about the same time the NAACP leadership had Williamson bring in all of his appointees so they could evaluate how black the administration was.
December 7, 2006
Flint Journal, The (MI) Section: LOCAL NEWS
Edition: THE FLINT JOURNAL FIRST EDITION Page: A03
Section: LOCAL NEWS
Once-fired officer among four Williamson inspector bureau appointees
By Bryn Mickle bmickle@flintjournal.com * 810.766.6383
A city police officer who was fired two years ago for an off-duty drunken driving incident now will be among the highest ranking officials in the Flint Police Department.
Officer David Dicks was one of four officers pegged by Mayor Don Williamson to fill the mayor's newly created inspector positions.
Joining Dicks as new inspectors are Officers Connie Johnson, Jermaine Reese and Ralph Tedford. Officer John Keahey was promoted to become the major of the bureau.
Dicks was arrested Jan. 31, 2004, for drunken driving in Flint Township after his car crossed the center line and hit an oncoming car.
He was fired by then-police chief Bradford Barksdale three weeks later, but was put back on the job by Williamson.
Dicks pleaded guilty to a reduced charge of impaired driving in the case and was fined.
Williamson said Dicks - the son of the city's fire chief - never should have been fired.
"Sometimes people overreact," said Williamson, adding Dicks and his other choices for the new "Citizens Service Bureau" are the best qualified for the positions.
Dicks could not be reached for comment Wednesday.
The new bureau will have authority over the department's existing command staff and will report directly to acting police Chief Gary Hagler.
One of the bureau's first assignments will center on establishing a rating form that the public can use to evaluate the service they get from police officers.
Williamson has said the new inspectors will spend their nine-hour shifts in police cars and also will answer 911 calls.
As part of the deal, the inspectors must leave the police union and will not be paid for sick days.
Reese and Tedford were assigned to work every weekend, as part of Williamson's plan to create a new command structure that will be available to the public at any hour every day.
Wednesday's move could result in grievances and an unfair labor practice filing by the city's three police unions.
"I expect something will be filed," said Keith Speer, president of the Flint Police Officers Association.
Union leaders plan to meet Thursday to discuss their next move, said Speer.
"It's a mess," said Speer, adding the mayor's choices were all handpicked.
"What are the qualifications? I don't know of a job in the city that you don't have to take a test for."
Williamson specifically thanked City Council President Darryl Buchanan for his help in formulating the plan.
And Buchanan acknowledged it might not yet be a perfect plan and said he would take any union concerns seriously.
"I am glad that we have an administration that hears the citizens' cries for change in the police department," Buchanan said.
All Rights Reserved.
Used by NewsBank with Permission.
Post Thu Apr 28, 2011 6:20 am
untanglingwebs
F L I N T O I D
December 2, 2006
Flint Journal, The (MI) Section: LOCAL NEWS
Edition: THE FLINT JOURNAL FIRST EDITION Page: A04
Section: LOCAL NEWS
Mayor creates police bureau, plans to promote 5 patrol officers
By Bryn Mickle bmickle@flintjournal.com * 810.766.6383
Five patrol officers soon will be among the highest-ranking supervisors in the department.
Mayor Don Williamson on Friday said he has restructured the police command to include a "Citizen Services Bureau" with the newly created positions of a major and four inspectors.
The inspectors will answer directly to the major, who will effectively be the deputy of acting police Chief Gary Hagler.
But rather than promote from current supervisors, Williamson said he is staffing the new roles with five patrol officers.
Williamson said the officers have not yet been told they are being promoted but said they include a woman and four black men.
The lack of black officers in command positions at the department has drawn criticism from the city's Afro-American Police League.
When asked why he chose four blacks and a woman for promotion to the new positions, Williamson said his choices were "the best-qualified people I have."
Under the new structure, inspectors would spend their entire shift in a police car and would focus on patrols from noon until the overnight hours. One inspector will oversee services provided by the detective bureau and the mini stations.
The move will make the city's police command structure available to the public around the clock, Williamson said.
Because Williamson is unhappy with the performance of the city's current command staff, the four inspectors will outrank all of the department's captains, lieutenants and sergeants.
The head of the city's sergeants union declined comment on the mayor's criticisms and the plan.
"It's pretty interesting," said sergeant's union President Richard Hetherington, adding the moves may violate the city's union contracts.
Hagler did not attend Williamson's announcement of the changes and could not be reached for comment.
The move is the latest in a series of attempts Williamson has made to reshape the city's police department.
Williamson has already increased the number of single-officer patrols and created a "fourth shift" that patrols from 7 p.m. until 4 a.m. and targets higher crime areas.
All Rights Reserved.
Used by NewsBank with Permission.
Post Thu Apr 28, 2011 6:26 am
untanglingwebs
F L I N T O I D
December 8, 2006
Flint Journal, The (MI) Section: LOCAL NEWS
Edition: THE FLINT JOURNAL FIRST EDITION Page: A03
Section: LOCAL NEWS
Police unions ready to battle Williamson over new Citizens Service Bureau
By Bryn Mickle bmickle@flintjournal.com * 810.766.6383
The city's three police unions have vowed to fight Mayor Don Williamson's decision to leapfrog five police officers into a newly created "Citizens Service Bureau."
"It's like making a private in the army a general," said Keith Speer, Flint Police Officers Association president.
Williamson's decision to handpick the five officers already has resulted in a grievance by the city's sergeants union. The other two unions are expected to follow suit today.
Sergeants union President Rick Hetherington called the promotions an assault on unions.
"We stand before you united," said Hetherington, flanked by more than 30 officers. Williamson could not be reached for comment Thursday night, but has said he chose officers he felt were the best qualified.
The scope of the new bureau's authority, however, has already been blunted.
Less than a week after Williamson said the new bureau would outrank the department's current command staff, acting police Chief Gary Hagler announced that inspectors and a major within the new unit - who have agreed to leave the police union for the nonunion positions - will have authority within that bureau only.
"They will not be supervising command staff, supervisors or officers of other bureaus," according to a memo issued by Hagler.
Speer said he will tell officers not to take orders from the new inspectors.
Hagler could not be reached for comment.
Williamson had said the bureau would provide a new command structure that would be available to the public 24 hours a day.
The Citizens Service Bureau is expected to begin work soon on a form that will allow the public to rate officers.
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Post Thu Apr 28, 2011 6:31 am
untanglingwebs
F L I N T O I D
Mayor Don Williamson disbands Flint police Citizens Service Bureau, says more changes coming Friday
Published: Thursday, March 27, 2008, 8:47 PM Updated: Thursday, March 27, 2008, 10:26 PM
By Bryn Mickle | Flint Journal The Flint Journal
FLINT, Michigan -- The city's police Citizen Services Bureau is gone and more changes are on the way.
Mayor Don Williamson on Thursday announced he has disbanded the bureau and returned its major and three inspectors to their former duties as patrol officers.
He called the move just the first step and said he will announce more moves on Friday to address what he called a "major shortfall" in expected revenues.
City police officers anxiously awaited Friday's announcement as rumors swirled that Williamson would demote upward of 30 supervisors to patrol positions.
Police officers union President Keith Speer said the mayor assured him two months ago that no officers would be laid off.
"I'm taking him at his word," said Speer.
Williamson declined to discuss specifics until a planned 10 a.m. announcement.
The decision to disband the bureau comes amid uncertainty about the city's financial status.
Budgeted at $500,000 a year, the bureau focused on community services and had been derided by some as a waste of money at a time when the city has made cuts to offset what was a projected $4-million deficit.
Others, like Flint resident Alvin Reid, are disappointed and said the bureau brought citizens together.
But Reid understands the need to put more officers on patrol.
"(The mayor's) got to do what he's got to do," said Reid. "The residents are going to have to step up to the plate."
Williamson lauded the bureau's work with block clubs and said the "experiment is an out-and-out success."
The bureau was credited with coordinated block clubs, running gun buybacks and working with residents at police mini-stations.
The unit was not, however, without controversy.
Staffed by five officers handpicked by the mayor in December 2006, the bureau prompted a wave of reverse-discrimination lawsuits from officers in the department and labor grievances.
The bureau was also hit with controversy when one of its inspectors gave up his badge and was sent to jail for having sex at one of the mini-stations.
Another inspector has come under scrutiny for off-duty security work and his home was searched by federal agents last month.
Critics complained that the bureau's staff did not answer 911 calls and were among the highest paid in the department.
With the bureau disbanded, the major and inspectors return to their old pay rates and will function as regular officers.
That doesn't sit well with the city's Afro-American Police League, which has complained Flint police don't have enough minorities in leadership positions.
Four of the five officers Williamson chose for the group were black.
"Anytime our members are demoted, it's a huge loss," said AAPL president Karl Petrich.
Williamson said the city is working to reach a point where the bureau could return as a permanent fixture with 10 officers.
But next time, said Williamson, the bureau spots will be posted and available to qualified officers.
Speer is just pleased to have four more police officers back on patrol.
"We're happy to get as many warm bodies on the street as we can," said Speer.
Post Thu Apr 28, 2011 6:48 am
untanglingwebs
F L I N T O I D
Decision could be near on bias suit by Flint police
Published: Friday, January 14, 2011, 9:25 AM Updated: Friday, January 14, 2011, 9:59 AM
By Kristin Longley | Flint Journal The Flint Journal
FLINT, Michigan — A ruling on 53 Flint police officers who are suing the city for alleged discrimination could be issued within weeks, attorneys said.
The end of the lawsuit comes just as the city has agreed to pay more than $1.5 million in two other unrelated legal cases — a payout that will stretch the city’s already tight cash flow, officials said.
The 53 police officers are seeking monetary damages, saying the city discriminated against them in 2006, when former Mayor Don Williamson formed a special unit with mostly black officers.
The Citizens Service Bureau was disbanded in March 2008 but not before a wave of reverse-discrimination lawsuits was filed against the city.
The city lost one of those cases in 2009, when police Officer Keith Speer was awarded more than $300,000 in damages and attorney fees after a jury decided race was a factor in the promotion of the Citizens Service Bureau officers.
Four of the five officers Williamson chose for the bureau were black.
The rest of the cases now are in the hands of three court-appointed arbitrators, who are hearing witness testimony. Witnesses have included Williamson and former Human Resources Director Deidre Pitts.
Among other claims, the officers allege the mayor created the unit to quell criticism about the lack of women and minorities in leadership positions.
During the trial involving Speer’s lawsuit, Williamson denied intentionally hiring black officers for the unit.
Glen Lenhoff, the attorney for 33 of the officers, said the arbitrators could reach a decision within a month.
It’s unknown how much money the officers could be awarded if the arbitrators rule in their favor. They’re seeking unspecified damages.
“We’re vigorously working on this trial,” Lenhoff said. “We’re putting a good case forward.”
Instead of individual trials, the parties agreed to bundle the cases and enter binding arbitration because of the number of officers, City Attorney Peter Bade said.
“The multiple trials and expenses and cost of litigation would have been really significant,” Bade said.
The arbitrators will make findings and issue a decision.
Bade declined to comment on the potential outcome of the case.
“We take this case very seriously,” he said. “We do that every time we’re in court.”
Bade said each case is evaluated on an individual basis to determine whether the city will settle or go to trial.
The city last month approved a $625,000 settlement in a case involving a woman shot by a Flint police officer.
The city also must pay more than $800,000 to a man who successfully sued the city after walking into a guardrail that had been damaged and was sticking out over the sidewalk.
Bade said the payments, which were inherited by the new administration, will come out of the city’s self-insurance fund.
City Councilman Scott Kincaid said the payouts will stretch the city’s cash flow, which is in “critical condition,” according to city officials.
Council members have asked the legal department to provide them with a list of other pending lawsuits against the city.
Council President Jackie Poplar said she wants to avoid “surprises.”
“In these hard economic times we’re looking at, the self-insurance fund is very, very low,” she said. “At this stage of the game, we need to know what we’re looking at and what may be coming.”
Bade said the city has not seen an increase in lawsuits and that the legal department is “winning a lot of cases.”
“The vast majority of these cases are handled in house,” he said. “I’m really pleased with our track record.”
Post Thu Apr 28, 2011 7:03 am
untanglingwebs
F L I N T O I D
micu29 January 14, 2011 at 1:11PM
Follow
Group, Not to disrespect your question but the fact that you don't know that answer years after this mess happened is clearly an indication of the lack of knowledge posters on this board have about the critical details of what goes on at city hall. Don't get me wrong I too have been guilty of the same in some instances, but to answer you question, yes of course the CSB received more pay and a lot of it. That is the heart of why the officers were grieved.
It wasn't just pay either the issues were much deeper than that. The members of that bureau had every right to accept the position but not at the expense of the police union and the City yet in the end the "cream of the crop" as Don said were mostly victims of their own criminal behavior and those left couldn't handle accepting the consequences and when it all fell apart they came running back wanting to be union police officers with their same senority. This was a new classification and if they left the officers union to accept it then fine, but when they were allowed back to patrol then they should have come back with new employee senority and been subjected first to lay off, not the officers who didn't betray the union and the department. THis is just the officers, there are many other issues such as the multiple contractual violations including failing to fairly test for promotion among the current supervisors, the entire promotional process was bypassed, these CSB were all patrol officers.
The proof was in the pudding, look at each one of the officers that took that carrot, their competence, laziness and/or criminal behaviors that have come to light speaks for itself.
Post Thu Apr 28, 2011 7:04 am
untanglingwebs
F L I N T O I D
CITY OF FLINT (POLICE DEPT) - www.dleg.state.mi.us
POLICE OFFICERS LABOR COUNCIL (FLINT POLICE CAPTAINS ... filled positions in the newly created Citizens Service Bureau without following promotional ...
http://www.dleg.state.mi.us/ham/ber/pdf/2010/mar/c07b022.pdf - - Cached - Similar pages
Commission stated the CSB was an unfair labor practice.
Post Thu Apr 28, 2011 7:09 am
untanglingwebs
F L I N T O I D
Story says NAACP pushed to organize the Citizens service Bureau
Racial Discrimination in Flint, MI PD
www.youtube.com
Flint, Michigan is fighting a racial discrimination lawsuit filed by 45 white police officers. CNN's Ines Ferre reports.
Racial Discrimination in Flint, MI PDFlint, Michigan is fighting a racial discrimination lawsuit filed by 45 white police officers. CNN's Ines Ferre reports.
by sustainablehome | 2 years ago | 3,993 views
Post Sun Jun 12, 2011 8:09 pm
untanglingwebs
F L I N T O I D
Arbitrators: City of Flint must pay $3.8 million to police officers in Citizens Service Bureau discrimination lawsuit
Published: Thursday, July 07, 2011, 6:36 PM Updated: Thursday, July 07, 2011, 6:37 PM
By Kristin Longley | Flint Journal The Flint Journal
FLINT, Michigan — The cash-strapped city of Flint will have to pay out more than $3.8 million to a group of Flint police officers after it lost a long-standing discrimination lawsuit, according to a ruling released today.
The 48 current and former police officers sued the city in 2006, when then-Mayor Don Williamson formed a special unit mostly with black officers.
A three-member panel of arbitrators ruled Wednesday that race was a factor in the promotion of the officers to Williamson’s Citizens Service Bureau, and the plaintiffs were awarded a total of $2.6 million in damages and $1.2 million in attorney fees.
Individual awards to the officers ranged from $25,000 to $150,000.
"Our clients were vindicated," said attorney Glen Lenhoff, one of three attorneys who represented the police officers. "It is a real evil in American history when African Americans are discriminated against and it’s an equally egregious evil when a white person is discriminated against."
Flint City Attorney Peter Bade could not immediately be reached for comment.
The arbitrators’ award is likely a blow to the city of Flint’s budget. Bade has said the city has only $2 million budgeted this year in its self-insurance fund, which funds lawsuit payments among other expenses.
Many of the police officers had also sought punitive damages against Williamson, which would have come out of Williamson’s own pocket, but the arbitrators ruled that the former mayor’s actions weren’t severe enough to warrant that kind of punishment.
The arbitrators did say, however, that Williamson “failed to be open and honest in his testimony,” according to the 26-page written ruling.
“We are deeply disturbed by Defendant Williamson’s apparent refusal to honor his oath,” the ruling states. “His deception stands as persuasive evidence that he is now cognizant that his actions ran afoul of the law.”
Williamson declined to comment on the ruling or the arbitrators’ comments on Thursday.
In testimony, Williamson denied intentionally hiring black officers for the unit.
The officers sued the city for damages for lost wages, lost pension entitlement, emotional distress and attorney fees.
In addition to the award and interest payments, the city already has spent at least $300,000 defending the case, Bade has said.
The city can’t appeal the decision because the parties agreed to enter binding arbitration instead of holding individual trials because of the number of officers involved. The decision to go to arbitration likely saved the city time and money, Bade said last month.
Among other claims in the lawsuit, the officers said the mayor created the unit as an election-year ploy and to quell criticism about the lack of women and minorities in leadership positions.
At the time, Williamson said the Citizens Service Bureau officers were appointed to make the city's police command structure more available to the public, according to Flint Journal files.
Four of the five officers Williamson chose for the bureau were black men and one was a white woman.
The bureau was disbanded in March 2008.
The city had previously lost another related lawsuit in 2009. Officer Keith Speer, who is now retired, was awarded $305,000 in damages and attorney fees after a jury decided race was a factor in the promotion of the Citizens Service Bureau officers.
Post Fri Jul 08, 2011 8:48 am
Dave Starr
F L I N T O I D
There's only 2 million in the self insurance fund, so we need to find another 1.8 million....
Using Walling math, 1.8 million dollars = how many police officers?
Post Fri Jul 08, 2011 9:49 am
untanglingwebs
F L I N T O I D
Another special assessment?
Post Fri Jul 08, 2011 3:30 pm
Ted Jankowski
F L I N T O I D
untanglingwebs<> Another posting you've done that I really enjoyed reading. Great job on the research.
Post Fri Jul 15, 2011 2:28 am
Flint loses $4 million reverse discrimination lawsuit. Who pays?
by Dan Armstrong
Posted: 07.08.2011 at 2:48 PM
Read more: Local, Flint Police Lawsuit, Reverse Discrimination Lawsuit, Glen Lenhoff Reverse Discrimination Attorney, Lawyer, Flint Mayor Don Williamson, Multi Million Dollar Lawsuit, Flint Lawsuit, Citizens Service Bureau, 2006, 2007, Election Year, Flint Mayor Dayne Walling, City Attorney Peter Bade, Taxpayers, $150 a Year, Flint Loses Millions
The already cash-strapped City of Flint now finds itself losing a multi-million dollar lawsuit.
An arbitration panel says race was a significant factor in the promotion of Flint Police officers in 2006.
Now, the city is out more than four-million dollars.
In 2006, Flint Mayor Don Williamson promoted several officers to an elite group called the Citizens Service Bureau.
It included four African American men and one white woman.
All three police unions raised a red flag saying Williamson did not follow procedures for the promotions.
"He didn't post these positions. He didn't test for these positions. He simply decreed," says attorney Glen Lenhoff, attorney for the majority of plaintiffs.
The 47 plaintiffs say the promotions were for political gain saying Williamson was feeling pressure from the African American community to install more African American commanding officers.
Williamson formed the bureau in 2006 and 2007 was an election year.
Both the city and the plaintiffs say the decision of one caused enormous damage to the city.
Who's going to pay for it?
City attorney Peter Bade says, "The administration's position is that this will not be put on the tax roll and that we'll figure out a way to pay for it."
Citizens say even if they don't have to pay an additional tax for this lawsuit, they still don't like it because they know it's still going to come from them.
"I don't think it's right. That's what I think about it. There's no way they got a choice but to pay it," says Flint resident Walter Gatewood.
"They spent the people's money," says David Peterson of Flint.
All this just nine months after the city lost a more than $8-million lawsuit over the abandoned Genesee Towers, which residents will have to pay an additional $150 a year to cover it.
NBC25 called former Flint Mayor Don Williamson and asked him about the lawsuit.
He says he has no comment on the matter.
Now comes the issue of collecting.
Flint doesn't have $4-million to pay.
Every day it goes unpaid, the interest gets higher.
The city could appeal, but that is costly, and there's no guarantee it would win.
Plaintiffs could have gone after Don Williamson personally, but since he was a city employee at the time, there's the issue of indemnity. That means the city would have to pay the bill anyway.
The plaintiffs in the case say they hope this ruling sets a precedent that reverse discrimination is unconstitutional. |
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Thu May 07, 2015 7:23 am |
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untanglingwebs
El Supremo
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Thu May 07, 2015 7:33 am |
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untanglingwebs
El Supremo
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Former Burton mayor's legacy- Fields of broken dreams
untanglingwebs
F L I N T O I D
Everyone thought Smiley and the Smiley Team were on a building boom when the city kept agreeing to bond out the infrastructure for a number of home development projects as well as Rizzo's industrial park. Now Mayor Zelenko is stuck with the debt and woes created by her predecessor. This is only one project that the building bust hit, but the city still has the tab.
When the otcome of his faulty decision making became obvious, Smiley ran for another office. I know the Smiley supporters will claim otherwise, but this is my opinion. "Thats my story and I'm sticking with it!"
Residents growing frustrated over unkept weeds at city-owned Trail Ridge subdivision
Published: Friday, July 08, 2011, 9:00 AM
By Roberto Acosta | Flint Journal The Flint Journal
BURTON, Michigan — Residents in a local subdivision have had it with an owner they say isn’t doing enough to control a problem with rampant weeds and overgrown lots.
But their complaints to the city are falling on deaf ears because the city is the owner.
View full sizeEmily-Rose Bennett | Flint JournalStephen and Nancy Ketterer, residents of Trail Ridge subdivision, a city-owned property in Burton, are shown from an empty neighboring property that has not been kept up by the city. The Ketterers claim that the city promised to remove large piles of discarded wood and brush from their property before they moved in. That was five years ago. "I wish I hadn't of built out here now," Nancy Ketterer said.
Carol Sauvage moved into a home at the city-owned Trail Ridge development near Maple and Belsay roads in 2006 and started noticing weed growth on nondeveloped lots three years ago.
“Once (people) stopped building in here, it became a problem,” Sauvage said.
Fire hydrants are covered by weeds in some areas. The weeds grow high next to some curbs, Sauvage said, making it difficult to back out of driveways and creating a potential safety hazard with children playing in the area.
“If there are small children on bikes and you are rounding a curb, you may not see them if there is an empty lot with tall weeds,” she said. “You always see young ones around there.”
Residents claim to have seen animals, including raccoons and large snakes in the weeds, with some homes surrounded on three sides by the overgrowth.
View full sizeEmily-Rose Bennett | Flint JournalResidents of Trail Ridge subdivision, a city-owned property in Burton, are upset that weeds from undeveloped lots are not being taken care of when they have to keep up their own property. Residents claim its a safety hazard.
“My husband told the guys to be careful because there was a rattlesnake in our backyard,” said Nancy Ketterer, who can see 3- to 4-foot-tall weeds from windows at her home. “I hope they do something.”
Mayor Paula Zelenko said that as far as she knew, Department of Public Works officials were taking care of the situation, but DPW Director Greg Kray said weeds are untouched in most nondeveloped lots at Trail Ridge.
Empty lots adjacent to homes were mowed in 2010. City workers haven’t mowed so far this year.
When workers eventually make it to the subdivision, Kray said they will cut only 6- to 10-foot swaths adjacent to occupied lots.
“The lots that are undeveloped will destroy the mower as many have holes and debris,” he said. “In addition, mowing an undeveloped lot is very hard on the employee doing the mowing.”
City officials argue they are just doing what the old owners of the subdivision did.
“They are not manicured lawns. They are not developed,” said Zelenko.
Under city rules, residents must cut their lawns before the grass reaches 10 inches. Residents who ignore the rule risk having the city cut it for them, then bill them for the job.
Burton City Council President Steve Heffner said that if the weeds at Trail Ridge are becoming an issue, “they probably should be cut,” but that reductions in employees don’t allow for the work to get done.
“We’re just trying to save every penny we can right now,” he said.
The city purchased 70 vacant lots there for $11,925 during a 2008 auction after developer Blake Rizzo walked away from the subdivision.
The development was part of a bribery scandal that landed former Burton DPW Director Charles Abbey a 15-month federal prison sentence in 2009 on bribery and extortion charges.
Abbey was found to have used his influence and position in the city to aid Rizzo in multiple land developments, including Trail Ridge. Rizzo pleaded guilty in 2005 to misdemeanor insurance fraud and bribery charges.
Since buying the Trail Ridge lots, as well as another 85 lots in Burton Estates off Belsay Road, the city has not done anything with them.
Trail Ridge lots now are on the market, with cash sale prices between $25,000 and $37,400, while land contract sale prices range from $33,000 to $40,590.
Sauvage, who lives on one of 23 developed lots at the Trail Ridge subdivision, has called city officials in past years about cutting the areas around homes and thought pre-emptive action this time around might help the situation.
“I had talked to them all this winter, and I’ve called them about four or five times (this year),” she said.
Nancy Ketterer, who suffers from severe allergies, hopes the weeds are chopped down to alleviate her condition and because residents still paying on their homes deserve it.
“With such high house payments we have out here, It’s just something to have any problems,” said Ketterer, who pays $2,000 a month for her $230,000 home.
Sauvage said that the vacant, overgrown lots aren’t going to be attractive to prospective buyers.
“I just thought if they want to get rid of these lots, if you want to sell something, you make the outward appearance look good,” she said.
Post Fri Jul 08, 2011 9:09 am
untanglingwebs
F L I N T O I D
from 2/28/2006 Status of Burton development projects (lot fee method) which means the City of Burton paid for the infrastructure. Figure is total water and sewer.
Brookwood Pointe $538,857.03 all collected and paid
Maplebroook $1,064,549.92 219 lots 1 remaining
Hidden Trails $574,486.64 all collected
Pine Creek $470,895.78 47 of 104 lots remaining
Maplewood meadows $641,105.61 nearly sold out
Rizzo Industrial Park 4279,522.04 11 of 16 lots unsold
Total $3, 569.417.02
This was when building was good, so the practice continued. The projects that followed did not get off the ground and Burton is saddled with hundreds of unsold lots that were bonded out. The city must make the bond payments and hope the lots get sold at a later time to reimbuse the city.
Homes do not cover the cost of maintaining a community as they do not generate enough revenue. For greater revenue impact, you must have commercial development.
Post Wed Jul 13, 2011 5:49 am
*Note: other communities had leaders wishing they could subsidize development. After the rapid housing fall, they were better off.
More housing means more of a need for services, such as police, fire etc. What is needed is commercial and industrial growth. |
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Thu May 07, 2015 7:48 am |
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untanglingwebs
El Supremo
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http://www.freep.com/story/news/local/michigan/2015/06/04/union-ethics-complaint-free-goods-prison-store/28463835/
State panel: Prison store supervisor violated ethics law
By Paul Egan, Detroit Free Press 5:29 p.m. EDT June 4, 2015
The Board of Ethics, in a 4-3 vote, ruled Thursday that a prison stores supervisor violated the state Ethics Act by accepting free food and coffee from a prison vendor
LANSING – A state panel ruled Thursday that a prison store supervisor violated the state Ethics Act by accepting free food and coffee from a prison vendor as board members slammed the Michigan Department of Corrections for what they said was a shoddy investigation of a union complaint about the practice and inadequate answers to panel questions.
"The whole matter is rather troubling," said Board of Ethics member Mary Ann Middaugh after the board voted 4-3 to find Jim Kolb violated the ethics law -- which is a civil law, not a criminal one -- by using state property under his control for personal benefit.
The board voted 7-0 to dismiss a second count against Kolb, which alleged the gifts influenced the way he conducted his official duties. The board found that Kolb didn't control what vendor the department hired to supply the prison stores.
The board didn't recommend any discipline against Kolb, suggesting he was unlucky the longstanding practice became public during his watch, but asked the Corrections Department to come back with recommendations for department-wide reform.
Board members criticized the Corrections Department for allowing what they heard was a 20-year practice of allowing the company that supplies the prison stores to send large amounts of free samples, including coffee, meats, soft drinks and cosmetics. Kolb told the board that the samples stopped arriving at his regional prison store at Parnall Correctional Facility near Jackson in January, though he said he wasn't sure of the reason for the change under which samples are now sent to the department business office.
Middaugh said the halt on the free samples appears to coincide with a Freedom of Information Act request filed by the Michigan State Employees Association (MSEA) -- the union that filed the ethics complaint against Kolb, alleging thousands of dollars worth of free samples were sent to Parnall, with invoices saying they were ordered by Kolb.
Kolb, who had the backing of an internal investigation by the department, denied any wrongdoing. He and the department say the food and other items supplied by the prison vendor the Keefe Group, which is based in Missouri, were free samples the company provided as a way of determining whether the department wanted to start stocking them in the prison stores. Kolb said accepting the samples was standard industry practice.
But Michael Rosenbrock, a Corrections Department storekeeper who worked with Kolb for about two years, told the panel that chicken, shredded beef and other samples sent by Keefe were used in the prison stores for lunchtime "cookouts" about three times a week. The free meals were shared with other store employees and prisoners who worked there, Rosenbrock testified.
Kolb admitted to using the samples to make lunch when he testified, though he testified the frequency of such meals was only about once a week.
"That is true; we all did," Kolb testified about the free meals allegation, adding that testing of the products was only part of the reason the meals were cooked.
But Kolb also testified he didn't normally request the samples and his name was only listed on all the invoices because he was the contact person. He also said he never took any of the free items out of the prison.
The Keefe Group did not respond to an e-mail seeking comment.
Daphne Johnson, the department's head lawyer, testified it was Keefe who decided in January to change its policy about sending large volumes of free samples to the prison store.
But some board members expressed dissatisfaction with parts of Johnson's testimony, as well as an internal affairs investigation into the union's complaint that found no wrongdoing by Kolb.
"I was not very happy with what we received from the Department of Corrections," said board member Albert Taylor Nelson Jr.
"Their investigation was very superficial," with Rosenbrock among the potential witnesses not interviewed, said board member Joseph Walker.
MSEA President Ken Moore said after the hearing that he agrees the department's investigation was inadequate but is pleased change has happened as a result of the union's complaint.
The department said in April it plans to close the three regional prison stores, eliminating about 30 state jobs. It will turn the work now being performed by the stores over to the Keefe Group, which will supply prisoners more directly through its SecurePaks — courier-type packages that department officials say are less likely to contain contraband.
Johnson told the panel the stores closure might be the reason for the union complaint, despite the fact all prison store employees are expected to be moved to other jobs.
The seven-member board, appointed by the governor, can recommend sanctions up to dismissal if it finds an official has violated the ethics law.
Kolb said the samples don't influence how he does his job, "as I do not have the authority to enter into any contracts or change any existing contracts with any vendors that provide products to the prisoner store."
Many samples show up randomly and without notice, he said.
Keefe, which holds the SecurePak contract through which prisoners can order a range of items from a catalog for delivery to the prisons, is a supplier of the prison stores but not the only such vendor that provides free samples, Kolb said.
An investigation conducted by Steven Wendry of the department's internal affairs division concluded "no items are being improperly diverted to, or used for, the personal gain of any employees of the MDOC."
"The items identified in the written complaint include chicken breasts ... shredded beef, Maxwell House coffee and numerous other items," Wendry wrote in the report. "A review of the overall store's process revealed that these items are being sent by the vendor, which is currently Keefe, to the Department of Corrections as sample items."
Wendry did find that samples of coffee and coffee creamer were being sent "in excessive amounts" by Keefe, but he said the practice has been widespread for 20 years and Kolb should not have been singled out.
"This practice was stopped in January ... when Mr. Kolb ordered that the coffee provided to the employees be purchased by the employees," Wendry wrote.
The panel was told Thursday that not just the coffee deliveries were halted in January, but also delivery of all free samples to the prison stores.
Board members Middaugh, Nelson, Walker and Lawrence Glazer voted that Kolb violated the ethics law. Chairman Peter Webster and board members Richard Bandstra and Thomas Phillips said he did not.
Contact Paul Egan: 517-372-8660, pegan@freepress.com or on Twitter @paulegan4 |
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Sun Jun 07, 2015 6:57 pm |
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untanglingwebs
El Supremo
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| Genesee County residents have a right to the honest services of their politicians. When local unis of government don't have definitive ethics policies and oversight, the potential for corruption increases. |
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Sun Jun 07, 2015 7:06 pm |
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untanglingwebs
El Supremo
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| I told Terry Bankert this Flint Council was the worst In our history. While he stated there was one that was worse when he was the Flint Clerk, I still say this whole council needs to go. |
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Thu May 26, 2016 12:08 pm |
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