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Topic: State gets F in ethics & integrity-county follows lead
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untanglingwebs
El Supremo

OIG

Michigan Audit Reports




Date Issued: October 13, 2010
Audit Report No.: 2011-CH-1001
File Size: 543KB

Title:The City of Flint, MI, Lacked Adequate Controls Over Its HOME Program Regarding Community Housing Development Organizations' Home-Buyer Projects, Subrecipients' Activities, and Reporting Accomplishments in HUD's System

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Flint's (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V's jurisdiction and a citizen complaint to our office. Our objectives were to determine whether the City complied with Federal requirements in its use of Program funds for community housing development organizations' (organization) home-buyer projects and subrecipients' activities and accurately reported Program accomplishments in HUD's Integrated Disbursement and Information System (System). This is the second of three planned audit reports on the City's Program.

The City did not comply with Federal requirements in its use of Program funds for organizations' home-buyer projects. It (1) did not ensure that organizations entered into lease-purchase agreements or entered into appropriate lease-purchase agreements with households, (2) failed to ensure that an organization transferred homes to home buyers within 42 months of project completion and did not convert the home-buyer projects to rental projects, (3) did not reimburse its HOME trust fund treasury account (treasury account) for terminated projects, (4) inappropriately used Program funds for home-buyer project costs that were administrative expenses, (5) did not prevent an organization from entering into a land contract with a home buyer, (6) inappropriately used Program organization reserve funds for an owner-occupied single-family rehabilitation project, (7) used Program funds for unreasonable acquisition costs, and (Cool did not decommit and reprogram Program funds for a terminated project. As a result, the City drew down and disbursed nearly $1.7 million in Program funds for organizations' home-buyer projects that did not meet Federal requirements and inappropriately drew down and disbursed more than $143,000 in additional Program funds.

The City also did not comply with Federal requirements in its use of Program funds for subrecipients' activities. It (1) inappropriately used Program funds for costs that were not associated with an eligible project, were administrative expenses, and were unrelated to the City's Program activities; (2) lacked sufficient documentation to support Program funds used for projects; and (3) did not reprogram Program funds for a terminated project. As a result, the City inappropriately drew down and disbursed nearly $427,000 in Program funds and lacked sufficient documentation to support nearly $65,000 in Program funds.

Further, the City did not accurately report Program accomplishments in HUD's System. It (1) inappropriately entered activity data into HUD's System for 61 properties under 2 or more activity numbers for a total of 130 activities, (2) overreported Program units created by 79 units, (3) did not accurately report completion dates for 35 home-buyer activities, and (4) inappropriately reported the type of activity in HUD's System for 2 activities.

We recommend that the Acting Director of HUD's Detroit Office of Community Planning and Development require the City to (1) revise 12-month lease agreements and 60-month purchase option agreements with households to 36-month lease-purchase agreements, convert the home-buyer project to a rental project, or reimburse its Program more than $843,000 from non-Federal funds; (2) convert home-buyer projects to rental projects if it can support that the homes meet property standards or reimburse its Program more than $607,000 from non-Federal funds; (3) reimburse its treasury account nearly $164,000 from non-Federal funds; (4) reimburse its Program nearly $406,000; (5) reimburse its Program nearly $26,000 from non-Federal funds or reprogram the nearly $26,000 from Program organization reserve funds to Program entitlement or subrecipient funds; (6) decommit more than $94,000 in Program funds; (7) reimburse its Program nearly $112,000 from non-Federal funds or reprogram the nearly $112,000 from homeowner and/or acquisition-only activity costs to administrative costs; (Cool provide supporting documentation or reimburse its treasury account nearly $65,000 from non-Federal funds; (9) reimburse its treasury account nearly $14,000 from non-Federal funds or reprogram nearly $14,000 to the appropriate project; (10) revise Program accomplishments in HUD's System as appropriate; and (11) implement adequate procedures and controls to address the findings cited in this audit report.
Post Mon Apr 27, 2015 11:12 pm 
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untanglingwebs
El Supremo

Topic: Did walling create RASCO fiasco?



untanglingwebs
F L I N T O I D


Walling and Montle were meeting with Short prior to the project going to the state. Word on the street is they sent the project to Tim Herman of the regional chamber and from there to lansing. Those who read the so called business plan said it was very poorly written. I was surprised when Kincaid verified with Eason that Eason had been left out of the loop, If anyone had business experience, it would have been Eason.
No wonder Herman was so embarassed.
background checks should have been done before sending the con artist to other entities.



NEWS RELEASE 3/18/2010


STATEMENT FROM MAYOR DAYNE WALLING REGARDING RICHARD SHORT OF RASCO, LLC
“Mr. Short met with my staff on a number of occasions beginning approximately 6 months ago. During these meetings Mr. Short shared his business model and expressed his interest in establishing his company’s headquarters in the City of Flint. My staff provided basic information about tax incentives and doing business in Flint.

Because there has not been any direct action by the City of Flint, we had not yet performed our own background check or financial analysis of Mr. Short of RASCO, LLC. These two processes are performed during the final stage of our due diligence investigation into any potential economic development project seeking tax incentives from the city. As a result of not yet entering into this final stage of our investigation, we were unaware of Mr. Short’s legal issues.”

Dayne Walling
Mayor
City Of Flint

Return to News Release Page


Post Wed Mar 24, 2010 10:41 am


Derrick1965
F L I N T O I D



quote:
untanglingwebs schreef:
Walling and Montle were meeting with Short prior to the project going to the state. Word on the street is they sent the project to Tim Herman of the regional chamber and from there to lansing. Those who read the so called business plan said it was very poorly written. I was surprised when Kincaid verified with Eason that Eason had been left out of the loop, If anyone had business experience, it would have been Eason.
No wonder Herman was so embarassed.
background checks should have been done before sending the con artist to other entities.



NEWS RELEASE 3/18/2010


STATEMENT FROM MAYOR DAYNE WALLING REGARDING RICHARD SHORT OF RASCO, LLC
“Mr. Short met with my staff on a number of occasions beginning approximately 6 months ago. During these meetings Mr. Short shared his business model and expressed his interest in establishing his company’s headquarters in the City of Flint. My staff provided basic information about tax incentives and doing business in Flint.

Because there has not been any direct action by the City of Flint, we had not yet performed our own background check or financial analysis of Mr. Short of RASCO, LLC. These two processes are performed during the final stage of our due diligence investigation into any potential economic development project seeking tax incentives from the city. As a result of not yet entering into this final stage of our investigation, we were unaware of Mr. Short’s legal issues.”

Dayne Walling
Mayor
City Of Flint

Return to News Release Page









Dayne A Walling
806 Kensington Ave

Flint, MI 48503-5386

(810) 424-0133


Post Wed Mar 24, 2010 10:42 pm
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Ryan Eashoo
F L I N T O I D


It's called the "Obama Move", when in trouble throw all your friends and people who you use to work with under the bus!









quote:
untanglingwebs schreef:
Walling and Montle were meeting with Short prior to the project going to the state. Word on the street is they sent the project to Tim Herman of the regional chamber and from there to lansing. Those who read the so called business plan said it was very poorly written. I was surprised when Kincaid verified with Eason that Eason had been left out of the loop, If anyone had business experience, it would have been Eason.
No wonder Herman was so embarassed.
background checks should have been done before sending the con artist to other entities.



NEWS RELEASE 3/18/2010


STATEMENT FROM MAYOR DAYNE WALLING REGARDING RICHARD SHORT OF RASCO, LLC
“Mr. Short met with my staff on a number of occasions beginning approximately 6 months ago. During these meetings Mr. Short shared his business model and expressed his interest in establishing his company’s headquarters in the City of Flint. My staff provided basic information about tax incentives and doing business in Flint.

Because there has not been any direct action by the City of Flint, we had not yet performed our own background check or financial analysis of Mr. Short of RASCO, LLC. These two processes are performed during the final stage of our due diligence investigation into any potential economic development project seeking tax incentives from the city. As a result of not yet entering into this final stage of our investigation, we were unaware of Mr. Short’s legal issues.”

Dayne Walling
Mayor
City Of Flint

Return to News Release Page

Post Thu Mar 25, 2010 11:04 pm
Post Tue Apr 28, 2015 6:11 pm 
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untanglingwebs
El Supremo

http://archive.freep.com/article/20100317/NEWS06/100317063/State-red-faced-over-9M-tax-break-scam-artist
State red-faced over $9M tax break for scam artist
8:02 PM, March 17, 2010


By CHRIS CHRISTOFF, KATHERINE YUNG AND Dawson Bell

FREE PRESS STAFF WRITERS

Filed Under
Local News
Michigan news











Convicted embezzler and scam artist Richard Short was back in a Flint jail Wednesday — a day after taking a stage with an unwitting Gov. Jennifer Granholm to celebrate a $9.1-million state tax break for his new company.

State officials who oversee the breaks — but don’t do background checks — were humiliated. Republicans called for investigations into how a felon duped a state agency.

Short, 57, couldn’t actually take the credits until he made good on his business plan: spending $18.5 million and hiring 765 people to convert a former Flint chassis plant and build and ship renewable energy and sanitation equipment to African villages.

He didn’t tell the state that he’d served nearly six years in jail and prison for embezzling money from a Muskegon-area battery-maker, or that he’d been convicted for bank loan fraud.

Short was arrested at his Flint home Wednesday for a possible parole violation because he hadn’t paid restitution for his past crimes.

Michigan Economic Development Corp. president Greg Main said the agency will do background checks from now on for officers of companies seeking state tax breaks.

A judge had harsh words for Richard Short when he sentenced him in 2002 for embezzling $21,000 from a Muskegon area company to buy his girlfriend’s engagement ring.

“Falsehoods come out of your mouth as easily and readily as breathing. You cause financial hardship wherever you go," admonished Muskegon County Circuit Judge James Graves Jr., who sentenced Short to 2-10 years in prison and paroled in 2004.

He returned to prison in 2005 for violating parole, after his employer complained that he’d bought Palace tickets with company funds without permission.

He was out again in January 2007 but still owes $96,000 in restitution for past crimes, according to the Michigan Department of Corrections.

Short earlier had served a year in jail for a 1997 ruse in a woman posed as his estranged wife to help him get a $73,000 second mortgage from a Birmingham bank on his home in Flushing, said Genesee County Prosecutor David Leyton.

“This guy is notorious in Genesee County,” Leyton said.

Now, Short is notorious statewide.

Short this week was granted a $9.1 million tax break over seven years for an $18.5 million project he said would produce portable energy and sanitation plants to be shipped overseas for use in poor, remote areas.

Short planned to send the equipment in large crates to Africa, where making electricity to remote areas would allow cell phone use — and wireless subscriptions he could sell.

He said he’d hire 765 people within five years.

Short’s company — Renewable and Sustainable Companies, LLC (RASCO) — was among 13 firms granted tax credits with promises of bringing 7,000 jobs to Michigan.

But the Michigan Economic Development Corporation (MEDC) didn’t check whether he had a criminal past. The agency oversees the state program that grants tax credits to lure companies to expand or come to the state.

Neither did anyone check his web site for RASCO which makes outlandish claims about his global corporate experience.

Greg Main, MEDC president and CEO, said background checks will become standard procedures from now on.

“Needless to say we are embarassed,” Main said in the statement. “We work hard to grow, expand and attract business in Michigan and are proud of our achievements. We are taking the necessary steps to ensure situations such as this do not happen in the future.”

Short’s past was uncovered by Patrick Clawson, a former CNN television investigative reporter and now a process server in Flint. Clawson testified to the House Labor Committee on Wednesday against a bill that would bar employers from using credit reports of prospective employees as a basis to hire them.

Clawson said when he heard about Short’s state tax credits, he did a quick online search and found that Short was living in a Flint mobile home park and had a criminal record.

Clawson questioned how Short could have the means to head a new, ambitious enterprise as he claimed. As a felon and parolee, Short could not even qualify for a credit card or checking account, Clawson said.

“I unraveled this guy’s past in 15 minutes with an Internet connection. Why in hell couldn’t anyone in the state do this in months of negotiating a tax credit with this fellow.

“Somebody needs to be fired, there’s zero excuse.”

House Republicans called for an investigation of MEDC’s practices. Rep. Tom McMillin, R-Rochester Hills, a member of the labor committee that heard Clawson’s testimony, said the MEDC’s inner workings are shielded from public view.

“This is one that we caught,” McMillin said. “We give out hundreds of millions of dollars a year. How many have we given out that haven’t been caught?”

The collapse of Short’s corporate plan was painful for Francine Jones, 45, of Flint. She was laid off in January from the former automotive chassis plant Short promised to transform, and wanted to apply for a job with his company.

“Wow, I knew it sounded too good to be true,” said Jones. They were saying it would pay people $900 a week, it was on Facebook and everything.”

Contact CHRIS CHRISTOFF : 517-372-8660 or cchristoff@freepress.com
Post Tue Apr 28, 2015 6:12 pm 
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untanglingwebs
El Supremo

Topic: HUD tells Flint to pay back grant




Dave Starr
F L I N T O I D


I see that there's a copy of the letter HUD sent to Flint about terminating the Smith Village grant and demanding repayment of a little over one million dollars at www.flintspotlight.com. Just what Flint needs. Looks like the city has until the end of this month to get HUD approval of a repayment plan.

.

Post Sun Apr 11, 2010 10:37 am


untanglingwebs
F L I N T O I D


Th!anks for posting the letter


Post Sun Apr 11, 2010 10:59 am

cleartheair
F L I N T O I D


Well Dave, this seems a mess, another million coupled to the city debt, the pending law suits, the Genesee Towers fiasco, and the Larry Ford 10 Million dollar parking hole, i do not see how we can miss a state takeover. I really thought Dayne would clean house and was hugely disappointed when the same players stayed in place or worse yet were re-hired for positions they were not qualified for. And then to bring all of his friends in that were not qualified really showed me how incompetent he is to lead. It looks to me that the real debt of Flint is around 30 Million dollars.


Post Sun Apr 11, 2010 11:00 am

untanglingwebs
F L I N T O I D


Watch Monday as Eason and Walling are bringing in new resolutions to change DCED for the worse. He wants to add new people and he has no funding for them. They all are very high exempt positions. Greg Averyhardt quit his job at Salem and is slated to start work for Flint next Monday. He was promised this post during the election. Watch for more pay backs.

If they think HUDor the OIG will sit back and watch this dismantling of the experienced personnel and positioning of political cronies, they are mistaken. These positions will come at the cost of police officers.


Post Sun Apr 11, 2010 11:08 am

untanglingwebs
F L I N T O I D


The total loss is over $2 million as HUD is cancelling over $894k in Homeownership money not spent.

Last edited by untanglingwebs on Tue Apr 13, 2010 5:57 pm; edited 1 time in total


Post Sun Apr 11, 2010 9:23 pm

FlintBeerMan
F L I N T O I D


lets hope ur right and the state takes us over, like a john takes a whore on dort hwy..


quote:
cleartheair schreef:
Well Dave, this seems a mess, another million coupled to the city debt, the pending law suits, the Genesee Towers fiasco, and the Larry Ford 10 Million dollar parking hole, i do not see how we can miss a state takeover. I really thought Dayne would clean house and was hugely disappointed when the same players stayed in place or worse yet were re-hired for positions they were not qualified for. And then to bring all of his friends in that were not qualified really showed me how incompetent he is to lead. It looks to me that the real debt of Flint is around 30 Million dollars.


_________________
Flint is a place where people live cause they can't afford any place else to live.

Post Sun Apr 11, 2010 9:54 pm

FlintCityMole
F L I N T O I D


Untanglingwebs has some inside sources!
You are right on about most things webs!


quote:
untanglingwebs schreef:
Watch Monday as Eason and Walling are bringing in new resolutions to change DCED for the worse. He wants to add new people and he has no funding for them. They all are very high exempt positions. Greg Averyhardt quit his job at Salem and is slated to start work for Flint next Monday. He was promised this post during the election. Watch for more pay backs.

If they think HUDor the OIG will sit back and watch this dismantling of the experienced personnel and positioning of political cronies, they are mistaken. These positions will come at the cost of police officers.



Post Sun Apr 11, 2010 11:10 pm
untanglingwebs
F L I N T O I D


Council is enforcing their no add on rules and postponed all new resolutions!
Everything is being sent to the proper committee.


Post Mon Apr 12, 2010 6:59 pm


untanglingwebs
F L I N T O I D


lawler was upset, and rightfully so, when Eason told council that council leadership was informed of the problem. Lawler got the memo from his residents before he got it from the administration. Waybright got it and sent copies to 5th ward block clubs. She also called lawler. The Homeownership Zone is 5th Ward.

Poplar tried to defend the Walling administration and Eason.


Post Sun Apr 18, 2010 11:54 am
Post Tue Apr 28, 2015 6:32 pm 
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untanglingwebs
El Supremo

Topic: Did Eason lie err mispeak himself?

untanglingwebs
F L I N T O I D


John Carpenter spoke to council about the DCED departments reluctance to conduct interviews regarding the RFP for a project manager. When carpenter spoke of the pre-bid meeting he stated three were present, himself, salem Housing (Greg Averyhardt) and Flint Nipp. waht carpenter didn't say was that only two bids were submitted, his and Averyhardts (on Salem forms).

so Greg told council how Carpenter was just impatient as he had already interviewed two of the bidders and John would be interviewed. that is a little hard to do when there was only two and John Carpenter had never been interviewed. The contract is to be let out on April 26 and word is the position was promised to Averyhardt. That is why Carpenter is anxious.


Eason also told council there were only 23 firefighters who could be recalled as some laid off were in other employment. Fire officials told me today there are actually 34 firefighters available. When i asked if eason lied, they smiled and said "he mis-spoke".


Post Tue Apr 13, 2010 8:09 pm


Ryan Eashoo
F L I N T O I D

John Carpenter is one hellva man! He cared about this town and all Walling did was get rid of him.


Just because you are a Rhoades Scholar doesn't mean you have common sense~
Ryan Eashoo
Post Tue Apr 28, 2015 6:39 pm 
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untanglingwebs
El Supremo

Topic: Flint must repay $1.2 million to HUD

untanglingwebs
F L I N T O I D


HUD demands repayment of unused grant moneyFriday, April 09, 2010
Tags:hud, flint, genesee county, local, angela brown
Comment Now Email Print Report a typo
Angela Brown
More: Bio, E-mail, News Team
FLINT (WJRT) -- (04/09/10) -- Flint's money problems may get worse.

The city is on the hook to pay back more than $1 million in HUD grant money.

In 1998, the city was awarded more than $2 million from HUD to provide low and moderate income families with homes in University Park and Smith Village, but the project was never completed.

As of today, only three families have moved into Smith Village, and HUD wants its money back.

The money was supposed to finance the University Park Home Ownership Zone. In all, 319 homes were being developed in both locations. The grant mandated 51 percent of those homes be sold to low or moderate income families.

More than $1.1 million was used to build 66 homes in University Park. Only three were sold to low or moderate income families.

While University Park moved forward, work at Smith Village went nowhere.

HUD claims to have tried to help the city get the project off the ground. In 2008 Flint submitted a proposal to complete the home ownership zone. HUD requested a more detailed plan, but the agency says it never heard back from the city.

The city has 30 days from March 20 to reply with a plan to pay back the money.

ABC12's Angela Brown tried to contract the city, but no calls were returned.


(Copyright ©2010 WJRT-TV/DT. All Rights Reserved.)


Post Sat Apr 10, 2010 3:47 pm
back again
F L I N T O I D


flint needs more proactive construction based individuals. i am available!
this should never have been allowed to happen. apply for the money, get the money, then drop the ball. that person should be fired! Mad


Post Mon Apr 12, 2010 12:01 pm
F L I N T O I D



quote:
back again schreef:
apply for the money, get the money, then pocket the money.


Fixed it for you. Laughing



Post Mon Apr 12, 2010 1:46 pm



untanglingwebs
F L I N T O I D


The issue came up at council. When the story was leaking the administration finally told council leadership.

Many in council were not happy.


Post Mon Apr 12, 2010 6:55 pm
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Post Tue Apr 28, 2015 6:45 pm 
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untanglingwebs
El Supremo

Topic: Neeley gives residents an explanation on new water pipeline



untanglingwebs
F L I N T O I D


For years the media has been calling water the new Gold!
water has been the subject of many lengthy legal battles and safe drinking water is a concern nationwide.

Last Wednesday during the Council committee meetings there was a special order on the proposed second water pipeline from lake Huron. When other council became aware that Neeley was not a supporter of the new pipeline they arranged a 2 hour meeting between Neeley and Genesee County Drain Commissioner Jefff Wright. Neeley asked Wright a number of Questions at the meeting because he wanted the answers on the record for the citizens. There are many residents who are understandably concerned about the rising water bills.

Detroit was always supposed to provide Flint with a secondary water source in case something went wrong with the one pipeline Flint has for water. That is one reason Flint was ordered to pay for the water plant upgrades so that the Flint River could be used in times of emergencies. The residents were served by the Flint River for 2 days when the 72 inch pipeline was under repairs. One concern is that the exiting pipeline is nearing the end of its expected 50 year life span.

A new 30 year contract with Detroit would cost Flint an anticipated minimal increase in the cost of water of 6% a year. In the past detroit has been billing approximately 12.7% annually. Wright showed a presentation demonstrating dramatic reductions in costs once the second pipeline is paid off. Wright predicts customer rates and payments would cover the cost of the pipeline. There will be no new taxes to pay for water.

Flint owns both Kearsley dam and the Holloway reservoir, but both have been widely used as recreational areas. Wright stated there is a possibilty of challenges if Flint decided to use one or both of these water containment systems. Legal challenges occurred last summer when a community in Nevada used a reservoir set up for emergency water. The reservoir there was also used for fishing and other recreational purposes

The Flint River water is not as pure as the Huron Lake water and it contains more particulates and agricultural run offs, which cost more to remove in the water treatment process. Wright stated this is the reason flint initially looked to Lake Huron for water.

Flints Water Plant, despite the upgrades, cannot meet the needs for both Flint and Genesee County. Genesee County will build their own water treatment facilities.

Wright discussed the need of reasonably priced water for the establishment of new commercial and industrial development. This is a major criteria considered by any business proposing to move here. He noted how the new "green technologies" are extremely water intensive. Wright also discussed how Birch Run was forced to shut down devlopment for ten years because they could not obtain the necessary water for their proposed developments.

The construction will take approximtely 3 and 1/2 years and require the services of nearly 1,000 workers. An authority will be formed by Flint, Genesee county, Lapeer and Sanilac County and the authority will own the pipeline. Wright has suggested the contracts for construction can contain lanquage requiring that employees hired be Michigan residents and/or local residents. he noted that Detroit requires contractors to hire 55% of their workforce from Detroit.

If you have Comcast, the meeting will be shown Sunday starting at noon"


Post Sat Apr 10, 2010 8:55 pm


FlintBeerMan
F L I N T O I D


NEELEY FOR MAYOR 2011!

.
Post Sat Apr 10, 2010 10:00 pm


back again
F L I N T O I D


i consider wright a well informed and possibly the smartest water guy flint has ever had. a progressive forward thinking gentleman. i trust him. Cool


Post Mon Apr 12, 2010 11:58 am


untanglingwebs
F L I N T O I D


The water pipeline has taken some odd twists over time.
In the 2000 Drain Commission election Wright campaigned with a huge sewer pipe on a flatbed calling the pipeline "Harden's Pipe Dream".

Flash forward 10 years and Harden now thinks the cost is too high and Wright is pushing the pipeline.


Post Mon Apr 12, 2010 12:02 pm

Dave Starr
F L I N T O I D


How many people remember that the existing pipeline was started by Flint? IIRC, they got to Imlay City, then sold/gave it to Detroit.


Post Mon Apr 12, 2010 1:48 pm




untanglingwebs
F L I N T O I D


True- Then Prosecutor Robert Leonard prosecuted some land developers who had been given advance knowledge of the pipelines route and had bought up property, intending on making a "killing" when they sold it for the pipeline. The hassle of the indictments changed the course of history.


Post Mon Apr 12, 2010 6:52 pm
Post Tue Apr 28, 2015 6:52 pm 
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untanglingwebs
El Supremo

Topic: County didn't know Riddle was consultant?




untanglingwebs
F L I N T O I D


Riddle was paid $2,000 a month for 2 yrs as a consultant and no one knew?


Genesee County commissioners say they didn't know Drain Commissioner Jeff Wright paid Sam Riddle for help on proposed water pipeline
By Ron Fonger | Flint Journal
May 13, 2010, 6:13PM


Jamie Curtis
GENESEE COUNTY -- Members of the county Board of Commissioners say they had no idea that political consultant Sam Riddle was paid to work on the proposed water pipeline project by Drain Commissioner Jeff Wright.

Several commissioners said today they were disappointed and unaware that Riddle received county funds to consult with Wright in 2007 -- at or about the time Wright was asked to cooperate with the FBI in a Detroit public corruption investigation that included Riddle.

Wright released a statement today, confirming he worked as an FBI informant in the Riddle case.

Board Chairman Jamie Curtis, who has championed construction of a new pipeline to Lake Huron, initially said he didn’t believe Riddle was paid for his advice.

“That’s not true,” Curtis said before a county drain official confirmed the payments to Riddle.

“Sam Riddle doesn’t have a good reputation. We don’t need a consultant with his expertise.”

Curtis and several commissioners, including John Northrup, D-Flint, and Patricia Lockwood, D-Fenton said they were never told that county funds were used to pay Riddle in 2007.

“I’d rather he had never had the connection (to the project),” Northrup said.

Riddle is on schedule to head to trial this summer on charges of working with former Southfield Councilman William Lattimore to secure bribes from a pawnshop looking to expand in the city.

Riddle also faces charges of working with a former Detroit city councilwoman to secure bribes from a number of parties looking to do business with the city. His first trial in that case ended in February with a hung jury.


Post Thu May 13, 2010 5:31 pm



untanglingwebs
F L I N T O I D


If taxpayer money was used as an attempt to extricate Jeff Wright from a serious legal problem with the FBI and/or the IRS, then the public has a right to be outraged. The question is whether or not the contract was initiated at the behest of the FBI.


Post Fri May 14, 2010 4:04 pm

untanglingwebs
F L I N T O I D


Riddle said all of his dealings with Genesee County “were on the up and up.”

“What concerns me, and should concern the public, is if the contract were let solely so that the drain commissioner would have access to me for the FBI,” Riddle said. “The public should be outraged if that’s what happened.”



Drain commissioner paid Sam Riddle $2,000 a month to work on Genesee County water pipeline
By Kristin Longley | Flint Journal
May 14, 2010, 5:56PM
GENESEE COUNTY, Michigan — Turns out the Genesee County drain commissioner’s office shelled out more than twice what was originally reported to embattled political consultant Sam Riddle for work on a county water pipeline.

Riddle, who is now facing federal bribery charges out of Detroit, actually made $2,000 a month for nearly two years, and was eligible to be reimbursed for expenses, until his contract was terminated in November 2008, according to a copy of his agreement with the county that The Journal obtained today.



Jeff Wright
Riddle was paid by the drain commissioner’s office at the same time the FBI asked Drain Commissioner Jeff Wright to help with an investigation in June 2007 by secretly recording a phone call to Riddle, according to court filings from Riddle’s attorney.

The drain commissioner’s office initially said it had paid Riddle $1,000 a month for six months. John O’Brien, director of the water & waste services division, said he was speaking from memory when he supplied that number Thursday and didn’t have the documents in front of him.

Riddle’s contract with the county, from March 2007 to November 2008, also coincides with the time frame when he is accused of working with a Detroit councilwoman to secure bribes from multiple parties looking to do business with the city. He is scheduled to go to trial on the charges this summer.

Riddle said all of his dealings with Genesee County “were on the up and up.”

“What concerns me, and should concern the public, is if the contract were let solely so that the drain commissioner would have access to me for the FBI,” Riddle said. “The public should be outraged if that’s what happened.”

Wright declined to comment today. On Thursday, he released a statement confirming he assisted the FBI in its investigation.

O’Brien also said Riddle has not been involved with the recently formed Karegnondi Water Authority, which would oversee construction of a $600 water pipeline to Lake Huron, a pet project of Wright’s that has been gaining momentum recently.



Sam Riddle
Riddle’s consulting company, Meridian Management Systems, was hired “as counsel to assist in negotiations” on behalf of the county for a partnership with the city of Detroit, O’Brien said in a statement.

“The current pipeline partnership did not form until those negotiations with (Detroit) failed,” he said. “Meridian was not and is not involved with the KWA project.”

However, Riddle’s contract states he was to help advance “successful develpment of a new water pipeline.”

According to the contract, Riddle was eligible to be reimbursed monthly for any business expenses under $500 and for pre-approved expenses above that amount.

The Flint Journal could not reach county Board of Commissioners Chairman Jamie Curtis for comment. Curtis said Thursday that he didn’t believe Riddle received payments from the county.

Board Vice Chairwoman Patricia Lockwood said she wants to hear from Wright about why Riddle was hired, even though the drain commission is set up as a semi-autonomous agency of government.

“(This) absolutely requires an explanation,” Lockwood said. “It (is) something the drain commissioner is going to be forthcoming to explain.”

Lockwood said she’s concerned the payments to Riddle could sidetrack efforts to build the water pipeline.

“We need to be updated,” the Fenton Democrat said.

Commissioner Omar Sims, D-Flint, said he’s also lacking information. He wants to know more about the Riddle-Wright deal, but said Riddle might have provided a valuable service because of his knowledge of Detroit politics — despite his recent legal problems.

Sims called Riddle “talented.”

Riddle has been involved in numerous political campaigns locally over the years, including former Mayor Don Williamson’s successful 2007 re-election campaign.

Riddle said he provided the drain commissioner’s office with his expertise on the political dynamics of Detroit.

“Very simply put, you couldn’t do anything with the water department there without having approval of various elements of the city of Detroit,” Riddle said. “I had access to that information.

“I performed in good faith under that contract. Anything that was asked of me I certainly delivered on.”


Post Fri May 14, 2010 10:09 pm
Post Tue Apr 28, 2015 7:17 pm 
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untanglingwebs
El Supremo

Topic: Riddle case rehashes Abbey and Burton corruption story



untanglingwebs
F L I N T O I D


The timing of Wright's cooperation with the FBI coincides with the many stories about Rizzo and alleged Burton Corruption that included Abbey, Smiley, Developers like Rizzo and Arabbo. Several Burton developments have since gone under leaving unsold lots whose infrastructure was financed by the City of Burton.

Kiertzner, Fonger and Bob Leonard were the leaders in the stories;

Here is the link to the Appeals Court decision on Abbeys appeal and it disproves all of Abbeys prior statements that the lot was not given to him and that it was of minimal value.


UNITED STATES COURT OF APPEALS
Apr 3, 2009 ... Albert Louis-Blake Rizzo, a local land developer, implicated Abbey in statements he made to county prosecutors following the filing of ...
http://caselaw.lp.findlaw.com/data2/circs/6th/072278p.pdf - - Cached - Similar pages


Post Fri May 14, 2010 7:47 am
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untanglingwebs
F L I N T O I D


Federal indictment: Burton aide charged with bribery
By The Flint Journal
May 25, 2006, 4:37AM
BURTON, Michigan -- A top city official was indicted on bribery, conspiracy and extortion charges Wednesday, the first criminal case to surface in the long-running saga over alleged public corruption in Burton.
Burton Public Works Director Charles Abbey is accused of using his former position as city administrator to extort a subdivision lot from developer Blake Rizzo.

A federal grand jury indicted Abbey, a close ally of Mayor Charles Smiley, on one count each of bribery, conspiracy and extortion, according to documents filed in U.S. District Court in Flint. He could face prison and a large fine if found guilty.

Abbey, reached Wednesday afternoon, said he was unaware of the indictment.

"I guess I'm shocked, " he said. "I've maintained from the start that I don't understand this, and I believe I'm innocent."

Abbey said he has documentation he paid $24,000 for the lot, but he declined to give further details without talking to his attorney.

Assistant U.S. Attorney Robert W. Haviland said arrangements had been made with Abbey's lawyer for Abbey to turn himself in for arraignment.

Burton City Councilman Jamie Curtis said Abbey should resign.

"Abbey denied, denied, denied, and today we have an indictment, " Curtis said. "Obviously, Abbey lied to us."

Abbey is the only public official to be indicted in the fallout over an infamous transcript of a 2003 interview of Rizzo by Genesee County prosecutors. That transcript was leaked to the media in late 2004.

Besides naming Abbey, Rizzo accused Smiley and former Councilman Bob Centilli of bribery and Genesee County Drain Commissioner Jeffrey Wright of money laundering.

None of the others has been charged, and all have denied the accusations.

The allegations surfaced when Rizzo reached a plea deal over two felony counts of insurance fraud. The felonies were reduced to misdemeanors, and he served no jail time.

According to the transcript, Rizzo said Abbey told him he wanted to live in Rizzo's new Maplewood Meadows subdivision, but he couldn't afford the full lot price.

"And then I gave (Abbey) the lot. I said, 'Go ahead, you don't owe me nothing, take it, " Rizzo told investigators according to the transcript.

Genesee County property records indicate Abbey received a lot now valued at more than $36,000 in Maplewood Meadows for free or next to nothing.

The Journal could not reach Smiley for comment Wednesday. But Centilli said Wednesday he stands by Abbey, saying he trusts the official's word.

"I still believe he paid for it, " said Centilli, who lost a re-election bid in 2005 after the accusations surfaced.

Resident Carl Fenner, who closely watches Burton politics, said he's not surprised by the indictment because "it's been in the wind."

"There's some shaky stuff going on there, " Fenner said.

The indictment charges Abbey with conspiracy to bribe a public official, a felony punishable by up to 5 years in prison; soliciting of a bribe by a public official, a 10-year felony; and extortion by a public official, which is punishable by up to 20 years in prison.

Abbey also could face fines of $750,000 if convicted.

In the indictment, the grand jury charged that Abbey "corruptly solicited, demanded, and accepted .... a deed to 4260 Meadows" between May and October 2001.

The indictment charges Rizzo gave the lot to Abbey through Amanda Wilcox Spangler, the developer's administrative assistant, "to reward and influence ... Abbey in connection with past and future business transactions of the City of Burton."

The indictment alleges that Rizzo in the transaction signed over a quit-claim deed for the lot to Spangler around June 4, 2001, and Rizzo had her transfer the property to Abbey and his wife, Ann, that October.





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Previous story: FBI seizes Wright's campaign ledger from county


Post Fri May 14, 2010 7:53 am
Post Tue Apr 28, 2015 7:19 pm 
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untanglingwebs
El Supremo

Topic: Jeff Wright alleged FBI confidential informant Riddle case


untanglingwebs
F L I N T O I D


The court filing also states that:

• Genesee County Drain Commissioner Jeffrey Wright was a confidential FBI source in the Riddle investigation and secretly made at least one recorded phone conversation between him and Riddle. Wright did not immediately return a call seeking comment.

Last Updated: May 12. 2010 2:14PM
Court filings show FBI taped conversations between Riddle, journalist
Paul Egan / The Detroit News
Detroit -- An attorney for former state representative Mary Waters is alleging government irregularities and misrepresentations in obtaining the telephone wiretaps used to indict her and co-defendant Sam Riddle in a Southfield bribery case.

In a court filing today, attorney Richard Convertino argues the FBI and federal prosecutors continued to tap Sam Riddle's cell phone when the taps were providing no evidence of the alleged crimes they were purportedly investigating. He also alleges the FBI knew it recorded repeated calls between Riddle and Michigan Chronicle Senior Editor Bankole Thompson but falsely described Thompson in a wiretap affidavit as "an unknown male."

Convertino argued that because of First Amendment protections, higher U.S. Justice Department approval was required but not sought to record conversations between Riddle and a journalist, particularly when he says there was no evidence of criminal discussions or activity in the recorded call

A "snippet" of one of the Riddle-Thompson phone calls was used in a government affidavit to extend the Riddle wiretap, Convertino said.

"As fruits of the poisonous tree, it is clear that without these illegal wiretaps, the government would not have had any evidence from which to derive .... the purported bribe(s) of Southfield City Councilman William Lattimore," Convertino says in a motion to dismiss the indictment against Waters.

"The government would have had no evidence to even open an investigation of Defendant Mary Waters, much less charge her."

Gina Balaya, a spokeswoman for the U.S. Attorney's office in Detroit, said "our office has no comment at this time," but will file a response to Convertino's motions.

Waters and Riddle, her former live-in companion, are set to go to trial June 1 on allegations they bribed Lattimore in connection with a pawn shop relocation in Southfield. Lattimore, who no longer sits on the council, has already pleaded guilty and awaits sentencing.

The court filing also states that:

• Genesee County Drain Commissioner Jeffrey Wright was a confidential FBI source in the Riddle investigation and secretly made at least one recorded phone conversation between him and Riddle. Wright did not immediately return a call seeking comment.

• Paul Bruno, a prosecutor in the Wayne County Prosecutor's Office, told federal authorities in June 2006 that Waters said at a dinner party that she believed Wendolyn Johnson, a paralegal in the U.S. Attorney's Office who was dating Riddle, was leaking government information to Riddle. In June 2007, when the FBI sought a wiretap of Riddle in connection with its investigation of Johnson, Waters, who worked in the county prosecutor's office from 2007 to 2009, was cited as an unnamed, "unwitting source."

• The government suspected Johnson of feeding Riddle information about federal investigations of former Detroit Mayor Kwame Kilpatrick, his former chief of staff Christine Beatty, former Detroit Public Schools consultant Sherry Washington, and others, although Convertino argues the transcripts of the wiretaps seldom if ever show Johnson disclosed to Riddle information she should not have. Johnson was suspended from her job while the U.S Attorney's Office in Grand Rapids conducted an investigation, but has never been charged.

• One of the Riddle-Lattimore phone conversations the government plans to introduce as evidence was recorded at a time when a judge has ruled the wiretap was not lawfully authorized. The government knew that when it placed the phone call on its exhibit list in the Southfield case, Convertino argues.

Gerald Evelyn, a Detroit attorney representing Johnson, said she is appealing her suspension without pay through the civil service process but has received no word that the government has wrapped up its investigation of her.

"She didn't leak any information to him," Evelyn said of Johnson, referring to Riddle.

The court filing describes an instance in which Wright, the drain commissioner, was used to help investigate Riddle and Johnson.

In June 2007, former Cobo Center director Glenn Blanton was cooperating with the FBI after prosecutors had evidence he took illegal payments from former Cobo contractor Karl Kado. But Blanton had not yet been charged and his cooperation with the FBI was not publicly known.

The FBI had Wright make a secretly recorded call to Riddle and ask him to check out Blanton, who Wright told Riddle was identifying himself as a consultant.

According to the court filing, Riddle later spoke to Johnson on the phone and asked if he should avoid Blanton, who replied, "umm-hmm."

Thompson, senior editor of the Michigan Chronicle, said he never received a notice from the Justice Department that his conversations with Riddle were secretly recorded, but he is not overly concerned that they were.

Thompson said he and Riddle discussed Sherry Washington after the Michigan Chronicle broke a story about a contract Washington had with the Detroit Public Schools. Washington, her sister Gwendolyn, and former Detroit Public Schools risk management official Stephen Hill were recently indicted on bribery-related charges.

pegan@detnews.com (313) 222-2069


Post Wed May 12, 2010 4:40 pm


untanglingwebs
F L I N T O I D


Could this be why Wright got a soft landing on the bribery and money-laundering charges that came up in the Blake Rizzo case?


Post Wed May 12, 2010 5:13 pm


untanglingwebs
F L I N T O I D


Genesee County Drain Commissioner Jeff Wright was confidential FBI source, according to court filing
By Flint Journal staff
May 12, 2010, 7:42PM
DETROIT, Michigan — A lawyer for the ex-girlfriend of a Detroit political consultant with Flint ties claims that Genesee County Drain Commissioner Jeff Wright was a confidential FBI source.

Jeff Wright
In court papers filed in Detroit on Wednesday, attorney Richard Convertino said Wright called Sam Riddle at the direction of the FBI and asked Riddle to check out a man named Glen Blanton, who was advertising himself as a consultant.

Wright declined comment on the filing Wednesday night and said he planned to issue a statement Thursday morning.

The court filing claims that Wright was working with the FBI on June 22, 2007, when Wright allegedly called Riddle about Blanton, who the Detroit News idenitifed as the former director of Cobo Center in Detroit.

The filing said Wright didn’t know anyone who had been in contact with Blanton but had been told by the FBI to state that fact.

Wright was identifed as “Source-3,” according to the filing.

The Detroit News reported Wednesday that Richard Convertino filed a motion in federal court claiming irregularities in how the government got wiretaps that eventually led to Mary Waters’ indictment in a bribery case.

Waters, a former state representative, and Riddle are co-defendants. The trial starts June 1.
Convertino said the government plans to use a conversation between Riddle and a former Southfield councilman at the trial. He said a judge already has ruled there was no lawful authorization for the wiretap.

Federal prosecutors said they will file a response to Convertino’s motion.

Riddle was tried in February in a Detroit corruption case that ended in a mistrial when jurors deadlocked on a verdict.

A retrial in that case is set for July.

Information from wire reports were used in this article.


Post Wed May 12, 2010 7:56 pm
untanglingwebs
F L I N T O I D


I spoke to Sam Riddle and he reminded me that he allegedly was offered under-the-table money in 2000 to run a second campaign for Wright in the black community during the race between Wright and Hardin. That campaign, run by the late John Hightower, was featured by then Channel 5 reporter Kiertzner when the campaign alleged they raised their money in Detroit. Kiertzner interviewed the reported donors who stated they would never contribute to someone in another county and denied they knew Wright. Hightower received a $6,000 fine.


Post Wed May 12, 2010 8:04 pm

untanglingwebs
F L I N T O I D


Sam Riddle paid by Genesee County Drain Commissioner Jeff Wright's office for water pipeline project
By Kristin Longley | Flint Journal
May 13, 2010, 5:28PM
GENESEE COUNTY, Michigan — Genesee County Drain Commissioner Jeff Wright hired Detroit political consultant Sam Riddle three years ago as a paid advisor for the county's water pipeline project, officials said today.


The consulting work was done in 2007, at or about the time Wright was asked to cooperate with the FBI in a Detroit public corruption investigation that included Riddle.


Riddle said today that he helped Wright's office as it worked on the plan to create a Genesee County water system that is independent from Detroit's water system — a pet project of Wright's that has been gaining momentum locally.


Riddle was paid about $1,000 a month for six months as a "facilitator" for the project, helping Wright's office navigate the "ins and outs" of Detroit city government, said John O'Brien, director of the water & waste services division of the drain commissioner's office.


Court filings revealed Wednesday that the FBI asked Wright to secretly record a phone call to Riddle in 2007.


Wright issued a short statement today confirming that he had been contacted by the FBI and he agreed to help them.


Wright said he can't comment further on the case because the federal investigation is ongoing.


Court filings indicated Wright was a confidential FBI source known as "Source-3" in the federal bribery probe in which Riddle and his ex-girlfriend, former state representative Mary Waters, are co-defendants.


The court documents were filed by Waters' attorney, Richard Convertino, who claimed there were irregularities in how the government got the wiretaps that eventually led to Waters’ indictment in the bribery case.


Riddle said today that he's suspicious of why Wright was approached by the FBI.


"Normally the FBI does not have one serve as an informant unless that individual has what we call on the streets as weight on them," Riddle said. "To that end, all I can say for the record is I don't know what the FBI has on him but my experience leads me to believe they have something."


As for the court filing that claims Wright agreed to record a conversation with Riddle for the investigation, Riddle said it was an unwarranted intrusion on his privacy.


"I don't lose any flag with punks that want to serve as informants," Riddle said. "I just keep rolling on straight ahead."



Wright could not be reached for comment this afternoon on the work Riddle did for the county.


O'Brien said Riddle helped move the water pipeline project along.


"It gave us the ability to move it quicker through just because he knew all the processes to take," he said. "He was teaching us how to cut the tape."



Post Thu May 13, 2010 5:37 pm


untanglingwebs
F L I N T O I D


Blogs, Photos & Videos
Former Genesee County prosecutor Art Busch: Several scenarios possible in connecting Wright and FBI
By Ron Fonger | Flint Journal
May 13, 2010, 4:35PM
Flint Journal file photoArthur BuschGENESEE COUNTY -- Former county prosecutor Arthur Busch says there are several possible ways that county Drain Commissioner Jeff Wright became a confidential source for the FBI.


But there's one thing Busch feels certain of: "I'm sure of one thing. Jeff Wright didn't do it out of civic duty."


Wright was identified in federal court documents this week as a confidential informant for the FBI and said today that he agreed to assist the agency in its public corruption investigation of Flint native Sam Riddle.


Busch said he turned over information about Wright's alleged connection to former Burton developer Blake Rizzo to the FBI after a public corruption investigation he helped carry out in 2004.


Busch said Rizzo told him he had paid a company connected to Wright as a way to funnel money elsewhere. Busch said he never believed there was enough evidence to charge Wright with money laundering or any other crime under state law.


The former prosecutor said he turned the information he had over to federal investigators and left duplicate information in a bankers box for incoming Prosecutor David Leyton with a note that wished him well.


Wright may have agreed to cooperate with federal investigators as a result of that investigation or may have gone to agency if he was approached by Riddle and "didn't want to get tangled up in anything," Busch said.


"There's a lot more to the story" than Wright said in a written statement today, Busch said.

Last edited by untanglingwebs on Thu May 13, 2010 5:46 pm; edited 1 time in total


Post Thu May 13, 2010 5:43 pm

terrybankert
F L I N T O I D


I have said this before. It is my hunch that there has been a focus among those that want to benefit at the tax payers expense on the watrer project for the last 25 years. I have no Idea who is doing what and I have no knowledge of criminal activity. With the magnitude of the cost of this project we must insist on transparency and accountability.


Post Thu May 13, 2010 5:46 pm




untanglingwebs
F L I N T O I D


Bribery case may snowball
By The Flint Journal
December 24, 2004, 4:25AM
BURTON, Michigan -- Genesee County Prosecutor Arthur A. Busch hinted Thursday that there might soon be more developments in the case in which a developer accused city and county officials of public corruption.
Busch suggested the developments could come before the end of his term Dec. 31, but would not comment about whether that means charges would be filed against public officials.

"Stay tuned. I think you can read the tea leaves, " Busch said.

Several officials were accused in court transcripts filed with Central District Court of accepting bribes from Burton developer Blake Rizzo. The transcripts were filed after Rizzo accepted a plea deal Wednesday to settle an insurance fraud case against him.

The transcripts containing the claims were from an Oct. 30, 2003, Rizzo interview with Busch and police investigators.

Rizzo, who pleaded to misdemeanor insurance fraud and bribery, agreed to talk with investigators about the corruption case to reduce four felony charges he was facing to misdemeanors. The felony charges could have netted him 28 years in prison.

Named as taking bribes from Rizzo were Burton Mayor Charles Smiley, City Administrator Charles Abbey, Genesee County Drain CommissionerJeffrey Wright and Burton Councilman Bob Centilli.

Smiley, Wright and Centilli deny the claims; Abbey could not be reached for comment.

The Flint Journal could not reach Rizzo or his attorney, Michael Manley, for comment Thursday afternoon.

The two bribery cases Rizzo was charged with related to Smiley and Abbey. The bribery charge related to Abbey was dismissed, and the one related to Smiley was reduced to a misdemeanor.

Smiley is accused in the transcripts of accepting "tens of thousands" of dollars in bribes from Rizzo in exchange for favorable treatment from the mayor on Rizzo's projects.

Busch said FBI officials know about the case, but he declined to say whether they are contributing to the investigation.

Meanwhile, David Leyton, who will take over Busch's job in 2005, said he likely would turn any investigation of the case over to the state attorney general's office.

"We're just not equipped to handle it, " Leyton said. "It would take thousands of man-hours, and with budget cuts, we just don't have that kind of staff."

Leyton said he also personally knows some of the people mentioned in the transcripts, such as political consultant Ken McArdle, Smiley and Wright, so it could be a conflict of interest for him to take on the case.

McArdle worked on Leyton's 2004 campaign.

Rizzo accused Smiley and Wright of having Rizzo pay for McArdle's services for their campaigns - $5,000 each for Smiley's campaigns in 1999 and 1995 and $5,000 or $10,000 for Wright's campaign in 2000.

McArdle said Thursday that the charges are untrue.

"Rizzo hasn't paid me any money to run Smiley's campaigns, " McArdle said. "Rizzo did ask me to get ahold of Jeff Wright (in 2000), but I ended up not working on Wright's campaign."

McArdle said he doesn't believe the bribery accusations against Smiley.

"Smiley is an awful good administrator, and I'm sure that Rizzo was willing to say anything, " McArdle said.

In the transcript, Rizzo also accused Wright of laundering $30,000 of the developer's money for campaign purposes through Wright's now-defunct Tara-Aqua Corp. Wright said during a news conference Thursday that the money was for legitimate consulting work he did for Rizzo, and he would turn over company records that detail the work if investigators request them.

Busch said he supports the decision to shift the investigation to the state attorney general's office, and said he's already talked with Attorney General Mike Cox about the case. Busch declined to detail the conversation he had with Cox.

Officials with the attorney general's office could not be reached for comment Thursday.


Post Thu May 13, 2010 6:01 pm

untanglingwebs
F L I N T O I D


FBI seizes Wright's campaign ledger from county
By The Flint Journal
September 28, 2005, 4:01AM
GENESEE COUNTY, Michigan -- An FBI agent removed county Drain Commissioner Jeffrey Wright's campaign finance documents from the countyclerk's office Monday as part of a federal public corruption investigation, a county official confirmed.
Rob Coffman, county elections supervisor, said records dating back to the 2000 election, when Wright first ran for office, were removed for a grand jury investigation. The agent had a federal subpoena to remove the records, he said.

"An agent came in and spent an hour going through documents in the morning. In the afternoon, he came back and took the entire file, " Coffman said.

Coffman said he made copies of the records so that the clerk's office would still have them available.

Wright has been accused of money laundering by developer Blake Rizzo. Rizzo also accused Burton Mayor Charles Smiley, City Administrator Charles Abbey and Councilman Bob Centilli of bribery. All officials have denied any wrongdoing.

Coffman said there was no indication by the FBI agent whether Wright was a target in the investigation.

"They didn't interview us or ask any questions, " Coffman said.

Wright said he was unaware that the FBI retrieved the records, and no records have been removed from his office.

"It's news to me, " Wright said. "They're doing their due diligence."

Wright declined to comment further.

Rizzo pleaded to reduced insurance fraud and bribery charges earlier this year in exchange for cooperating in the public corruption investigation.

Former Genesee County Prosecutor Arthur Busch and other law enforcement officials interviewed Rizzo, and a transcript of that interview was made public in December.

Federal authorities have remained mum on the status of the investigation.

This summer, agents removed records relating to Rizzo's residential developments in Burton from Burton city offices.


Post Thu May 13, 2010 6:04 pm


untanglingwebs
F L I N T O I D


Sam Riddle paid by Genesee County Drain Commissioner Jeff Wright's office for water pipeline project
By Kristin Longley | Flint Journal
May 13, 2010, 5:28PM
GENESEE COUNTY, Michigan — Genesee County Drain Commissioner Jeff Wright hired Detroit political consultant Sam Riddle three years ago as a paid advisor for the county's water pipeline project, officials said today.


The consulting work was done in 2007, at or about the time Wright was asked to cooperate with the FBI in a Detroit public corruption investigation that included Riddle.


Riddle said today that he helped Wright's office as it worked on the plan to create a Genesee County water system that is independent from Detroit's water system — a pet project of Wright's that has been gaining momentum locally.


Riddle was paid about $1,000 a month for six months as a "facilitator" for the project, helping Wright's office navigate the "ins and outs" of Detroit city government, said John O'Brien, director of the water & waste services division of the drain commissioner's office.


(UPDATE: County commissioners say they didn't know.)


Court filings revealed Wednesday that the FBI asked Wright to secretly record a phone call to Riddle in 2007.


Wright issued a short statement today confirming that he had been contacted by the FBI and he agreed to help them.


Wright said he can't comment further on the case because the federal investigation is ongoing.


Court filings indicated Wright was a confidential FBI source known as "Source-3" in the federal bribery probe in which Riddle and his ex-girlfriend, former state representative Mary Waters, are co-defendants.


The court documents were filed by Waters' attorney, Richard Convertino, who claimed there were irregularities in how the government got the wiretaps that eventually led to Waters’ indictment in the bribery case.


Riddle said today that he's suspicious of why Wright was approached by the FBI.


"Normally the FBI does not have one serve as an informant unless that individual has what we call on the streets as weight on them," Riddle said. "To that end, all I can say for the record is I don't know what the FBI has on him but my experience leads me to believe they have something."


As for the court filing that claims Wright agreed to record a conversation with Riddle for the investigation, Riddle said it was an unwarranted intrusion on his privacy.


"I don't lose any flag with punks that want to serve as informants," Riddle said. "I just keep rolling on straight ahead."



Wright could not be reached for comment this afternoon on the work Riddle did for the county.


O'Brien said Riddle helped move the water pipeline project along.


"It gave us the ability to move it quicker through just because he knew all the processes to take," he said. "He was teaching us how to cut the tape."


Post Fri May 14, 2010 7:22 am
Post Tue Apr 28, 2015 7:25 pm 
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untanglingwebs
El Supremo

Topic: It doesn't pay to misrepresent facts to Josh Freeman!

untanglingwebs
F L I N T O I D


Budget hearings have been going on and a second round occurred on Wednesday, May 5.

Greg Eason was speaking on behalf of the Department ofCommunity and Economic Development (DCED) during one of the morning sessions. first he was confronted by Mike Sarginson about how many new hires had taken place, who were they, and what was going on with the changes in the former staff.

Eason acknowledged that 7 new people were to be hired , but did not admit that 3 were already hired as interims and he never gave their names. This was important as the business manager position is not eligible for HUD FUNDING.

Josh reminded Eason thst he (Freeman) has asked twice how the DCDC Director position was being funded and was told it was not general fund dollars. Josh calmly noted how he was in receipt of the latest payroll records and this position was indeed using general fund dollars to pay for it.

A stunned Eason stated the position could be grant funded. But Freeman wasn't done yet and quietly said that if that was true, then Eason wouldn't mind if the position was taken out of the budget.

The budget hearing on May 27 will be an experience.

Last edited by untanglingwebs on Thu May 06, 2010 8:07 pm; edited 1 time in total


Post Thu May 06, 2010 3:28 pm


Dave Starr
F L I N T O I D


Feet, meet fire. Laughing Laughing Laughing Laughing Laughing

.

Post Thu May 06, 2010 6:25 pm




ConcernedCitizen
F L I N T O I D


Maybe there is still hope for Josh Freeman. Maybe he just needed to get warmed up!? Now if we can just get Weighill to step up to the plate. I am pleasantly surprised that Sarginson has been putting pressure on the administration.

Is Eason so stupid that he thinks that facts can't be checked, especially when the Council has the right to demand those records? (As per Flint City Charter)



Post Thu May 06, 2010 6:56 pm
Post Tue Apr 28, 2015 7:39 pm 
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untanglingwebs
El Supremo

Topic: HUD said spend the money or lose it

untanglingwebs
F L I N T O I D


For months observers have been saying that DCED under Eason was performing poorly. He and his cronies could not even implement the progress made by Nancy Jurkiewicz-Rich and the HUD advisors which had been sent in. Watch out for the new plans as they are probably suspect. Loyd alone had the courage to reject eason's last minute ploy of "take it or lose it".


Post Tue Jun 15, 2010 8:09 am


untanglingwebs
F L I N T O I D


City of Flint moves forward on $4M neighborhood stabilization grant under threat from feds
Published: Monday, June 14, 2010, 10:12 PM Updated: Tuesday, June 15, 2010, 9:01 AM
Kristin Longley | Flint Journal

FLINT, Michigan — The threat was clear: Act now on nearly $700,000 in federal grant funds — or risk losing it all.


Faced with that ultimatum from City Administrator Gregory Eason, the Flint City Council on Monday night moved forward on committing the grant funds — some of them to out-of-county vendors — despite having only a couple hours to read and discuss the proposals.


The federal government is threatening to pull the plug on the city’s $4 million neighborhood stabilization grant if the city doesn’t take action on spending it, Eason said.


“Please, pretty please, do not jeopardize this money,” Eason said to the council. “We need to show we can be responsible, we can be timely.”


The city is up against a September 27 deadline to have all $4 million of the grant funds committed to be spent.



Eason
The federal government awarded the money to the city in 2008.Eason told the council he was on the phone with the undersecretary for the U.S. Department of Housing and Urban Development (HUD) on Friday and made a commitment that the city council would follow through on the funds.


After a heated discussion with Eason on Monday night, the council approved six contracts totaling about $697,000.


With those contracts approved, Eason said the city now has at least 75 percent of the grant funds allocated and is on track to allocate the rest.


But some city council members weren’t happy about approving large contracts on such short notice.


“Really this bothers me,” Council President Delrico Loyd said. “We can’t act in the best interest of the public if we can’t digest the information.”


Earlier this month, The Journal reported that federal officials wrote a letter to Flint Mayor Dayne Walling to express its concerns that Flint is at risk of not meeting the deadline for committing the neighborhood stabilization funds, which are federal grant dollars awarded to fight foreclosures and redevelop housing.


Because of internal problems in the previous administration’s community and economic development department, Eason said the city was already behind on spending the grant funds when Walling was elected.


“We can’t keep explaining why we can’t spend these dollars,” Eason said. “This is an albatross around our neck.”


The council passed the proposals on a 7-1 vote, with Loyd dissenting.


Council members questioned Eason about some of the larger contracts going to out-of-town vendors, including $250,000 to Saginaw-based nonprofit Circle of Love for homebuyer education and counseling services and $244,916 to Detroit-based Community Improvement Group for program management for the city of Flint.


Eason said HUD approved of those vendors and said Community Improvement Group will be hired to help the city manage the grant funds because the city doesn’t have the internal capacity to do it on its own at this time.


“For what we’re getting from them, we’re getting more than our money’s worth,” Eason said. “This is a company HUD has 100 percent confidence in.”


Audience member Pamela Gerald said the funds should have gone to Flint businesses.


“You keep talking about the Flint economy,” Gerald said. “Why are you pouring it into other cities?”


Post Tue Jun 15, 2010 8:12 am
Post Tue Apr 28, 2015 7:45 pm 
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untanglingwebs
El Supremo

Topic: City officials raising taxes for the Towers


untanglingwebs
F L I N T O I D


Williamson and Kumar nearly had a deal just prior to Williamson leaving office, which would have let Kumar reopen the Towers. Darryl Buchanan allegedly told the Mott Foundation and Downtown groups who wanted to sabotage any deal. Early downtown plans called for the Towers site to be strictly a parking lot.

Kumar had tape of Tim Herman speaking at the Great lakes tech center about downtown Flint. In his slide presentation, Herman showed the Towers as he spoke about wanting to tear it down, He siad he had gone to more important leaders who were smarter than he was in order to accomplish this feat.

Kurtz was the initiator of the multiple inspections on the Towere when he brought Louis Hawkins out of retirement for the sole purpose of inspecting the Towers,

Kumar didn't help himself by using extension cords for the elevators, having water bypasses, bring in toxic used paints from Canada and hiring unskilled laborers from Strive when he needed trained construction companies.

It did not help the city when the arbitrator, Washington, had accepted a position in the Granholm administration working with Emerson prior to making his determination. Neither Emerson nor Emerson favored Williamson and Trachelle Young believed a conflict existed,




Flint residents could face a 5-mill tax increase to pay for Genesee Towers
By Laura Misjak | The Flint Journal
June 04, 2010, 8:16PM
Jeffrey LaMonde | The Flint JournalGenesee TowersFLINT, Michigan — Residents could face an assessment of at least 5.3 mills if the city does look to residents to help fund the $7 million owed on Genesee Towers.

The cost could climb up to $8 million for the decrepit Genesee Towers after the Supreme Court refused on Thursday to hear the city’s appeal of the big ticket purchase price.

If the arbitrator’s ruling holds, the city may have to tack on a special assessment to property taxes to pay the bill, Bade said.

“The city can’t afford this judgment,” he said.

Bade said the cost of the assessment has not been determined.

But, with about 60,000 parcels in the city an assessment could cost more than $100 for each home and business. Or, it would take a property tax increase of more than 5 mills to raise $7 million in one year.

Bade said if the city decides to pursue an assessment — which is only one option being considered — the cost would most likely not be added to the 2010 tax rolls.

Councilman Scott Kincaid said the city might levy 6 mills due to continuing declining property values.


Post Sat Jun 05, 2010 1:24 pm

Josh Freeman
F L I N T O I D


Williamson once again has cost the City.

Add this $8 million to the $9 million of the sewer back-ups and the numerous other lawsuits brought because of that inept administration.

What a great legacy for his tenure in office. The City will remember him for years to come.


Post Sun Jun 06, 2010 5:55 pm




untanglingwebs
F L I N T O I D


Once again, even the Journal noted how this debacle began under Kurtz!


Post



Josh Freeman
F L I N T O I D


It may have begun under Kurtz, but you know that Don made things worse.....(about $7 million worse in the sewer cases alone). Appeal, Appeal, Appeal, knowing full well that there was no chance in hell that we were ever going to win.....

He showed them didn't he!?!


Post Sun Jun 06, 2010 6:16 pm


Dave Starr
F L I N T O I D


So will we be pointing fingers and assigning blame, or will we get busy & solve the problem? My vote's on the former.

.

Post Sun Jun 06, 2010 6:42 pm




Josh Freeman
F L I N T O I D


How do you solve an $8 million problem when you $4 million in the bank?


Post Sun Jun 06, 2010 6:47 pm



ConcernedCitizen
F L I N T O I D



quote:
Josh Freeman schreef:
How do you solve an $8 million problem when you $4 million in the bank?


Why don't you start by cutting off pay to Walling's illegal hires? I know that won't cover the cost but it's a start and every dollar counts. So far council seems to question and complain, but when it comes to putting it's foot down, they alway seem to trip.

How can these illegal hires be paid if council did not approve a budget for their pay?



Post Sun Jun 06, 2010 8:17 pm

00SL2
F L I N T O I D



quote:
Josh Freeman schreef:
How do you solve an $8 million problem when you $4 million in the bank?
Example. Someone without health care insurance goes to hospital emergency room with pain under ribs on right side of chest. Is admitted for tests...5 days later diagnosis is nothing found wrong. Doctor bills come in, $20,000.00 hospital bill ensues. Patient was employed, doctors agreed to discount their individual bills for cash payment from patient's income tax refund. Hospital had patient fill out forms showing assets, liabilities, and attach copy of last income tax return. Hospital discounted bill 50% and permitted time payments based on income. The key is for debtor and creditor to work together to resolve issue.

Admittedly, there are some creditors who are unwilling to work with the debtors, forcing them into bankruptcy. In the case of the City of Flint with judgments pending, how would they be affected by the city filing bankruptcy. And what affect would bankruptcy have on the city's credit and grants status now and in the future?


Post Sun Jun 06, 2010 9:06 pm

Dave Starr
F L I N T O I D



quote:
Josh Freeman schreef:
How do you solve an $8 million problem when you $4 million in the bank?


That's why you were elected; to solve problems.



Post Mon Jun 07, 2010 7:33 am
Post Tue Apr 28, 2015 7:54 pm 
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untanglingwebs
El Supremo

: Mayor Walling may ruin Flint's chances of NSP 2.
c


Ryan Eashoo
F L I N T O I D


HUD warns city of Flint of deadline for federal grant funding
By Kristin Longley | Flint Journal
June 05, 2010, 8:00AM

Flint Journal file photoThe Smith Village subdivision, pictured here in 2006, was funded by a federal grant. The U.S. Department of Housing and Urban Development has asked the city to repay nearly $1.1 million of the funds, saying they were misspent.
FLINT, Michigan — Every year, millions of grant dollars flow into the city of Flint via the federal government — but the city historically has struggled to manage them properly, documents show.

From stalled projects to allegations of misspent funds, the city of Flint has had issues with federal grant dollars dating back more than a decade from the U.S. Department of Housing and Urban Development, according to letters obtained by The Journal through a Freedom of Information Act request.

And, the city now could be in danger of losing millions of dollars in federal grant money — in addition to the $1.1 million HUD ordered it to give back in March.

HUD officials wrote a letter to Flint Mayor Dayne Walling in April, concerned that Flint is at risk of not meeting the September deadline for allocating $4.2 million in its first wave of neighborhood stabilization funds, the federal grant dollars awarded in 2008 to fight foreclosures and redevelop housing.

As of this month, the city has obligated only $1.8 million, or 42 percent, of the funds, a HUD official said.

“At this stage in the 18-month cycle, everyone should be about 60 percent along their way,” said Brian Sullivan, HUD spokesman. “We want everyone to obligate those funds.”

While significant progress has been made on federal grant programs under Walling’s and former temporary Mayor Michael Brown’s administrations, letters show the city has a history of putting federal grant dollars at risk and not complying with HUD guidelines.

Letters show HUD has accused the city of not monitoring its contractors, taking too long to complete projects and waiting until the last minute to spend its funds, which HUD said “heightens the appearance the city is not utilizing the funds in an efficient manner.”

A September audit report of the city’s federal HOME grant dollars — funds for activities that build, buy and rehabilitate affordable housing — showed the city inappropriately disbursed more than $1 million in grant funds.

The city later corrected the mistake, according to its response to the audit.

HUD also congratulated the city in January on the progress it has made with its Community Development Block Grant program.

“We have determined that your overall progress on these community development programs is satisfactory and your community has the continuing capacity to administer these programs,” the January letter states. “We congratulate you on your many accomplishments during this past year.”

Still, the city continues to struggle.

Of particular concern now is keeping the $4.2 million worth of grant dollars. The funding was part of $3.9 billion awarded to 309 recipients as part of Neighborhood Stabilization Program 1 in 2008.

Nationwide, 57 percent of the funds have been obligated, and Flint is one of the stragglers.

HUD warned the city it would monitor the grant carefully and may reduce the unused grant funds or “vigorously pursue appropriate remedies, which may include legal action,” the April 2 letter reads.

If the funds aren’t obligated by September — meaning contracts for spending the funds haven’t been signed — the balance of the funds would be recaptured by the federal government and possibly awarded to another city, Sullivan said.

Neither Walling, who was at a conference in Sweden last week, nor City Administrator Gregory Eason could be reached for comment.

Eason has said the city is working diligently with HUD officials to straighten out any past compliance issues.

Whatever happens, Sullivan said how the city manages its NSP1 dollars won’t endanger the other $25 million grant the city was awarded to demolish abandoned and foreclosed homes, which is part of the Neighborhood Stabilization Program 2.

The news comes on the heels of HUD’s demand that the city repay nearly $1.1 million in federal grants for the University Park Homeownership Zone, which includes the University Park and Smith Village subdivisions.

In an April 30 letter to HUD, Walling asked the agency to reconsider its position, saying his administration is committed to seeing the project through to completion.

Sullivan said a HUD field office is in the process of working out a repayment plan for the funds with the city, and he declined to comment on it until the plan is complete.

In his letter to HUD, Walling said requiring the city to repay the $1.1 million “would place an extreme burden and hardship on our community.”

“It is unfortunate that past administrations did not realize the true value and positive community impact of the (project),” Walling wrote. “My vision is to develop stable, sustainable neighborhoods all across the city.”

_________________
Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com

Post Sat Jun 05, 2010 11:23 am
Post Tue Apr 28, 2015 7:59 pm 
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untanglingwebs
El Supremo

Topic: Riddle pleads guilty-does this affect pipeline


untanglingwebs
F L I N T O I D


From Clickondetroit channel 4 Detroit



Riddle Pleads Guilty In Corruption Cases
Riddle Facing 2 Bribery, Extortion Cases

POSTED: Thursday, May 20, 2010
UPDATED: 5:28 pm EDT May 20, 2010



DETROIT -- Detroit political consultant Sam Riddle has pleaded guilty to conspiracy in a deal that closes two federal corruption cases against him.

Riddle was facing a June 1 trial for his role in a bribery scheme involving a Southfield councilman. Thursday was the deadline for him to accept any plea deals.

Watch: Detroit Political Consultant Riddle Pleads Guilty

He pleaded guilty late in the afternoon after private late-afternoon talks with prosecutors and his lawyers at the federal courthouse in Detroit.

Riddle was charged with conspiracy to commit bribery for allegedly receiving bribes from a Southfield pawnshop to help it relocate in August 2007. Former state representative Mary Waters, who also had a romantic relationship with Riddle, is also charged in the case.

Riddle had said he would entertain a plea deal in the bribery case after he was convicted earlier this month of felonies of assault and a firearm charge for pointing a shotgun at Waters and racking it in December, after she said she found him in bed with another woman.

Full Story: May 5, 2010: Jury Finds Riddle Guilty Of Assault

Riddle's deal includes him being allowed to serve his bribery sentence at the same time he serves a two year sentence in the assault and firearms case.

Waters pleaded guilty to a misdemeanor charge of filing a fraudulent tax return.

Former city Councilman William Lattimore has already pleaded guilty to taking $7,500 from Riddle and Waters in connection with the case.

As part of Lattimore's plea, he promised to cooperate in Waters and Riddle's prosecution.

Riddle is being retried in a federal corruption case.

Riddle is accused of extorting bribes with Monica Conyers when he was her top aide at the Detroit City Council. She pleaded guilty to conspiracy last summer and resigned her council seat.

He is charged with seven criminal counts of felony and extortion.

A mistrial was declared in February.

The government has agreed to drop charges in that case. He can withdraw his guilty plea if his sentence exceeds 37 months.

Watch: RAW: Sam Riddle Rants About Prosecutors


Previous Stories:
May 12, 2010: Prosecutors Want Riddle, Waters Watches
April 20, 2010: Sam Riddle Holds Haters Auction
April 14, 2010: Judge: Waters Will Not Be Held In Contempt


Post Thu May 20, 2010 6:05 pm
untanglingwebs
F L I N T O I D


Riddle me this: Will Riddle kill the pipeline?
By Andrew Heller | Flint Journal
May 20, 2010, 6:00AM
Genesee County Drain Commissioner Jeff Wright has spent umpteen months telling anyone who would listen that the county needs to build its own water pipeline to avoid future price gouging by the city of Detroit, which currently supplies the county with water.

He had a lot of people convinced, including me. (Still does, more or less. More on that later.)

His basic argument was this: Sure, building our own pipeline will cost $600 million, but in the long run that’s much less than what Detroit has in store for us. So pay a little now or pay a lot more later.

You could ask Wright to show you the numbers supporting that view, but I don’t think you’d have to. He’d have his charts out before you can get past, “Hey, Jeff, would you …”

Like I said, he’s been an eager – and effective – advocate for the idea. So much so, that I believe he has most local officials convinced, and more than a few taxpayers, which is saying something considering the general wretchedness of the local and state economy.

But then …

Well, then came last week’s stunner that Wright not only paid Sam Riddle, the longtime political consultant who is facing federal bribery charges in Detroit, to help open doors in the Motor City, but also secretly recorded a call with Riddle for the FBI.

Riddle hasn’t been convicted of anything yet, but last week insiders were saying he was considering a plea deal that would put him in jail for three years for allegedly shaking down companies that had business with the city council.

But make no mistake. Seeing Riddle linked – innocently or not – with the water pipeline project scares the bejabbers out of people. They’re hinky enough about paying more taxes right now for any reason. Any whiff of impropriety could be the kiss of death.

The bungled/tortured/mysteriously incomplete explanations (or lack thereof) from Wright and one of his lieutenants certainly didn’t help matters either.

Wright – so eager to talk up the project for so long – initially clammed up and issued a “no comment” when media came calling, preferring to let John O’Brien, director of the water and waste services division do the talking.

Bad move. First, O’Brien, no p.r. pro, told reporters that Riddle received $1,000 a month for his services. It turned out the amount was $2,000 and that O’Brien had, uh, misremembered.

Then, in a statement, he said Riddle had nothing to do with the pipeline project. Unfortunately, Riddle’s contract said differently, indicating that he was hired to help advance “successful development of a new water pipeline.”

Your impression is probably the same as mine, “If they’re not forthright about that, what else aren’t they being forthright about?”
Which is a shame.

I think – and a lot of people think - this is a worthy, perhaps crucial idea for the county. It deserves to be further explored.
But will it? Or will it suffer from guilt by association?

That’s the riddle, isn’t it?


Post Thu May 20, 2010 6:10 pm

untanglingwebs
F L I N T O I D


Genesee County Drain Commissioner Jeff Wright on helping FBI in Sam Riddle case: "I fulfilled my duty as a citizen"
By Ron Fonger | Flint Journal
May 21, 2010, 5:25PM

Jeff WrightGENESEE COUNTY -- County Drain Commissioner Jeff Wright says was only doing his duty as a citizen when he helped the FBI record a conversation between himself and embattled political consultant Sam Riddle.


Wright issued a statement to The Flint Journal Friday, saying his decision to hire Riddle to a $2,000-a-month contract for parts of 2007 and 2008 was justified because Riddle helped set up meetings with Detroit officials to discuss issues including construction of a new water pipeline to Lake Huron.


And when the FBI approached Wright about helping to make its case against Riddle, the drain commissioner said he was willing and would do the same thing again.


The county currently buys Lake Huron pumped through a Detroit-owned pipeline, but Wright and others have been setting up a new water authority that they say could build a separate transmission line and save the area millions of dollars in the long run.


""During the term of (Sam Riddle's) agreement, I was contacted by law enforcement officials and asked to assist in a public corruption investigation," Wright's statement said. "Every year millions of taxpayer dollars are wasted to public corruption. Necessary public works projects that create jobs and fill important public needs are not provided due to corruption. So when asked to assist I did so willingly."


Federal court filings first showed the Wright-Riddle connection. The records indicated Wright was a confidential FBI source known as "Source-3" in the FBI's investigation of Riddle.
Fox 2 screen shotSam Riddle

Told of Wright's most recent statement, Riddle said, “res ipsa loquitor.”


“It’s a Latin phrase that means ‘the thing speaks for itself,’” said Riddle, who has said previously that he was suspicious of why Wright was approached by the FBI in the first place and suspected agents "have something" on Wright.


Federal agents confiscated Wright's campaign finance documents as part of a public corruption investigation in 2005. Accused of money laundering by Burton developer Blake Rizzo, Wright was never charged with any wrongdoing.


Rizzo eventually pleaded guilty to bribery and misdemeanor insurance fruad charges in state court.


Wright has refused to comment beyond prepared statements about his involvement in the federal probe of RIddle, who pleaded guilty to conspiracy Thursday, closing out two federal cases involving bribes and public officials.


Riddle has characterized those who informed for the government as punks, but Wright said he stands "should to shoulder" with county Prosecutor David Leyton, who recently launched a campaign to change the minset that citizens should not "snitch."


"(I believe) all citizens need to take a stand and assist law enforcement in fighting crime and corruption," Wright's statement said.


The drain commissioner said he never knew Riddle was working for the city of Detroit when his office entered into a consulting agreement for Riddle to help Genesee County in its dealing with Detroit.




"I was not aware he was (working for Detroit)," Wright said. "If we (would have been) we wouldn't have done it."


Told of Wright's comment, Riddle said, "Of course he knew."


(Flint Journal staff writer Kristin Longley contributed to this report)


Post Fri May 21, 2010 6:36 pm
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