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untanglingwebs
El Supremo
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After 6 years the feds finally indicted the Kilpatricks and Ferguson on public corruption and RICO charges.
Did these 13 schemes raise the cost of water to all Detroit custmers? The corruption is up around $18 billion I believe.
The indictment documents 13 schemes involving Water and Sewerage or city contracts amounting to “tens of millions of dollars” worth of work for Ferguson enterprises.
Flint is once again using exclusive companies for economic development. The administration and some of those in council seem to be in sync with these developments.. Also companies like Boji, who is building the new welfare office and the company who built the social security office made agreements to use at least 20& local Flint contractors. I know minority companies were encouraged to sign up for NSP and other employment opportunities. Were there any publi solicitations made?
In one case, Kwame Kilpatrick allegedly held up a previously approved $50 million sewer line contract until the contractor, identified in the indictment as “Company I” replaced a minority subcontractor with Ferguson.
Feds say 'culture of corruption is over' as grand jury indicts former Detroit Mayor Kwame Kilpatrick, 4 others in city hall probe
Published: Wednesday, December 15, 2010, 5:47 PM Updated: Wednesday, December 15, 2010, 6:36 PM
By Jeff T. Wattrick | MLive.com
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Jeff Wattrick | MLiveFBI Agent Andrew Arena discusses the RICO indictments against Kwame Kilpatrick and associates.
A federal grand jury today indicted former Detroit Mayor Kwame Kilpatrick, his father Bernard Kilpatrick, former aide Derrick Miller, former Detroit water chief Victor Mercado and Bobby Ferguson, a longtime friend and city contractor.
U.S. Attorney Barbara McQuade declared an end to Detroit’s “culture of corruption” as she announced the 89-page, 38-count RICO indictment against the five men (collectively referred to as “The Kilpatrick Enterprise”) for an assortment of extortion, fraud, and tax evasion charges.
“We want to send a strong detriment message that if you steal from taxpayers, you will be held accountable even if you leave office,” said McQuade.
McQuade also said these allegations do not extend to the Bing administration. She praised current city leaders for their assistance with the federal investigation.
The indictment tells a lurid story of a city hall that operated more like an organized crime protection scheme than a government. Essentially, if a contractor wanted to win work from the Detroit Water and Sewerage Department, they had to give a piece of the contract to Bobby Ferguson.
“My wife is from Youngstown,” said FBI Agent Andrew Arena, who participated in a successful anti-corruption federal case in that city. “She says this reminds her of a big Youngstown.”
While Arena said he believes corruption isn’t as “systemic” in Detroit, there was “a mindset or psyche or it’s acceptable behavior.”
The indictment documents 13 schemes involving Water and Sewerage or city contracts amounting to “tens of millions of dollars” worth of work for Ferguson enterprises.
In one case, Kwame Kilpatrick allegedly held up a previously approved $50 million sewer line contract until the contractor, identified in the indictment as “Company I” replaced a minority subcontractor with Ferguson.
Kilpatrick is also alleged to have pressured development officials to give contracts to Ferguson for the Book-Cadillac restoration and Tiger Stadium demolition, even though he was not the low bidder.
The board of the Economic Development Corporation voted to award the Tiger Stadium contract to a lower bidder at the recommendation of the Detroit Economic Growth Corporation. In response, the indictment alleges that Kilpatrick Chief of Staff Kandia Milton demanded a DEGC official resign. The unnamed official refused.
McQuade said Ferguson received this work “to the determent of other minority contractors” and most likely at an inflated cost to taxpayers.
The Kilpatricks and Miller received bribes from contractors in the form of cash and private planes rides in exchange for consideration for city business and pension fund investments. They are also alleged to have illegally taken money from campaign and non-profit funds for personal use.
If convicted, the defendants face a maximum sentence of 30 years on some of the charges.
McQuade said they have not yet established a time line for arraignment or trial.
Last edited by untanglingwebs on Fri Dec 17, 2010 8:27 pm; edited 1 time in total |
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Thu Dec 16, 2010 9:24 am |
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untanglingwebs
El Supremo
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Mercado, former head of the Water and Sewer Department, was also indicted.
Indictments announced against Kwame Kilpatrick, Bernard Kilpatrick and
Posted: 12/14/2010
Last Updated: 1 hour and 8 minutes ago
By: Ross Jones
DETROIT (WXYZ) - During a news conference Wednesday afternoon, the U.S. Attorney's Office provided details on new indictments against former Detroit Mayor Kwame Kilpatrick, his father and others.
A federal grand jury returned a 38-count superseding indictment against Kwame Kilpatrick, his father Bernard Kilpatrick, former head of the city water department Victor Mercado, contractor Bobby Ferguson and former Kilpatrick aide Derrick Miller.
They are charged with using the city of Detroit to engage in extortion, bribery, racketeering and fraud.The 89-page indictment alleges that the men worked together to steer city contracts, accepted hundreds of thousands of dollars in bribes, and used non profit funds to funnel bribes.
According to the indictment, Kilpatrick used a number of funds--including his inaugural committee, campaign committee, and other non-profit funds--to conceal over $286,000 in kickbacks.
Kilpatrick, his father and Kilpatrick's aide Derrick Miller are accused of taking bribes totaling at least $360,000 from Cobo Contractor Karl Kado.
The additional charges and defendants are being included in the superseding indictment in the case of United States of America vs. Kwame Kilpatrick, which was originally filed on June 23rd, 2010.
The indictment also alleges that Kilpatrick solicited and took private jet flights worth over $300,000 from a representative from an unnamed company. In 2008, Action News reported that Kilpatrick flew on the private jet of Tony Soave, a Detroit based city contractor.
While a state representative, the indictment alleges that Kwame Kilpatrick used over $280,000 in grant monies from the State of Michigan, funds that were supposed to help children and seniors in Detroit. Instead, the indictment alleges that a large part of the money was spent by Kilpatrick or his wife on personal expenses, and by Ferguson to refurbish his offices.
On Tuesday, Action News Investigators learned that the indictments would be announced and that some high profile names would be among those charged.
It was no secret that the Feds had been scrutinizing Detroit’s former mayor and his father for years. Now the corruption probe may finally be winding down – with these indictments.
Ferguson and Kwame Kilpatrick have already been indicted in two separate investigations: In June, a federal grand jury indicted the former mayor on 19 counts of tax and mail fraud charges related to his controversial Kilpatrick Civic Fund. In September, the grand jury indicted Ferguson on charges including conspiracy, money laundering, conspiracy to obstruct justice, and felon in possession of a firearm, in connection with the Garden View Estates project in Detroit.
CLICK HERE TO READ THE ENTIRE 89-PAGE INDICTMENT
Copyright (c) 2010 The E.W. Scripps Company |
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Thu Dec 16, 2010 9:39 am |
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untanglingwebs
El Supremo
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Posted: Dec. 19, 2010
Some who paid to play in Detroit corruption probe won't be charged
By M.L. ELRICK, TRESA BALDAS, DAVID ASHENFELTER and JIM SCHAEFER
FREE PRESS STAFF WRITERS
The reason, prosecutors said, is that they can be seen as victims, forced to pay up for city contracts.
"Sometimes it's hard for us to assess -- when you've got these companies who are involved in bribes and extortions -- where they fall on the spectrum of victim to coconspirator," U.S. Attorney Barbara McQuade said Friday in an interview with the Free Press.
More important, legal experts say, prosecutors also need witnesses to help them make their case. And people charged with crimes can make less-than-convincing witnesses.
Lawyers for Kilpatrick and others who've been charged in the investigation said their clients did nothing wrong.
But some Detroiters, including City Councilman Kwame Kenyatta, want the people and companies they see as part of the city's culture of corruption to be held accountable.
"I think they're getting off light," Kenyatta said Friday. "Some of these other folks should go to jail."
Lack of charges in Detroit corruption case angers some, but feds say it's a necessary evil
Detroit City Councilman Kwame Kenyatta said he understands how this works.
Prosecutors need witnesses to make their case. Usually, they rely on victims. But sometimes they have to rely on people who may have been entangled in corruption.
That doesn't mean he has to like it.
"Whether these folks have been given immunity or not, they are still ... milking the citizens of Detroit," Kenyatta said of some people and companies who federal investigators said paid city officials for their support.
U.S. Attorney Barbara McQuade said some cases aren't clear-cut, and that several people caught up in the corruption probe are victims -- not coconspirators -- of Kwame Kilpatrick and his cohorts.
"When there are instances where someone is perhaps closer to the victim end of the spectrum ... we need to rely sometimes on people who participated, just as we rely on drug users in drug cases," she told the Free Press on Friday.
McQuade would not discuss specific people who have not been charged.
Peter Henning, a Wayne State University law professor and former federal prosecutor, said the law doesn't require extortion victims to contact authorities.
"It's hard to describe them as acting in an improper way," Henning said of many of the Detroit-area companies that were allegedly squeezed for money. "If you want to stay in business, you have to make the payments."
When federal agents find out about the crime and come calling, Henning said, the companies and individuals usually cooperate -- and receive consideration.
Henning said there's an advantage to not charging them. When they testify in court, they can't be attacked by defense lawyers as willing to say anything to protect their hides.
Len Niehoff, a University of Michigan law professor, said there's another reason.
"If you show people that those who come forward and cooperate will not be taken out and shot, it increases the likelihood that more people will come forward," he said.
McQuade said she doesn't worry that not charging some people sends a bad message.
"I do want to deter contractors from being complicit in these kinds of extortion and bribery schemes," she said. "If we believe that you have been complicit, you can bet we're going to come after you."
And McQuade warned that while the investigation into Kilpatrick's inner circle is over, charges could still be filed against other people or businesses involved in public corruption.
"We still have some investigations," she said, declining to elaborate.
In the meantime, Kenyatta said, he wants the city to sue contractors who gave money to officials -- or at least ban them from getting more city work.
"They shouldn't get a complete pass from the feds," he said. "And if they get a complete pass from the feds, they shouldn't get a complete pass from us."
CONTACT M.L. ELRICK: 313-222-6582 or mlelrick@freepress.com |
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Mon Dec 20, 2010 11:45 am |
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untanglingwebs
El Supremo
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We have politicians taking free trips and at least two mayors, Walling and Stanley, who have their own nonprofits. Mayor Anthony Williams of Washington DC, Wallings former boss. got jammed up for misuse of nonprofits.
Posted: Dec. 16, 2010
The Kilpatrick Enterprise: How the feds say he profited
$595,000: Illegal cash deposited by Kilpatrick in bank accounts to pay for credit cards, cashier's checks, clothing and loans.
$603,000: Illegal cash deposited in banks by Bernard Kilpatrick.
$424,000: What contractor Bobby Ferguson kicked back to Kilpatrick for getting city work.
$286,000: What Kwame Kilpatrick took in kickbacks from fund-raisers for campaigns, inaugurations and civic causes.
$360,000: Total bribes paid by a Cobo Hall contractor to the Kilpatricks and ex-mayoral aide Derrick Miller.
$500,000: Total bribes accepted by the Kilpatricks in a casino development effort.
$475,000: Cost of free trips Kilpatrick and associates took on private jets.
Last edited by untanglingwebs on Mon Dec 20, 2010 11:52 am; edited 1 time in total |
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Mon Dec 20, 2010 11:51 am |
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Ryan Eashoo
F L I N T O I D
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Let's hope not.
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Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
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Mon Dec 20, 2010 11:51 am |
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untanglingwebs
El Supremo
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Posted: Dec. 19, 2010
Players in City Hall corruption, but not facing charges
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Federal authorities say these people and businesses were entangled in the corruption investigation of Kwame Kilpatrick, his associates and other city officials. Prosecutors haven't announced charges against any of them, saying some were extorted. Some say they were victims and cooperated in the government's investigation of municipal corruption.
WHO WHAT COOPERATING? THEIR RESPONSE
Dimitrios (Jim) Papas Detroit restaurant owner and developer Prosecutors said Detroit City Councilwoman Monica Conyers forced Papas to pay $20,000 to her aide Sam Riddle after Conyers' husband, U.S. Rep. John Conyers, signed a letter in 2007 in support of Papas' controversial hazardous-waste injection well in Romulus. Yes There was no quid pro quo, Papas testified at Riddle's extortion trial. He said he paid Riddle as a favor to Monica Conyers after she obtained the letter without telling Papas that she would get it.
Thomas LaBret Owner, Ziedman's pawnshop in Southfield Prosecutors said he gave $45,000 in checks and a $5,500 Breitling watch to Riddle, a political consultant, to facilitate the relocation of his business, according to court records. Unknown LaBret has repeatedly refused to discuss the case and, on Friday, would not comment.
Eddie Bacall Real-estate developer and a leader in the Chaldean Catholic Church Prosecutors said he engineered $50,000 in bribes to Detroit Police Officer Jerry Rivers and mayoral aides Kandia and DeDan Milton for arranging the $3.5-million sale of city-owned Camp Brighton to the Chaldean Catholic Church in 2006-07. Unknown Declined to comment.
Carlita Kilpatrick Wife of Kwame Kilpatrick, owner of Using Nonviolence to Influence Total Education (U.N.I.T.E.), a nonprofit group Prosecutors said Kwame Kilpatrick helped U.N.I.T.E. get $137,500 in state money between 2000-02 -- money intended to help seniors and children. Feds say the company didn't provide any services and most of the money was used for Carlita Kilpatrick's $91,000 salary and personal expenses for her and her husband. Unknown Declined to comment through her spokesman, Mike Paul.
Chris Jackson Employee of Déjà Vu Consulting, which is a consultant with strip clubs nationwide Prosecutors said Riddle, at Monica Conyers' behest, told Jackson to pay Riddle $25,000 for her support of a liquor license transfer. Jackson refused, and Conyers voted against it. Jackson later gave Riddle $25,000 in checks. Testified against Riddle at trial. Could not be reached for comment.
Synagro Technologies Houston-based waste disposal company that sought $1.2-billion sludge deal with the city Documents reviewed by the Free Press indicate that at least four Synagro executives -- including the then-CEO -- were aware of thousands of dollars in questionable spending by company reps James Rosendall and Rayford Jackson, with some execs approving payments on several occasions. The reps gave cash and perks to city officials. Rosendall cooperated; Jackson didn't. Both pleaded guilty and were sent to prison. Synagro has said it has cooperated with the government. Synagro spokeswoman Darci McConnell said Friday: "From the time that Synagro officials were alerted to the investigation, the company has cooperated fully with the government. Because the prosecution continues, we are unable to comment further."
Melvin Washington Real-estate developer, owner of Phoenix Group Properties in Detroit Paid at least $6,000 to Monica Conyers for her help with his request for $15 million in financing from Detroit's General Retirement System, of which Conyers was a trustee, prosecutors said. Testified against Riddle at trial. He didn't respond Friday to a request for comment.
Reggie Barnett Owner of Wireless Resources of Madison Heights Barnett paid Riddle $20,000 in 2007 to gain Monica Conyers' support for his request for a $15-million loan from a city pension fund. Conyers was a trustee. Prosecutors said Conyers likely got a cut. Testified against Riddle at trial. Did not return calls Friday seeking comment.
The Fund-raiser Prosecutors didn't identify her. Prosecutors said she raised hundreds of thousands of dollars for Kilpatrick's campaign, inaugural committee and nonprofit civic fund, but didn't tell donors some of the money would end up in Kilpatrick's pocket. Feds said that between 2003 and 2008, she gave Kilpatrick $286,000 in kickbacks from her commissions. Unknown
John Clark Former chief of staff for then-City Council President Ken Cockrel Jr. Clark accepted $4,000 in bribes from Synagro executive James Rosendall. He resigned in 2008 after FBI agents showed Cockrel surveillance video of the transactions. Unknown Clark and his attorney did not return calls seeking comment.
Lakeshore Engineering Services Detroit general contractor Prosecutors said the company paid Bobby Ferguson to help get multimillion-dollar contracts with the city and that Ferguson extorted millions on several contracts. Cooperating "Lakeshore is in full cooperation with the authorities and has made all information available," spokesman John Truscott said in a statement.
Inland Waters Pollution Control Detroit environmental contractor Prosecutors said the company, under pressure from Kwame Kilpatrick, included Ferguson on multimillion-dollar water department projects in metro Detroit and paid Ferguson $350,000 for work he didn't do. Cooperating The company says it's cooperating with the investigation and is not a target of the probe.
Company M Unknown Prosecutors said it gave Kwame Kilpatrick more than $74,000 in free flights on private jets and entertainment expenses between 2006-07, fearful that he could scuttle their management of more than $160 million in city pension investments. Unknown
Compiled by staff writers David Ashenfelter, Jim Schaefer, Jennifer Dixon, M.L. Elrick and Joe Swickard.
#ixzz18flxc83S |
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Mon Dec 20, 2010 12:18 pm |
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untanglingwebs
El Supremo
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I downloaded the 91 page indictment for the Detroit corruption trial. Page after page discusses how Kilpatrick and Ferguson manipulated contracts and increased costs (some by as much as 40%). No wonder detroit had to keep increasing rates.
Genesee County drain commissioner: Detroit scandal doesn't affect plans for pipeline
Published: Saturday, December 25, 2010, 3:00 PM Updated: Saturday, December 25, 2010, 6:34 PM
By Ron Fonger | Flint Journal
GENESEE COUNTY -- The corruption scandal at the Detroit Water and Sewerage Department could keep former Detroit mayor Kwame Kilpatrick in prison for years to come but changes nothing about the case for building a new water pipeline to Port Huron, county Drain Commissioner Jeff Wright says.
"To me, it does nothing to the (equation)," Wright said. "The whole question has always been, Can we supply water to our people cheaper than staying the next 30 years with Detroit?"
Jeff Wright
So far, Wright said the answer is yes and the regional Karegnondi Water Authority is on track to spend millions in the coming year alone, laying the ground work for the $600 million public works project to construct a new water transmission line from here to Lake Huron.
Genesee, Lapeer and Sanilac counties as well as the cities of Lapeer and Flint make up the KWA. St. Clair County is also considering buying into the project.
"They've priced us right into the market and themselves right out of the market," Wright said of Detroit and price increases for water pumped here through a Detroit-owned pipeline.
The drain commissioner now believes Genesee County alone would save $400 million over 30 years by building the pipeline.
Detroit currently charges Genesee County, not including the city of Flint, a $2.1 million annual fee and $14.29 per 1,000 cubic feet water compared to $6.86 and no annual fee for the same amount of water in 2001.
Suburban leaders have complained about Detroit's high water prices and their lack of input for years, but even if Genesee County and the city of Flint ended up with a say in the future of the Detroit water system, Wright said he wouldn't expect much rate relief.
"If we (got a better price, other communities') rates would have to go up," Wright said. "I can't see that happening."
Genesee County Board of Commissioners Chairman Jamie Curtis said he's not waiting for the smoke to clear at DWSD to make a decision about what to do.
"(The indictments) really don't have any impact on KWA at all," Curtis said. "In peoples' minds it might. In peoples' minds, I think it eases (the worry over whether) we are making the right decision.
Kilpatrick is in prison for violating the terms of his probation on obstruction of justice and assault convictions. The federal government brought fraud and tax charges against him in June and now he, his father and three others have been indicted on federal corruption charges related to water and sewer contracts in Detroit.
Lapeer County Drain Commissioner John E. Cosens said he also believes public sentiment for the pipeline might build as a result of the Detroit water scandal but thinks officials in the Kareagnondi communities have already decided the project is needed.
"Had it not happened, the Karegnondi project would still move forward," Cosens said. "I almost think they are too late (to change that). We've tried and tried and tried (to negotiate better rates) but we don't get anywhere."
Sponsored Links |
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Sat Dec 25, 2010 9:05 pm |
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Adam
F L I N T O I D
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quote:
untanglingwebs schreef:
Page after page discusses how Kilpatrick and Ferguson manipulated contracts and increased costs (some by as much as 40%).
Speaking of costs I've heard Flint/Land Bamk's home demo costs are way higher per house than in Saginaw. |
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Sat Dec 25, 2010 9:30 pm |
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Dave Starr
F L I N T O I D
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quote:
Adam schreef:
quote:
untanglingwebs schreef:
Page after page discusses how Kilpatrick and Ferguson manipulated contracts and increased costs (some by as much as 40%).
Speaking of costs I've heard Flint/Land Bamk's home demo costs are way higher per house than in Saginaw.
Probably due to slippage. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Sun Dec 26, 2010 7:49 am |
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yaryrret
F L I N T O I D
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Sun Dec 26, 2010 10:56 am |
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Adam
F L I N T O I D
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Sun Dec 26, 2010 11:39 am |
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untanglingwebs
El Supremo
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| Adam- You may be right as several county commissioners have complained about the very same issue. |
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Sun Dec 26, 2010 3:03 pm |
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twotap
F L I N T O I D
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Is Detroit style public corruption in Flint?
I can almost see the guy from the Geico commercials asking that question with a video to follow. 
Have Democrats run the area for the last 40 years?
Last edited by twotap on Tue Dec 28, 2010 10:42 am; edited 1 time in total |
_________________
"If you like your current healthcare you can keep it, Period"!!
Barack Hussein Obama--- multiple times. |
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Mon Dec 27, 2010 6:24 pm |
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Dave Starr
F L I N T O I D
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| Good to see you back, TT. I was starting to worry. |
_________________
I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Mon Dec 27, 2010 6:43 pm |
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twotap
F L I N T O I D
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Thanks Dave im always lurking.  |
_________________
"If you like your current healthcare you can keep it, Period"!!
Barack Hussein Obama--- multiple times. |
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Tue Dec 28, 2010 9:14 am |
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