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Dave Starr
F L I N T O I D
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Kwame & Ferguson guilty of most charges, Kwame's dad guilty on one tax charge.
www.freep.com
www.detnews.com |
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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 Mar 11, 2013 10:25 am |
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twotap
F L I N T O I D
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| Sure sounds like Motown to me. |
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"If you like your current healthcare you can keep it, Period"!!
Barack Hussein Obama--- multiple times. |
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Mon Mar 11, 2013 11:06 am |
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Crowfeeder
F L I N T O I D
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| Expect 10 years + , I heard Kwame is in shock. |
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Tue Mar 12, 2013 7:30 am |
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untanglingwebs
El Supremo
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Why not Flint-The feds have been busy elsewhere in Michigan.
City Officials. Victor Mercado, the former Director of the Detroit Water and Sewerage Department, pleaded guilty to conspiracy in awarding public contracts. He became the second defendant, along with Derrick Miller, convicted in the case that also charged former Detroit Mayor Kwame Kilpatrick, his father Bernard Kilpatrick, and contractor Bobby Ferguson with racketeering, extortion, and related offenses. The trial of the remaining defendants began in September and continued into 2013. In United States v. Beasley, the former Treasurer of the City of Detroit was indicted on charges of bribery for accepting cash and trips in exchange for approving more than $200 million in investments by Detroit's pension funds. Two investment managers for Detroit’s pension funds were also charged with paying bribes to the former Treasurer. In United States v. Seay, a Pontiac City Councilman and two associates were charged with bribery and drug offenses. Seay and his co-defendants were charged with accepting bribes in exchange for using Seay's position to help set up a business to launder drug proceeds.
Assistant U.S. Attorneys Jennifer Blackwell and Eric Doeh, members of the trial team in U.S. v Kilpatrick, discuss trial strategy.
Assistant U.S. Attorneys Jennifer Blackwell and Eric Doeh, members of the trial team in U.S. v Kilpatrick, discuss trial strategy.
County Officials. Three defendants pleaded guilty in connection with an investigation of public corruption in Wayne County government. In United States v. Kazmi, the former Chief Information Officer for Wayne County pleaded guilty to accepting bribes from a private contractor in the form of cash and trips. In United States v. Edwards, Kazmi’s deputy also pleaded guilty to accepting bribes from a private contractor. In United States v. Allebban, Wayne County's Director of Enterprise Application was indicted for obstructing justice and falsifying documents to conceal Kazmi's bribery scheme. Kazmi was Allebban's supervisor. The indictment alleges that Allebban delivered $24,000 to a private contractor to induce the contractor to lie to the FBI about bribes the contractor paid to Kazmi. In United States v. Griffin, an Indiana businessman pleaded guilty to wire fraud for submitting inflated invoices to Wayne County Healthchoice, a corporation established to provide reasonably priced health care to qualifying individuals. In United States v. Grundy, a former Assistant Wayne County Executive was charged with taking kickbacks, wire fraud, and money laundering in connection with his work as the former Director of Wayne County Healthchoice.
School Officials. In United States v. Campbell, a Detroit Public Schools contract accountant and her daughter, a DPS teacher, were indicted for obtaining more than $500,000 in school funds by fraud. The defendants were charged with program fraud, money laundering, and tax offenses for submitting fraudulent invoices from a sham company for books and supplies that were never provided. In United States v. Davis, a Highland Park School Board member was charged with stealing $125,000 from the school district by submitting false invoices for advertising and educational programs. In United States v. Reid, a River Rouge school official was convicted at trial of bribery and mail fraud for accepting cash in exchange for preferential treatment for a company that provided tutoring services. The loss to the school district was $160,000. In United States v. Sledge, a former associate superintendent for Pontiac Public Schools pleaded guilty to converting $236,000 of school funds to his own use.
Housing Officials. In United States v. Doster, four defendants were charged with devising a scheme to defraud the U.S. Department of Housing and Urban Development. Two of the defendants were employees of the Michigan State Housing Development Authority, which awarded housing vouchers to homeless people. The defendants accepted cash in exchange for awarding vouchers to people who were not homeless, thereby diverting taxpayer funds intended for the needy.
Township Supervisor. In United States v. Morgan, the former Supervisor of Royal Oak Township was sentenced to three years in prison for bribery, fraud, and environmental violations. Morgan accepted a bribe from a contractor in exchange for a contract to remove asbestos from an abandoned theater. During the demolition process, Morgan caused the submission of a fraudulently inflated change order of $168,892.
Postal Supervisors. In United States v. Gorski, an Ann Arbor postal supervisor was sentenced to 18 months in prison for accepting bribes in exchange for steering maintenance work on postal vehicles to a private contractor. Four other postal employees were also convicted in the scheme, including the former manager of the Detroit maintenance center. |
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Tue Mar 19, 2013 8:03 am |
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Dave Starr
F L I N T O I D
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| Why not Flint? Heard through the neighborhood grapevine that the "connections" run all the way to DC & this keeps the heat off. |
_________________
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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Tue Mar 19, 2013 8:41 am |
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untanglingwebs
El Supremo
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That rumor has been around since the Woodrow Stanley as mayor days. But since the LEO's and federal agencies keep repeating the line, it must involve the Kildee's or the Cherry's as that is the only constant.
Even John Cherry III has moved into the Court Street area so he can run for Ananich's seat. |
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Tue Mar 19, 2013 10:16 am |
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untanglingwebs
El Supremo
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March 20, 2013 at 5:43 pm
Feds: Ex-pension board trustee got baskets of cash
By Robert Snell
The Detroit News
Two new indictments released March 20, 2013, show the federal corruption probe into Detroit is not yet over. Here's a look back at other key figures. Kwame Kilpatrick: The former Detroit mayor was the biggest target of the federal investigation that netted convictions of two dozen people. On March 11, 2013, a federal jury convicted him of racketeering, extortion, bribery and other charges. He robbed taxpayers of millions of dollars. (David Guralnick / The Detroit News)
Detroit — A longtime city pension fund lawyer was indicted on a bribery conspiracy charge Wednesday along with a former trustee, the latest charges stemming from a widening bribery scandal.
Attorney Ronald Zajac of Northville was charged more than one year after being accused of soliciting large cash gifts for Kwame Kilpatrick's fraternity brother, indicted ex-Detroit Treasurer Jeff Beasley and other pension officials months before getting a 33 percent pay increase. Also charged Wednesday: Detroiter Paul Stewart, a former trustee on the city's Police and Fire Pension board and former vice president of the police union.
The indictment Wednesday features colorful, new allegations of Christmas gift baskets stuffed with cash and free trips for Stewart and his mistress.
The men are the fourth and fifth people charged in connection with a criminal probe of the city's pension funds.
"They both got indicted?" Detroit Police and Fire Pension Fund trustee George Orzech said Wednesday "That's sad. The feds are closing in, I guess."
Zajac and Stewart are accused of participating in a bribery and kickback conspiracy involving more than $200 million in investments made by the city's two pension funds.
"Public officials entrusted with billions of dollars in employees' pension money cannot take bribes and kickbacks to influence their investment decisions," U.S. Attorney Barbara McQuade said in a statement.
Zajac's lawyer said his client is innocent.
"I just found out about the charges and am taken aback by the news," Zajac's lawyer Christopher Andreoff said. "My client has indicated he is innocent of these charges."
Mayor Dave Bing said one of his top priorities is restoring trust and integrity to city government.
"Detroiters deserve to be represented by those who adhere to the highest ethical standards, and when the public trust is betrayed, justice must prevail," Mayor Dave Bing said in a statement.
Between 2006 and 2009, Stewart accepted thousands of dollars in cash, trips, entertainment and other items from people seeking investments from the Police and Fire pension fund, according to the indictment.
Among other things, Stewart received a $5,000 casino chip, a Christmas basket stuffed with cash, $2,500 during a trip to New York City, $2,500 during a trip to Florida and trips to the Bahamas and Napes, Fla., with his mistress.
Stewart also allegedly pocketed a $5,000 "birthday present" during a party at the Atheneum Suite Hotel, according to the indictment.
The party allegedly was organized by Zajac.
Zajac, meanwhile, allegedly tried to curry favor with Beasley and Kilpatrick by raising more than $70,000 for the ex-mayor's nonprofit group, the Kilpatrick Civic Fund, according to the indictment.
The nonprofit group played a central role in the City Hall corruption case against Kilpatrick that ended last week with the former mayor being convicted of racketeering and 23 other charges.
Zajac also allegedly forced pension fund businessmen to spend thousands of dollars entertaining pension trustees, according to prosecutors.
He allegedly forced an unnamed individual to spend more than $10,000 for limousines for trustees during a trip to New York City, according to the indictment.
Trustees gave Zajac a substantial raise after he solicited cash gifts for Beasley and Stewart, according to prosecutors.
With the raise, Zajac was paid more than $400,000 from both pension funds per year.
Zajac and Stewart face up to 20 years in prison and $250,000 in fines, if convicted.
Zajac was fired by the Detroit Police and Fire Pension Fund board in November amid an investigation involving the FBI and U.S. Attorney's Office.
He had been suspended eight months earlier following Beasley's indictment in federal court.
Zajac remained the lawyer for the city's other pension fund serving general city retirees.
A spokeswoman for the city's general retirement fund did not respond to an email or phone call seeking comment Wednesday.
If the allegations are proven, "it is my utmost wish that they will be prosecuted to the fullest extent of the law," said Mark Diaz, a trustee on the Police and Fire pension fund and president of the Detroit Police Officers Association union.
"For anyone to have a hand in corruption is absolutely unfathomable," Diaz said.
During a years-long FBI probe, the city's pension funds have paid legal fees for Zajac and Stewart.
Diaz wants to stop paying in light of the indictment.
"I don't see any reason to keep paying," he said.
Zajac was a powerful force during a decades-long run as the pension fund's top lawyer before being linked to the Beasley indictment.
Beasley was accused in a federal indictment of accepting cash, golf clubs, gambling money, tickets to Las Vegas shows, massages, limousine rides and free flights for approving more than $200 million in pension fund investments.
Zajac, the top lawyer for the city pension funds, was unnamed in the initial Beasley indictment. But dates listed in the indictment and pension fund meeting minutes indicate Zajac is "Attorney A," who is accused in the indictment of soliciting large cash gifts for Beasley and other pension fund members months before his pay was increased.
The lawyer helped organize birthday parties at the Atheneum Suites Hotel for Beasley in January 2007 and for two police and fire pension board trustees in August 2007, according to the indictment. Many of the guests were people with financial ties to the pension funds.
"To attend the party, these people were asked to donate large sums of cash for a birthday present," the indictment alleges.
In all, Beasley got $10,000 at the birthday party. At a second party in 2007, two pension fund trustees received $5,000 each, according to the indictment.
Beasley is awaiting trial in federal court.
Zajac has denied doing anything improper.
Stewart, meanwhile, is the former vice president of the police union, the Detroit Police Officers Association.
The News reported last fall that an ongoing probe was looking into alleged improprieties involving former union officials, including an SUV given to Stewart when he retired in the middle of his term in May 2011.
When Stewart resigned unexpectedly, the union's executive board voted to give him a fully-loaded Jeep Grand Cherokee SRS as a retirement gift.
Prosecutors secured the first conviction in the pension probe in February. That's when pension fund adviser Chauncey Mayfield pled guilty to conspiring with Beasley and paying the former Detroit treasurer bribes.
Mayfield faces up to five years in prison and a fine of up to $250,000.
Also charged:
Georgia businessman Roy Dixon, who was charged in December with embezzling approximately $3 million from Detroit and Pontiac public pension funds.
rsnell@detroitnews.com
(313) 222-2028 |
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Wed Mar 20, 2013 7:17 pm |
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untanglingwebs
El Supremo
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Letters: Denial of bond for Kwame Kilpatrick is well justified
March 18, 2013 |
{Note: This well written letter is from local attorney John Streby}
The "outrage" of a recent letter writer over the revocation of Kwame Kilpatrick's bond pending sentencing is misplaced. The jury found him guilty on 24 counts, so the presumption of innocence is gone. He has done no favors for the court system, so the system owes him none in return. The former mayor's attendance at prior court hearings is hardly noteworthy, given his hope for an acquittal.
Remember, this is the same man whose abysmal record while on probation to the Wayne Circuit Court prompted Judge David Groner to send him to prison. Even after more than a year behind bars, Kilpatrick still hadn't learned his lesson, living large in a 5,000-square-foot home in Texas while making minimal restitution payments.
Inasmuch as a lengthy prison sentence is certain, why delay the inevitable? The letter writer also puts too much faith in the tether, which can be cut off by a man as desperate as Kilpatrick has reason to be. Indeed, with a long prison term looming, he could have concluded that the risks of absconding were worth taking.
John Streby,
Flint
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Thu Mar 21, 2013 2:08 pm |
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