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Ex-Mayor Denies Threat To Prosecutor

Court Documents Reveal Kilpatrick's Lavish Lifestyle

POSTED: Sunday, December 6, 2009
UPDATED: 3:42 pm EST January 27, 2010

Jailhouse tapes played in a Wayne County courtroom Monday between former Detroit Mayor Kwame Kilpatrick and his wife regarding the lease of their current home may have revealed he again lied under oath.

On the November 2008 tapes -- which prosecutors got from the jail -- Kilpatrick discussed prices and locations of a home he and his wife planned to lease when he was released from jail.

"All right, go ahead and find us a crib," Kilpatrick told his wife on the tape recorded on Nov. 21, 2008.

During previous testimony, Kilpatrick had said that he did not have any knowledge of his current home lease in Texas and that his wife was now in control of the couple's finances.

As the tapes began to roll in the courtroom, the normally confident Kilpatrick showed signs of nervousness.

The tapes repeatedly show Kilpatrick trying to reassure his wife that everything is going to work out.

"In a few months, this conversation is going to be funny to us -- just like most of our conversations about money," said Kilpatrick as he and Carlita wrangled with the decision to lease a home in Southlake.

Kilpatrick denied in court that he made threats to a prosecutor during those phone calls.

"When we get the loot, we're going to take her all the way out," Kilpatrick told his wife, Carlita.

Kilpatrick admitted the "her" was Kym Worthy, head of the prosecutor's office and a former judge. Worthy charged Kilpatrick and his ex-top aide in March 2008 with perjury, misconduct and obstruction of justice after sexually explicit text messages revealed both lied during an earlier whistleblowers' trial about being romantically involved and their roles in the firing of a police official.

The charges led to his plea deals and eventual resignation.

Kilpatrick told Assistant Prosecutor Athina Siringas that the conversation wasn't a threat.

"When we get the million dollars to pay off this restitution, the prosecutor will be out of this process," he said. "That's all we talk about."

At one point, Kilpatrick got teary-eyed when he began talking about his children on the tape and left the courtroom.

A courtroom guard brought him a tissue in a witness room adjoining the courtroom, and moments later he returned.

Read:Karen Drew Blogs From Court

Kilpatrick was sentenced to 90 days in jail in September 2008 and ordered to pay the city of Detroit $1 million in restitution for a text message scandal that forced him from office. As of November, he still owed the city more than $900,000.

After he was released from jail earlier in the year, Kilpatrick took a sales position at Covisant division of Compuware. Kilpatrick's salary as a sales representative for Compuware subsidiary Covisant was reduced, after his first six months on the job to a new monthly base pay of $10,000.

Documents Show Lavish Spending

Prosecutors said Kilpatrick has not been truthful about his ability to continue paying his restitution and Assistant Wayne County Prosecutor Athina Siringas alleged that between October 2008 and this past October, he spent about a half-million dollars.

Siringas said that the same month that Kilpatrick said his salary was reduced, he spent more than $6,000 on restaurants, manicures and Gucci shoes -- the month before he requested a hearing to reduce his monthly restitution payment to the city.

Siringas said that Kilpatrick withdrew the cash from his personal checking account to pay for the frivolous spending, mostly at restaurants including Popeyes Chicken, Chick-fil-A, Nothing Bundt Cakes and $800 at Omaha Steaks.

Kilpatrick also acknowledged that on April 9, he withdrew $17,270 from a bank account shared with his wife. That day a $15,770 cashier's check was issued to Plastic Surgery Center of Dallas. Another cashier's check for $1,500 was issued to Metro Anesthesia.

Siringas asked Kilpatrick to say what the money was spent on.

Kilpatrick's response was it was "something very personal for my wife."

It later was revealed that Kilpatrick reported $127,059 in income on his 2008 tax return, and a check for $20,000 that he could have used for his restitution payment was not applied.

"That's what you chose to spend the money on?" Siringas asked Kilpatrick, who invoked his Fifth Amendment privilege several times during Monday's hearing.

Kilpatrick was the only witness to take the stand Monday during more than five hours of testimony. This is Kilpatrick's fourth hearing regarding the restitution hearing.

Read full stories of Kilpatrick's previous testimonies:
  • Oct. 20: Kilpatrick Testifies For 3 Hours
  • Nov. 17: Kilpatrick: Repaying City Important
  • Nov. 18: Kilpatrick Hearing To Continue Dec. 7

    Carlita Kilpatrick Takes Reigns On Couple's Finances

    Siringas began cross-examining Kilpatrick Monday morning by firing off questions about his earlier testimony regarding Kilpatrick's wife paying most of the household bills with the couple's joint checking account.

    Kilpatrick said in previous testimony that even though he is currently the sole provider of income, he simply makes the money and just gives it to his wife to handle.

    “She’s the most disciplined between the two of us,” he had said. "She controls the finances in our home.”

    Kilpatrick said that when he went to jail earlier this year, his wife had to begin paying the bills.

    "Out of necessity, there was a compulsory need that the finances moved to the person that was there in behalf of the family, not because she's pissed at me, as you said," Kilpatrick said Monday referring to Siringas' previous comment.

    Testimony Reveals More Veiled Funds

    At one point Monday, the testimony turned to the Kilpatrick Civic Fund. The fund was created to raise funds for political and civic education.

    Kandia Milton and April Edgar issued two checks from the civic fund to Regality Management, the property management company that leased Kilpatrick his home.

    A check for $9,400 and another for $1,050 were issued from the fund.

    Kilpatrick stated that the board of the Kilpatrick Civic Fund had a meeting in which they decided to also pay for part of his housing and moving expenses.

    Siringas later said that Kilpatrick also claimed the moving expenses on his taxes.

    When asked who was on the board, Kilpatrick would not offer up names, but said it was public information.

    Assistant Wayne County Prosecutor Robert Spada took over questioning Kilpatrick later in the day and focused in on money Kilpatrick used from his campaign fund to pay his lawyers. Kilpatrick still owes his attorneys about $650,000.

    Spada grilled Kilpatrick about assets, including a Harley Davidson, he failed to disclose when he pleaded guilty in September 2008.

    Kilpatrick At Risk Of Being Held In Contempt Of Court

    At the end of the hearing Monday, Groner said he was not satisfied with a letter that was supplied by Covisant about the factuality of a sales meeting that Kilpatrick claimed he had to attend last month -- the reason the restitution hearing was postponed.

    Kilpatrick's lawyers said he could potentially earn $3,000 in commissions from the November 18 meeting -- money that Kilpatrick could use to repay his restitution.

    Groner said at the beginning of the hearing Monday that he did receive the letter he requested, but that it failed to supply enough information about the meeting and whether or not it would generate money.

    "This letter is inadequate. I need something of more substance, more detail of who the client was, why he had to be there," said Groner.

    Groner said Kilpatrick had 48-hours to supply a more detailed letter.

    He added that he is thinking about setting a contempt of court hearing.

    "I am not going to set a contempt hearing just yet, but I may present one later," said Groner.

    Kilpatrick got irritated when he was denied comment about the letter and stormed off the witness stand, uttering under his breath.

    "Watch your mouth. I don’t need your comments. This is a courtroom. Respect the courtroom," Groner fired off at Kilpatrick.

    The testimony will resume in Groner's Wayne County courtroom at 11:30 a.m. Tuesday.

    Background On Kilpatrick's Restitution Hearing

    Wayne County Prosecutor Kym Worthy requested Kilpatrick submit all of his financial records in October, claiming Kilpatrick had not provided the information and had acted "unilaterally," never getting the court's permission to reduce the payments.

    Kilpatrick’s lawyers complied with a court request for the records on Oct. 16 that list incomes for Kilpatrick and family members.

    Prosecutors also said Kilpatrick might have committed perjury when he filed a motion to reconsider restitution payments to the city.

    At issue is an affidavit signed by Kilpatrick on March 24.

    Siringas said Kilpatrick has "intentionally hidden assets from the court." Siringas said the hearings are meant to uncover the truth behind his ability to repay the city of Detroit and to hold him accountable for his lack of disclosure.

    In previous testimony, Kilpatrick revealed he received a $240,000 loan from Compuware chairman and CEO Peter Karmanos, Roger Penske, Jim Nicholson and Dan Gilbert.

    Penske is CEO of Penske Automotive Group. Nicholson is president and CEO of PVS Chemicals Inc. Gilbert, founder and chairman of Quicken Loans Inc., owns the NBA's Cleveland Cavaliers.

    An attorney for Compuware Corp., Dan Follis, has testified that Kilpatrick did not sign a promissory note on a $240,000 loan until IRS and federal agents asked to see the documents.

    Kilpatrick received an initial $150,000 payment on the loan from Karmanos and the three others Feb. 4 and a second $90,000 installment in June, but only signed a document about paying them back following the Aug. 10 visit by agents, according to Follis.

    Kilpatrick’s attorney, Michael Alan Schwartz, has argued that Kilpatrick has been truthful and that the $240,000 loan was in fact a loan and not a gift.

    Schwartz has questioned Follis, asking if he had heard, in any conversation, that any of the loaners intended to “gift” Kilpatrick the money.

    Follis has testified that he has not, and does not think the loaners were lying about their contributions to Kilpatrick.

    “Is it a crime to receive a loan?” Schwartz asked Follis at the Nov. 18 hearing.

    “No,” Follis answered.

  • Slideshow: Kilpatrick Restitution Hearing

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