Health One Credit Union was where witness advised Bernard to open account. Witness had mortgage ownership with them. Witness suggested a limited liability corporation to Bernard. "It's pretty simple."
Did conversation take place before mayor took office? Don't know.
Chutkow wants to read for record what Rutherford said under oath. John shea objects.
Judge says let's take it up at the end of the day.
Exhibit RUTH 25- "What did you do with 23 and 24" says Rutherford. A check from DPR Management LLC to Maestro Associates on April 1st 2002 for $10,000. Rutherford says he wrote it because he entered agreement with Maestro & Associates.
Did this correlate with Bernard opening his bank account? It could have been. In short conversation I suggested where he could open account.
Exhibits 26 through 35- checks from DPR Management LLC to Maestro.
2. check from DPR to Maestro May 3rd 2002 for $10,000.
3. check from DPR to Maestro on June 4th 2002 for $10,000.
4. check from DPR to Maestro on July 2nd 2002 for $13,000.
5. check from DPR to Maestro on August 2002 for $10,000.
6. check from DPR to Maestro on September 9th 2002 for $10,000.
7. check from DPR to Maestro on October 8th 2002 for $10,0000.
8. check from DPR to Maestro on November 8th 2002 for $10,000.
9. check from DPR to Maestro on December 20th 2002 for $10,000.
10. check from DPR to Maestro on February 5th 2003 for $15,000. Why more? Can't recall says witness. Looks over document. My explanation is that last exhibit is on December 20th and the next one is February 2003 so there is a check missing. so the check is to make up for no January.
11. check from DPR to Maestro on March 7th 2003 for $5,000.
How did you decide how checks would be issued? Looks like the beginning of month.
You don't know if he asked for it? no Bernard wouldn't have had to ask for it. I had it ready.
Did you need Bernard's services? not particularly.
Why did you hire him? 1. Because he's mayor's son and 2. never know when you might need him
Did he come to homeless shelter? Never needed him for shelter of mentally ill people.
Did he have any experience with casinos? Probably a little bit.
Because he gambles? I don't know if he gambles.
12:32PM So the check for $5,000 in march 2003, is that the last check to Bernard? It looks like it.
Why did you stop paying it? Bernard alerted me he was going on the Wayne County Health Board. didn't want him as a consultant and have him on the board.
Well if he is on board of directors, at time I was with Gateway Community Health says Rutherford. I didn't think it was fair to partners because i thought it would come up.
In 11 month period you paid Bernard a total of $113,000? Yes.
Exhibit 21A check from DPR Management LLC to Next Vision foundation on October 22nd 2002 for $5,000.
Who ran foundation? Ayanna Kilpatrick.
Why did you give to the foundation? looking at the date. I believe this was a Halloween fund-raiser. witness didn't attend but bought tickets and sent employees.
Why did you buy tickets? Someone called me.
Was it family connection? Absolutely.
Did you meet with Kwame about Greektown Casino? Yes.
Witness says he brought 3 different entities to Detroit to buy Greektown Casino. Research indicated they had too much debt. They paid outrageous interest and they were having trouble servicing their debt. So we picked Greektown as one to buy. MGM and Motor city not interested. motor City in process of re-arranging partnership.
Met with people from Las Vegas to China. Never could get a price. A value put on a casino every month for what it's worth. A very precise mathematical formula. Some partners at Greektown thought it was worth more than potential buyers. So never came close to a price.
Witness says Kwame talked to the chief at one time.
12:39PM Did Kwame send Derrick miller to meetings? Absolutely.
Witness says he remembers one in particular. Miller accompanied him to Las Vegas. Was Harras, now Cesar's, largest gaming operation in the world. They were first up to the plate. Met with CEO and CFO an other high ranking employees and 2 member from Greektown. Miller reported to the mayor.
Did mayor meet with city council to discuss your proposals? I don't know.
Do you remember if mayor's chief administrative officer met with council about casino? He met with a few.
Witness says 2 representatives from Harras came to Detroit and he introduced them to the mayor.
The Sands Las Vegas was second to express interest. Mayor met with CEO Widner. They met in DC and witness was there.
Did they seem interested? "Everybody was interested."
Did mayor meet with Venetian? absolutely. He met with Adelson, at the time about the third richest person at the time says the witness. (Technically he is the world's 12th richest person) The meeting was just the 2 of them.
Did you set it up? Yes.
Because you wanted a casino? Yes.
Did you get a casino? No.
Plan didn't work out? No.
Where did money you gave Kwame come from? From me.
From particular company? We said DPR a hundred times.
How much money came into DPR? Doesn't know without looking at figures.
What was shelter operation salary? About $120,000. but had more businesses than just the shelter.
Total income from Metro Emergency Services was $275,000.
DPR charged MES $720,000 for rent.
Witness got about $650,000 a year from various sources.
90 day contracts he was providing services for in 93 homes for about 1,000 people. Each of those people, they have a price tag put next to them. Like $600 for one person and another may have $1,000 worth of care. It was roughly $2.8 million a year that came in and went right out to the homes.
There was the administrative fee that was 20% of that a month. So not just salary but some money out of that 20%.
You were investigated by IRS? Yes.
You were indicted by US attorney's office? Yes.
You were charged in the period between 2000 and 2003, the period checks were written? Yes.
You were charged with improperly taking money from entities? Yes.
You plead guilty? Yes.
With who? Judge Battani.
Plead to failure to report all income and tax evasion.
Is there a range of sentence? 24 to 30 months.
What did you get sentenced? 21 months.
You got a 3 month reduction? 21 months.
Witness says the new range was 15 to 21 months. So Battani gave him higer end of the range.
Reason for reduction? Believe it was for the grand jury testimony.
So you provided evidence to government in investigation of others. Yes.
So government suggested to reduce sentence? Yes.
You haven't reported to prison? Yes.
So Battani could reduce sentence? Yes.
Is your testimony today part of reason to get reduced sentenced? No. One of my good friend's who is attorney has done all that stuff (Steve Fishman is his attorney).
"Plan for the worst and hope for the best." says Rutherford.
Has anyone made any promises to you? No.
Has anyone said we'll give in the lower range if you testify? No.
Witness looking at more documents. Checks.
12:58PM Exhibit 1: Payment summary:
Chutkow says you testified to various payments in 2000. Total $123,000
Also testified to various checks given to Kwame Kilpatrick in his run for mayor. Total of $184,000 from April to November 2001
Total for 2002 of $20,000 checks after Kwame became mayor.
$327,000: total of checks between 2000 and 2002.
Total payments of DPR to Maestro: $113,000
$440,275: total of Maestro payments plus entities.
Chart doesn't include $10,000 for suits or the $2,000 to S5,000 in Las Vegas and $1,200 for championship fight tickets.
If Kwame wasn't mayor of Detroit would you have given Kwame this money? no.
Were you friends? No.
Were you paying this to get something in return? Yes. I guess.
Did Kwame Kilpatrick express appreciation? Yes.
Did he tell you he would do anything for you? No. He liked the project. He would have backed it.
Did you need the mayor? For the Riverfront asks witness?
Yes says Chutkow. "Couldn't have done it without him." says Rutherford
1:05PM Judge dismisses jury.
Taking up a legal issue in the morning so will be starting a little early at 8:45AM. Essentially, Rutherford is sometimes being reluctant with his memory so the government wants to read his grand jury testimony to refresh it. For obvious reasons, defense would like to prevent that.
About the author:
Alexandra Harland is a Princeton undergrad and has a masters degree in International affairs with Columbia. A Montreal native, she worked with the Daily Telegraph newspaper for a few years before transitioning to TV, when she worked at ABC News with Peter Jennings. Alexandra has also worked in newsrooms in both Detroit and Boston.