Local 4 is inside the courtroom for the federal corruption trial of former Detroit Mayor Kwame Kilpatrick, Kilpatrick's dad Bernard Kilpatrick and his childhood friend Bobby Ferguson. Each day we bring you information from inside federal court as it happens.
9:03AM Monitor turns on and it looks like we are already set to go. Yesterday the last witness of the day was Doug Dalgleish who testified that Kwame Kilpatrick, freshly out of Wayne County jail in February 2009, went straight to a Detroit dealership with $13,000 towards a red blinged out Cadillac.
It's the first day in the trial that I've seen Kwame not wear a tie to court. Guess it's casual Wednesday today.
Judge Nancy Edmunds enters the courtroom and Kwame asks to go to the restroom.
Judge calls counsel over to a sidebar while he is out.
Kwame is back and talking to Bobby Ferguson and his father Bernard.
Just noticing that Gerald Evelyn is not in the courtroom.
9:08AM US Attorney Mark Chutkow getting ready to question a new witness. It's Gregory Terrell who is being sworn in.
Chutkow introducing tax return exhibits. Sounds like some have to do with the Kilpatrick Civic Fund.
Witness prepared tax returns for Kwame and Carlita from 2003 through 2007. Witness got his accounting degree in New Orleans and has worked for Arthur Andersen & Co, an international firm, and worked locally in Detroit. Started as a staff auditor for 8 years and then became an audit manager by the time he left Arthur Andersen.
As an audit manager, he was primarily in the manufacturing division.
Left Arthur Andersen, went to Unisys and then private practice as a CPA firm. In 1983, started his own practice as Gregory Terrell & Co.
Witness knows Kwame. Met him before he ran for mayor. Got to know him through Bernard who he knew from basketball days in the park grounds and gyms.
Started doing tax returns for Kwame in 2003 up to 2007.
Terrell got tax information from Kwame and maybe on one occasion from Carlita. Typically, Kwame would call and they would talk on the phone. Then Kwame would have someone drop off documents at Terrell's office. Witness says they would discuss various sources of income and if it had changed from pervious years.
Witness says if something was missing there would be a follow up phone call and Kwame would provide missing information.
Most years, W2 income was main source of income for Kwame and then sometimes there were gains from stocks.
W2 is form from employer, at the time city of Detroit in his position as mayor.
Carlita had a W2 in 2003 but not in the subsequent years so Kwame was then primary source of income.
1099 forms- witness recalls receiving at least one for a speaking engagement.
9:20AM Looking at a 1099 miscellaneous form sent by Wilberforce University in Ohio in 2003 for services rendered by Kwame- it was for $2,500. Witness believes it was for a speaking engagement at the university.
Witness says dividends typically come for investments, stocks, bonds and mutual funds. Kwame received some capital gains and then had some losses some years.
Again, most of Kwame's income in those years was from Kwame's income.
Terrell says part of the discussion is always about other sources of income in order to make sure inquiries have been made.
Witness says he never heard of a cash gift from Karl Kado through Derrick miller. Also never heard of any cash receipts from Jon Rutherford or from gentlemen who operated Asian Village. Never heard of any cash gifts from Bobby.