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.
9:06AM We are most definitely off to a late start this morning. Bernard Kilpatrick has been sitting by himself in a mostly empty courtroom. Bobby Ferguson and Kwame Kilpatrick have just entered the courtroom. There was a huge line outside the courthouse this morning. I waited for 45 minutes in the line just behind Ferguson defense lawyer Susan Van Dusen. Just as I was about to finally get through security, Ferguson, his lawyers Gerald Evelyn and Mike Rataj entered the building. Apparently there is some sort of lawyer’s conference going on at the courthouse which at least partially accounts for the line winding around the block to get in.
It may be winter but Kwame and Bobby are determined to keep with spring-like attire, Kwame in a beige sports coat and dark pants and Bobby in all beige suit and tie. Bernard is a little more in keeping with the season wearing a light grey suit.
Yesterday Detroit businessman Karl Kado was cross-examined by Bernard's lawyer John Shea and Kwame's lawyer Jim Thomas. The defense team did its best to discredit the government witness's damaging testimony- he had testified to handing over more than $360,000 to Kwame, Bernard and former Kilpatrick aide Derrick Miller- by claiming he had a faulty memory due to dementia.
Anticipating starting the session with a new witness.
9:16AM Still waiting for court session to start. Suspect most of the media is still waiting in that enormous line.
9:20AM Judge Nancy Edmunds enters the courtroom. Jim Thomas approaches the bench to have a quick word with the judge.
And the next witness is FBI special agent Robert Beeckman who is being called back.
US Attorney Michael Bullotta is asking to admit more text messages into evidence.
9:23AM Bullotta questions Beeckman about lottery number best placed by Bernard at Tunnel Liquor at the Millender Center.
June 2007 and April 2008 calls between Kado and Bernard were recorded.
Playing one of those calls about the lotto on August 3rd 2007. On Bernard's cell phone. Talking to Andrew Kado, Karl's brother, who runs the liquor store. Bernard asks about the winning number and it sounds like his ticket wasn't a winner. Bernard tells Andrew that he owes him $10. Lots of cheesy elevator music playing in the background.
Beeckman says that Bernard is playing the numbers of the lotto and Andrew tells him he owes him $720 over 2 days.
Beeckman says there were 159 such calls that the FBI recorded between June 2007 and April 2008. 158 were on Bernard's cell phone and one on his home phone.
It's becoming increasing obvious that the government didn't redirect Kado yesterday opting to use FBI agent Beeckman instead.
Beeckman says he documented Kado telling him about the dementia. Beeckman called Kado to flesh out whether he had officially diagnosed.
Thomas objects and judge sustains.
Beeckman says he was trying to see if it was an official diagnosis by a doctor.
Bullotta says so Kado didn't keep calling to tell you he had dementia. No he didn't.
Beeckman says that in his interactions with Kado he never seemed forgetful.
Bullotta asks if Kado's info ever seemed false or misleading. no says the special agent.
Talking about cleaning contract at Cobo in 2002 and then the electrical contract in 2003.
Looking at text message between Derrick Miller and Bernard. Miller was chief admistrative officer at the time in 2002.
Bernard: “Don’t forget the 2 letters to HUD :!) Robert Brown 226/437 director of multi-housing
Blast thing for today you have to call Lou and give ok for Karl to deal with electrical in June."
Another text message:
Bernard to Miller: "Time to call Lou on the Karl deal exactly like maintenance."
Another text message between Bernard and Miller on January 25, 2003:
Bernard “What happened to the email brother. Karl is getting real nervous...I think Tuesday is the deadline...calls him at ...to reassure...."
Bernard: "Did you hook carl up with the cob stuff"
Miller: "Lou never...
Bernard:" Cool. They told me he sent the letter."
January 28th 2003 between Bernard and Miller:
Bernard: "Did you hook up the deal at cob today?"
January 31st, Feb 1st and 2nd again between miller and Bernard:
Miller: "I have a meeting with Lou on Monday. Just like I thought this guy never sent a letter. He wants to talk in person."
Bernard: "That's strange he told Karl he sent it to you. Congratulations...."
Miller: "Thanks I will check on it... Lous is shifty."
February 3rd 2003 text exchange:
Bernard: "Make sure he leaves the office with the letter..."
February 5th 2003 there is a letter from Lou Pavledes to Karl Kado approving the electrical services contract. so 2 days after the last email Kado gets the contract
Looking at Kwame's calendar page from Friday April 11th 2003. Meeting at 6pm with Karl Kado.
Another one of Kwame's calendar page's on Saturday, August 9th 2003. At 3pm the former mayor had a 15 minute appointment for Jessica Kado, Karl's daughter, graduation from med school.
Text message involving Karl Kado and Kwame. January 14th 2004. This is from Megan Pitts, staffer in mayor's office: "Mr. mayor Mr. Kado just called you. He missed your call."
January 23rd 2004. another staffer, Samara Bradley texts mayor: "Karl Kado (his cell #)"
Beeckman says he investigated Kado himself. Kado has already been sentenced and there are no pending charges.
9:46AM Kado never told Beckman that he hired Bernard as a consultant.
Kado never told Beeckman that he ever gave any money to Kwame after he left office.
Beeckman says that Kado would continue conversations with Bernard after meeting with government. Kado said that he was still owed money by the city and he would use Bernard to help him.
Beeckman says the goal of the wire taps. Had Kado reach out to Bernard about the money owed him? Beeckman asked Kado to bring up a certain number of things in the conversations. Beeckman says he was trying to corroborate things that Kado had previously told him.
One of the things Kado told him about was $100,000 payoff to Bernard.
Judge says we don't need Mr. Beeckman to bolster Kado's testimony. This is exactly what the government is trying to do.
9:50AM Jim Thomas cross-examines Beeckman.
Thomas talking about exculpatory materials for the defense. It is a rule of all criminal proceedings that all such material must be turned over to the defense. Could undermine the credibility of a witness or impeach him.
Thomas says you recognized this a potentially exculpatory. Yes says Beeckman.
Because it calls into question his abilitiy to recall. Getting lost? Beeckman says I don't think he said getting lost. He was having problems remembering things.
Thomas says nothing he (Kado) said was false or misleading? Beeckman says not to me.
Beeckman says if someone is incorrect on a detail I don't see that as false or misleading.
Thomas approaches with agreement with Karl from February 22nd 2006 and hands it to Beeckman.
Thomas asks if Beeckman has reviewed it. Yes says Beeckman.
Did Kado review this shortly after it was generated? Beeckman says he has reviewed it at some point in the process.
Thomas says you recognize phone call from the mayor and phone call from Kwame not in office? Yes says Beeckman.
You recognize its a different thing to ask for $10,000 or to call and ask for money for his mayoral bid? Yes says Beeckman.
When you talked to him he gave you information that was inconsistent with Kwame being in office at the debate? Yes.
Because he said it was right after debate in Cobo in October 2001? Yes.
And Kwame doesn't take office until January 2002? Yes.
Did Kado not tell you that Kwame called him and asked him to support his mayoral bid? Isn't that what he told you in 2006? Yes.
You are a federal agent, we have handled many cases together, you take accurate notes? Yes I'm sure they are says Beeckman.
And he told you that he handed the money in an envelope not in a brown paper bag? Yes.
Thomas refers back to communication between mayor and Meagan Pitts on January 14th 2004 stating that Karl Kado just called him.
Timing of this text message is around the auto show, Thomas points out. Karl Kado was exclusive contractor on electrical and cleaning. Thomas making the point that it wouldn't be unusual for the mayor to be communicating with Kado.
Beeckman says he doesn't think it's unusual that the mayor would care about cleanliness. But that he would take it upon himself, instead of leaving it to others below him, is unusual.
Beeckman agrees again that this is an area of interest of the mayor but reiterates again there are alot of people between the mayor and Kado.
Thomas says you are an FBI agent you are naturally suspicious? "I agree to everything except that I am naturally suspicious," says the GI man.
Thomas asks to look at text message from January 23rd, 2004 from Samara Bradley: "Karl Kado (his personal #)"
Thomas says again this is around auto show about the guy in charge of cleaning, electrical and food concessions? Yes says Beeckman.
At the present time there are no pending charges against Kado? Yes says Beeckman.
He was never charged with racketeering? No.
Does the FBI investigate money laundering? Yes says Beeckman.
Is skimming money money laundering? Could be says Beeckman.
Beeckman says Kado plead to a tax count but doesn't know if it was a reduced charge.
Beeckman says he doesn't have charges when they open a case file. Thomas wantes to know what the charges were.
Beeckman says they were looking at bribes being had at Cobo Hall.
Isn't that a higher charge than tax counts? Yes says Beeckman.
Thomas says if he was part of racketeering conspiracy the charges would be through the roof? They would be significantly higher, yes says Beeckman.
Thomas is done.
10:08AM John Shea cross examines Beeckman.
Shea setting stage for the lotto ticket debt scenario.
Shea says you had one interview with Kado before target letter of September 2005. and the first post target letter interview was February 22nd, 2006 and then a subsequent one on March 2nd 2006. And they interviews covered relationship with Bernard? Yes says Beeckman.
Shea says in March 2nd 2006 he told you he covered $20,000 lotto tab at his brother's store? Yes.
And Karl Kado loaned his brother money to cover it? Yes.
On March 1st 2008 Kar Kado is wired for breakfast meeting with Bernard? Yes.
And at this time he talks about $80,000 lotto tab? Yes.
And Bernard says no, no now way is it that much? Yes.
You had had numerous contacts with Karl Kado at this point? Yes.
This was the second recorded meeting, the first was on February 8th 2008? Yes.
There is at least of month probably more of you having contact with Karl Kado about recorded conversations? Yes.
And at no point does he tell you about $80,000 tab? Yes.
The first you heard of it was during the recorded conversation? No.
And this wasn't something that you asked him to corroborate? No.
Shea says Kado is talking about just one time he covered a lotto ticket? Beeckman says I don't think that's right. He talked about a single amount of money to cover it.
Beeckman says for him to be able to cover an $80,000 tab he would be having to float it every week and I don't think that's right.
Beeckman says there is a significant different of time. the 20,000 in 2006 and the 80K is in 2008.
But you are shaking him upside down? Beeckman says I don't think I'm shaking him upside down.
Beeckman says the way you are saying I am shaking him upside down implies that I am grilling him and it's just not like that.
At no point is he telling you that he is continue to give his brother money to cover Bernard's lotto tab? True says Beeckman.
You had a lengthy ingterview with Kado in February 22nd 2006? True says Beeckman.
More than just you and Kado at this meeting? True.
Somebody would have explained generally why he received target letter? Beeckman hesiattes but agrees.
At some point in that meeting someone obtained Kado's cooperation signature on a document? Yes says Beeckman.
It is standard to ask someone if they have had prior discussions about the case? Beeckman says that could be a topic yes. It depends on the case. I do mostly white collar stuff.
Isn't it true at neither February 22nd and March interview that Kado didn't tell you about Kado's meeting with Bernard in 2005? Yes it's true says Beeckman.
You met with Kado on October 27th 2012? Yes says Beeckman.
At that time you asked him about September 2005 with Bernard? Yes.
Is it first time you had the discussion with him? Me personally, yes.
And the pat down detail he added 6 weeks ago? Yes says Beeckman.
All you can glean from the text messages is that it was between Derrick Miller and Bernard and solme sort of message? Yes.
Doesn't tell you who he was meeting with or what efforts he was making on the contract? Right says Beeckman.
Those text messages range from April 2002, January 2003 and February 2003? Yes says Beeckman.
But you know that Mr. Kilpatrick exchanged texts about Kado even after that? I'm sure yes says Beeckman.
Shea offering next texts into evidence.
Between Bernard and Miller 8 months after last one from government on August 13th 2003.
Bernard is trying to arrange meeting between him, Miller and Kado. Indicates they all have a relationship at this point.
Now looking at follow up text exchange on August 18th 2003. Bernard is prodding Derrick Miller to catch up with Karl.
10:27AM You didn't think it was illegal that Kado was seeking to be paid by the city?
February 4th 2008 phone call at 12:21pm. This is call between Kwame and Bernard that was intercepted by the FBI. Kwame says there is no way we are paying him (Kado) for all that stuff. There is about 180k of legitimate charges.
Bernard says he told Kado that the structural stuff would be a problem.
Shea says it is a follow up to the DAH reimbursement? Yes.
And Kwame is saying that they owe him some money but not all of it? Yes.
Who is Medina Noor? She is with building safety.
Playing more of the recorded conversation. Kwame says they have sent back no already. Says they definitely owe him between $180,000 and $200,000. Kwame says Medina has notes that they want to pay him but he want $1 million and there is no way they are going to pay him that. so Bernard says Kado can call Medina to get it straight. Medina is on top of it says Kwame. It might be right at $200,000 says Kwame but no way is it $1 million.
The rest of the call is personal says Shea.
Kado was owed money on DAH building and electrical and cleaning contracts? Right.
But all we are discussing in the recorded call is DAH? Right.
On one side of it is Bernard and Karl Kado and on the other side Kwame and the city of Detroit? Right says Beeckman.
Shea says he is done. Judge Edmunds calls for a 20 minute break
10:56AM Break about to end. Nothing too interesting to report on first floor snack shop activities today except that Kwame had Jim Thomas buy his pack of hard boiled eggs for him.
Judge Edmunds tells jury that if they are not getting a transcript, it's because not everything recorded is transcribed.
10:59AM Bullotta redirects Beeckman.
Looking at transcript of the last call we listened to Between Kame and Bernard. Kwame says "We owe them...you know...oh, we have not met our obligation with them..."
Bullotta asks if they directed Kado to agree to pay Bernard? Yes says Beeckman.
On March 1st 2008 did you give Kado a different direction? Yes says Beeckman. Said to tell him that it was Kado's money and that he shouldn't have to pay. did it to see what Bernard would say.
Transcript from March 1st 2008 converstaion:Kado "But the point is the 1%. It's very hard to do." Bernard: "But you don't want to pay me?"
Bernard "Shit this would be so far back on the table.... it would take 2 years..."
Bullotta mentions parking lot conversation where Kilpatrick offered 10 more years on contract if he didn't cooperate with the government.
Parking lot conversation is referenced in breakfast meeting recording: "When you told me to stay here 10 years.... I said no I'm leaving..."
Beeckman says he was asked about instances where Kado may have provided falso info or lied. Beeckman said there were times were he said different things than in different interviews but couldn't determine that he was lying.
11:06AM Thomas re cross-examines.
Thomas says you are not taking back what you said under my cross-examination? Correct I am not taking it badk.
You are aware that Kwame was investigated by Kym Worthy in 2008? Yes.
During the Kilpatrick administration Kado didn't get paid? No.
Has he been paid under any other administration? No.
Beeckman says there seemed to be a willingness by Kilpatrick's administartion to give him $200,000.
11:09AM John Shea re cross-examines.
Shea goes back to the Kwame and Bernard conversation. Isn't it true that Kwame says "but that what we want with him is a settle figure." Doesn't it seem that they are ready to pay Kado but need a settlement figure to get it tied up? Yes.
11:10AM Bullotta redirects. Wasn't there a case pending aabout a corrupted contract. yes.
11:11AM Bullotta calls back IRS special agent Rowena Schuch.
Schuch looked at Maestro and personal bank records for Bernard. Never saw any checks from Kado or any of his organizations.
Schuch looked for cash deposits. There were some mainly in his personal accounts. In the $300,000 range when Kwame was mayor.
Bullotta hands a chart to Schuch that she prepared. Came up with total cash being deposited into Bernard's accounts.
A summary of all of the cash being deposited into Bernard's account. Total cash deposited is $605,055.
In 2002 it was $118,810,
2003 it's $140,240,
2004 its $123,700,
2005 it's $88,300,
2006 it's 59,905,
2007 it's $50,200 and in
2008 it's $23,900
Looking at checks deposited by Archie Clark's company National Media Inc. into Maestro, Bernard's company.
January 4th, 2008 from National Media Inc to Maestro for $15,000. signed by Archie Clark. Kado had
Another check for 15k on April 1st 2008 from Archie Clark's company.
Another check on April 10th 2008 from National Media for $15,000. Again, signed by Archie Clark.
Schuch says there we more checks.
Looking at a summary of all checks deposited by National Media into Maestro account. From December 5th 2006 to July 3 2008. Total amount is $134,000 deposited into Maestro's account at Comerica Bank.
11:21AM John Shea cross-examines Schuch.
Shea says another agent was with Schuch when she interviewed Kado.
Did you know there was suspicion of skimming cash? I didn't know the details says Schuch.
Do you know what cash skimmimg is? Yes. It's basically when someone is skimming cash from their business and not reported.
So on cash sales? Yes.
So in a sundries store someone buys a candy bar and I put a buck and a quarter in my pocket? Yes.
So paying lower tax on net income? Yes.
You did interview Karl Kado on March 28th 2007? I think so said Schuch.
And agent Brett Pegger accompanied you to interview and he was in charge of Karl Kado tax investigation? Yes.
The subject of that interview was Bernard Kilpatrick? I noticed that there was cash being deposited into his accounts.
That was why you were interested in payments made to him by Kado? Yes.
Isn't it truwe that in that interview Kado said that Bernard Kilpatrick did not specify that he wanted cash? Yes.
He said that it was well known that he wanted cash? Yes.
Schuch says I believe asked him why he paid in cash and Kado said it was well known that he wanted cash
So Bernard received lots of checks from lots of people in the course of doing business? Yes.
Shea asks to see the cash deposit breakdown amounts that total more than $605k.
So you don't know the source of the cash? No.
So there are no notes on the cash? Even if there were I just saw cash deposit slips.
You heard Kado's testimony yesterday? Yes.
And you heard him say that he was paid in 2002 and 2003? Well there was $100,000 in 2005.
The fact of the matter is that you don't have personal knowledge that the cash came from Karl Kado? Yes.
It could have come from any number of sources? Correct.
You iunvestigated Bernard's gambling as well. Were there any years winnings exceeded losses? No.
Well some days he won and some days he lost. On winning days he would deposit it?
Sometimes people will squirrel away cash? Yes.
He played lotto as well. some days he won and probably most he lost? I don't know says Schuch.
Point is you don't know in these years what portions represented gambling winnings? No but some years he didn't represent any gambling.
So you don't the innumerable possible sources of cash? No.
There is nothing illegal in receiving cash for services? Correct.
Looking at one of the checks from National Media to Maestro Associates. First check wriiiten on December 5th 2006. Went into Maestro Associates account. Memo says consulting.
Janury 2007 check for 14k to Maestro. Memo line also says consulting.
Last check on July 3rd 2008 endorsed into Maestro's account.
There were 9 quarterly checks. First 2 had consulting in the memo line.
The fact is the vast majority of these checks were written before February 2008 when Bernard was working with Kado to get money from city of Detroit? Yes.
You don't have any personal knowledge why National Media Inc issued these checks to Bernard? No.
You do know there was a business relationship between Archie Clark and Bernard? Yes.
There was talk of lines of credit to buy lottoie tickets at andrew Kado's tunnel Liquor stores? Yes.
Bernard was writing lots of checks to Tunnel Liquior? Yes.
In 2007, he wrote checks that exceeded $45,000 to Tunnel Liquor? I don't know says Schuch.
Shea hands her a document to refresh her memory. She agrees.
11:39AM Bullotta redirects Schuch.
Schuch says she compared a specific day where Bernard had winnings if it coincided with a day of deposits. there were just a few deposits that coincided with winnings. withdrawals coincided more with gambling activity.
11:41AM Shea asks Schuch if Bernard gambled alot? Yes.
And gamblers can be hoarders.
11:42AM Bullotta calls Anthony Soave to the stand. Businessman Tony Soave's testimony has widely been anticipated at the trial.
Soave says "this seat is warm" as he sits in seat recently vacated by agent Schuch.
Soave says he owns some companies. Owns several companies. Got his start as a small contractor and went into landfill business. Has been based in Detroit since about 1974. Before that was in Macomb County. Soave enterprises is one of his holding companies based in Detroit on Lafayette.
20 years ago Soave purchased Inland Waters. at the time, they were an industrial cleaner at industrial plants. Primarily at auto plants. Company also located in Detroit on 1-75 and Schaeffer.
Soave was also a sewer contractor with M & M contracting. He gradually moved Inland Waters into the sewer business and included having contracts with DWSD.
He has had a business contract with city of Detroit as far back as 1974.
Dennis Ofzust was a superintendent out in the field with Inland Waters. Kathleen McCann was a VP with Soave Enterprises. Yael Levin is Executive VP with Soave Enterprises.
As far as other companies, Soave had Ferrous Processing, a scrap metal company.
During the Kilpatrick administartion between 2002 and 2008, these companies were operational.
Was Inland Waters told they were going to get 1368 for about $50 million. Putting in the bid, they had a minority companent called Charlie Williams- an attorney who was former director of DWSD on 2 separate occasions.
In 2001, Soave mentored minority congtractors. Involves helping a contractor become a viable contractor eventually.
What were you planning to do with Chalie williams on 1368? soave says he know that Charlie knoew about the business. He knew Charlie for years and they were going to help him be a contractor. The end goal was to have williams have a viable company. Charlie williams was listed on bod as minority sub-contractor.
Soave said he did not have relationship with Kwame before he became mayor. Actually supported Gil Hill.
Shortly after he was elected. Kwame went to Soave's office to ask why he didn't support him. In early 2002, Soave was waiting for letter on 1368 to start desk. It was on mayor's desk to be signed. Handed over from Archer administartion. Soave said they were anxious to start.
In April 2002, Soave set up a job with Kwame Kilpatrick. There had been some noise that the contract wouldn't move unless he saw the mayor. Soave went alone and can't remember if mayor had anyone in his office. Soave asked what the hold up was on the job as it was a large contract. "He told me I had the wrong sub-contrcator" says Soave.
Bullotta lets that hang for awhile.
"I asked what was the right one. He told me Ferguson," says soave.
Did you know Bobby Ferguson at the time? No I did not.
Sove said ok, I will make the change. Soave went back to his office and talked to his employees McCann and Levin and said they had to make a change. Told Charlie williams they had to make a change and he was very disappointed. He had helped prepare the bid.
11:58AM Soave says he had money invested in the job and was worried about losing the contract. Soave said the financial impact of losing the contract to Inland would have been horrible. "50 million work is alot of work for a company like Inland." says Soave.
Williams was very disappointed about being dropped from the contract. Soave said he felt bad- he didn't know Ferguson but he knew Williams. Soave says he was disappointed too.
Soave paid Williams $200,000 not because he had to but because he wanted to. He felt badly for him and wanted to help him out. soave said there was no formula, he just came up with a number, $200,000.
Currently partners with Charlie Williams on MPS. Charlie owns 52% of the company. MPS is doing $35 to $40 million annually. They do industrial cleaning. They are working hard and trying to grow the company.
Judge says this is a good place to take a 5 minute break.
12:10 PM Kwame Kilpatrick has been ordered to appear in Judge David Groner's courthouse at Wayne County on Wednesday, December 12th over his missed restitution payments. This is the judge that sent him to prison last time.
Still on break.
12:13PM Bullotta set to continue with witness Soave. Ferguson lawyer Mike Rataj asks for a sidebar with the judge.
Bobby siddles up to Kwame in their matching beige jackets. Goes back to his seat when sidebar disbands.
Judge allows government to admit evidence against Rataj's objection.
Looking at mayor's calendar for Tuesday, April 23 2002. Meeting listed with Soave.
1368 started and Ferguson worked with Kathleen McCann who oversaw the project. McCann would talk to Soave about her dealings with Bobby.
Sidebar over defense objection of hearsay. Judge has ruled that statements elicited by Bullotta are admissible. Tells jury not offered as truth of what was said but for witness's state of mind.
Soave said McCann was always having issues with Bobby over one thing or another. "He's a handful," she would tell Soave.
Ferguson would say "You realize you are here because of me." Soave says it didn't make him feel good. It was like a threat.
Ferguson would say "You don't get it. You realize you're here because of me." Soave says he took it to mean you better get along with me or there might be consequences. "People understand that very well," says Soave.
Soave said he had a lot of problems handling Ferguson one way or another.
McCann would complain to Soave all the time about her meetings with Ferguson because they were not fun for her. He was asking for things all the time and there were having problems getting him to do things.
Soave said a couple of times he mentioned to the former mayor "Is Bobby Ferguson still your guy?" And he said "Yes he's still my guy."
Soave said it was unusual for a sub-contractor to talk to them the way Ferguson was.
At some point, soave learned that Bobby wanted to become a partner with Inland. McCann said that they next time Inland got a contract, he wanted to partner or get 50-50.
"I told her you can tell him to go eff himself." says soave about the proposed partnership.
Soave sold his shares of Inland somewhere around 2005. Inland went on to do other contracts with Ferguson but Soave owned only 20% at that point.
Soave Enterprises made contributions to the Kilpatrick Civic Fund.
August 3rd 2004 check to the Kilpatrick Civic Fund for $75,000.
Another check from Soave Enterprises to KCF on November 6th 2006 for $50,000.
A third check on April 15th 2008 for $50,000 to KCF. So that's a total of $175,000 contributed by soave to KCF.
Soave says he owns three private planes including a turbo commander and a Falcon 25. The planes seat between 8 to 10 each.
In August 2003, there was a blackout in the midwest and Soave offered Kwame a private jet to pick him up. The plane couldn't get out so they couldn't get him. Soave thinks Kwame was in the Bahamas. Soave thinks Derrick Miller called for the plane to pick Kwame up. but the pilot couldn't get clearance to get out of the airport.
Somehow Kwame got back to Degtroit but then wanted to go back to Bahamas where his family still was. so Soave flew him out.
Soave thinks he provided Kwame with about 20 round trips on his private planes.
Bullotta hands chart prepared by Soave Enterprises. Looking at it on overhead. Departure date August 16th 2003 from Detroit to Nassau, Bahamas. Document says drop off 1 passenger. Approximate flight time 2.6 hours on the Falcon. Retail value cost of such a flight is $3,300 per hour.
Same day pilot flew back to Detroit. On August 21st 2003 there was a pick up.
Harold Gurewitz, Kwame defense lawyer, makes his voice heard for first time as he objects to line of questionning.
On August 21st 2003, 6 people picked up from Nassau in the Falcon.
There were flights from Detroit to Mackinaw, Hamptons, Boston, Houston, Greensboro, Cleveland and Norfolk, VA all involving Kwame Kilpatrick.
On August 2nd 2006 the plane went to Bermuda. 9 people were flown.
Additional flights to Miami, Tallahassee, Chicago, Nassau, West Palm Beach, Naples. total number of flight hours is 135.7 and $389,874 was retail cost of all the flights.
Soave said he knew about the flights and approved of most of them.
Soave said at one time he brought up to Kilpatrick that he should be billing some of them. soave says that Kwame told him he would look into it. Also taked to Christine Beatty about paying for it.
Soave said he was growing concerned. There were a few like the black out or when he went to one of Soave's projects in virginia wer understandable but some that were purely for the family. Soave said he wasn't on most of the trips, maybe 3 or 4 of them.
Soave said he let Kwame keeping using the jet "Because he's the mahyor. Hard to turn the mayor down. I didn't want to get on the wrong side of him."
"I didn't want him to hold another job up", says Soave. Says he had that on his mind.
Thinks he took Kwame twice to NYC on Christmas shopping trip.
Soave said he paid taxes on the flights out of pocket.
Soave said he went on NYC trips. Soave says he doesn't remember who else went but maybe Christine Beatty and a bodyguard. they had dinner and went shopping in NYC. Soave said he paid for a pair of shoes ($800), purse ($1,200) and $6,000 Cartier watch for Bernard. Soave says he doesn't know why he paid for the items.
12:49PM Bullotta directing to time frame of April 2007. soave was at his vacation home in Naples. Soave was exercising at the Ritz Carlton when he got a call from Kwame Kilpatrick. Kwame said he wanted to come dow, couldn't get any rooms and needed help to get some rooms. The trainer in the exercise room helped to get 2 rooms for the mayor. Soave gave him some money for it could have been $3,000 or $3,500, Soave a little confused about the amounts.
Kwame and family went to stay at the Ritz Carlton.
Looking at Ritz Carlton invoice for Kwame Kilpatrick, lists Soave Enterprises arrived April 7 2007 and departure April 12th. $2,000 paid in cash and then another cash credit for $4,000. Soave doesn't know who paid the second cash credit. The Ritz charges $1,499.00 a night. Kwame got 2 rooms.
Total bill was for more than $9,000. Soave said he paid partly with check and credit card.
In 2004, soave provided Kwame with tickets to the Pistons NBA finals. The seats were on the floor. "They were great seats," says Soave. Soave paid $10,000 for the 2 tickets.
At no point did Kwame offer to reimburse for flights, Ritz stay or items purchased in NYC.
12:56PM Bullotta says he is done with witness. Judge calls end of court session.
Defense will take up cross-examination of Soave tomorrow morning at 9AM.
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.