Recall at the end of my cross of him, when I asked him to read a section of a transcript and he could not read words without inserting his additional words because he insisted that's how it happened. It was complete fear.
Kado also knew Bernard before Kwame was elected mayor. Also met Bernard back in the 90s. they became friends because Bernard went to his store all the time. Saw him so much that he gave him a line of credit at the store. Finally, he ultimately acknowledged that he was such a regular guy that he gave him a line of credit at the store that he paid off every week.
Kado had a food service contract at Cobo Hall and had that in the Archer administration. When Kwame was becoming mayor, there was an opportunity for cleaning contract and then there was the electrical contract. He had a hidden interest in that he was giving kickbacks to Lou Pavledes, head of Cobo. So he had a hidden interest in wanting Lou to stay.
It took awhile but he acknowledged that he asked Bernard to help him protect his interests in Cobo Hall.
He acknowledged that he asked Bernard to help with electrical contract. He confirmed under cross that his understanding with Bernard required him to pay Bernard for his services.
In addition, Miller testified that Kado waas one of Bernard's best clients. He used Bernard as point of contact with ADA complaints. There is no question that Bernard and Karl Kado had a client relationship and that Bernard provided real services in connection with that.
There are also text messages. Take a look at the text messages between Bernard and Derrick Miller regarding Karl Kado and contracts.
Remember that there was a meeting between Kado and Bernard in February 2008 at Tom's Oyster Bar. They talked about all kinds of things. Talked about contracts that Kado claimed he was owed money on: cleaning and electrical contracts. Bernard says that it's just that they can't do legally and that he will meet with Amru.
"That one, that one, all what I am concerned with" says Kado in transcript of that February meeting referring to the electrical contract.
Kado testified that he paid Bernard monthly in 2002 and 2003 and made a final payment of $100,000 in June 2005. Nothing inconsistent with Kado paying him monthly. Let's remember that because Kado paid in cash , he didn't keep good records.
That may sound like a lot of money, the electrical contracts and cleaning contracts, generated $15 million alone. Bernard helped in getting those contracts.
Government mentioned the $100,000 like there was something wrong with it. First, Kado said he stopped monthly payments in 2003. Bernard tells Kado at one point that he was hiding under a rock. It was catch up payment.
Bernard was not dogging Kado for that money. Kado came forward with that money. Came forward to make things right with his consultant. nothing illegal with that.
There is no record in this testimony about invoices one way or another. So waht? Who needs an invoice ever month? Rutherford answered a question about monthly payment records by saying, "Why would I want to do that?"
Kado paid in cash because he was skimming cash. Jim Thomas got him to admit that. That was the basis of his ta=x fraud problems. Skimming cash to hide revenues for the IRS. That's why he was skimming cash.
He testified that Bernard demanded cash. Bottom line with Kado is there is no question that he asked for Bernard's services and that Kado paid for the services. Nothing extortionate here.
Second chapter with Kado has to do with 2008 activities. Kado was owed by his estimate $1.6 million by the city of Detroit including cleaning services in the DAH building. Government wired Kado and tried to trap Bernard into doing something illegal. They didn't get that.
Listening to recorded conversation. Tom's Oyster Bar, February 2008. Bernard adds up figures to see how much he should get. Bernard asks what he thinks it's fair. This is Karl Kado offering 10%.
More excerpt played. "I won't pay anything until I get my money," says Kado.
"I wouldn't expect it," says Bernard.
This is not Bernard demanding any particular amount. This is Kado acting as the agent of the government.
Later, he prompts Bernard again.
Nothing extortionate about this conversation.
Bernard is doing real work. even before this conversation, he is already doing work.
Listening to another recorded conversation. Bernard being told by Kwame that Kado could get only about $180,000 to $200,00 out of the total that he wants because there are things that the city can't pay for. Bernard says he told Kado there would be problems but that Kado wanted it.