Inland Waters Pollution Control got 1361 because they were working with Ferguson.
$20million outfalls contract, Lakeshore doesn't make the same mistake twice. Put Ferguson on their team. Had a meeting. Text from Ferguson to Miller "Tom is here saying the same thing you are saying and telling them no deal without me. he got smart, I am sitting here just listening."
Ferguson just sits there at the meeting as Hardiman tells sub-contractor no deal with Ferguson.
$10 million + no Ferguson= canceled
$5 million + no Ferguson= canceled
$20 million contract + Ferguson = awarded.
Lakeshore was awarded a contract. There was the change order on the contract that Ferguson wasn't even on and they ended up paying him 5% on that asbestos contract he wasn't a part of.
Rachmale said there were afraid of losing business. That's extortion and a signature move of Kilpatrick Inc.
1:10PM Talking about bogus invoices Johnson "Consultants" for $425,000. That was money Lakeshore had to be paid for nothing. $25,000 requested by Ferguson- that is scene of extortion crime right there. 2014 water mains contract. Ferguson wasn't on this contract, a $13 million contract that Lakeshore eventually got. Ferguson couldn't be on in name because he was also on the bid for same contract with DCI. West side was 2015. Ferguson told them to put Eric Simmons, his proxy on the contract.
There was major bid-rigging on that contract. No surprise, more extortion. Lakeshore had to pay $820,000 to Xcel Construction. Lakeshore didn't want to, they pushed back but they ultimately paid it.
Hardiman said they did it because Ferguson said he's get contracts stopped.
Bernard Parker III testified that when he was working with Ferguson he told him he's shut down jobs until he was paid .Look at asbestos contract, $1.7 million on 849, $820,000 for Xcel. Why would they pay that money if they weren't afraid. Hardiman said after Kwame left office Ferguson approached him to do business and Hardiman said "Let's see."
2014 was for east side and 2015 was for west. Ferguson was on 2 bids for 2014. At first, his teams were going to lose. so Victor Mercado went with a different method of calculation, the average cost method. Gears were change after bids were submitted. Afterwards, one of his teams won. Kilpatrick Inc wasn't happy with that so they took drastic measures. Kim Harris of Human Rights department said his boss came to his office and told him to pull certification for DLZ as Detroit-headquartered. He pushed back and said this is not right. Boss said, "Mayor wants it done." So he did it.
Decertified retroactively so Ferguson got his bid accepted. The cost was $1.6 million higher than decertified DLZ.
1:19PM Halfway through government closing arguments. 10 minute break.
On a mini break from the government's closing arguments. Most say this summarizing of 5 months of testimony is incredibly intense. Bullotta is clearly and systematically pulling out all the major elements of the trial. Defendants look somber. Kwame in particular looked fit to be tied when his wife Carlita was mentioned in connection with a payment of $37,500 from a non-profit for what the government alleges was no work.
Mike Rataj, Ferguson's lawyer, kept shaking his head at all mention of Ferguson extorting and bid rigging.
1:34PM Courtroom is buzzing. Bullotta makes his way to the stand. Judge Edmunds enters courtroom and calls counsel to sidebar.
Talking about Inland Waters, another Detroit-based company. We heard from Tony soave and VP Kathleen McCann. Got $50 million contract 1368 under mayor Archer but still hadn't been signed off by Kwame in 2002. soave found out that Kwame was holding on to the contract and Soave got concerned that Detroiters were going to lose their jobs.
Het met with Kilpatrick in April 2002 and asked what the hold up was. He told Soave he had the wrong sub-contractor. when Soave asked who the right one was, Kwame said Bobby Ferguson.
Soave testified that he thought that is he didn't kick out contractor Charlie Williams and take Ferguson the mayor wouldn't release the contract. Soave had former DWSD director Williams but Soave had to kick him off. McCann, clear as a bell, testified that Soave told her Williams out and Ferguson in. She described the relationship as a forced marriage arranged by the city.
It was a troubled marriage. soave testified that Ferguson wanted to be paid for work he didn't do. It got so bad that he went and asked Kwame if Ferguson was still his guy and he said yes, he was.
Sove testified in 25 years he never was told to take on a contractor. McCann felt the air was thick was threats. McCann said she took notes "because some day we would be telling this story."
How prophetic. Big sinkhole in sterling Heights emergency. Ferguson "We need to meet on how I move in. I got a great idea sir.." to Kwame amendment to the sinkhole was held up because Ferguson wasn't paid. Parker III testified that he met with Ferguson who said that the amendment wouldn't move until he got paid. Parker went straight to Kwame who said "you have to talk to Bobby," about why he wasn't signing amendment #4. Signed only after Ferguson was paid $350,000 for doing nothing. On to Walbridge Aldinger $75 million Baby Creek. Walbridge was neck and neck with a company called Walsh. Walbridge was worried. Parker III was working for Walbridge so he met with Derrick Miller who gave the "no deal without me" order. Had to put bobby on contract. Parker told Walbridge. Ron Hausmann of Walbridge and Parker and Ferguson met and Walbridge caved and wrote a handwritten contract. "Extortion is spelled out in this contract," says Bullotta.
They said if they got contract they'd give part of it to Ferguson.