On to the Kilpatrick Civic Fund, people in business thought they were helping a non-profit.
"We haven't used one penny, one penny of the Civic Fund in this campaign because it's not allowed by law," said Kwame in 2001 mayoral debate video.
Derrick Miller testified that they would lie about using that money because no one was going to check.
More lies were told to donors of the KCF, "no funds are donated to any political campaign." In reality, it was used to pay for polling companies. Political consultant Bob Berg was paid. all to the end of getting Kwame elected mayor.
Kwame told people it was used fro West side cubs. Heard from William Tandy about the great program. Get out the vote.
In 2000, it was used to pay for a Cadillac lease. Paid for yoga classes that even defense witness said was not appropriate. Went to spa retreats. Jim Thomas tried to suggest he went for mayoral conventions but there were no records of that. Went to the LaCosta spa with family in California and the Civic Fund bill was $8,600. That's almost the entire amount the Civic Fund gave to the West side Cubs.
Paid for his kids' preschool graduation parties for $5,000. Linda Bird, the school director said the kids were still there.
There was summer camp, golf clubs and an embroidered bag for $3,000. Also tried to use Civic Fund check to buy Manoogian Mansion furniture but Mary Fleming wouldn't take it.
As the Civic Fund was winding down, Ferguson put $75,000 in. Was he giving it to charity? Suggest he was sharing spoils to Kwame.
You heard from victims like Mary Pew who had no idea money was used for personal gain. That's where we come to mail fraud. When you use false pretenses, like telling donors you're not using money for political campaigns and use the US mail, that's mail fraud. Only difference with wire fraud is that it can be a fax between 2 different states. In this case, Michigan to Illinois.
12:50PM I said at the beginning that Kwame was using office for personal purposes. Look at his bank records. In 2000, at his account in Lansing there were no big deposits. something changes in 2002, cash starts pouring in. Cash deposits at the Chase Bank account. Look at those records, there is no spike at his birthday or Christmas. This is not salary which is direct deposited into his accounts.
Raises question where does it come from. Heard from Emma Bell, Karl Kado, miller and Jon Rutherford. Those people were not main source of cash.
No mystery why Kwame went out of his way for Ferguson contracts. That's because Ferguson was sharing spoils, profits of Kilpatrick Inc.
"The safe in the room in the closet were you hang coats. code is 101. $7,500"
Heard from Mahlon Clift who was a Kwame friend who said he took $90,000 in cash from Ferguson, flew to Chicago, put the money in his vacuum cleaner and then flew to Southlake, TX to give him half money in September 2008.
this was not a gift, these were the spoils of Kilpatrick Inc.
Emma Bell had a hard time testifying. Considered Kwame like a son. It was the hardest thing for Bell to admit that the boy she saw grow into a man , requested kickbacks from her commission. Thomas pressed her hard, and she said "there are 2 people in this room and God who know the truth."
Looking at check from August 6th 2003.
Text "Emma wants to stop in in 5 to 10 minutes max," from Dedan Milton on the same day. Bell went to see Kwame that same day to give him cash.
The kickback from Bell is under mail fraud because money was from letters send to donors who didn't know that Kwame was getting kickbacks.
Homeless shelter tycoon Jon Rutherford is on his way to federal prison. Kwame accepted money from him and all sorts of other payments. Kwame also did something else illegal- solicited cash $10,000 to buy suits in Dubai, $5,000 for Vegas trip. Kwame knew why Rutherford was happy to give him cash- he wanted a casino on the Riverfront and was willing to pay to make it happen. When a public official accepts cash like that, you know that person expects you to do something for them. That's bribery.
Heard judge talk about obstruction of justice. If you try to get someone to lie to federal grand jury, that's obstruction of justice. Ferguson was trying to secretly give $40,000 to Kilpatrick for Mayor and did that through different people, including the 3 sisters who testified. Ferguson tried to get them to lie. One sister testified that Ferguson showed up in her bedroom and told her to lie to federal investigators.
1:00PM The big money was in the DWSD. $88.3 million dollars that Ferguson got through extortion. Let's talk about Lakeshore Engineering which was a Detroit-0based, minority business that was up and coming in 2002. The only matter that really mattered to Kilpatrick Inc was green. Contract 1361, a $10 million, was won by Lakeshore fair and square. It was approved by City Council but before mayor signed off, Ferguson came requesting 25% to Tom Hardiman.
When Hardiman declined, Ferguson told him "It still has to go by the mayor's desk." Ferguson talked to his employer Avinash Rachmale and they decided with a lower offer. Ferguson said we'll see. Derrick Miller testified that DWSD head told him that Kwame had him holding the water contract.
Text "you haven't released that contract right" Ferguson texted Kwame. The contract was ultimately canceled. Lakeshore lost a $10 million contract. Another contract, 1387, was for $5 million. Hardiman in direct testimony said over and over "10 million. 5 million." as why they decided to pay Ferguson later.