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.
9:12AM Bit of a late start. We should start with Agent Carol Paszkevich- Criminal Investigations Unit of the EPA - instead we have a few corrections for the record from Mark Chutkow.
No cross of Agent Paszkevich.
Prosecutor Michael Bullotta calls Karl Kado to the stand, he is from Iraq. Came to the U.S. in 1973 to get his PhD in education, Saddam Hussein wasn't much into education so, Kado never returned to Iraq. Started with a store in the Milander Center and had concessions in Cobo Hall - formed a partnership with Ogden food services.
Bernard Kilpatrick came into Kados store at the Milander Center and they became friends. The City County Building has a sky-walk which connects Milander Center and City Hall.
Aurther Blackwell met Kado in Cobo Hall and suggested he support Kwame Kilpatick.
Soon after Kwame called Kado on the phone and asked for $10,000 in 2001. Derick Miller came to Cobo to collect the cash. Kado handed the cash over in a brown paper bag.
When asked why he gave the money to Kilpatrick, Kado explains The City of Detroit ran Cobo Hall. Lou Pavledes was the Director of Cobo who worked for Derick Miller who worked for the Mayor. As a sub-contractor he felt he needed to give the money to Kilpatrick to keep his business which brought in around $200,000 per month.
Kado had the concessions and a cleaning contract at Cobo.
Kado would call Dedan Milton to get access to Kilpatrick. Sometimes Kilpatrick would call Kado and say he needs money, $5,000 - $10,000 at a time. Kado would deliver the cash to Kilpatricks office in City Hall and at Kado's office in Cobo.
The director of Cobo Lou Pavledes could kick him out in two hours if he wanted to. He had seen it before; how fast people could get kick out. That was the fear that motivated him to make payment to Kilpatrick.
Kado got an electrical contract at Cobo for $10 to $11million and paid back 3% to the City. Union Contractor are used to set-up shows in Cobo. The Auto Show uses 700 electricians for set-up.
Kado paid $200,000 - $300,000 over two to three years to Bernard Kilpatrick because he was the mayors father. All Cash - $40 - $50 thousand at a time. Bernard would ask Kado for the money, Bullotta asked why pay? Again, he was at the mercy of the director of Cobo Hall - if they told him to hang himself, he would say "what time."
Kado paid $100,000 to Bernard Kilpatrcik in 2005 for Kwame's election but he told Bernard this is the last payment - he is tired of the situation and he is "out."
Kado also wrote checks for $10k to Next Vision because Emma Bell asked him to. When asked why he gave the money Kado said it is like "extortion."
Derick Miller asked Kado for $10,000 because he said he was going to Europe, "another extortion."
"I am like hostage, you know the hostages in Iran? I am like hostage in Cobo."
August 30, 2005 - Kado got a letter from Bullotta informing him of the Federal Investigation, Kado had a discussion with Bernard Kilpatrcik about the letter around after the meeting Bernard frisked Kado for wires. Bullotta had Kado demonstrate the "frisking" on him for the jury.
Bernard offered a 10 year extension of Cobo Contracts if Kado didn't talk with the government. He told him "no, he is out."
February 5, 2003 Pavledes sent a letter to Kado informing him he had the electrical contract with Cobo.
Kado agreed to wear a "wire" in meetings with Cobo Officials.
Good time for a 20 minute break.
10:51 AM The judge is set to make up time by going for 8 hours on Mondays and Fridays until the Christmas break 9am to 4:30 p.m.
10:49 - Back in session - 2008 Kado wore a recording devise in a meeting with Bernard Kilpatrick at Tom Oyster Bar and - at this time Kado had lost all his contracts with the City. Kado claims because he would not give anymore money to the Kilpatrick's.
Kado was owed money from the City, $1.6 million for his cleaning contract, plus $800,000 for the electrical contract. When Kado lost the contracts they had two hours to get out of Cobo - they lost equipment as well as the contracts.