DETROIT -

8:53AM Video turns on.
Kwame and Bernard Kilpatrick are the first defendants in the courtroom this morning, followed closely by a conservatively attired Bobby Ferguson.
U.S. Attorney Michael Bullotta and Kwame defense lawyer Jim Thomas are talking about a matter they want to take up with Judge Nancy Edmunds.

9:03AM Judge Edmunds enters the courtroom and all lawyers go straight to sidebar at the judge's bench. Audio switched off so that media can't hear.
While they're in sidebar, here's the fashion flash: Kwame is in a beige suit and dark tie while Bobby is in a dark sports coat, light striped tie and khakis. The guy is unbelievable, wearing leather to court one day and Brooks Brothers looking jackets the next. Bernard Kilpatrick is in a grey pinstriped suit, yellow shirt and pocket hankie. Victor Mercado is a typical dark suit.
9:08AM Sidebar disbands.

9:09AM Jurors sit.
Jennifer Blackwell for government. Government calls Radmilla Kest. Works at a Center for Yoga. Studio owned with husband and is in 4 locations including West Bloomfield, Ann Arbor and Birmingham.
In 2002 and 2003, center received request for yoga for the mayor. Sent someone to the mayor's office- an independent contractor. He provided a few dozen classes. The yoga center charged $225 per lesson.
Witness looks at documents.
KPS 11- invoices for lessons. Check for $1,500 to the Center for Yoga dated December 20th 2002. Signed by Christine Beatty and Kwame Kilpatrick. On Kilpatrick Civic Fund check. For services provided October through December.
Another check. December through February. For $1,500. Date 12/26/02
A third check for $900. September 2003.
KCF 12- Another check from Kwame Kilpatrick for $1,125 dated April 2003.

9:16AM Jim Thomas cross examines.
You never met him? No.
You did not instruct him? No.
Who provided services? Brian Grenadier.
Please look at KCF 11- did you know if Kwame Kilpatrick was a signatory on those checks? I don't know.
Thomas said check was negotiated and you received payment? We received payment.
Group rate? Between $100 and $150.
Witness says it was supposed to be for mayor and peers.
Do you do group lessons for non-profits? Yes.
What is the benefit for yoga? What does it do for corporation? Team building and morale of the company.
How does it help in Team Building? Witness says it's very physical and emotional and people come to unwind.
What does yoga do for the person? Creates relaxation, focus, "makes them kinder people."
Thomas says "we have some lawyers who should do that actually. I should sign up."
Thomas says no further questions.
Witness steps downs.
9:21AM Blackwell for government. Witness sworn in. Probably yoga boy. Kwame is laughing.
Brian Granader- a yoga teacher. Owns his own studio- Red Lotus Yoga since 2003. Yoga instructor since 2002. At one time instructor for Center for Yoga in 2001 and 2003.
Provided lessons for Center for Yoga and for Kwame Kilpatrick. First lesson was in late 2002. Took place at Cobo Hall. 5 to 8 people present including mayor. Understood people to be working with the mayor. Pretty sure they were bodyguards. Lessons were early at about 7 or 7:30AM.
Did lessons twice a week for a couple of months. First bunch of lessons at Cobo Hall, but some at Manoogian Mansion. Mayor was always present. Assumed the particpants were security from mayor's staff.
Witness paid through the Center for Yoga.
Thinks he taught mayor for 2 to 3 months.
When he was at his own center, got called 2 or 3 times to provide lessons for mayor. Paid by check by the mayor. Never heard of the Kilpatrick Civic Fund. No youths were present at classes.
9:26AM Thomas cross examines.
Worked with him early? Yes.
Was he devoted to the lessons? Yeah.
Any women come to the lessons? Yes.
Who were they? Assumed they were sercurity detail.
When you were you first contacted by the government for this matter? They took a statement it should be dated.
Thomas says I'm looking at it here. Can I show it to you? Yes.
Judge asks Thomas to show it to Blackwell first.
You were contacted by IRS on this? No.
Only people criminal investigators? Don't know.
Can you point them out? Yes. Witness points out IRS agent Sauer.
Thomas says Kwame paid you personally for latter lessons? Yes.
Why do corporations want to give yoga lessons? Witness says to improve health of employees and give them greater peace of mind in stressful situations.
Thomas jokes "don't break out in any moves now."
Thomas says none of the other defendants went to yoga lessons? No.
Granader steps done.
9:31AM Michael Bullotta recalls Special agent Ron Sauer.
Were you one of principal investigators? Yes.
What were you doing? Looking to see if any expense of Kilpatrick Civic fund benefited Kwame personally, mail fraud- looking to see if US mail service of FEDEX or UPS used to obtain something of value under false pretenses.
What about wire fraud? Also investigated wire fraud, faxes from Michigan to out of state to obtain something of value under false pretenses.
Bullotta asks about text messages on Civic Fund. Did you see any? Yes
Sauer has seen exhibit TXT 18.
Bullotta admits KCF 7A: dated January 23 and 24 2002. Between Kwame and Christine Beatty.
11:55PM Christine Beatty: "Hey did you get my last message?" (Had texted about whether he wanted to go ahead with ads)
Kwame reply: Yes yes on the ads from the Civic Fund. Go home!"
Did you compile all the checks? some of the ones from the Civic Fund.
KCF 40- checks made payable to New York University for $2,500. Made from the Kilpatrick Civic Fund November 21st 2001. Memo line says Diarra O. Kilpatrick- Kwame kilpatrick's sister.
IRS subpoenaed records fro NYU.
KCF 41- records from NYU. For the account of Diarra O. Kilpatrick for the Tisch School for the fall of 2001. Document reflected $2,500 payment by check for tuition.
KCF 38- check to Tennessee State University. From the Kilpatrick Civic Fund on August 13th 2001 for $1,000. Signed by Beatty and Kwame. For Jamilla O. Evans- Kwame's cousin.
IRS subpoenaed Tennessee State for records- KCF 39. Check payment entry in records on August 15th for Evans's tuition payments.
Bullotta shows KCF 13A. Text message between Beatty and Kilpatrick on February 14th 2002.
"Can we write Bone (nickname for sister Ayanna) a check for 2000 civic." from Christine
Kwame replies : "Yes"
Exhibit KCF 13AA- found a check from Civic fund for Ayanna. A check dated February 14th 2002 for $1,500. Signed by Beatty and Kwame.
Was there a follow up text message on February 19th 2002 showing KCF 13B? Who was it to? Sauer says it was from Ayanna Kilpatrick and I have to refresh my mory who it was to.
Sauer says it was to Christine Beatty. From Ayanna to Christine.
KCF 13B texts: "I paged you yesterday re transfer of the loot." from Ayanna to Christine.
A check from Civic Fund to A Step Ahead. the preschool that Kwame's kids attended. Memo says 2002 Graduation week for $5,000 dated 6/6/02.
KCF 31: 4 Kilpatrick Civic Fund checks to Mongo and Associates. April 20th 2004 for $25,000. signed by Beatty and Derrick Miller.
2. Check dated September 30th 2005 for $8,000 to Mongo and Associates. Memo line says consultant fee.
3. Dated February 10th 2008 for $6,000. Memo line says consultant.
4. Last check from Civic Fund to Mongo and Associates. Dated August 14th 2008 for $30,000 Signed by April Edgar and Kandia Milton. Edgar worked in mayor's office and became a signer on the account, Beatty's sister.
Bullotta shows text message from KCF 14: a text between Kwame and Beatty. Date October 24th 2002.
B: "did you just miss me?"
K: "Yes ma'am. I just made my reservation to Denver."
K: "Denver Nov 7th
B: "Is that 8:57AM. should I take the same flight."
K: "yes."
KCF 15- admitted over objection. October 28th 2002 exchangge between Beatty and Kwame.
K: "I really like that verse too. That shit sounds good..."
B: "Are you ready for the 7th.?"
K: "I'm SOOO ready...... Sauer reads with emphasis.
B: "She is making my reservation..."
K: "Are you ready for the 7th?"
B: "You can't even understand how ready...."
KCF 18- check from Civic fund to Sonnenalp Resort for $1,009.40 dated November 7th 2002. Signed only by Beatty.
KCF 19- photo of the resort. Located in Vail Colorado.
KCF 20- documents subpoenaed from resort. The room record for Sonnenalp for Kwame Kilpatrick lists address on Leslie St, Kwame's address prior to Manoogian Mansion. Arrival November 7th and leaves November 9th 2002. Rate is $420 a night. 2 adults- lists the second adult as "Coleman E. Young."
There were charges for spa treatments at resort. 2 on November 8th and then a cancellation charge for $25 on November 9th. 2 spa treatments on a Friday.
Included Sonnenalp deluxe manicure ($75), pedicure ($80) and a gentlemen's facial ($125). They were at 1pm Friday November 8th 2002.
KCF 17- copy calendar of November 6th to 10th 2002. Pages out of mayor's calendar. Looking at page 1. Dated Wednesday November 6th 2002. Various appointments listed.
November 7th 2002 on mayor's calendar: Hold for Mayor "Gone Fishing!" is the only entry.
KCF 16: Another text message exchange. Between Kwame and Beatty on November 9th 2002.
"Everything ok?"
B: "I guess."
B: "Come to ticket counter when you drop off..."
B: "they are saying $407 each..."
K: "...get civic Fund checks out of my bag."
B: text says everything ok now.
KCF 26 : check from Civic Fund to Joan Anderson Travel dated January 29th 2002 for $1,026.18.
KCF  27 : documents IRS received from Joan Anderson travel. Shows travel by Bernard Kilpatrick from Detroit to New Orleans.
Next is receipt showing Bobby Ferguson also going return to New Orleans on February 1st to February 5th 2002. Same flight.
KCF 21: Civic Fund check payable to Lacosta Resort and Spa in California. Dated June 28th 2006 for $8,605.03.
KCF 23: picture of the Lacosta resort in Carlsbad, CA.
IRS got the records from Lacosta: KCF 22. Room #804 Kwame Kilpatrick and Mrs. Kilpatrick. Lists Manoogian Mansion address. Arrived August 12th and left August 19th 2006
Shows check payment of more than $4,000- room charge daily is $625 a night plus taxes and other charges.
One LC massage for $145 and one deep tissue for $160. August 14th 2006 date of massages. Lists room #804.
KCF 24:  pages from Mayor's calendar in 2006. Spa charges were on a Monday, August 14th at 1pm Kwame gets his deep tissue.
Pedicure for Carlita, manicure and pedicure for Kwame also on August 14th at 2:45PM. 2 rooms paid for with that Civic Fund check. Kilpatricks stayed for 7 nights.
Arrived at LaCosta on August 12th 2006.
Looking at mayor's calendar. Day before check-in several different appointments on Friday February 11th 2006. Following dates, At bottom of page reads "Family Trip Do Not Schedule." The calendar says the same for following dates while family is at the resort.
Judge calls for break. Kwame manages to smile and yawns before leaving courtroom.

10:42AM Sidebar at the beginning of session today was Thomas objecting to the government's submission of text messages between Kwame and Christine Beatty.

10:45AM Judge re-enters courtroom.

10:46AM Sauer takes his seat at the stand.

Another check to Joan Anderson Travel- KCF 29- from Civic Fund dated August 14th 2002 for $1089.50. Signed by Beatty and Kwame.

Subpoenaed record from travel company: Christine Beatty and Maya and Lauren Beatty, daughters. Traveled from Detroit to Los Angeles on August 15th 2002. Check paid fro that travel.

10:48AM John Shea, Bernard's lawyer, cross examines.

Looking at government exhibits KCF 26 and 27- Joan Anderson Travel document.

Whose handwriting on document? Don't know. It was there when we received it.

Produced by travel document? Got it from Joan Anderson. Appears to be handwriting, looks to be ink.

Joan Anderson booked to travel related to Kilpatrick administration? Don't know what it is related to. Know that it was written from Civic Fund.

Circumstantially you think it correlates but best you can say it was used to buy flight coupons? Correct.

And again you don't know whose handwriting? Correct.

Witness says this check paid for Bernard and Bobby's tickets. The handwriting references check numbers.

You can tell flight coupons issued on January 22nd 2002? Hard to see.

Do you see the letters "SITI"? Yes I do.

Look below you'll see #s and date of issue Jan 22 02? Will take your word for it.

Witness finally sees it.

Appears that the check issued to Joan Anderson is on January 29th 2002 and date of travel was for February 1st through 5th 2002? Correct.

Did you ever verify if checks were used? I did not.

Did you verify other expenditures on those dates? I did not.

IRS agents pretty extensively combed through financial records? Correct.