11:30AM Text from April 17th 2002 between Miller and Bernard.
Bernard: Last thing for today you have to call Lou and give ok for Karlo to deal with the electrical contract in June.
Miller says that in his opinion Kado was not great with the electrical contract. He always had lots of complaints from auto dealers and others who exhibited at Cobo about the rates. The Auto Dealers Association would complain about the rates. The auto dealers would threaten to go elsewhere- Rock Financial or Novi. They were upset with service from the elcetrical contract and did not like rates charged by Kado for power at Cobo.
Miller relayed these complaints to Kilpatrick. Told Miller to deal with them, keep the rates down and to look further into the problem. Miller says early on he did not make any recommendations about Kado to mayor. Mayor never expressed any desire to move Kado out because of the complaints.
Bernard, Kado's consultant, would say that Kado was one of his best clients. Miller says Bernard was aware of the auto dealer complaints about Kado. Bernard said to him that he would talk to Kado but that the auto dealers were possibly being over the top.
Miller says he talked to Kilpatrick about Kado in 2007. Talked about moving him out of Cobo and rebidding the contract. Corrects himself and says it was more like 2006.
Miller says Kilpatrick told him in 2007 to be careful with Kado that he heard he was talking to the feds and that he (Kado) might be wearing a wire. Miller says this conversation took place at city hall. Miller says they had already decided to rebid the contract.
Miller doesn't recall having conversation with Bernard about Kado wearing a wire.
Talking about Jones, Laing, Lasalle- the largest real estate firm in the world according to Miller. Says that the finance department decided that the city needed help to re-negotiate leases. These discussions came up in cabinet meetings. A front-runner for the job was Staubach, a company from Texas.
Mark Talley, a real estate agent Jones, Laing, Lasalle, and Tim Cook, a real estate broker in Detroit who Miller knew personally, were interested in the job. Cook was Miller's neighbor who worked on his mortgage. Talley and Cook approached Miller about the opportunity early on and said they were uniquely qualified to help the city. they were aware that Miller had a real estate license and were offering to split whatever commissions should come in three ways.
11:45AM At one point, Miller verbally consented to agreement with Talley and Cook. Miller set up meeting between Sean Werdlow of the city finance department and Jones, Laing, Lasalle.
Miller told Kilpatrick of his interest in Jones, Laing, Lasalle. Kilpatrick said he would look into the situation. Werdlow had been leaning towards Staubach. Miller did not offer mayor compensation to support him and Jones, Laing, Lasalle. Miller says he told the mayor "this could be good for us. Financially we could benefit from it." Miller says "we" means he and Kilpatrick.
Ultimately, Jones, Laing, Lasalle got the contract. Talley and Cook gave Miller cash payments. It was Cook who made the actual payments "multiple times", more than ten times. Any time, that JLL completed a transaction and Cook would receive a brokerage commission, he would call Miller to meet him to give him cash. miller says he shared half the amount he received with Kilpatrick. He would give it to him in cash, in person. This happened multiple places, mayor's office, barber room, outside of city hall. Occassionally he would tell Kilpatrick where the money was from.
"He would ask me where it was from and I would say JLL," says Miller.
Chutkow asks how mayor would react when he offered him the cash.
"He would take it," says Miller. Sometimes Miller says Kilpatrick would say "cool."
Sean Werdlow ultimately had responsibility over the contract but Miller says he never gave him cash.
"I didn't need to," says Miller.
Miller says Werdlow had no idea he was receiving money from JLL and that half of it to the mayor.
Miller says he first met with federal agents on this case in 2010. Says at first he didn't tell agents that he was splitting money with mayor because he didn't want Kilpatrick to get in trouble.
Miller says he pleaded guilty to violation of a federally funded program and tax evasion. Miller says it was receiving money for his influence in the city. Amount of his potential prison sentence is capped at 10 years but could get less than that for his co-operation in this case.
Miller says he is hoping for a reduction but that no one from the government has made any promises. Says he knows that it is Judge Edmunds decision as to what his sentence will be.
11:55AM Taking a 5 minute break.
12:05PM Judge Edmunds re-enters courtroom. We are back in session.
Now we are on to Bobby Ferguson. Miller says he first became acquainted with Ferguson in the mid-90s because he was a friend of Kwame's. Miller testifies that Ferguson played a pivotal role in Kilpatrick being elected mayor- financial, transportation, staff. Miller says that Ferguson and Kilpatrick continued to be very good friends. Miller says Ferguson lead one of the transition committees- Motor City Makeover.