DETROIT -

8:59AM Video turns on and it appears that the lawyers are in a sidebar with the judge. Hard to tell because only one of the monitors has turned on this morning. Hoping that this does not forebode technical difficulties in the courtroom this morning.

9:06AM Sidebar disbanded. Still don't know why we had such a long break with Friday and Monday off. No reason was officially given for the court recess.

9:07AM Jurors are seated. Say happy birthday to court reporter Suzanne.

9:08AM Jennifer Blackwell for government calls witness.

Mary Pugh. Pugh Capital Management in Seattle Washington. Worked there for 21 years. Asked to contribute in 2007 and 2008 to Kilpatrick Civic Fund. Has managed Detroit Police and Fire for over 15 years.

Exhibit 97 letter from August 20th 2007 from KCF asking for a contribution from Pugh Capital Management. Sent by fax.

Page discussing purposes of the KCF- to promote community activities and promote betterment of neighborhoods, educate Detroit residents to the importance of voting and support crime prevention.

Witness believed these to be purposes of KCF.

"No funds of Civic Fund donated to political campaign."

In 2007 donated $500. In 2008 donated $1500.

Exhibit 97A is the check.

Pugh Capital supports communities where they do business. Believed the funds would be used in civic activities forcused on kids and voters. Did not think they would be used for the mayor's personal purposes.

9:14AM Jim Thomas cross examines.

Never had contact with Kwame about donations.

How was letter sent to you? Assuming it was sent to us because we do business in Detroit.

Donation unsolicited? No contact by Police and Fire.

Do you have any specific knowledge how your money was spent? No.

Who interviewed you? Agent Ron Sauer.

How? By phone.

Was it Sauer who said that your check was used for personal purposes? He did not say that. Also spoke to Jennifer Blackwell says witness.

Witness says the question was if the checks were used for personal purposes was that what the donation was intended for.

Witness says they knew Civic Fun was a charitable organization.

Were you aware that 501c4 could be involved in political campaigns? No.

You don't know where money went? No.

You familiar with DIA? Orchestra Hall? Yes.