Rataj says that's a different animal than going out in the field. Soave says that's your opinion. I thought he would be a good company to mentor and hopefully at the end it was going to be fruitful.
Rataj presses he didn't have any work experience to carry out provisions of 1368 for pipe rehabilitation. Ferguson says Rataj was the one who had the company to do the grunt work. Soave agrees that he was equipped to do that.
Rataj says Williams did not bring to the table what Ferguson could. Soave says he did not choose him.
Soave says Williams did have experience but not the equipment and the people.
10:07AM Soave see Gurewitz get up to cross-examine again so he shakes his head and goes "Oh-oh".
Gurewitz going back over meeting with Kwame and contract approval. Soave says he was told there was hold up in the mayor's office.
Soave says about mayor "maybe he had no control over anything. But I believed he did."
In April 2002, Gurewitz says that the mayor did not control the purchase department.
Bullotta objects. Judge sustains.
Gurewitz says he is done.
Judge thanks Soave. Soave says "Thank you folks" and he is gone.
10:11AM Next on the witness stand is Kathleen B. McCann. McCann was a VP at soave Enterprises. She ran contract 1368 and was the one who dealt directly with Bobby Ferguson and frequently complained about him to Soave. US Attorney Mark Chutkow questions McCann. We have a nice shot of McCann who looks composed but nervous in her blazer, green sweater and string of pearls. Bet she hoped never to have to be in the same room as Ferguson again. Sidebar is called. McCann waits patiently for questioning to begin. McCann says she currently works as CEO for United Road Services Inc. She says they move cars throughout the nation. Revenues of $300 million with a thousand employees. Joined United Road Services in January 2011. Before that she was a SVP with Soave Enterprises. Responsible there for beer distribution and was on the Board of Directors. Was responsible atone point for car dealerships and industrial services, including Inland Waters and MPS.
McCann says she was a member of 5, including Mike Piesco, Mike Hollaback and Yale Levin. Worked with Soave Enterprises with 21 years. Before that was with Coopers and Lybrand as a CPA. McCann says that Inland Waters submitted bid for 1368 in 2001. McCann was executive liaison for Soave to Inland Waters. Witness says that there were 2 initial bids and Inland was low bidder on both. She was not typically responsible for putting together bids. Denis Ozust was primarily responsible for putting together bids. He was SVP at Inland. Witness says Insitu Form was a nationally known company that they had done work with for many years that they bid with. also bid with CJ Williams. Kathleen Levy at the time director DWSD put forward recommendation for contract approval. "Then it got stuck" says McCann. McCann says at time went on there was more urgency and they would ask when the contract would come. She says they had a lot of employees depending on revenue stream, equipment that had been invested in and employees would have been laid off without the contract. McCann says Inland chose Williams to be primary sub-contractor and there was a lot of excitement. He didn't have a lot of practical experience but he had been CEO of DWSD. There was a lot of potential for something of national scope. McCann says clearly someone who has skills in the public sector could be successful in private. They had not doubt he could be a successful leader. McCann says they trusted him and his judgment. McCann says they used Insitu Form for portion of contract involving specialized lining. McCann says that they knew eventually they would evolve operations so that the minority company established would become capable of doing the work. The expectation was that Williams would build up company, Inland would help him build crews and over time a company would be established to do it all. McCann says once contract got stuck it became clear there was a reason why. McCann says Soave met with the former mayor and was instructed to use Ferguson. McCann says it was envisioned that Williams would establish business in Detroit. McCann says the opportunity was significant, Williams had a great resume and had established credibility with his name. There were lots of contracts that required minority content. Would have been in a position to take advantage of these opportunities.
McCann says Williams was disappointed but they made a payment to him to ease the pain. McCann says they had continuing business with Williams. Soave was an investor in MPS Group, a minority business Enterprise. GM had come to them to invest and help mentor this company in the industrial space. Williams became an owner and is now CEO if MPS. Controlling owner with 52%. Before automotive meltdown, MPS made $55 million (up from an initial $6 million) according to witness. McCann says revenues now are more like $40 million.
10:35AM Judge says this is a good point to take a 20 minute break.
10:41AM For someone who was desperate to be done with testifying, Tony Soave isn't rushing out of the courthouse building. He is sitting up front in the courtroom between his 2 lawyers listening to the testimony of his former employee Kathleen McCann.
Jurors seemed to love Soave. When Judge Edmunds told him he was done, he replied "You sure?" to laughter from the jurors. He nodded in acknowledgement to the jury as he got off the stand and several nodded back in return.
10:55AM Best part of the day bar none is the first floor snack shop during break. Ferguson's defense lawyer Rataj was holding court with a bunch of reporters expressing his displeasure at williams being painted as a viable contractor. "He had no equipment and no employees!" bellowed Rataj.
But better than that is Rataj telling us how he gets his agression out every morning by wrestling with his 70 pound bulldog. Awesome visual.
10:58AM Chutkow continues with McCann.
McCann says she started to have concerns with hold up in spring of 2002 within months of contract decision being made. McCann said she was assigned executives for industrial services portfolio for a few years. Doesn't remember any other contract being held up. Recalls 1368 being held up by the mayor's office.
Susan Van Dusen, lawyer for Fergusonj, objects about hearsay when Chutkow asks what happened in mayor's meeting with Soave. Sidebar disband.
McCann says "essential message was Williams was out and Ferguson was in" from Soave meeting with Mayor.
McCann says folks at Inland said they were familiar with Ferguson Enterprises.
McCann says Williams was very disappointed about getting ousted.