A CTR, is a currency transaction report filled out on any transaction more than $10,000. Robinson filled one out on this transaction. Keeps track of any large dollar amounts that come through.
Made mainly in $100 increments, about 98% of payments made by Kwame, the rest in $50 bills.
Exhibit shows a cash deposit for $9,000. This transaction was for the purchase of a cashier's checks.
Exhibit 4A-11- a cash in deposit for a cashier's check. The amount was for $15,000.
Exhibit 15-2- a document to keep track of the bank's transactions.
10:00AM Jerome Robinson, second witness, sworn in.
9:59AM Next witness is called Jerome Robinson.
9:59AM Ron Sauer steps down
9:59AM Gerald Evelyn, lawyer for Bobby Ferguson redirects
9:56AM Jim Thomas redirects. Prior to becoming mayor, Kwame's house payments were $400. Thomas says they could have been accumulating money in a variety of manners. Maybe a mattress or even big shoes as Kwame has big feet.
9:52AM Government redirects. Asks if money is sitting in a safe could it be later deposited in account? Yes says Sauer.
$1,200 dollars was in shoe at the Kilpatrick house. $25,000 Rolex watch gifted to Kwame was not included in calculations.
Sauer says when people generally withdraw cash; they typically use it to spend not put in another account. Sauer says Carlita's income could not account for the cash deposits. She made a total of $100,000 in the period between 2001-2008, no income after 2003.
Bullotta asks if bribes are taxable. Sauer says yes.
9:52AM No other defense questions
8:45AM First at the defendants' table this morning is Bernard Kilpatrick conservatively attired in a dark suit.
Next in is Victor Mercado who sits quietly next to his lawyers.
Last to arrive in the courtroom this morning is Kwame Kilpatrick who goes over to talk to longtime friend Bobby Ferguson before taking his seat.
First witness expected to testify this morning is Internal Revenue Service agent Ron Sauer.
9:36AM Jim Thomas questions the witness.
Allegations that Mr. Kilpatrick was receiving bribes when agent Ron Sauer came on. Rowen Shook was the other agent involved in the investigation. There were probably 4 to 6 other agents involved in the file.
There were other FBI agents involved in the case. Bob Beckmann was the primary case agent for the FBI.
Search warrants were executed in related cases. There was a wire tap on the case and the understanding there are agents monitoring wire taps. It's outside of the area of IRS expertise though. Cash activity seemed to pick up in late 2002 til the end of Kwame's administration. Did not look at cash deposits before 2001. Mrs. Kilpatrick was working up to 2001-2002. IRS not able to identify any of Carlita's funds going into the State Employee account. There was income for Carlita but did not identify where her money went in 2000 and 2002. Sauer does not believe Mrs. Kilpatrick was operating a cash business but concedes her money could have been cash in deposit back in 2000. There was evidence that there was cash accumulated in a shoe at the Kilpatrick residence.
Sauer reveals he does not have extensive training in tax but financial investigations. Sauer says gifts are something given you that are not taxed. But he is not an expert. Sauer's investigation attempted to rule out gifts. There were people not called to grand jury who might have given gifts. Sauer didn't get involved in case in 2006. Doesn't recall knowing about party where Kilpatrick received a gift. There was another party when he became mayor where he was gifted money. There was another party when he turned 35 that he received a watch and some gift money. If it's a gift of money given in a box it is possible that it is not taxable. Sauer stresses he is not an expert though. Thomas asks if Sauer correlated Bobby Ferguson's withdrawals to Mr. Kilpatrick's cash deposits. On a daily basis, Sauer says, there was not a direct correlation he could find.
9:02AM Jurors file in and take their seats. Judge Edmunds welcomes jurors. Jurors are given pictures of witnesses and pads to take notes of witness testimony.Government calls IRS agent Ronald Sauer- special agent with IRS investigation for 14 years. With Bank of Chicago as examiner prior to that. As special agent, he acts as a financial investigator. Investigates tax violations and money laundering.