Kwame Kilpatrick on trial: Day 60 of testimony
Local 4 is inside the courtroom for the federal corruption trial of former Detroit Mayor Kwame Kilpatrick, Kilpatrick's dad Bernard Kilpatrick and his childhood friend Bobby Ferguson. Each day we bring you information from inside federal court as it happens.
The prosecution is in the process of wrapping up its case in the Kwame Kilpatrick federal corruption trial. Just a matter of days now.
Prosecution could rest as early as tomorrow, but that's pushing it.
More likely Monday or Tuesday next week.
Then it will be the defense's turn and there is speculation that might last just mere weeks. So the end of this trial is definitely in sight.
Kwame is sitting over by Bernard. Their seating arrangement has displaced Bernard's lawyer John Shea who is sort of hovering waiting to take his seat at the defendants' table.
Yesterday we finished up the session with FBI agent Bob Beeckman testifying about Bernard's wire tapped conversation. Bernard was taped essentially talking about trying to get a contractor kicked off the Book Cadillac renovation project.
9:06AM Judge Nancy Edmunds enters the courtroom.
Counsel approaches the judge's bench.
9:11AM US Attorney Michael call Bullotta questions FBI agent Bob Beeckman.
Discussing the wiretapped call from 02/14/08 between Bernard And Shakib Deria.
"And uh...they kind arbitrarily threw them off. Not arbitrarily arbitrarily they threw them off so Jim Jenkins been bull s****** me for about .... You know I've been threatening him, I got a line on the guys that's doin this new facility at Waste Water...."
Bernard discussing the Synagro deal that Capital Waste wants a part of.
"And they tryin' to get him in you know. So I told him under no circumstances...."
"I'm trying to get someone to get something to do somethin to him. I don't know if George can take him off that thing."
Bernard still talking about getting Jenkins off the project and his Capital Waste guys on.
"But you know Betty still calling me cussing me out cause somebody else got that job now..."
Talking about his ex-wife who had environmental company that wanted onto the project.
9:17AM John Shea cross-examines Beeckman.
Shea saying that Capital Waste was a client of Bernard's that felt it wasn't getting consideration for being a Detroit-based business on the Book project where a company that was not Detroit-based was.
Beeckman says that John Francis of Capital Waste just wanted Jenkins Construction kicked off.
Beeckman says that Bernard's response is that they are from the suburbs.
Shea says that Bernard is taking up his client's cause and that's what they do. Beeckman somewhat lukewarmly concurs.
Shea says that the project was in fits and starts.
After developer was replaced Capital Waste did not get back on the job. Shea saying they really wanted back on and Bernard had been trying to discuss with Jim Jenkins for a matter of months. True says Beeckman.
And Jenkins even told Bernard he's address things with his clients. True says Beeckman.
Kwame looks like he's taking a snooze.
Gerard Grant Philips head of Human Right department of the city which handles the permits and certification. Shea saying that Bernard Parker III worked for HR dept. Either he or another witness says that the HR department investigated whether companies were Detroit headquartered. Beeckman agrees.
Shea referring to Kim Harris testimony that in 2006 there was an investigation into Jenkins construction. Beeckman says he remembers that question but doesn't remember the answer.
Shea tries to refresh Beeckman's recollection by handing him a transcript from November 2012 of Kim HJarris testimony. Beeckman scanning it.
Shea says so Harris investigating complaints against Jenkins in 2005 or 2006 on this exact site at the Book Cadillac. Bernard also references an issue he had with Jenkins on this same site.
Looking at transcript of telephone conversation. Bernard is mentioning his complaint in the recorded conversation at the Book Cadillac.
Shea says that Bobby Ferguson was a sub-contractor on that site for a number of years and was familiar with Jenkins. Shea says that Bernard explained the situation to Bobby.
"I want to uh I really would like to run him out of town, that basically he took these guys uh take and use my guys who was dumpin the, takin the trash..." says Bernard.
"Some white boys from out of town. Some white boys from the suburbs. and he took, uh, you know he took uh guy across the street from you, John and them off."
Bernard telling Bobby that his Capital Waste guys run off the project.
Shea talking about George Jackson, with the Detroit Economic Growth Corporation. His department was overseeing the Book Cadillac project.
So another appropriate person to complain to says Shea.
"That would be an appropriate person to complain to," says Beeckman.
It took Bobby a while to figure out what Bernard is talking about says Shea. Beeckman agrees.
Bobby is busy so he directs Bernard to Shakib Deria.
Deria calls Bernard back and provides his insights on Jenkins and the Book Cadillac site.
Deria confirms that Capital Waste was not brought back on the site because Americal, the "white boys from the suburns", was paying kickbacks to someone on the site.
So it had nothing to do with Capital Waste performance or price they were charging. According to Deria yes says Beeckman.
Shea says Shakib Deria discusses a course of action that does not involve going to Gerard Grant Phillips or George Jackson. Yes says Beeckman.
Beeckman agrees that there is no evidence that Bernard filed formal complaint with Gerard Grant Philips or George Jackson. Correct says Beeckman.
No evidence of permits being issued to Jenkins. Correct says Beeckman.
No evidence that Bernard went to Jenkins and said you better hire my guys or I'm going to report you to the city. Correct says Beeckman.
Shea says did Capital Waste ever get any additional work on the site asks Shea. No says Beeckman.
Shea saying that Book Cadillac was symbolic for Detroit. Bernard was pushing this project and did not want it slowed down. Beeckman agrees.
Shea says so whether mayor was weak at the time, the administration wanted to push the project forward.
So regardless of someone's last name, a complaint against a contractor on the project would not be well received. Beeckman says if there was a legitimate complaint it would be listened to.
Shea says no one suggested Bernard should call Kwame. Beeckman agrees.
No evidence that he did. Correct says Shea.
Shea says Bernard used "salty language" when talking about Jenkins but the actual process, making complaints to Jackson or Grant Phillips.
Beeckman says he threw some other things in there as well like impairing Jenkins ability to work on the Synagro deal.
Shea says there is nothing illegal about Bernard bad-mouthing a general contractor because he is not following rules.
Beeckman laughs. "I don't think that is going on here."
Beeckman agrees that Jenkins was angling to build Synagro facility.
Shea says he wanted Capital Waste to get what it deserved as a Detroit-based business.
Beeckman says that they wanted the job and Francis wanted Jenkins written up for violations.
Shea says if Jenkins was violating Detroit-based business rules, he should be written up. Beeckman agrees.
9:43AM Jim Thomas, Kwame's lawyers, cross examines.
Thomas asking about date of the recordings. Beeckman says February 14th 2008.
Thomas says that the text messaging scandal and the mayor was under siege at the time.
Thomas says that the Wayne County prosecutor was talking perjury charges against the mayor and it's been in the news every day since then. Beeckman agrees.
Thomas says as regards these wire tapped conversations, Kwame wasn't contacted on this. Beeckman agrees.
Thomas wants to make clear that Bernard never reached out to Kwame on the Book Cadillac project.
Thomas saying that Kwame pleaded guilty in September 2008 and went into jail in October 2008.
Thomas says regarding Synagro contract, we discussed City Council approval after everyone else had signed off. Beeckman agrees.
Bobby fully sleeping. Evelyn inadvertently wakes him up to ask him a question.
9:47AM Gerald Evelyn, Bobby's lawyer, cross examines.
Evelyn brings up transcript of conversation Bernard has with bobby about contacting Shakib Deria on the Book Cadillac project.
Evelyn says this is a job that Ferguson's company won as a result of a bid. The job being sub-contracting on Book Cadillac. Correct says Beeckman.
Evelyn says that Bobby mentions Marous brothers. Beeckman says they are contractors from Cleveland.
Evelyn says that Shakib should talk to the guys in charge of the project and find out what was going on. Bobby then directs Deria to call Bernard back.
Evelyn says that Bobby will get Deria call the Marous Brothers and ask them what happened. Beeckman agrees.
Evelyn asks for the tape to be played because Beeckman can't figure out from the transcript what Evelyn is asking him.
9:50AM Bobby clearly heard sying that they need to call Shakib Deria to do some investigating. That Deria should talk to his "main guy."
9:53AM Bullotta redirects.
Bernard never says he's going to file a complaint with HR agrees Beeckman.
Transcript of Bernard and Bobby conversation. Clearly thinking that Jackson can make trouble for Jackson and that maybe he might be able to run him off the project.
Bullotta says it was mentioned that Bernard said Capita Waste was arbitrarily taken off the site.
Bullotta says on the tape Bobby says he will get Deria to investigate.
Shakib says that Capital Waste was kicked off because "they wasn't picking up cans on time."
Beeckman says that if you recall that Rosendall was afraid of not making Bernard happy so that if Bernard asked to get Jenkins thrown off the Synagro deal, that might happen.
Beeckman says it's not a normal consultant function to get a contractor thrown off a project.
9:58AM Shea does more cross.
Shea asking if someone repeatedly breaks the rules, could they get kicked of the project. Beeckman says yes.
So if Bernard feels that is what Jenkins is doing, it's not out of the realm of possibility that they might get kicked off. "It'not out of the realm of possibility, no," says Beeckman.
Shea says that if Bernard thinks that his client is getting screwed by Jenkins, he could trumpet it to the world.
"Yes he could trumpet it to the world," says Beeckman.
Shea says there is no evidence that Bernard spoke with George Jackson. Yes says Beeckman.
There is no evidence Bernard spoke with Gerard Grant Philips. Beeckman pauses for a very long time. Then he agrees there is no evidence before backing up and saying there was mention of him talking to Grant Philips. But that was for something else says Shea.
Shea says that Deria talks about a superintendent on the Book Cadillac site. Says after he took kickbacks from Americal and then kicked off Capital Waste.
Beeckman agrees that this is what is said.
10:04AM Next witness is IRS agent Ron Sauer.
Bullotta asking about the $5,000 gift receipt to Florida A & M that CPA Gregory Terrell testified he applied towards a tax deduction on Kwame's 2007 tax returns.
Curious why government didn't bring Sauer after tax people yesterday and brought in Beeckman in between instead.
Looking at gift receipt from Florida A & M University Foundation in October 2007.
Bullotta says Terrell testified he never saw this check.
Bullotta says do you agree with Terrell if Civic Fund paid donation and not Kwame personally that he couldn't take a deduction on tax returns. Sauer says that's correct he couldn't take a deduction.
Asks if he heard Thomas suggest there were 2 donations- 1 from Kwame personally and 1 from Civic Fund. Sauer says their investigation didn't support this.
IRA subpoenaed records from Florida A & M 2001 through February 2009. Sauer says they received documents in response to the subpoena. They supplied the copy of the Civic Fund check from October 15th 2007 to Florida A & M University YAG (Young Alumni Giving.)
Sauer says they did not initially supply a gift receipt. Provided later. Dated October 23 2007.
Sauer says that he didn't have any evidence of Honorarium or speaking engagement payments.
Sauer says there was one donation from a golf outing in August 2007 for $100. Kwame Kilpatrick paid $100 in cash.
Aside from this, there were no other donations to Florida A & M.
Sauer says there were no 1099s from Florida & M for paying $5,000 to Kwame for speaking engagement.
Sauer says the IRS investigation began in 2006.
Bullotta asks if bribes are taxable. Yes says Sauer.
Sauer says he got any financial records he could obtain regarding Kwame.
Sauer says he looked at various bank accounts, New Union Credit Union, JP Morgan Chase bank accounts, credit card at First Independence Bank.
Sauer interviewed Joe Samples, Kwame's financial adviser.
Sauer says he was looking for unreported income and lifestyle beyond reported income.
Sauer says loans, gifts, inheritance, civil judgments are not taxable. Sauer says part of the investigation is if unreported income is from non-taxable source.
Sauer says they interviewed people, put them before grand jury and reviewed public records.
Bullotta asks if Carolyn Cheeks Kilpatrick went before grand jury. Sauer says she did as well as sisters and other relatives.
Sauer agrees they were looking for inheritances as well.
Sauer says he looked at records from 2002 through 2008. Indictment came down in 2010. Sauer agrees that these investigations last long and he looks at lots of documents and spread sheets.
Sauer looked at loan applications for home to see if any cash was on hand. Sauer didn't find any cash on loan applications.
Sauer says he looked in Carlita's income and found she had income in 2003 and 2002 but after 2003 had no reported income.
Sauer says he took part in interviews with Emma Bell and Marc Andre Cunningham.
Sauer says he looked at Kilpatrick Civic Fund to see if any of the expenses were personal for the benefit of Kwame and his family. Sauer says those expenses would be taxable income.
Sauer says there were a number of subpoenas, more than 10 less than 100, regarding the Kilpatrick Civic Fund.
Sauer says he did not find any large non taxable sources of cash, anything over $5,000. didn't identify any inheritance, loan or civil judgments.
Sauer says he conducted exhaustive review of Kwame's finance.
Sauer says he reviewed Kwame's account prior to becoming mayor and his activities changed.
Sauer says he saw cash deposits going into Kwame's bank account and cash expenditures for paying credit cards, loans and cashier's checks.
Sauer saying based on this, Kwame did not have a cash source of income.
Sauer says he accounted for Kwame's job as mayor of Detroit.
Looking at a summary chart of cash deposits and expenditures at financial institutions for Kwame from 2001 through 2008. Looking at bank accounts or cash transactions at financial institutions involving Kwame.
Highlighting a column: Cash payments on First Independence Bank Mastercard. 2001 is blank., In 2002, $12,500, $41,100 in 2003, $34,700 in 2004, $30,600 in 2005, $62,900 in 2006, $57,100 in 2007, $43,250 in 2008. Total cash paid in those years $282,150, that includes the $12,500 from 2002.
These payments are separate from what is being direct deposited into his JP Morgan Chase account from the city of Detroit.
Now looking at cash deposits in Kwame's JP Morgan Chase accounts- 2 accounts in just his name which was were most of the cash went and 1 joint with his wife. In 2002, when he opened his account, there was $7,200 cash deposit. In2003, it was $36,100. Checks were being drawn on that account. In 2004, it was $25,900. In 2005, $30,700, in 2006 it was $24,200, in 2007 it was $36,950 and in 2008 it was $33,300. Total cash deposits in that period $194,350.
10:55AM Break is over and straight to sidebar for the lawyers.
Bullota continues with IRS agent Ron Sauer.
Now looking at third row: cash purchases at First Independence Bank, cashier's checks bought with cash.
One check for $14,000 in 2005 and $20,546.46 in 2008. The total is $34,546.46.
Looking at cash deposits into Bank of America account for both Kwame and Carlita- in 2008 it was $8,833.
Cash loan payments at First Independence Bank- in 2008, $6,677.26. Total because that was the only one.
Cash deposit at Premier Bank in Tallahassee Florida towards purchase of house in 2007: in 2007, cash deposits total $3,000.
Going back to cash deposit and transaction chart summary for Kwame from yesterday: $531,401.72 between 2001 and 2008.
Looking at a chart representing fund to Carlita and cash withdrawals out of U.N.I.T.E account at Comerica. October 16th 2000 though April 18th 2002.
First column is date, second is whether it is check or cash. Sauer was demonstrating maximum amount of cash Carlita would have had access to.
Maximum of cash Carlita could access: $17,021.75.
The $531,401.72 does not include cash payments on suits or cash payment to Judy Smith, crisis manager.
Sauer says he looked at Kwame's banking activity in 2001 before he was mayor.
Cash deposit into NuUnion Credit Union Account in 2001 and early 2002. It was where then state rep Kwame would deposit his checks. Nothing for 2001 and 2002 in terms of cash deposits.
New summary chart for NuUnion deposit activity for Kwame from January 2001 through May 2002.
Looking at 1.73 for ATM adjustment. On January 4th, 2001, his payroll payment which was about $1,656, then more for similar amounts being deposited. No cash is being deposited.
Summary of cash withdrawals fro NuUnion account for Kwame from January 2001 through May 2002. See frequent cash withdrawals for moderate or small amounts at ATM, $20 here or $100 there. Largest is less than $500.
Banking activity is mostly salary deposit and small cash withdrawals but no cash deposits.
In 2002, more so in 2003, Sauer testifies that there was a change in banking activity. More cash deposits and few withdrawals from JP Morgan Chase account.
11:15AM Chart is the personal bank account and cash expenditure summary for Kwame in 2002 and 2008. The JP Morgan chase accounts that were Kwame's individually.
Both individual accounts at JP Morgan Chase. Sauer says that in 2002 all the mayoral checks were not deposited into JP Morgan Chase account some went into NuUnion account. But after 2003, all mayoral salary deposited into JP Morgan Chase accounts.
Sauer says he is comparing Kwame's net wages from city to outflows from JP Morgan Chase account and cash expenditures.
Total wages were $605,777.57 from 2002 through 2008. The next total is cash deposits into the 2 JP Morgan $188,000. Subtracted $15,054 which represents the cash withdrawals. The net cash deposits is $172,945.35. Other check deposits into accounts: $166,719.76. Transfers in: $139,343.70 from Chase credit card. Total deposits into 2 accounts: $1,099,841.03. Looking at what went out of account: $1,099,841.03.
Cash transactions a outside those 2 accounts: more than $346,000.
Net wages 2002-2008: $605,777.57
Expenditures in excess of wages: $840,962.33 in excess of Kwame's net wages. "Kwame Kilpatrick living beyond his means on a city of Detroit salary," says Sauer. Clearly.
On to the Kilpatrick Civic Fund, a tax exempt non-profit.
Summary of identified personal expenses for Kwame out of the Kilpatrick Civic Fund.
Lists several expenses including: Center for Yoga $900, La Costa Resort and Spa $8,605.33, Tom Deaton's Driving Ranges (golf) $3,050, $1,397 for Spy Ops, $1,150 for Four Seasons, Super Camp for $4,500 (Kwame and Jeff Beasley's children went to this camp), $300,000 for Impact Strategies (Judy Smith crisis manager), more Super Camp for $2,640, $1,368 for Northwest Airlines (flights for Carlita and boys), Gaylord Texan for $3750, Impact Strategies for $40,464.24, Hilton Southlake Townsquare for $5,180, Regality Management Services for $9,400, $1,050, $2,350 for prepayment of rental apartment after moving out of Manoogian, $15,000 cashier's check to pay University Moving for moving expenses.
Didn't include political expenses or trips for Kwame that they weren't sure were personal or not. Sauer said he was conservative in his estimates.
So breakdown for Kwame personal expenses paid by the Kilpatrick Civic Fund: In 2006: $11,655.03, in 2007: $1,397, 2007, in 2008: $138,143.75. Civic Fund was winding down in 2008
Total Kwame personal expenses identified out of Kilpatrick Civic Fund: $152,095.86.
All this is taxable income for Kwame.
Sauer determined that Kwame took a tax class with Professor Storrs in the fall of 1997 while at law school. Kwame got a C+ in that class. Couldn't interview professor because he is dead.
So Kwame should understand how taxes work.
11:40AM Jim Thomas to cross examine. Jurors dismissed while the lawyers take up an issue on exhibits.
11:45AM Lawyer sidebar disbands. Judge Edmunds calls for a further 5 minute break.
11:57AM Court back in session. Thomas starts his cross.
Looking at the Kilpatrick Civic Fund check for $5,000 to Florida A & M. Check signed by Christine Beatty and Derrick Miller.
Now looking at the gift receipt for Florida A & M sent to the Manoogian Mansion address in October 2007.
Sauer says the gift receipt was given to the tax preparer by Kwame. Sauer says he has no idea what happened to it in the house before it got to Terrell.
Thomas says it is possible that Kwame never saw the gift receipt before he sent it to Terrell. Sauer says he would have had to gather documents before sending them to Terrell.
Thomas says do you foreclose the possibility that Carlita opened the tax receipt. Thomas says that between November 2007 and April 2008, you don't know what happened to the document. Sauer says all he knows it was delivered to Gregory Terrell by Kwame.
"We got that," says Thomas.
Thomas says the gift receipt does not say Kilpatrick Civic Fund. "I could tell you why," says Sauer.
Thomas saying he wants Sauer's knowledge not what someone else told him.
Thomas says the gift receipt says that Kwame gave $5,000. Sauer says it is addressed to Kwame. Then revises and says it is a receipt to him.
Thomas says we have heard of people making mistakes in this trial. Thomas says if you and I make a mistake, we can address the possibility. Thomas says that it wasn't filed willfully or intentionally but on the mistaken presumption that Kwame made a donation.
"I can't agree with that," says Sauer.
It's either willful or a mistake do you agree with that. Yes says Sauer.
"We'll leave it to the jury to determine which it is," says Thomas.
Thomas bringing up cash payments and deposits summary. Thomas asks if its the first time he has done such a summary. Sauer says it is not.
Thomas says 2001 and 2002 were not charged years but you included them in your categorization. But not included for purposes of alleged criminality in this case. Thomas wants to know why the years are included. Sauer says chart is for overall case and not just tax purposes.
Thomas says cash transactions not included would affect validity of the chart. Thomas asks if he has explored any financial institution that Kwame had access to. Sauer says every financial institution that he could identify and subpoena.
Thomas says you served various subpoenas to many banks.
Thomas says so this set of bank accounts is not all banks accounts that Kwame had access to. Sauer says Carlita had another account at Comerica.
Thomas says so without Carlita's information that Kwame had access to your summary is not complete. Sauer says it is complete. Carlita only had income until 2003 and she was not a source of cash for Kwame.
"That is your conclusion," says Thomas.
Thomas says without Carlita is is not complete. Sauer stands firm. "This is complete," says Sauer.
"If you look at the top of the chart it says Kwame Kilpatrick. Not Kwame and Carlita Kilpatrick," says Sauer.
Sauer says he analyzed Carlita's account and she was not a source of cash for Kwame.
Thomas says at the beginning of the trial, Sauer attempted to make a correlation between payments on Kwame's credit cards and payments made by other people. Sauer doesn't remember.
Thomas brings up Emma Bell. Sauer doesn't remember specific questions about Emma Bell. "Well the jury will," says Thomas.
Sauer says he analyzed and there did not appear to be a "cash horde."
Sauer says he was aware that netween 1996 and 2000 both Kwame and Carlita were employed. Sauer says that Kwame made significantly less. Thomas asks but their joint income was significantly less? So they didn't have income to money Kwame made as mayor? Sauer says he didn't say that and he has to see tax returns.
Thomas asking about Kwame's house on Leslie St and that payments were only $400 a month. Sauer says he doesn't recall.
Sauer says that Kwame's ability to leave within his means on his mayoral salary was non-existent.
Thomas asking about whether Kwame lived within his means prior to becoming mayor. Sauer says that wasn't part of his investigation.
Thomas saying there could have been an accumulation of wealth prior to 2001. Sauer saying prior to 2001, he made frequent cash withdrawals and that someone with a cash horde would just go to a "shoe box" and take money out of there.
Thomas produces a document that is the defense's compilation of cash withdrawals. Sauer says they already have this and it's in evidence.
Sauer says that he can say it was frequent, small withdrawals.
Looking at chart of withdrawals from January 2001 to May 2002: $21,495,77 total withdrawals, $16,274.14 in 2001 and $5,221.63 in 2002.
Sauer says Carlita had Comerica account from at least 2000 to 2004.
Thomas says are you aware that she had another account from 1996 to 2000.
Thomas asks if he analyzed her Comerica from 1996 through 1999. Sauer says no.
Thomas says so how can you rule out that she could have accumulated funds. Sauers says that Carlita was making frequent, small withdrawals which is not something that someone with a cash horde does.
"That's your conclusion but does not rule out the possibility that it happened," says Thomas. Sauer agrees.
Thomas says are you suggesting that the only way that a person gets cash are bribes or cash deposits.
Thomas asking if Sauer is aware that Kwame received loans in 2008. Sauer says he is not aware of loans in 2008.
Sauer saying that the loans from the 4 Detroit business men was not in cash but were checks that were only deposited into Carlita's account in 2009.
Thomas then references another loan to Kilpatrick's kids.
Thomas asks if Sauer was aware of gifting to Kilpatrick, that is not taxable.
Sauer indicates Kilpatricks 30th Birthday party at the Majestic Theatre. Thomas talking about Athenaeum event for Marvel Cheeks for his 90th.
Thomas says that fund-raising could occur at these events.
Thomas says are you telling me that you or anyone on your behalf called A & M called yesterday. No says Sauer.
But you have the resources to do that. Yes says Sauer.
The Majestic theatre was not on your radar before we raised the issue with you. Sauer says today is the first I hear of the Majestic.
12:35PM Sauer says he is aware of a watch gifted to Kwame by his staff.
Thomas saying something about the Detroit Police Department giving Kwame cash gifts.
Thomas talking about Kwame's "Splash of Red" 35th birthday party and that there were literally hundreds of guests there.
Thomas says they will have testimony supporting this.
Thomas says you didn't investigate "Splash of Red" party. Sauer says he did not.
That there were literally hundreds of people at the Athenaeum. Sauer says he did not.
Thomas says that the investigation included the owners of the Athenaeum. Sauer believes they were part of the investigation.
Sauer says he has talked to some of Kwame's former staff.
Thomas asks if he ever asked staff about gifting to Kwame. Sauer seems he wasn't personally involved in staff interviews.
Thomas saying if 200 people came to the party and each gave $50 that would come to $100,000. Umm not sure the math is right on that.
"I'm not going to disagree with your math Mr. Thomas, just your facts," says Sauer. Think you might have to agent Sauer.
Thomas asking Sauer about one of Kwame's Chase accounts.
Thomas discussing June 9th 2006. Asks Sauer to look at series of checks.
Looking at a check from Clotilde Fowler for $36 to Kwame Kilpatrick on June 10th 2006. Memo line reads "Happy birthday."
Another check from James Brown for $25 to Kwame.
Another for $25 from an unknown source.
Another for $50 from Thomas Mathis. Another for $200 from Marjorie Bodford. Another for $100 and then another for $100 from a Nancy Carey.
One for $500 from Tetra Butler-Dudler. Again Happy Birthday.
Another for $500 from the Jacksons for Blessed birthday.
Two more $100 checks for including one from the Temple Faith Church.
Two more for $50.
One from Martell & Associates for $100 to Kwame. Sauer says this is from a business account. Thomas telling him to assume it's from Mr. Martell. Sauer says he can't assume that.
These checks are all in the June 9th 2006 time frame with Happy Birthday.
Mazin Shina wrote one for $1,000.
Then another for $200.
Thomas says so would this be substantiation that gifts were made. Sauer says these were checks not cash deposits.
Thomas says this is evidence of gifting during the administration.
Sauer says that these were checks deposited into the accounts.
Thomas says these are evidence of "an event."
Sauer says these are just checks that says "Happy Birthday."
Thomas says so in your investigation you were just looking for cash but were not looking at checks. No that's not true says Sauer.
Thomas says so if checks are being gifted isn't it logical to assume that cash is being gifted too. It's possible says Sauer.
Sauer says it depends on who is giving the gift and what the thought process was.
Thomas says is there anything improper about giving check gifts. Sauer says it's possible.
Thomas tells him he is speculating.
Thomas says is a gift a taxable income. It depends says Sauer. Depends on who the giver is and the circumstances.
Sauer says there was a loan application at First Independence Bank and an unsecured loan at First Independence Bank for the purchase of the home in Florida in 2007.
Sauer revises that the first one in 2002 was a credit card application.
Thomas says without disclosure of cash he would still qualifies for the loans. Thomas says he got the loan without any indication of cash. That's correct says Sauer.
12:59PM Judge Edmunds says let's stop here. Court resumes tomorrow morning at 9AM.
About the author
Alexandra Harland is a Princeton undergrad and has a masters degree in International affairs with Columbia. A Montreal native, she worked with the Daily Telegraph newspaper for a few years before transitioning to TV, when she worked at ABC News with Peter Jennings. Alexandra has also worked in newsrooms in both Detroit and Boston.