DETROIT – The corruption case just got tougher for Jeff Beasley, who is Kwame Kilpatrick's fraternity brother and former Detroit city treasurer.
Co-defendant Roy Dixon, an Atlanta businessman, has reached a deal with prosecutors.
"He pleaded guilty to giving bribes to trustees of the pension funds for the city of Detroit in return for favorable votes from them," said Dixon's attorney, Edward Wishnow.
Detroit's two pension systems, according to a federal indictment, invested $20 million with Dixon's company and lost it all. Dixon diverted much of the money for his personal use, including construction of a new home.
"He will be presumably testifying in the upcoming trial. That's up to them, of course, to decide whether to call him or not," said Wishnow. "It's the right thing to do."
Dixon likely will get a sentence reduction in exchange for his cooperation.
Beasley and Paul Stewart, who was a police and fire pension board trustee, are accused of taking bribes and kickbacks. The kickbacks include free trips, cash and massages.
The final defendant is Ronald Zajac, who was general counsel for the two pension systems.