Karl Kado of West Bloomfield was sentenced in 2010 to three years of probation as a result of his guilty plea to one count of making false statements on his tax returns. Kado was also ordered to pay restitution in the amount of $146,874.39, a fine of $30,000 and ordered to perform 20 hours of community service per week for a period of one year.
At the time of sentencing, Kado provided two checks totaling $146,874.39 for his tax due and owing, including interest, to the Internal Revenue Service. Kado owned Metro Services Organization, Inc., which held exclusive electrical and janitorial contracts at Cobo Hall. Kado's guilty plea was based on his and his company's failure to declare approximately $270,000 in cash income from 2002 and 2003. The cash was generated by Rachel's Corner, Kado's sundry store in Cobo Hall.
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One of the reasons that Kado did not declare the cash income was that he used it to make illegal payments to former Cobo Civic Center Director Efstathios Louis Pavledes and other persons in connection with his exclusive contracts at Cobo Hall.
Kado was facing of maximum sentence of up to 18 months in prison, however, due to his substantial assistance in the investigation and prosecution of others, the government requested the court to impose a sentence of not more than six months, along with a monetary fine.