Kilpatrick on Trial: Bobby Ferguson's lavish offices

Prosecution says Michigan taxpayers paid for Bobby Ferguson's office upgrades

Headline Goes Here Sketch by Jerry Lemenu

DETROIT - 8:50AM Kwame and Bernard Kilpatrick and their lawyers are first in the courtroom this morning. Father and son chat quietly at the table.

As Bobby Ferguson filters in with minutes to go before session is due to start, Kwame puts his head down on the table and clasps his hands in prayer. He stays that way for several minutes.

9:03AM Judge Nancy Edmunds enters the courtroom.

9:05AM Jurors come in.

9:06AM Mark Chutkow for government calls Christopher Boettcher as witness. President of Airtec. Been with the company for 26 years. In 2001, met Bobby Ferguson once. He came through to pick up supplies.

One of the salesmen had picked up blueprints for project with Bobby. Provided materials to Ferguson Enterprises on Wyoming.

Exhibit SG 26. Outside picture of Ferguson Enterprises. Looked to be a renovation of existing offices.

Boettcher stopped by the project once to adjust the lockset.

SG 34 A- invoice from Airtec to Ferguson Enterprises. Describes sliding commercial doors, lock set, hinges. Describes 16 or 17 doors.

SG 34 B- also an invoice for more doors, hardware, kick plates, hinges.

SG 34C- also an invoice for additional door closures, hinges.

SG 34D- also an invoice for laminated glass for door frames.

All these products are commercial. Not residential. commercial grade, much more expensive than residential items.

Witness provided invoices to government. Provided them from the  computer systems. "I pressed print and they came out."

Computer ties all accounting together. Everything is interconnected and prints off of that. It's the only way to process an order from start to finish in the company.

They keep paper records for 7 years. So no paper records for the invoice.

The government admits the exhibits.

Chutkow hands documents to the witness. It is from Detroit 3D- residential, training center description.

SG 17- paragraph 13: Header says "Airtec", it's an invoice 44343. Not produced by Airtec.

SG 34C put up to compare headers. The lower invoice is Airtec. Witness can tell by letter head and template. On actual invoice, it says to Bobby Ferguson. On the non-Airtec, customer is Detroit 3D.

On actual invoice, the lower one, customer job is "new office".

SG 17-8- invoice 43571. Witness has never seen this document. Again, though it says Airtec, witness claims it is not.

SG 34 A1- the actual invoice. Customer name is Ferguson Enterprises. On the non-invoice, it says Detroit 3D.

SG 17-11- invoice 43572- juxtaposed with SG 34B on the bottom- both appear to have the same invoice number. But on the actual Airtec invoice again says Bobby Ferguson. On top invoice, which had been submitted to state, Detroit 3D.

Invoice 44923- again duplicate invoices. Same different customer identifiers.

Witness does not recognize Detroit 3D. Does not remember ever doing business with them.

A check for $10,000 to Airtec on the overhead. From Detroit 3D to Airtec. Signed by Marilyn Johnson. Witness does not recall Marilyn Johnson.

Witness looking at picture of a house. Witness never did work at Meier St. Never did any dormitory housing style. Witness says maybe some door frames might have been wide enough for wheel chairs.

Looking at another submission to the state. Witness never authorized the payments sent to the state. Witness would not have given permission to submit invoices that are not actually Airtec Corp.

No further questions.

9:26AM Susan Van Dusen, lawyer for Bobby Ferguson, cross examines witness.

Van Dusen says your company did more work than reflected on those invoices. Did work reflected by 17 invoices. Witness visited by FBI on June 18th this year. As a result, generated a document with schedule of invoices.

Exhibit D SG 14 introduced into evidence- schedule of invoices. Shows 17 different invoices. Total is $19,053.06.

We saw 4 invoices here today. After that, 5 more were generated. Out of this amount, $10,000 paid by the Detroit 3D. Assumption that the balance was paid by an entity other than 3D. Witness doesn't have the records.

On 3 of invoices, James Wilson was the salesman. He has since passed away. Correct to assume salesman prepared the invoice? No says witness, administrative support staff. Info comes from the computer. Salesman puts info in the computer at the time he estimates the project.

So Van Dusen, the salesman is the source of this info. Can't even go to Mr. Wilson for his recollection of 2001 says Van Dusen. Yes says Witness.

SG 17 on the overhead. Witness pulls documents out of the folder. The description of work on invoices- highly technical- is exactly the same. That is the case on all of the invoices.

Witness visited Wyoming address twice. Once for this project and once for another project in 2005.

Saw that it was a large building -- about 8,000 squarer feet -- says Van Dusen. There would be many doors, many different areas that would call for type of supplies put in there. Witness can't remember exact quantity of doors provided. The 17 doors would go to many different areas of building. Building was under construction when he visited- witness couldn't know if there was a training area says Van Dusen.

Van Dusen says it was not quite a finished product. Witness says construction was almost complete. Witness saw many rooms, including conference rooms, no names on door.

9:42AM Chutkow redirects. Asks witness to look at invoice for 17 doors.

Witness says the doors were dispersed throughout the office building.

Looking again at SG 17- witness never saw that letter head in 26 years at company.

Chutkow asks if there would be any reason for Mr. Wilson to falsify invoice.

Van Dusen objects. Judge sustain.

9:44AM Van Dusen redirects.

Witness says there were at least 17 different openings on invoice. Van Dusen says there would be at least 17 different areas in a building where door could be shut. Correct says witness.

9:45AM Chutkow for government calls Bob Murray to the stand. Witness works with Contract Design Group. President. Company located in Royal Oak. Interior contractor for commercial and residential. Joint contracts with Detroit Interiors.

Provide and install services. In 2001, did work for Ferguson Enterprises. Had been associated for many years with Bobby Ferguson. Ferguson was excavator on several projects in Detroit.

Ferguson liked the look of a certain office , White Construction, and wanted a similar look for his office. Witness's company did flooring, wall, furniture and some architectural design. Ferguson wanted to replicate.

Witness says Ferguson was renovating new office space. Ultimately, installed multiple products for him.

They met dozens of times. Ferguson happy with witness's plans.

SG 26 on overhead- the exterior of Ferguson Enterprises. Witness thinks location is Military. The picture is actually of Wyoming address. Witness says this is not office location where renovation occurred. Initially went to this business, witness thinks it was his father's business.

Witness says he first went to that address to get some input from Ferguson on parking spaces.

Witness eventually went to new offices. A little work was being done, electricians, plumbers just starting work. Ferguson didn't want to get too far ahead without foot print for lay out of offices.

Chutkow shows witness SG 24A. Witness flips through documents. He recognizes an estimate proposal given to Bobby Ferguson- dated June 13, 2001. From Contract Design Group.

Witness looks at SG 24B. Layout of new offices. Purpose of diagram: a space plan which identifies where the different functions of an office are.

Diagram is put on overhead. Witness points to area - LOBBY-on the diagram with an indicator pen. Witness company provided partition, furniture, insert carpet, wall covering, upholstered chairs, table.

Now on to CONFERENCE room. Marble, wall covering, credenza, wood conference room table, carpet insert, chairs all provided by witness. Ferguson asked for the materials.

Another room: hardwood floor, insert carpeting, marble, spiral metal staircase, credenza. Upper loft to the President's office. Witness provided components for staircase.

Witness looks at picture of President's office after installation- Exhibit SG 27. Has full wood detailed wall unit, desk, desk chair. There is a little loft area at top of spiral staircase: that area was going to be a little meeting area, midway through installment it became "chilling pad", place where friends could come hang out, bought a television screen.

Witness flips through more documents. It's an invoice for services to Ferguson enterprises.

Chutkow shows him SG 25B and asks if he recognizes it. Witness looks carefully, flips pages. Says yes I do. The front copy is an accounting of payments showing total payments received, breaks down by check number. Payments came to Contract Design Group from Bobby Ferguson.

Going back to SG 25 A, actual invoice for services. Total invoice for project- $71,500 which is consistent with proposal.. Of that, there was initial deposit of $37,000.

Exhibits admitted into evidence.

Witness looks at SG 24 C. Tells the jury it's a sub-contract agreement, and partial waiver of lien and sub-contractor guarantee. Witness describes scope of work as floor covering, furniture in June 2001. Additionally, marble molding, conference room, railings, foyer, President's office, installation of materials. Witness says this seems to be a scope prepared by contractor Bobby Ferguson, paraphrase of what came from Contract Design Group.

There was also vinyl composition tile, 12 X 12, in janitorial and service wall bases.

Chutkow shows witness SG 17. Exhibit on the overhead- submission to the state describing training center. Witness does not remember doing training center work for Detroit 3D. Or training center work for Bobby Ferguson.

On overhead SG 17-26. Description of scope of work: provide floor prep for installation of materials, provide work station partitions, provide seating in training area.

Doesn't talk about marble for foyer, Presidential office or spiral staircase.

Comparison of 2 subcontracts- one submitted to the state and the other from witness's partner- they have the same job number. And both total $71,500. Witness only did one project with Ferguson Enterprises totaling $71,500.

Witness not copied on submission to the state. Does not remember doing work for Detroit 3D. Does not remember doing any work on training area.

Chutkow asks if he authorized submission to the state on training center. No says Murray.

Chutkow asks if he remembers anything consistent with training center. No sir says Murray.

Anything consistent with dorm housing. No says witness.

Bathroom for seniors. Witness says there were handicap bathrooms.

Chutkow hands witness another set of documents.

Chutkow asks if witness ever did work in residential house? No sir. On Meier st. No sir.

Looks at SG 25 B2: it's a check. From Detroit 3D. witness not familiar with company. Doesn't remember working for them. Doesn't recognize the name Marilyn Johnson. Witness met Bobby Ferguson's wife but never got her name. Witness went by his home for some upgrade ideas. Wife in the backyard with kids and Ferguson introduced them. Only met her the one time.

Chutkow asks if he saw campaign signs at home. Witness says not at house but had seen them on work vehicles. They said "Kwame for Mayor." At the time, witness didn't know what Kwame was.

"I said what's a Kwame?" says Murray. Ferguson explained it was his friend who was running for mayor.

What did Ferguson tell witness about intentions on city business. Witness says that it's his life-long friend would be mayor, so that he could get rid of blighted homes and given that Bobby was in the excavation business, he was looking to get some of that work,. Wanted to get some of those homes for the sake of neighborhood and get someone in there that could help get him business from that.

10:26AM Van Dusen cross examines.

SG 25 B on the overhead. Invoice numbers and checks. Shows one check for $37,000 that is also attached dated June 1st 2001. That was first payment on the project. then another check for $24,000 in September. Payable to Contract Design Group from Ferguson Enterprises. Next check also from Ferguson Enterprises in the amount of $10,000. And lastly, a check for $7,898.48. So total job amount received was $78,898.48. Of that amount, $41,898.48 was paid by Ferguson Enterprises.

Van Dusen says when doing work in a building and there are 2 companies that occupy building, in your experience have you received from payment for each othe companies under same contract? Witness doesn't recall that.

Van Dusen says you would have no way of knowing that services provided were benefiting 3D? Witness says I would have no way of doing what goes on internally.

Looking at June 13th, 2001 estimate and proposal. Van Dusen asks if this is done before work starts. witness says this looks like it was done before.

Van Dusen points out floor covering, says that it encompasses many different areas, do you agree? Witness says yes.

Looking at Lobby and Reception areas. Van Dusen says that would service entire building? Correct says witness.

Looking at estimating department: 5 work stations to be installed there. Van Dusen says nothing different between work station and traning area?

Not unusual to install work stations. Yes says witness work stations tend to be different sizing- training rooms and presentation rooms are a different design.

Van Dusen says would this building be a perfect place to train. No idea says witness, the intent of our design was very specific for estimation.

Van Dusen says remember you said that things can change as they go along. Yes certainly they could change.

SG 24 B on the overhead: the open office plan. Date of preparation May 2nd, 2001. Prepared by a company called Space Care Inc., in Berkley. Not generated by Contract Design Group.

Van Dusen says are you aware that this plan as drawn out prior to job starting changed? Witness says no I wouldn't be aware there was a change.

A plan in 2001 doesn't have to be a representation of how the job ended up asks Van Dusen? Correct says witness.

Van Dusen says these plans are just for the estimates. Witness doesn't know if they carried through to completion.

Murray interviewed in 2010 with head of Detroit Interiors Leethel Neal by the feds.

Witness says he always found Bobby Ferguson professional but drove a hard bargain on prices. "Quote the same thing but just lower the price". Witness not left with impression that he liked to waste money. 

Looks at exhibit SG 24 C on the screen. Subcontract agreement on October 17 2000. At the bottom of the document, the second line says furnish and install furniture as outlined in letter of June 13th 2001. Van Dusen asks how this government exhibit can reference a 2001 document in a subcontract dated 2000.

All witness can say is that there is a fax stamp on top. without speculating can't say why it would be that way.

Van Dusen says on its face this government document is inconsistent. Yes says witness.

Van Dusen says you have no explanation for this inconsistency. Witness says I have no explanation why it would have multiple dates.

Judge Edmunds interrupts Van Dusen and says we should a break.

5 minute break: One the female jurors kept falling asleep. She nodded off every ten minutes. This is the same juror who has had problems staying awake on previous occasions. Judge Edmunds kept glancing over at her and finally called a break

11:16AM A Smiling Bernard passes a note to Bobby while they wait for court start up again.

11:17AM Judge Edmunds calls for a sidebar before jurors file back in. Wonder if she's telling them to step it up a bit to keep that juror from nodding off.

Bernard walks over to stand closer to Kwame and Bobby who are laughing together. Kwame, in a black jacket and grey pants, sways back and forth and gestures emphatically as he talks to Bobby, who is clad in all black.

The mystery at sidebar continues.

11:22AM Sidebar ends.

11:23 AM Susan Van Dusen for Bobby Ferguson continues her cross examination of Bob Murray of Contract Design Group.

Van Dusen puts up SG 17-26 on overhead. Also called a subcontract. Dated May 1st 2001. Looks at last lines talking about floor materials, work station partitions. Your company does that? Correct says Murray.

And seating for training area, your company provide that? Yes says witness.

Looks at SG 17-39- subcontract signed by Mr. Leethel Neal of Detroit Interiors and says Contract Design Group on top. Mr. Neal is President of Detroit Interiors. The contractor portion is signed by Marilyn Johnson of Detroit 3D.

Van Dusen says does that look like Mr. Neal's signature? Yes says witness.

Was this prepared by Mr. Neal asks Van Dusen? Ferguson says the witness.

Does Mr. Neal participate in the writing of this contract? Incorrect says witness. contract generated for record-keeping purposes.

Mr. Neal signed on behalf of his and the witness's company? Yes says witness.

"I don't know his intent" says Murray about Mr. Neal's signing of the document.

Floor plan on the overhead. Van Dusen asks after this plan was drawn up, in conjunction with estimate of May 2001, isn't it true that the big open space got filled in? No says the witness, it's not true.

Murray says it was a loading area- the mechanical located there for the building.

Van Dusen says isn't it true that you don't know what happened with that area? Murray says can you re-phrase, when I left it was a raw area, at that point I don't know what he did with it.

Isn't it true that the open office area was moved to that area asks Van Dusen? Not by me says Murray.

You couldn't tell us what happened in that space? Yes says witness.

11:35AM Chutkow redirects.

Highlights the raw construction area.

Chutkow says you never did work there? No says Murray.

So bills submitted to the state wouldn't relate to work there? No says witness.

Document on overhead. Date of document July 12 2001 on fax stamp. These are the documents that Van Dusen said had date inconsistencies. Chutkow asks if witness sees any inconsistencies on the document. Witness says there is an inconsistency with dating. But Chutkow says if you look at the fax dater does it look inconsistent. Witness says that the fax date is consistent with proposals made in July. Can't speak to why preamble doesn't mesh with the timeline.

Chutkow puts 2 documents up together on overhead. State's exhibit is the lower document. The upper document was in the witness's files. The top document's scope of work more accurately reflects work actually done.

What leads you to conclude that says Chutkow?

Murray says it defines many of the items that we performed in the suite. It reflects work specific to our proposal and that we performed.

So work in Presidential office, marble and staircase? Yes says Murray.

Murray says he thinks Ferguson prepared the other subcontract. Wording is different, has a totally different scope, has a letter signed by Marilyn Johnson, lists people we don't know and have never done business with, other vendors are attached to it.

11:44AM Van Dusen redirects.

Looking at SG 24C- subcontract dated October 17th 2000. And then the subcontract dated May 1st 2001.

Isn't it true that you have no idea why there are 2 subcontracts?

Judge congratulates Van Dusen for really only asking one question.

11:46AM. Chutkow calls Martin Jolly to the stand. Witness is sworn in.

Currently lives in Detroit. At one point lived at 2 addresses on Meyers St.

Exhibit SG 29 on the screen: a picture of property on Meyers. A duplex. Witness's mother lived there for 30 years. Lived in duplex on the left. Witness visited her every day.

Property on the right was sold. Eventually found out that Mr. Ferguson owned it.

For a while a woman and child lived in the property. Roof was leaking, ceiling was falling through. Jolly wanted to buy the property. There was overgrowth everywhere with weeds. Witness cut the grass for both sides. At one point, a brown skinned person driving a Cadillac came by. Told him the property wasn't being maintained.

Didn't see work men coming in and out? No says witness.

Senior Citizens? No says witness.

Young people? No says witness.

Witness purchased property for $50,000. Chutkow asks if he knows where proceeds went? No says witness.

After he purchased the home, he put new roof. Got special plumbing, new line for sewer, electrical work, siding and gutter.

That's a lot of work, in your estimation was it habitable before? No says witness.

Witness says main water would back up into the house. There had been some work in bedrooms. New ceilings there.

Duplex is 2 bedrooms.

Chutkow asks did it look like training center, dorm housing, modified bathrooms, ramp for wheelchair? No says witness.

Do you know who you bought the house from? Witness says from 3 dimensional. Never actually met the seller

11:58AM Susan Van Dusen cross examines.

You never went in before you bought it? No says witness.

You bought it for $50,000 in 2005? Sounds about right says witness.

Van Dusen says you didn't have someone come to you and ask to sell? You made the inquiry? Right says witness.

Van Dusen says seller never came to you. If you didn't pursue it did you? No says witness.

No redirect.

Witness steps down.

12:01PM IRS agent Ron Sauer recalled. Judge explains that government has asked for witnesses to come back for different chapters of trial.

Chutkow asks if Sauer has been here for testimony of 3D? I have says Sauer.

Sauer reads residential costs for $25,001.

Sauer looks at Merrill Lynch for purchase of property on Meyers for $24,313.24 in 2001.

July 29th, 2005 warranty deed for property. Purchase price is $50,000 by Martin and Angelina Jolly. There is no Marilyn Johnson on document but there is a Marilyn Ferguson.

Going back to Detroit 3D document. Authorized signatory is Marilyn Johnson.

Sauer believes that Marilyn Johnson and Ferguson are one and the same.

Exhibit SG 36A- $42,567.17 check to Detroit 3D July 29th 2005. Deposited to Ferguson Enterprises account at First Independence Bank.

Exhibit 36A- the check from Great Lakes of Michigan to Detroit 3D. Then shows a deposit slip into the Ferguson Enterprises account.

A cashed check out of the Ferguson account for the same amount of $42,567.17 to CASH. Used to purchase a cashier's check for that same amount.

Check was not delivered to the state of Michigan. Ultimately cashed at a Frontier's bank.

Cashier's check endorsed by Bobby Ferguson and Andy (???) Ferguson.

12:11PM Van Dusen redirects.

Sale of Meyers property occurred in July 2005.

Van Dusen says you know that the state terminated relationship with Detroit 3D in 2002? Yes says Sauer.

Sauer looks over document that says second installment of $250,000 will not be released.

Sauer recalls that Lisa Shoemaker testified that the state decided not to seek any funds from Detroit 3D.

Van Dusen says are you aware of anyone seeking return of funds from Detroit 3D? I'm not aware of any says Sauer.

So as of November 2002, Detroit 3D has its funds and owns this house on Meyers St. Correct says Sauer.

There were no restrictions that Detroit 3D couldn't sell the house? Correct says Sauer.

And there was no stipulation they had to send proceeds to Lansing? Not aware of any says Sauer.

"To personally take the funds out of a non-profit, not sure what his authority at the time." says Sauer.

Van Dusen says did he not have as President of 3D the ability and authority to do that, speaking as an IRS agent? Sauer says obviously he was able to do it. "I would say it's unusual for a non-profit to withdraw funds and give it to its President."

Van Dusen says so you can not tell us as a matter of law if he had the authority to do that? No says Sauer.

12:19PM Chutkow redirects.

Sauer says proceeds from house sale represent 100% profit as the original money came from the state.

Sauer says none of the money was repaid to the state according to Shoemaker's testimony.

Agent Sauer steps down.

Chutkow asks for SIDEBAR.

12:23PM IRS Agent Sauer comes back for another "chapter".

Sauer subpoenaed Merrill Lynch for money market accounts for Detroit 3D. Did obtain those records.

Exhibit SG 31 admitted. Underlying account records from Merril Lynch- 2 separate accounts.

Sauer summarized those records in a spreadsheet.

There were 2 money market accounts. When the $250,000 came from the state, it came into one account and then went to another for Detroit 3D.

October 5th, 2000. Money that came from the state- then went out. This was a new account that was opened sometime in the fall of 2000.

The initial funding is for Detroit 3D. The first transaction on the account was $100,000 wire transfer to U.N.I.T.E.

Sauer heard testimony on the Detroit Interiors payment of $37,000. On Sauer's spreadsheet, date of check July 5th, 2001. The check was cashed.

Sauer heard Airtec testimony on $10,000 payment. Also on the spreadsheet for August 6th 2001.

Bellcon Construction check for $2001.

B-Safe check for more than $4,0000.

$5,955 check to Deoren Mayhew.

Payments also made to a Carla Boynton. As well as to DTE energy. Also payments to an attorney from that same account.

$24,347 transferred to a new Merrill Lynch account- what was left from the initial $250,000 grant.

August 1st, 2002- Exhibit SG 32A- transfer of $24,347 to new account. Other transactions on this account, Board of Water Commissioners, state of Michigan, DTE Energy.

There were also additional payments to the county.

No further questions.

Jim Thomas walks over to Susan Van Dusen and confers with her.

Defense doesn't cross-examine witness.

12:35PM Judge says we are going to quit a little bit early today. Judge reminds jurors not to talk to anyone about the case.

Court in recess.


4 witnesses testified today about falsified invoices, a lavish office renovation and a profit made on the sale of a home purchased with state grant funds from contractor Bobby Ferguson's non-profit group Detroit 3 D.

Chris Boettcher, President of Airtec Corp, testified today that invoices submitted to the state presumably from Airtec were in fact not his company's. He also testified that he never did any work on Meyers St and that he never authorized the statements sent with Airtec's name to the State Budget Office

Next on the stand was Bob Murray, President of the Contract Design Group, a commercial and residential interior contracting company. Mr. Murray testified that in 2001 he did extensive work for Ferguson Enterprises which included hardwood floors, marble detailing, a spiral staircase and an upper loft in the President's office. Initially, the loft area was meant to be a meeting space but due to budget constraints, midway through the project it became a "chilling pad" complete with television screen. The total cost of the renovation was $71,500 with an initial deposit of $37,000.

Murray described meeting Bobby's wife and children in the backyard of their home and about seeing campaign signs that read "Kwame for Mayor" on work vehicles.

"What's a Kwame?" asked Murray. Ferguson explained that he was hoping his life-long friend Kwame Kilpatrick would become mayor so that he could get some business when Kwame got rid of Detroit's blighted homes.

A former resident of Meyers St, Martin Jolly, described to the court how the home next door was falling apart:  leaking roof, falling ceilings and weed overgrowth everywhere. He never met the owner of the property but said he recalled a brown skinned person driving a Cadillac come by once. Mr. Jolly ultimately bought the property in July 2005 for $50,000 from Detroit 3D.

Lastly, IRS agent Ron Sauer was called back to testify. Judge Nancy Edmunds explained to the jurors that because of the length of the trial, certain witnesses would be called back for different "chapters" of events. Agent Sauer testified that a check for $42,567.17 made out to Detroit 3D was deposited to the Ferguson Enterprises account at First Independence Bank.

The agent also described how when the $250,000 Arts and Cultural grant for Detroit 3 D came into one of 2 accounts at Merrill Lynch, the first transaction on the account was to wire transfer $100,000 to Carlita Kilpatrick's U.N.I.T.E.

Susan Van Dusen, one of Bobby Ferguson's defense lawyers, deftly cross-examined the witnesses. During her questioning of Murray, she pointed to date inconsistencies on government documents and explained that of the $71,500 bill from his company, Ferguson Enterprises paid $41,898.48. She also got Mr. Jolly to say on the stand that the seller never came looking for him and that it was he who pursued the sale of the home on Meyers St.

Van Dusen made a point of reminding Agent Sauer that as of November 2002, Detroit 3D had severed its ties with the SBO which had never sought to reclaim the grant of $250,000.

Van Dusen asked if, as President of Detroit 3D, did Bobby Ferguson not have the authority to sell the property on Meyers St.

Sauer answered that yes he was able to do it but "I would say it's unusual for a non-profit to withdraw funds and give them to its President."

But said Van Dusen you can't tell us it's illegal for him to do it. No responded Sauer.

Witness testimony continues tomorrow morning.


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.

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