FBI and IRS after Kwame

[unclefrank]

If he thinks that he can pull his bullshit with those people, he is in for a real education. Federal prison is the next stop for that POS.

[Danny]

Here's the source from WDIV News 4.

Kilpatrick Hearing Resumes Wednesday

Former Mayor Owes Detroit $1M In Restitution


POSTED: Monday, November 16, 2009
UPDATED: 8:05 pm EST November 17, 2009

DETROIT -- Former Detroit Mayor Kwame Kilpatrick took the stand for more than an hour in a Detroit court Tuesday for another restitution hearing.

Kilpatrick, who moved to South Lake, Texas, with his family in June, is seeking to have his monthly restitution payments reduced to $3,000 from $6,000.


Kilpatrick was sentenced to pay the city of Detroit $1 million in restitution from a text message scandal that forced him to resign and spend 90 days in jail.

He moved to Texas to take a sales position with the Covisant division of Compuware.

Tuesday’s hearing started at 1 p.m. at Wayne County Circuit Court in front of Judge David Groner.

Prosecutor Athina Siringas said Kilpatrick has "intentionally hidden assets from the court." Siringas said the hearing is meant to uncover the truth behind his ability to repay the city of Detroit the $1 million in restitution, and to hold him accountable for his lack of disclosure.

"The public has a right to know," Siringas said.

The former mayor's attorney, Michael Alan Schwartz, argued the prosecution is advancing documents with personal information that he does not know about. And that revealing such personal information like financial documents is detrimental to privacy rights of his client, who he believes is already facing unfair opposition because of the negative publicity.

Schwartz questioned why a hearing was even necessary.

Siringas cited state law pertaining to restitution hearings.

Groner denied the motion to stop the hearing and reminded the prosecution that any sensitive material on documents presented in court be redacted.



Kilpatrick took the stand at about 1:15 p.m.

There was tension between Siringas and Kilpatrick as she questioned him about bank accounts he had in 2008 and beyond.

Kilpatrick said he had a checking account with Chase Bank in 2008. When asked by Siringas if he had more than five, Kilpatrick said, “I don’t think so. I don’t know.”

“Lets just set some ground rules right up front,” Siringas said. She said she wants Kilpatrick to answer with a yes or no.

“That’s what I’m doing,” Kilpatrick replied.

Kilpatrick said he couldn’t be specific about all the funds he had because as mayor he dealt with multiple institutions.

“I had funds, funds within funds. I had a person directing those funds,” Kilpatrick said.

“Did your wife open up any accounts?” Siringas asked.

“I don’t know,” Kilpatrick said.

“You don’t discuss finances with your wife?” Siringas countered.

“I don’t deal with that. I give my wife money. I don’t know where that money goes,” Kilpatrick clarified.

When asked specifically about house finances he shared with his wife, Kilpatrick said, “I’m going to exercise my right to not talk to you about what I talk about with my wife.”

Schwartz accused Siringas of "badgering the witness," and not allowing Kilpatrick to answer.

Siringas asked if Kilpatrick understood that he "had a continuing obligation to disclose assets to the court."

"Yes," Kilpatrick answered.

Siringas then brought up the issue of a motorcycle.

“Back then did you have a Harley Davidson motorcycle?” Siringas asked Kilpatrick.

“Yes,” Kilpatrick answered.

“Did you disclose that to probation?” Siringas asked.

“No,” Kilapatrick told the court.

“You didn’t tell anyone about this asset until recently?” Siringas questioned Kilpatrick.

“That’s absolutely true,” Kilpatrick replied.

Schawartz objected to the relevance of Siringas’ question.

Siringas said that statement shows the mayor has not been being truthful in his disclosure.

When the issue of restitution payments came up, Siringas questioned Kilpatrick about if he understood his payment requirement and his method of delivering his payments.

Kilpatrick said he understood that he was to pay 30 percent of his income.

Kilpatrick said he didn’t understand what Siringas meant when she asked him how he physically made the payments.

“Did you tell other people to bring the money to the courthouse?” Siringas asked.

“I probably did that the first time and then it was known I had to pay by the 15th at that time,” Kilpatrick answered.

Siringas said she believed that Kilpatrick had made payments, but not with his own money.

“I don’t know who this person is, but someone is paying his restitution,” Siringas said.

“Who did you borrow this money from, sir,” Siringas asked Kilpatrick.

“I’m going to take the fifth,” Kilpatrick replied.

Referencing financial documents, Siringas said Kilpatrick and his family spent $755,000 over a year’s time.

”He’s spending money like a multimillionaire, telling this court he doesn't have access to pay,” Siringas said.

Schwartz criticized Siringas’ speeches and points, calling them “wholly inappropriate.”

Schwartz accused Siringas of using the media in the courtroom as a grand stand.

Groner reminded Siringas that he didn't want any sensitive material that was not relative to the case in public.

Kilpatrick was excused from the stand at 2:30 and Groner said the court would take a 10 minute break.

When the court reconvened, Thomas Nafso of the Wayne County Prosecutor’s Office took the stand.

He explained how he assembled the bank documents that were being presented in Kilpatrick’s case.

Nafso said the documents are spreadsheets that cover five different accounts and can watch inflows and outflows.

“I was told to look at the records and compile items that stuck out,” Nafso said.

Schwartz questioned Nafso, asking him if he was a certified public accountant and if he had ever testified before Tuesday.

Nafso answered no to both questions. He said he works part time for the prosecutor while finishing law school at the University of Detroit-Mercy.

Schwartz and Nofso conversed back and forth about specific accounts, coded by numbers because they are not public.

After Nafso stepped down, Schwartz said the financial information the prosecution was presenting was misleading.

“It’s not accurate and correct,” he said.

Schwartz said the prosecution has stated in the past that Kilpatrick had $1.16 million in his account.

“It’s a fictitious, an untrue figure,” Schwartz said. “From this testimony, the amount $1.16 million actually overstates the actually amount of money that was deposited.”

Groner said he didn’t agree with the prosecution’s number either.

Addressing Siringas, Groner said, she made misleading statements in the previous hearing in October.

“I think that was a misstatement of the facts. That was not an accurate state of the facts,” Groner said. “Your totals are misleading.”

Next to testify was Daniel Follis, general counsel for Compuware Corporation.

Siringas asked Follis if he drafted loan papers for Peter Karmanos, the owner of Compuware.

“He asked me in my capacity as an attorney, not in my capacity as an employee of Compuware,” Follis said.

Kilpatrick testified for more than three hours at a previous hearing on Oct. 20. He said he he received a $240,000 loan from Detroit businessman Roger Penske, Jim Nicholson, Dan Gilbert and Karmanos.

Follis testified that he received a call sometime in the month of October in 2008 from Karmanos.

“I received a call from Peter to come to his office. He said, ‘I need you to draft a loan agreement for me.’ Then we went into the details of it,” Follis said.

Follis said he did not have any discussions with the other lenders and that he produced a loan agreement, promissory notes and got the lenders to sign in person.

Siringas said on Aug. 10 the FBI and IRS went to Karmanos’ office and asked for documents pertaining to the loan.

Follis testified that when he asked Karmanos about the promissory note, that Karmanos said he had forgotten to have Kilpatrick sign it.

Follis said he called Kilpatrick and told him, “You need to execute these and return them to me, and that’s what happened.”

It was also revealed that John Rakolta, a partner with Walbridge Aldinger Co., was supposed to loan Kilpatrick $60,000 but backed out at the last minute.

Walbridge Aldinger is the company that built the Compuware Center.

The hearing was adjourned at about 4:45 p.m.

Outside the courtroom, Kilpatrick spoke to reporters.

“There’s nothing else I want to do more right now than pay the city of Detroit,” he said. “I believe that million dollars, right now, is incredibly important. I’ve been committed to this city since I was 5 years old… and I’m not going to end that commitment now.”



Wayne County Prosecutor Kym Worthy requested Kilpatrick submit all of his financial records in October, claiming Kilpatrick had not provided the information and had acted "unilaterally," never getting the court's permission to reduce the payments.

Kilpatrick’s lawyers complied with a court request for the records on Oct. 16 that lists incomes for Kilpatrick and family members.




Prosecutors also said at the hearing that Kilpatrick might have committed perjury when he filed a motion to reconsider restitution payments to the city.

At issue is an affidavit signed by Kilpatrick on March 24. Prosecutors have said Kilpatrick is not being truthful about his personal finances.

Siringas said there are records and new information that show statements Kilpatrick made under oath in documents relating to his restitution payments are "probably not true."

[Danny]

King Kwame's political and laywer career is over, but it least his living rich!

[Dhugger]

Any other kid in the city who steals a $10,000 car then violates probation would be thrown in jail. This fool continues to cost the city and state money with all these court costs ... what is the deal? KK has violated his probation. Do to him what any other person would face when they REPEATEDLY violate their probation.

Dragging the reputation of Detroit down once again.

[exdetroiter]

The Wayne County Prosecutor is the least of his troubles. I knew at least a year if not more ago, that the Feds were watching him. Kwame is in deep shit and its not about to get any better anytime soon. Plus the IRS, wow everywhere he turns all eyes are on him.

[Stosh]

Consider this telling fact. He pled the fifth amendment [[and not even corrrectly at that) on the stand regarding "loan" payments, to avoid self incrimination. So there's something to be incriminated against. I don't think that he has to worry about that, someone else will incriminate him, I'm sure.

[DetroitZack]

Lock up that scumbag for good.

[Maof]

i can't stomach reading or watching the news about him. just tell me when they lock him up and throw away the key

[gnome]

At the Kwame hearing today a FBI guy is on the stand and let it slip that there a Federal Grand Jury has been impaneled against The Felon.

[65memories]

The FBI agent, Robert Beeckman, really didn't let it slip. He was replying to a question asked by Michael Schwartz, Kwame's attorney, as to how he happened to be involved. That is when the information came out. Looks like more trouble ahead for Mr. Kilkpatrick,

[gnome]

65Mem, you are correct. I think it has been well known that a broad ranging investigation has been going on concerning corruption in City government, but an investigation is not a Grand Jury. Today was the first time I heard Grand Jury.

[softailrider]

i can't stomach reading or watching the news about him. just tell me when they lock him up and throw away the key

I wouldn't hold my breath waiting, he has some pretty good attornies working for him. He may get locked up, but, it'll take a while.

[Gannon]

Could this be the drain that finally empties out the coffers began by the lowly thug McNamara?!


This is getting better by the day, thanks for the clarification, Gnome.

[Bobl]

"A grand jury can indict a ham sandwich."
I think the most interesting part of this will be learning who turns state evidence first. There are so many involved in pay to play, going back to the McNamara clique...which adopted the Kilpatrick clan.
It's going to take time, folks. It will be difficult to wait, won't it?

[leland_palmer]

Does anyone remember Kevin Dietz spotted people installing an expensive home entertainmet system at KK's new pad? Now that we know how far the Government is up the fromer mayor's A@@, it would be hilarious to find out that it was actually the FBI doing the install as cover for a surveillance operation.

[Zacha341]

Hah! Living rich is one thing. Being rich is another. Finite funds eventually run out... ask the lottery winners..... Sure, he flexes when in the D, and his shoulders may be broad but Texas is Texas and he will not being running things fully down there... I am sure they like to have him out of their midst! LOL!

King Kwame's political and laywer career is over, but it least his living rich!

[MichMatters]

I fear that we've got years more of this drama, and Kilpatrick is only the tip and top of the iceberg. This is going to undo a lot of folks; probably some we'd have never even guessed.

[luckycar]

Maybe when this is all done,around the year 2020,the name McNamara will disappear from the airport.Everytime I go there I am reminded of KK,Jenny,Cox,Mama and "The Consultant,BK".Makes me sick that I may have voted for theses corrupt tools.

[Brittz]

Does anyone remember Kevin Dietz spotted people installing an expensive home entertainmet system at KK's new pad? Now that we know how far the Government is up the fromer mayor's A@@, it would be hilarious to find out that it was actually the FBI doing the install as cover for a surveillance operation.

YES YES I bet they go into the shower run the water full blast before speaking now. No, they will talk on the outside away from the house. Perhaps they should rent a hotel suite.

[bartock]

http://blog.nj.com/ledgerarchives/20...orruption.html

I've been loosely following the New Jersey scandals...when it comes, it is gonna come big time.

[exdetroiter]

65Mem, you are correct. I think it has been well known that a broad ranging investigation has been going on concerning corruption in City government, but an investigation is not a Grand Jury. Today was the first time I heard Grand Jury.

Grand Jury comes after the investigation. I can't imagination anyone other than slick Kwame whom did she this coming.

[softailrider]

YES YES I bet they go into the shower run the water full blast before speaking now. No, they will talk on the outside away from the house. Perhaps they should rent a hotel suite.

Did yu ever see that house in Texas? It's almost as big as a hotel. It would probablly make a great bed and breakfast.

[Danny]

" Oh you better get movin'in for there is a party at the Mangoonian. Bring out those hookers and hoes inside. Yeah Kwame he's your guy!"