Immersed in a case of widespread Detroit corruption and racketeering is a Gambling Addict, Emma Bell who failed to pay taxes on her Gambling winnings.
Interesting connection!
Longtime Kwame Kilpatrick fund-raiser Emma Bell pleads guilty to tax evasion
October 3, 2011
Emma Bell / Department of Justice
By Tresa Baldas
DETROIT FREE PRESS STAFF WRITER
In 2007, Bell received another $278,221 in checks from the Kilpatrick Civic Fund and the Kilpatrick inaugural and mayoral campaign committees, but didn't report that either, the charging document states. Additionally, she failed to report more than $63,000 in gambling winnings and $8,403 in wages she received that year, court records indicate. For those unreported earnings, she owes $114,713 in income taxes, court records show.
In the Kilpatrick racketeering case, in which Kilpatrick, his father and three others are charged with running a criminal enterprise to enrich themselves, Bell is identified in the indictment as the "fund-raiser" who gave more than $286,000 in cash kickbacks to Kilpatrick between 2003 and 2008.
The Free Press reported in 2009 that Bell continued to receive money from the Kilpatrick campaign fund, even while Kilpatrick was in jail.
Bell is the second person with close ties to Kilpatrick to agree to cooperate in the case against him. She joins Derrick Miller, longtime friend and former aide to Kilpatrick, who cut a deal with the government last month and has agreed to testify against his former boss.
Miller’s guilty plea provided a detailed look at how Kilpatrick and his codefendants operated a pay-to-play racket out of City Hall, including admissions that Kilpatrick directed him to steer millions of dollars of city business to one of Kilpatrick’s longtime pals and codefendant, Bobby Ferguson.
http://www.freep.com/article/20111003/NEWS01/111003027/Longtime-Kwame-Kilpatrick-fund-raiser-Emma-Bell-pleads-guilty-tax-evasion
In the Kilpatrick racketeering case, in which Kilpatrick, his father and three others are charged with running a criminal enterprise to enrich themselves, Bell is identified in the indictment as the "fund-raiser" who gave more than $286,000 in cash kickbacks to Kilpatrick between 2003 and 2008.
The Free Press reported in 2009 that Bell continued to receive money from the Kilpatrick campaign fund, even while Kilpatrick was in jail.
Bell is the second person with close ties to Kilpatrick to agree to cooperate in the case against him. She joins Derrick Miller, longtime friend and former aide to Kilpatrick, who cut a deal with the government last month and has agreed to testify against his former boss.
Miller’s guilty plea provided a detailed look at how Kilpatrick and his codefendants operated a pay-to-play racket out of City Hall, including admissions that Kilpatrick directed him to steer millions of dollars of city business to one of Kilpatrick’s longtime pals and codefendant, Bobby Ferguson.
http://www.freep.com/article/20111003/NEWS01/111003027/Longtime-Kwame-Kilpatrick-fund-raiser-Emma-Bell-pleads-guilty-tax-evasion
From: 4 years out of office, Detroit ex-Mayor Kilpatrick faces
trial on sweeping corruption charges
At least 10 people who have pleaded guilty in the investigation are on the
government’s witness list, including former Deputy Mayor Kandia Milton and
brother DeDan Milton, who was Kilpatrick’s executive assistant.
September 22, 2012
Trial depicts 2 sides of Kilpatrick
Corruption trial for four men begins after years of investigation
Assistant U.S. Attorney Mark Chutkow makes opening remarks Friday at the start of the corruption trial. (Illustration by Ray Stanczak / The Detroit News)
Detroit — Kwame Kilpatrick was a luxury-loving big shot who abused his power to pocket mountains of cash — or an honest public servant facing decades in prison only because of evidence based on the tainted words of a gambling addict and a number of corrupt former aides.After years of investigation and months of legal wrangling, Kilpatrick's public corruption trial kicked off Friday, with prosecutors and defense attorneys painting disparate pictures of four men facing up to 20 years in prison if convicted.
Prosecutors labeled Kilpatrick, friend and contractor Bobby Ferguson, his father, Bernard Kilpatrick, and former Detroit water boss Victor Mercado as a team that conspired to steer millions of dollars in contracts to Ferguson and clients of Bernard Kilpatrick.
Kwame Kilpatrick, assistant U.S. Attorney Mark Chutkow told the jury, went from a man who used only cash when he tapped his ATM account to a well-heeled politician who had access to more than $541,000 in cash that came from Ferguson, a contractor who Chutkow said got $60 million in city-related business because of the mayor — sometimes for doing no work at all.
The two men, Chutkow said, schemed to "cash in on the mayor's office. Together they abused the public trust."
Kilpatrick spent more than $61,000 on suits, the government alleges, and used more than $282,000 to pay off his credit card bills in addition to making cash deposits that totaled more than $200,000.
"As mayor, Kwame Kilpatrick no longer lived like the regular citizens he governed," Chutkow said.
Defense attorneys called Kilpatrick a good mayor working for city residents, his father a valued consultant who knew how the city worked and Ferguson an up-by-the-bootstraps construction executive who happened to know the mayor. And Mercado, his attorney said, was a "hardworking engineer with dirt under his fingernails" who never took money besides his salary.
"They have a lot of quantity in this case but they don't have a lot of quality," said Gerald Evelyn, an attorney for Ferguson.
A jury of nine women and three men is hearing the case, which is expected to last at least four months. The trial resumes Monday.
Few new details emerged Friday, except for additional names of witnesses, a videotape of Bernard Kilpatrick accepting cash and an allegation that Mercado hired a company to sweep his office for hidden listening devices.
It did include some of the most pointed text messages — previously disclosed — that prosecutors claim add legitimacy to their assertion that Kwame Kilpatrick and Ferguson were focused on turning government contracts into work for Ferguson and cash for Kilpatrick.
"Let's get us some money," Kilpatrick texted Ferguson. "It's my time to get paid," another text read between the men.
"They made themselves rich by taking public money for themselves and away from the city Kwame Kilpatrick took an oath to serve," Chutkow told jurors.
But defense attorneys indicated they will mount a vigorous defense for each man, all of whom face charges that include extortion, bribery, obstruction of justice and tax evasion.
"He did not take any bribes. He did not extort anyone," Thomas said of Kilpatrick. "He embraced the idea of good government. He embraced the idea of providing good services to the citizens of Detroit."
Unlike when Kilpatrick faced charges in state court, none of his immediate family attended Friday's court session.
Central to the allegations is Ferguson's firms — Chutkow said he needed two to handle all of the ill-gotten business — that benefited from the mayor's ability to control contracts. In turn, Ferguson gave Kilpatrick the cash that fueled his lifestyle, Chutkow said.
"Where did this money come from?" Chutkow asked jurors. As Chutkow talked, the name "Bobby Ferguson" appeared on a screen behind him.
"Not from his payroll check," he continued. "Not from a rich relative. Or savvy investments."
Evelyn told jurors that Ferguson's work stemmed from legal set-asides for minority contractors and that his competitors were jealous of his business acumen and access to the mayor. He noted that Ferguson's largest contract came when Dennis Archer was mayor.
As he did during jury selection, Thomas lashed out at investigators, saying they had targeted Kilpatrick early in his tenure as mayor and used many resources in its pursuit of charges. "The power of the government is amazing; it's awesome in the most terrible sense of the word."
He pointed to witnesses like Emma Bell, Kilpatrick's former chief fundraiser. Chutkow said Kilpatrick forced her to kick back more than $250,000 to the man she considered her own son.
Thomas called her a gambling addict who lost $300,000 at casinos before agreeing to testify against the mayor. Bell "was grabbing money with both hands just like Derrick Miller," Thomas said.
Miller, who was initially indicted along with the other four before agreeing to cooperate as part of a plea deal, has pleaded guilty to taking money from a developer. He also is a key witness who has said he gave Kilpatrick $5,000 in cash in a bathroom.
Thomas dismissed Miller's bathroom-handoff testimony as unbelievable. As for Mercado, his attorney claimed the Bronx native didn't like Ferguson, rarely dealt with him, and was mocked by Kilpatrick and Ferguson as a "slick man." Mercado is an ethical public servant, Martin Crandall said, who was so outside Kilpatrick's "circle of trust" that he couldn't have been a conspirator.
John Shea, who represents Bernard Kilpatrick, said his client earned every dollar he got.
"There is nothing illegal about having discussions about business associates who happen to be friends of people in the administration," Shea said.
Thomas said the former mayor was honest but involved in a difficult business.
"Politics is like making sausage. It's not pretty. It's messy," Thomas told jurors. "But once cooked, it tastes pretty good."
From The Detroit News: http://www.detroitnews.com/article/20120922/METRO/209220353#ixzz27Dv5lC7g
For rebuilding Detroit, Kwame Kilpatrick trial brings back bad memories
Kwame Kilpatrick, once lauded as the 'hip-hop mayor' of Detroit, is facing federal corruption charges. The trial, which started Friday, will loom large over a city trying to move beyond its past.
Former Detroit Mayor Kwame Kilpatrick walks to federal court on Sept. 6 in Detroit with attorney Jim Thomas.
David Coates/Detroit News/AP
Chicago
As Detroit struggles to fix its ongoing financial woes, blighted neighborhoods, and shrinking population, a divisive specter from its past has emerged: Kwame Kilpatrick.
Mr. Kilpatrick was Detroit’s mayor for six years before heading to prison in 2008 on a perjury charge. He is back as the principal target of a federal trial that charges him with 38 counts of racketeering conspiracy, extortion, bribery, fraud, false tax returns, and tax evasion.
Federal prosecutors essentially accuse Kilpatrick and three others of treating city hall like the central unit of an organized crime family: shaking down city contractors and nonprofit donors for bribes and wielding influence to reap millions of dollars in kickbacks. The charges also cover Kilpatrick’s time as a state representative from 1996 through 2001.
The trial “is certainly not helpful to the city” as it tries to rebuild its image, and the proceedings could make major headlines until January, says Patrick Henning, a law professor at Wayne State University in Detroit. While a conviction would help the city “put Kilpatrick behind it,” he says, a hung jury and a second trial “could occupy the city for another year or even two.”
An acquittal could even give Kilpatrick a second life in local politics.
“He’s a very likable person, that’s why he remains such a polarizing figure – a lot of people still like him,” Professor Henning says. “If he could run again [for mayor], I think he could win, largely because turnout is so low, someone with the devoted following that he has would still follow him.”
Kilpatrick maintains he is innocent. Opening statements in the trial started Friday.
The story of Kilpatrick and his alleged co-conspirators – his father Bernard, childhood friend Bobby Ferguson, and former Detroit water chief Victor Mercado – is seen by many as the story of Detroit itself, which has been long maligned for corrupt politics and mismanaged assets. Detroit's current mayor, David Bing, has made government accountability the prime focus of his administration and has gone further than his recent predecessors in restructuring how the city spends money and offers services.
When Kilpatrick was charged two years ago, Mayor Bing released a short statement saying his administration was “disappointed by continued revelations of the mistakes of the past,” and that it would “continue to work hard to restructure city government to a level of accountability, transparency and performance.”
Kilpatrick was once a rising star in the Democratic Party in Michigan. Dubbed the "hip-hop mayor,” he became the youngest person ever elected in the city at age 31. His charisma helped win over voters, even as he installed family and friends in key administrative positions at city hall.
His tenure came crashing down when he pleaded guilty to two felony charges of obstruction of justice in 2008 in an unrelated scandal and subsequently spent 14 months in prison for a probation violation.
In opening statements Friday, Assistant US Attorney Mark Chutkow told jurors Kilpatrick and his associates “made themselves rich by taking public money for themselves and away from the city.” He said Kilpatrick redirected city contracts or pressured city contractors working with the city’s water and sewage department to subcontract with a company run by Mr. Ferguson for work that was often not performed.
In other cases, prosecutors say contracts were rigged so Ferguson would be awarded the job. These contracts involved some of the biggest public work during Kilpatrick’s tenure, such as the demolition of Tiger Stadium and the partial demolition of the Book Cadillac Hotel.
Kilpatrick pocketed more than $540,000 as mayor “over and above his salary,” Mr. Chutkow said.
Kilpatrick defense attorney James Thomas tried to discredit some of the government’s key witnesses.
Mr. Thomas also described the prosecution’s strategy as a “scam” and said Kilpatrick was a victim of the “messy” business of local politics in Detroit.
“You’re going to learn about politics. Politics is like making sausage. You know it’s not pretty. It’s messy. But once it’s cooked, it tastes pretty good,” Thomas told jurors.
Due to the wealth of evidence and the challenge of connecting the dots, the government faces the hurdle of keeping jurors engaged for the length of the trial.
“The US is trying to say he was corrupt even before he was elected [as mayor], and that being elected was part of a plan,” says Henning. “They’re really putting on a case that shows a depth of corruption you don’t see very often.”
http://www.csmonitor.com/USA/Justice/2012/0921/For-rebuilding-Detroit-Kwame-Kilpatrick-trial-brings-back-bad-memories
Mr. Kilpatrick was Detroit’s mayor for six years before heading to prison in 2008 on a perjury charge. He is back as the principal target of a federal trial that charges him with 38 counts of racketeering conspiracy, extortion, bribery, fraud, false tax returns, and tax evasion.
Federal prosecutors essentially accuse Kilpatrick and three others of treating city hall like the central unit of an organized crime family: shaking down city contractors and nonprofit donors for bribes and wielding influence to reap millions of dollars in kickbacks. The charges also cover Kilpatrick’s time as a state representative from 1996 through 2001.
The trial “is certainly not helpful to the city” as it tries to rebuild its image, and the proceedings could make major headlines until January, says Patrick Henning, a law professor at Wayne State University in Detroit. While a conviction would help the city “put Kilpatrick behind it,” he says, a hung jury and a second trial “could occupy the city for another year or even two.”
An acquittal could even give Kilpatrick a second life in local politics.
“He’s a very likable person, that’s why he remains such a polarizing figure – a lot of people still like him,” Professor Henning says. “If he could run again [for mayor], I think he could win, largely because turnout is so low, someone with the devoted following that he has would still follow him.”
Kilpatrick maintains he is innocent. Opening statements in the trial started Friday.
The story of Kilpatrick and his alleged co-conspirators – his father Bernard, childhood friend Bobby Ferguson, and former Detroit water chief Victor Mercado – is seen by many as the story of Detroit itself, which has been long maligned for corrupt politics and mismanaged assets. Detroit's current mayor, David Bing, has made government accountability the prime focus of his administration and has gone further than his recent predecessors in restructuring how the city spends money and offers services.
When Kilpatrick was charged two years ago, Mayor Bing released a short statement saying his administration was “disappointed by continued revelations of the mistakes of the past,” and that it would “continue to work hard to restructure city government to a level of accountability, transparency and performance.”
Kilpatrick was once a rising star in the Democratic Party in Michigan. Dubbed the "hip-hop mayor,” he became the youngest person ever elected in the city at age 31. His charisma helped win over voters, even as he installed family and friends in key administrative positions at city hall.
His tenure came crashing down when he pleaded guilty to two felony charges of obstruction of justice in 2008 in an unrelated scandal and subsequently spent 14 months in prison for a probation violation.
In opening statements Friday, Assistant US Attorney Mark Chutkow told jurors Kilpatrick and his associates “made themselves rich by taking public money for themselves and away from the city.” He said Kilpatrick redirected city contracts or pressured city contractors working with the city’s water and sewage department to subcontract with a company run by Mr. Ferguson for work that was often not performed.
In other cases, prosecutors say contracts were rigged so Ferguson would be awarded the job. These contracts involved some of the biggest public work during Kilpatrick’s tenure, such as the demolition of Tiger Stadium and the partial demolition of the Book Cadillac Hotel.
Kilpatrick pocketed more than $540,000 as mayor “over and above his salary,” Mr. Chutkow said.
Kilpatrick defense attorney James Thomas tried to discredit some of the government’s key witnesses.
Mr. Thomas also described the prosecution’s strategy as a “scam” and said Kilpatrick was a victim of the “messy” business of local politics in Detroit.
“You’re going to learn about politics. Politics is like making sausage. You know it’s not pretty. It’s messy. But once it’s cooked, it tastes pretty good,” Thomas told jurors.
Due to the wealth of evidence and the challenge of connecting the dots, the government faces the hurdle of keeping jurors engaged for the length of the trial.
“The US is trying to say he was corrupt even before he was elected [as mayor], and that being elected was part of a plan,” says Henning. “They’re really putting on a case that shows a depth of corruption you don’t see very often.”
http://www.csmonitor.com/USA/Justice/2012/0921/For-rebuilding-Detroit-Kwame-Kilpatrick-trial-brings-back-bad-memories
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