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Friend of Former Detroit Mayor Kwame Kilpatrick Charged with Money Laundering; New Indictment Alleges Kilpatrick Took $10,000 in Kickback
Friend of Former Detroit Mayor Kwame Kilpatrick Charged with Money Laundering; New Indictment Alleges Kilpatrick Took $10,000 in Kickback
Bobby Ferguson, right, walks with his attorney Gerald Evelyn after they leave Federal Court in Detroit on Sept. 13, 2010. / MANDI WRIGHT/Detroit Free Press
The charges are related to Ferguson's alleged attempts to conceal $1.7 million in extorted payments that he received for no-show work from a contractor.
Today's indictment also offered a new, stunning allegation that Kilpatrick pocketed a $10,000 kickback in a restroom.
According to the indictment, the money exchange happened during a meeting in the fall of 2007. Kilpatrick had asked Derrick Miller to try to get money from a restaurant developer who was seeking a loan from the city's pension funds for the Asian Village restaurant development, the indictment alleged.
Miller ended up getting $10,000 from the restaurant developer, and handed the money over to Kilpatrick in a restroom in the developer's restaurant, the document charges.
The superseding indictment also details new allegations of criminal activity involving Kilpatrick and his co-defendants in a pending federal racketeering case. The fresh allegations are meant to bolster the government's argument that Kilpatrick and his co-defendants, including his father and Ferguson, ran a criminal enterprise to enrich themselves.
The government document cites, for instance, times in which Kilpatrick, during his first term as mayor, directed aide Miller to meet with contractor Karl Cado to pick up between $5,000 and $10,000 at a time, then deliver Kilpatrick the money.
Ferguson, Kilpatrick and three others already face a number of felony charges in a racketeering case pending in federal court.
Additional racketeering activity was also alleged in today's third superseding indictment, including:
Source: Detroit Free Press | Tresa Baldas and M.L. Elrick
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