Live Blog: Kwame Kilpatrick Trial Day 48 - FOX 10 News | fox10phoenix.com

Live Blog: Kwame Kilpatrick Trial Day 48

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DETROIT -

And Judge Edmunds calls a halt for the day.  M.L. Elrick with have the highlights at 5 and 6.  Plus, we may have another surprise or two about the case, you'll have to tune in to find out.  And don't forget to look for M.L.'s unique look at the trial in the "Take AWay" on MyFoxDetroit.com.  Miller will be back tomorrow and so will we.

12:59

Miller now explains that the offices were swept for bugs, and that the Mayor would turn up the music when they were talking about bobby's business opportunities.  Says Kwame also warned him to be careful when talking on the phone.

Text from May 2004

bobby:  Good morning big dog

Kwame: good morning

Bobby: it's time to plan radio, TV, time to tell your story.

Bobby and Kwame are talking about firing a private investigator and keeping it secret from Beatty and Miller.

Miller says Kwame never told him about cutting him out of communications.  Chutkow asks if Kwame ever told him there were things He and Bobby were going to handle things that he didn't want to discuss with Miller.  No.

12:51

Chutkow asks if there were agenda items at the meetings.  Miller says yes, business, community, general pow wow.

More messages about meetings.  Chutkow is establishing that they had a whole lot of these meetings.  That plays to the conspiracy aspect of the RICO charges.

It's interesting that Henry Hagood's name came up in one of the messages.  That's the guy Fox 2 caught selling city owned properties to his pals, so cheap he was practically giving them away.  What's really interesting is that Kwame felt the need to talk to his Dad and Bobby about this.  Hagood resigned.  Then we did another whole series of stories about Rayford Jackson doing the same thing with more properties in the city.  That fact that this topic came up in these outside meetings with the "kitchen Cabinet" is quite telling.  Makes me think there was a whole lot more going on there than the little bit we got hold of.

12:49

Chutkow now showing more text messages organizing meeting at "pops" house, meeting Bernard.  Says "Zizwe's" on his way.  Miller explains that's Bobby's SChriner name.

Miller says they called these "sit downs."

Text:

Bernard: Me, zeke, bobby need to meet with you ASAP plus henry Hagood getting too slick for his own good.

Next text: Dec 1 2003 a couple weeks after the previous message:

Mayor: Me, Bobby and zeke will be over at 9:30.

Now Chutkow showing one from Fe3 10 2004:

Miller: Me and zeke need to holla at you

Bobby: what'd I do now.

mayor: nothing... time for a business meeting."

Miller reads a few more messages setting up a meeting at 10:00pm

Now a series from May 19 2004 setting up another meeting.

And new message from Bobby asking if Mayor needs Tickets to the Farrahkahn concert.

Miller says it's consistent they were still having meeting in 2004.

12:29

Miller now describing meetings at Bernard's condo where he and Bobby would bring up business opportunities with the Water Department or Demolition.

Chutkow asks about Miller's responsibility with the Water Dept.  Says it was unofficial but the Mayor and he set it up.

Miller says by business  opportunity he means they'd talk about upcoming water dept contracts.  bobby and Bernard would talk about potential opportunity.

M. L. just whispered in my ear, can you imagine what that scene would look like in a movie, meeting at the Mayor's Dad's condo, divvying up all the city work.

12:24

Miller now explains about parking for Cabinet.  Says Bobby was allowed to park in the special reserved area.  Didn't have an assigned spot but was allowed to park there.

Chutkow asks about cabinet meetings.  Miller says Ferguson didn't attend the meetings but would sometimes poke his head in and ask to see the Mayor, ask him to step out.  Chutkow asks if the Mayor did that.  Yes.

Miller says if there was an opportunity for Bobby we were supposed to help Bobby, all the appointees, those close to the Mayor.

Says "I was told... by Mayor Kilpatrick."  Says he'd let the Mayor know when they helped out Bobby.  Says we're looking out for Bobby at every opportunity.

Miller says if something came up that he didn't get consideration for there might be a warning about that.

Miller says the inner circle was Beatty, himself, Ruth CArter(corporation council).

Chutkow asks if any outsiders were part of the group, Bernard, Ayana, Bobby, ARt Blackwell, Conrad Mallot.

Chutkow asks if Miller had more influence with the Mayor than Bobby.  Maybe a little more that Bobby but that changed.  Says they had some personal issues between them (Miller and Kwam) Style differences, says Bobby wielded more influence as the administration went on.  ABout 2004 or 2005.

Chutkow asks about the style differences.  Miller says the working relationship became strained, outside influences, back channel communications. Says at this time Bobby gained influence.

12:20

Court is back in session and the jurors are taking their seats.

Chutkow asks Miller if he knows Bobby Ferguson.  Miller says he met Bobby in the mid 90's, he was a friend of Kwame's.

Miller says Bobby played a pivotal role in the campaigns, provided transportation, contributed, a big role.  Says they were friends, they're friends.  Miller says Bobby lead a transition Committee, the Motor City Makeover.  Says he saw Bobby and the Mayor in the BArber Room.

Chutkow now showing an ID badge for the city with Bobby's picture on it. ((M.L. just told me that Kwame and all the attorney's were in the hall, heads bent together in conference in the hall during the break.))

Chutkow now  says he made a mistake. This exhibit hasn't been introduced yet.  He's admitting into evidence now.

THat down, Miller explains where the offices of the personal staff were located.

Chutkow asks if Andre Cunningham had an office.  Yes.  Beatty, Yes.

Asks about Wurdlow.  Miller says different location, would not have had "Mayor's Office" on his badge.

Miller says the badge allowed you to go through the employee entrance and the back elevator that goes right to the Mayor's office.

12:00

Kwame is talking to EVelyn and Bobby now and it's the first time I've seen him smile all morning, it was a very brief smile, now he's heading out to the hall way on bobby's heals.  Evelyn has gone over to talk to the prosecutors.

11:57

Chutkow asks if Kwame every rejected the money.  No.

Chutkow asks if the Mayor had authority over the contract.  Yes.

ASks if Wurdlow got cash.  No.  Says he didn't need to. Never told Wurdlow they were getting cash and Mayor was taking half.

Chutkow asks about meetings with Feds in 2001.  Miller says no it was 2010.

Miller says he was hiding from the Feds because he didn't want to say anything that would get him in trouble.  Says eventually he plead guilty to tax evasion and violation of a federally funded program.  Influence peddling.

Says he agreed to cooperate and would get a reduced sentence, less than the mandated ten years.  Says no one  has promised him what he'll get.  Says it's up to Judge Edmunds to sentence him.

Thomas is whispering in Kwame's ear.  The Judge calls for a 5 minute break.  Kwame stands, with hands folded behind his back, looking grim.  He's talking to Thomas as the jury files out.

11:51

Miller says in 2006 or 2007 they talked about moving Kado out.  Says they talked about Kado being contacted by the Feds and Kwame  warned him that Kado may be wearing a wire.

Miller says Karl may be wearing a wire and cooperating with the Feds.  SAys they had already decided to rebid the contract.

Chutkow now asking about Jones, Lange, LaSalle property management contract.  Miller says this was one of the largest property management companies in the world.

Says the finance department under Sean Wurdlow wanted to change leases to get a tighter handle on finances.

Miller say Wurdlow was leaning toward the Stauback Company.

Miller says during the process he was approached and offered a cut on the commission that an independent contractor named Cook would get from Jones, Lange, and LaSalle if he steered the business to them.  Says at one point he verbally consented.

Says he set up a meeting with Wurdlow and JLL.

Miller says he told Kwame about it and Kwame acknowledged his interest and said he'd look into it.  Miller says he told the Mayor it could be good for us, it could be a windfall, says he meant that they could benefit financially, personally.

Chutkow asks who got the contract.  Miller says JLL, and Cook gave him cash, multiple times, multiple-multiple times, more than ten.  Miller says every time a transaction was completed Cook would get his commission and give him a call.  Miller says he kept the money and shared half with the Mayor.  Says he paid off the Mayor in person in cash.

11:38

Miller says it was wrong to take money from a contractor when he was overseeing that contractors operations.  Says he picked up cash for the Mayor once or twice and that was wrong, too.  Says he gave it to the Mayor in the Barber Room or the office. 

Kwame is rocking back and forth a bit and arching his eyebrows.

Chutkow showing a text between Bernard and Miller:

Bernard: "You have to call Lou (Pavledes Cobo Director) and give ok for Karl to deal with the electrical contract in June."

Miller says he didn't think Kado was that great on the electrical contract, they got lots of complaints about service from auto dealers association. 

Miller says the dealers often threatened to take the auto show some place else.  Says they were upset about the service and rates Kado was charging for power.

Miller says he told the Mayor and was told to do something about it, to keep rates down and make sure the auto show didn't leave Detroit.

Miller says Kwame never told him to move Kado out because of the complaints.

Chutkow asks about Bernard.  Miller says Bernard always told him that Kado was one of his best clients.  Says Bernard said he'd talk to him but it was the auto dealers who were over the top.

11:31

Miller says he accepted cash from Kado.  Picked up $10,000 in cash for the campaign.  Says Kwame told him to pick it up.

Miller says Kwame told him it was going to be $10,000. Miller says he understood that you couldn't accept cash, that it had to be a money order or a check.  He didn't get a receipt from Kado.  Says his memory is vague but thought he met AKado at Cobo, says he gave it to either Kwame or Beatty.  Says he looked in the bag, it was filled with hundred dollar bills.

Miller says Kado constantly offered him cash, and he accepted it a couple of times, in $10,000 lots.  Miller says it wasn't right to take the cash.  Miller has testified that the Cobo directors answered to him.

SAys he only took cash for himself twice but took cash and gave it to Kwame Kilpatrick.  Says told him to go get it, he picked it up, then took it back and gave it to Kwame.  Says Kwame would tell him to go see Kado to pick up a package.  Says he went to CArl's office and would be handed the money, says he didn't count it, but it was a lot of money.  Cash in hundreds.

11:24

Miller says Kwame was generally supportive of the riverfront casino as long as it included a convention center.

Kwame is shaking his head back and forth. Whispering to Thomas, exchanging glances with Bobby.

Chutkow puts up another text:

Miller:  Just talked with Hon Rutherford.  Venetian wants to come in on 17th to discuss riverfront...facility... Extra tax on slots sounds like the financing mechanism to pay off bonds."

Mayor: "cool"

Miller explains that Venetian is a gaming company and developer.

Next text:

Miller's secretary:  Boss Guy from Venetian wants to do a quick dinner Monday night. Is that cool??  we have the time.

Miller: yes.

Next text;  These are from FEb of 2005.

Miller:Denise is setting up Venetian tomorrow. Do you still need the 18th.

Mayor: Yes

Miller says yes the Mayor was at these meetings.  Says the CAsino plans never came about because they couldn't get a license.

Chutkow now asks about Carl Kado, says he did electrical and cleaning at Cobo Hall.

11:15

Miller says he may have had as many as 35 meetings with Rutherford and that Rutherford may have met with him and the Mayor ten times.

another text message

Miller: okay I am all the way there. no matter what port authority is the way to go.  You are on the right track Tod Gillum has to come off first.

Kwame:You like that shit steelman had?

Miller:Not exactly but port authority can do whatever you need done.

Kwame: Right. Let's talk about a plan.

Miller says this was connected to Rutherford's plans to build a riverfront casino and the port authority could sell bonds and get financing for the development.

THoams asks for time frame.  January 2004.  Chutkow asks if they had discussions.  Miller says they had discussions, as part of doing this kind of development you had to have an idea how to pay for it.

Miller says the roadblock was that Rutherford either had to get a license for a fourth casino or buy out Greektown.

Miller says the discussion centered around getting another license and they three of them discussed it.

He says the only real chance to get a license was buying Greektown's and it was too expensive.

Chutkow asks if he talked to Greektown rep's.  Miller says yes, just to take their temperature, that's when he found out how much money they wanted.

11:05

Chutkow now asking about the YOga checks again.  Miller reads signed by Beatty, Miller and Kwame Kilpatrick, for October through December.

Chutkow asks about Emma Bell.  Miller says she raised money for the campaign, and was just an all around fund raiser.  Miller says Beatty told him that Bell got a percentage from the funds she raised.

Chutkow now showing pictures of the Mayor's office.  Chutkow using his laser pointer to indicate the Mayor's office on the right and the room on the left.  Miller calls it the "Barber Room."  Says it has a Barber chair in it.

Chutkow asks what the Barber room was used for.  Miller says for casual discussions, informal meetings, says he saw Bell go into the room.  Says sometimes the door would shut behind her, when she was meeting with the Mayor.

Chutkow now moving on to Rutherford's relationship with Bernard.  Miler says he was a client of Bernard's.

Another text message:

from Bernard:"I have a 10:00 breakfast with my client, Jon Rutherford, who says you won't call him back.. which is cool cause he should go thru me.  I would appreciate a call about 10:30  thanks."

Miller says Bernard was acting as a consultant for Rutherford.  Miller says at one point that changed, he became more familiar with Rutherford and started accepting his calls.

10:52

Kwame is back in the room now talking to Mike Naughton, the number 2 chair on his defense team.  Thomas joins them.  from the look on Kwame's face it's a serious discussion.

"All Rise"  court is back in session.  Kwame puts on his geek glasses, stands, and folds his arms across his chest, a grim expression on this face.

10:48

Word must have gotten out that Miller was going to be on the stand today.  I wouldn't call it crowded, but there are a few more people ‌in the gallery.  There are even a few more people in the overflow room downstairs that's open to the public.

Miller stayed in the court room.  He's conferring with Chutkow.  Now he's being lead out the court room door by special agent Pazcewicz.

10:44

The players are all outside the snack bar during the break, chatting with reporters, talking to other court passers by, but there is on notable exception.  Kwame Kilpatrick is not hanging out on the first floor.  I've never known his to miss the conversation on the first floor during the long morning break.  His Attorney Jim Thomas was having his usual cup of coffee.  Ferguson and his attorneys and Bernard and his crew are there, but not Kwame.

10:29

And we're taking a 20 minute break before we get into Emma Bell, the chief fundraiser for the Kilpatrick Fund.  Should be interesting to find out if Miller actually saw Bell  pull money out of her bra.

10:28

Check to Tom's driving range.  Miller says he doesn't know what it was for.  Wasn't aware Kwame bought golf clubs.

Canter for YOga checks. Miller says he went to Yoga classes with the Mayor.  Says the Executive protection staff went to the classes.  Not open to the public to his knowledge.

10:25

Now we're looking at a check to LaCosta Resort and Spa.  Miller says one of the reporters, he thinks it was Steve Wilson....

Thomas objects....

Chutkow says he'll ask some foundation questions.

Miller says he talked to Kwame, Jemaine Dickens, Matt Allen, Beatty, about how to handle Wilson's inquiries.

Miller says Jemaine Dickens was part of the communications staff.

Says Matt Allen was the press secretary.

Miller says they were trying to figure out how Wilson got his hands on the check and were trying to figure out how to respond after Wilson made it public.

Miller says Kwame told him the trip was for his family and didn't say anything about fund raising.

Miller says They had to come up with some kind of response, there was no evidence of fund raising.

10:20

Miller reads from the articles of incorporation of the Civic Fund.  Miller reads no funds are to be used for candidates.

Thomas objects again and is over ruled.

Chutkow asks if donor solicitation letters talked about not using fund for campaigns.  Miller says he doesn't recall.

Chutkow shows a check from the Fund to Peter Hart Research for 26,500, Miller and Beatty both signed this one.

Chutkow asks if this was during second run for office in 2005. Miller says it was for polling for the campaign.

Miller says they changed companies but this was going to be a different kind of race and Hart would be more flexible and aggressive. Miller says a campaign takes on a life of its own and you need a pollster that can adapt quickly.  says the information was not shared with the public, campaign only, to understand what there strategy should be.

Chutkow asks who was managing the  Civic Fund Check book.  Miller says it was Beatty.  Miller says you had to have 2 signatures and would often ask him to come in and pre-sign the checks.  Says nothing was filled out.

10:13

Chutkow plays tape from debate, Kwame says, "we didn't use one penny, not one penny of the civic fund in this campaign because it's not allowed by law."

Miller says that's not a true statement.  says that's what they were talking about before when they said no one would find out because they didn't have to disclose the donor list.

10:10

The defense is not giving an inch.  But the objection was withdrawn according to the Judge.

Chutkow asks if Rutherford's donation caused a news article.  Miller says he thinks the headline was that Kilpatrick accepted a check from a homeless shelter.

Chutkow now showing  a Free PRess article saying President of  HOmeless refuge gave 50,000 to his voter fund.  Headline Says Kilpatrick questions propriety.

Miller says inner circle of campaign met to figure out how to respond to the story.  Says Beatty, Berg, Mallot, Bernard and Ayana were at the meeting.

Miller says he hadn't seen the checks before the article.  Says they basically decided to say the money didn't come from a homeless shelter that it came from a private, legal, enterprise.  Says they new they didn't have to disclose the donor list.

Says Kwame told him that.  Miller says he knew they could accept limitless donations.  Learned that from Kwame.  Chutkow asks if Kwame explained that the Civic fund use.  Miller says Kwame explained it couldn't be used for candidate specific purposes and they told the press no funds were used for the campaign.  Miller says the talked about the fact that donors and purpose of the fund never had to be disclosed so no one could find out.

10:02

Miller says Rutherford's business was running a homeless shelter, and donated 20,000 to the Kilpatrick Civic Fund.  Also wrote a 30,000 check in July to the Civic Fund.

Chutkow asks if there's a new event at that time referred to Rutherford and Kwame's campaign.

Thomas objects.  Sidebar.

9:59

Chutkow asking again about Rutherford's check.  It's dated Sept 19, 2000. Another check for 50 grand is from SEpt 27, 2000.

Chutkow asks if Kwame eventually became the Democratic leader.  Miller says yes.

SAys Rutherford also supported Kwame for Mayor, says he was a campaign donor.  Miller says he was a large player.

Chutkow showing donation check for $34,000 to Next Generation from Rutherford's company June 6 2001.  Miller says Next Generation is a political action committee run by Kilpatrick.

Chutkow asks if by This date Kwame had thrown his hat in for Mayor.  Miller says 34 grand was the legal limit.

9:53

Chutkow asks if when kwame was a state rep and became house leader, did Rutherford play a roll.  Miller says he supported the 21st century fund political action committee.  Says it was for Democratic party but could have been used to write checks for any candidate.

Miller says supporting candidates was a way to get votes lined up, to  get a majority, that helping other candidates would get their support for Kwame.

Thomas objects but is over ruled.  Miller says the fund was to be used to fund candidates running for office and Kwame played a roll in deciding who got money.

We're taking a quick time out so a juror can use the rest room.  Kwame is whispering to Thomas and taking notes.  His usual smile is gone.  Thomas is copying some of Kwame's notes.  This is as serious as we've seen Kwame in court so far.

9:48

Chutkow asks what was happening in  2001, Miller says they were under attack and that Mayor Archer almost canceled the primary.

Miller says they powered through and used the polling to complete the campaign platform.

Chutkow now asking about Rutherford. Showing him a check from Rutherford for 50 grand written by Rutherford from his company DPR Management. 

Defense asks for a sidebar.

9:42

Chutkow showing  him the polling company invoice sent to Bob Berg.  Now the check from the Kilpatrick Civic fund for the same amount on the invoice.

Chutkow says Beatty and Kwame signed the check.  Miller says yes he knows what the Civic fund was.  Says he didn't know checks were being written at that time for the polling.

9:41

Miller is now explaining that they had a session to figure out Kwame's strengths and weaknesses and hire Lake, Snell, and Perry to do research and polling.

They made calls to voters and asked questions.  Chutkow asks if they shared that information with other candidates.  No.  Asks if they looked ant what voters thought the city's problems were.  Miller says yes, education, where they stood on crime, so they could figure out if Kwame had a shot at Mayor, says not they didn't share that with the community as a whole.

Miller says the decision was to run for Mayor and they used the information to figure out the Mayor's platform

9:33

Miller says when Kwame Conrad mallet, former chief justice,  Bernard and CArolyn, Ayana, Bob Berg, Beatty, and others were the leadership of Kwame's campaign for Mayor.  SAys the Madison building was the location of the first campaign headquarters.  Says he was also involved in second campaign in 2005.  Says headquarters was in Lakeshore engineering building.  He spent lots of  time there.

Chutkow asks if campaign solicitations were sent out by mail   Says mail and fax.

Kwame is sitting back in his chair, pensive look on his face, shaking his head.  For the first time in the trial he looks unsettled.

9:29

Miller says he saw invoices showing that property was going to be purchased by Bobby to use to help homeless.  Says he didn't think Bobby's organization was capable of doing the job.  Says Bobby thought he was being picked on a little bit.

Chutkow showing him a picture of Ferguson's building.  Miller says he visited their, "plenty of times."  Says he never saw any vocational training going on there.

Evelyn objects, no foundation, but Judge Edmunds over rules.  Evelyn objects again.  Over ruled.

Miller says no he didn't see any classes or any structure that would show classes or vocational training were underway.

9:24

Chutkow now asking if Miller remembers the state arts grant application, the cultural arts grant, for non-profits in the district to do community work.

They're looking at the grant application documents now,  this is for 3-dimensional, the non-profit the prosecution introduced way back in September.

Miller says 3-D was run by Bobby's wife Marilyn Johnson.  Says Kwame asked him to find out why the grants were being held up.  Miller says that Vanguard had mentioned Carlita Kilpatrick in the grant documentation and says Kwame didn't thing her name should have been mentioned and didn't have to be submitted that way to the state.

Miller says he met with Bartlett, on the state committee deciding the grants, says Bartlett said the non-profits didn't submit the correct paperwork,  had to say how they spent the money they'd already received.

Miller says he told Kwame it was going to be tough to get more money unless the  groups submitted the paperwork.  Says he then tried to get the documentation from "cookie,"  Marilyn Johnson.  Says he then talked to Marilyn and Bobby about getting documentation.  Says he saw some but it was not what the state was looking for.

9:16

Miller says when Kwame's Mom was considering a run for office in Washington he, Beatty, and Kwame went to work planning Kwame's campaign to seek his Mom's seat in the state Legislature.

Says he was the volunteer coordinator.  Eventually took a position on staff and lobbied around the state to get Kwame a House leadership position.

Chutkow now asking if Miller remembers the state arts grant application, the cultural arts grant, for non-profits in the district to do community work.

9:11

Miller is explaining that he was Kilpatrick's chief administrative officer and chief information officer and in charge of Internet technology at the cabinet level.

Miller says he then left government to found citivest capital partners, a consulting and development company.

Miller says he met Kwame in the ninth grade, English class, and played football together.  Says that's where he met Beatty, too.

Miller says he went to Jackson State on a baseball scholarship and came back to Detroit after graduation.  Says his first job was tutoring kids on computers and he then went to work for CArolyn Cheeks Kilpatrick.  Says he was a systems administrator and legislative assistant.

9:07

Derrick Miller is being sworn in right now.  Mark Chutkow is telling the Judge he gave the exhibit list to the defense over the weekend and he's moving those exhibits into evidence now.  We'll see Walbridge documents, Inland Waters Documents, and more on the Jet series.

9:03

Ferguson Attorney Susan Van Dusen is back today,, she is being greeted with hugs and hand shakes by the defense team and defendants.  Bobby just handed Kwame a bottle of water as he walked in the room.  Kwame is  sitting at the table and Bobby is making his way around the back of the defense table to his seat.  "All Rise" court is in session and Judge Nancy Edmunds is on the bench.  She's wasting no time getting started this morning.

8:55

The line is out the door again this morning, with new citizens and jurors waiting to get in through security.   It looks like the defendants will be able to get in the employee entrance but we'll have to wait a few minutes before finding out if proceedings are delayed.

8:37

Good Morning from the Theodore J. Levin Federal Court House.  This is going to be a very interesting day in the Kilpatrick Inc. Public Corruption Trial.  Long time friend, confidante, and former  Chief of Staff Derrick Miller is expected to take the stand today.  This is as inside the operation of Kwame Kilpatrick's administration as  it's going to get. 

8:26 


Ken Martinek is Senior Producer-Investigations for Fox 2 News.  You can contact him at ken.martinek@foxtv.com

 
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