Former Detroit Mayor Kwame Kilpatrick, His Father Bernard Kilpatrick, and City Contractor Bobby Ferguson Convicted on Racketeering, Extortion, Bribery, Fraud, and Tax Charges part 1

2013-03-13

Monday, a federal jury returned guilty verdicts against Kwame M. Kilpatrick, 42, of Southlake, Texas, and Bobby W. Ferguson, 44, of Detroit, on charges that they used Kwame Kilpatrick’s positions as mayor of Detroit and Michigan State House Representative to execute a wide-ranging racketeering conspiracy involving extortion, bribery, and fraud, United States Attorney Barbara L. McQuade announced. Bernard Kilpatrick, 70, of Detroit, was convicted of a felony tax offense.

McQuade was joined in the announcement by Robert D. Foley, III, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation; Randall Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division; Richard Weber, Chief of IRS-Criminal Investigation; and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General.

Kwame Kilpatrick was convicted of 24 counts extortion, mail fraud, tax violations, and racketeering, Bobby Ferguson was convicted on nine counts of extortion and racketeering and Bernard Kilpatrick was convicted of one count of filing a false tax return.

Co-defendants Victor Mercado, former director of the City of Detroit Water and Sewerage Department, and Derrick Miller, former chief administrative officer of the City of Detroit, were also indicted as being part of the conspiracy, and both pleaded guilty to their roles and are waiting sentencing.

The jury deliberated for about 14 days before returning the verdicts, concluding a five-month long trial before United States District Judge Nancy G. Edmunds.

United States Attorney Barbara L. McQuade stated, “Although this investigation spanned many years, this case is not about the past. It is about the future. This verdict has sent a powerful message that corruption will not be tolerated in this community. The people of Detroit deserve better and expect better. Candidates should seek public office to make a difference, not to make money for themselves.”

FBI Special Agent in Charge Foley stated, “The FBI-led Detroit Area Public Corruption Task Force worked tirelessly to pursue and prosecute individuals associated with a criminal enterprise run for years out of the Detroit Mayor’s Office. Due to the scope and complexity of the investigation, it was imperative to make sure no corners were cut and no stone was left unturned. With this conviction, the public can be reassured that no corrupt activity will be left unchecked. No violation of the public’s trust will go unpunished. The citizens of the state of Michigan and, in this case the city of Detroit, deserve and expect the highest quality of government, and we remain dedicated to ensuring they receive it.”

“Corruption at any level diminishes the hard work and dedication of the thousands of elected officials and government employees who are dedicated to providing honest services to the American public,” said Richard Weber, Chief of IRS-Criminal Investigation. “IRS-CI stands committed to weeding out individuals who ignore the public’s well being and choose to take the path to financial success by using greed and corruption. Mr. Kilpatrick attempted to conceal his public corruption by failing to report to the Internal Revenue Service his illicit receipt of hundreds of thousands of dollars. When elected officials disregard their sworn oath because greed has clouded their judgment, let this case serve as a reminder that no one is above the law and everyone is accountable for their misdeeds.”

“The U.S. EPA mandated the improvement of the Detroit Water and Sewerage Department to address long-term non-compliance with the city’s discharge permit,” said Randall K. Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Michigan. “Sadly, former Mayor Kwame Kilpatrick used the awarding of these contracts as an opportunity to enrich himself and Bobby Ferguson. EPA CID is very grateful to the jury for rendering this verdict and hope that this sends a clear message to all municipal officials that this conduct will not be tolerated.”

HUD Special Agent in Charge Barry McLaughlin stated, “The citizens of Detroit should not have to tolerate those who use deceit and fraud to fill their pockets with money reserved to improve this community. This case will serve notice that the United States Attorney Office and HUD-Office of Inspector General will make every effort to ensure that these funds are used for this community and will vigorously investigate those that work scams at the expense of Detroiters.”

The evidence presented at trial established that Kwame Kilpatrick and Bobby Ferguson participated in a racketeering conspiracy to financially enrich themselves, their associates, and their families by using the power and authority of Kwame Kilpatrick’s position as mayor of Detroit, as well as his position as a member of the Michigan House of Representatives, to commit extortion, bribery, and fraud, as well as by defrauding donors to non-profit entities under the control of Kwame Kilpatrick and his associates, including the Kilpatrick Civic Fund, Kilpatrick for Mayor, and the Kilpatrick Inaugural Committee.

Source: U.S.Federal Bureau of Investigation