Live Blog: Kwame Kilpatrick Trial Day 59 - FOX 29 News Philadelphia | WTXF-TV

Live Blog: Kwame Kilpatrick Trial Day 59


And the judge mercifully calls a halt to today's testimony. The jury is excused, the attorneys are huddled around the bench. And M.L. Elrick have the highlights on Fox 2 News tonight. Plus, on he looks at the Kilpatrick Civic Fund and all the money it spent... on everything but what it was supposed to be spending money on! See you in the morning.


Thomas shows a check for 1000. Asks if this is material he had. Yes. Thomas asks if this substantiates significant gifting. Sauer says these were checks and were not cash.

Thomas asks when was the first time you realized there were birthday checks. Sauer says it's not cash.

Thomas says what he's trying to get to is it's evidence of an event, not just a birthday. Sauer says he has no evidence of an event.

Thomas says didn't that spark you to says what's going on here, didn't some people give cash. Sauer says these were deposited and were not included in the chart.

Thomas says there's not evidence there was evil intent for giving a birthday gift. Sauer says he had to interview the givers. Sauer says a gift can be taxable income and these checks were not included in his chart.

Thomas asks why he didn't interview these people. Bullotta objects as argumentative. Judge sustains.

Thomas moves on to loan applications. Sauer says there were two loans, one was the Florida property.

Thomas asks if he recollects this is a full and complete statement under penalty of perjury. Sauer says he needs to correct it was a credit card application.

Thomas asks if he can see why someone would not want to announce they have cash on hand. Sauer says he doesn't agree, the social security number goes on there, there's lots of stuff.

Thomas says if you have the option to not disclose. Sauer says not if the bank is relying on an accurate disclosure.

Thomas says without the cash kwame got the loan. Sauer says that correct.


Thomas asks about more parties and asks if there were hundreds of people there, asks if he asked at staff at these parties where significant gifting was involved. Sauer says he didn't talk to staff.

Thomas says you would agree that if 200 people were at a party and gave 50 dollars they could raise 100,000. Sauer says he doesn't disagree with his math, just his facts.

Thomas says oh, we want to talk about memory, what was it, oh it will come to me. Funny.

Maybe he should disagree with the math as well. Thomas says he'll bring testimony about this.

Thomas asks if he reviewed checks from the chase account. Thomas asks if he reviewed these checks he placed in front of him. Sauer says yes.

Thomas says these were in possession of the government.

Judge Edmunds tells Thomas a juror wants to know what year he's talking about. 2006.

Thomas asks Sauer to look at the checks.

Kwame is siting straight up, elbows on the table, paying close attention.

Thomas puts up a check from Ms. Fowler for 36 bucks that says happy birthday. We're going to be here all day if Thomas is going to add up all these little checks to get 500,000. Thomas puts up several more 50 dollars checks. We're up to a few hundred dollars now, ooh, a 200 dollar check, a couple of 100 dollar checks. This trial is going to last well into the summer at this rate.

Sauer says this material was in his file and he did review them.


Thomas puts up his own cash analysis. Asks if he can remember the total amount. Sauer says he would have to see the chart. Thomas puts up the wrong chart. Get's the right one from January of 2001 to 2002. Thomas asks if he sees the total is $21,000. Asks if he would want to know what was going on in prior years, and you didn't bother to do that. Sauer says he wouldn't say he didn't bother, but he did not do that.

Thomas asks about Carlita's America account. Sauer says he was aware of the account. Thomas asks if he knows about a credit union account.

Thomas asks how can you rule out cash withdrawals between 1996 and 2000. Sauer says she was making only small withdrawals. Sauer says that's not consistent with a large cash horde, can't rule out the possibility though.

Thomas says this is not the only exclusive way a person can get cash, that the only way is through a bribe. Sauer asks in this case or in general.

Thomas asks if he looked into those possibilities, like loans. Sauer says he didn't see any loans.

Thomas asks if he saw a cash loan after he got out of jail. In 2008. Sauer says the loan from the 4 Detroit businessmen. Sauer says that wasn't a cash loan. Thomas asks what happened to the 50,000 Matty Maroun gave the family. Sauer says that got put into Carlita's account. Thomas asks what happened to the cash. Sauer says he'd have to look at the documents.

Tomas asks if procedure is flexible about what the amount is going to be, how he determines the amount. Sauer says he'll have to look at the documents, he doesn't understand what he means by flexibility.

Thomas asks if he's aware of gifts. Sauer says he's not aware of any gifts. Thomas says we've come to the conclusion despite what the master tax preparer said, that gifts are not taxable.

Thomas asks if he's aware of Kwame's 3030th Birthday party. Sauer says no specifically no.

Thomas asks if he was aware of other celebrations for Kwame. When money was raised for his grandfather? Sauer says he was aware of that. Sauer says he became aware of the birthday party when Thomas mentioned it in court.

Thomas asks about Florida A&M yesterday. Sauer says he already had the documents. Thomas says but you had the resources.

Thomas asks if he had the resources to investigate the 3030th birthday party at the Majestic Theater. Sauer says this was not an issue for him before Thomas raised it.

Thomas says there was gifting that did take place that we've heard about. Sauer says not cash gifting he was aware of.


Thomas puts up Sauer's cash summary, asks about description column, you said 2001 and 2002 were not charge years but you did include them. Correct.

Asks why he did those two columns. Sauer says it was also used for the overall case and not just the tax charges.

Thomas says for the transactions that are not included that would affect the charge. Sauer says these are just the transactions from banks but there were other cash transactions.

Thomas asks if he uses account numbers. Sauer says if they have the accounts they'll use the numbers otherwise they'll just ask for all the accounts in that name at that bank.

Thomas says you found other accounts of Carlita's that are not included here that Kwame is affected, it's not complete. Sauer says it is complete, Carlita wasn't a source of cash.

Thomas says buy it's not complete. Sauer says it's complete.

Thomas asks if while investigating Kwame's access to cash he didn't include Carlita. Sauer says Carlita was not a source of cash.

Thomas asks if he remembers Emma Bell testifying she gave Kwame money. Sauer says he doesn't remember those questions. Thomas says the jury will. I hope they have a better memory than I do because I'm not sure what he's talking about or what point he's trying to make.

Thomas says are you aware Carlita was employed when Kwame was a State Rep. Sauer says they made significantly less than when Kwame was Mayor.

Thomas asks if he remembers the figures from Kwame's tax returns. Sauer says he's have to look at the returns. Thomas says he'll have those tomorrow. Sauer say we have some of them here now. Thomas looks at the clerk handling the documents for the case and asks if he can see them just by asking?

Thomas asks if he heard their cross examination about Kwame's accumulation of wealth, and you don't now if he had cash on hand. Sauer says if he had cash in a shoe box he wouldn't need to go to the ATM.


Jim Thomas is cross examining Sauer now. Asks for the Florida A&M Check, says it dated 10/15/2007, signed by Beatty and Miller. Sauer says there are documents showing it was sent and Cashed by the College. Thomas shows the receipt from around the same time, says it did not go to the Civic Fund but his home. Correct.

Sauer say it was given to the tax preparer by Kilpatrick. Thomas says you don't know what happened to it while it was in Kwame's house, that Kwame didn't see it before he sent it to Mr. Terrell. Sauer says he had to have seen it if he gathered up the documents to send to Terrell the tax guy.

Thomas says what he's talking about is between November and April he doesn't know what happened to the preparer, you don't know what happened to the document in the house, the point is the document does not say Kilpatrick Civic fund. Sauer says he knows why it says Kwame and not the Civic Fund. Thomas says but you'd be relying on what someone else told you. Sauer says but I know why it was addressed to him. Sauer says it is a receipt to him.

Thomas says we've been engaged in this trial since September and we've heard of people making mistakes, if you make a mistake or I make a mistake we get the opportunity to confess that.

Thomas says it could just be a mistake. Thomas says it's either a mistake or he did it willfully and intentionally. Sauer agrees.


Court is back in session after a pause to sort documents.


Sauer says he investigated the civic fund to see if there were any payments to Kilpatrick. Bullotta puts the chart he prepared on the big screen.

Sauer goes through the list, yoga, LaCosta Resort and Spa, and he adds they should have but were not reported. Driving range, Spy Op's store, hotels, rental cars, Super Camp for the kids, Impact strategies for the crisis management, Hilton, Avis, Northwest Airlines, Gaylord Texan, his attorneys, and the list goes on.

Expenses to move out of the Manoogian, apartment rental, Carlita's stay at the Great Wolf Lodge and 15,000 cashier's check to pay the mover.

Sauer says these are all taxable. Sauer says he didn't include any political expenses that appeared personal but he wasn't sure. Sauer says the total is 152,095 from 2003 through 2008. This is all "income" according to the IRS from the Civic Fund.

Bullotta asks if its fair to say the two taxable areas are the cash expenditures and the Civic fund. Sauer says he didn't include the checks from Soave for the trip to Bermuda.

Bullotta asks if he investigated whether Kwame had any special tax training. Sauer says he took a tax class in Law School. Sauer reviewed the transcripts, got a "C"-plus. If he'd gotten an A he might not be in this mess.


Sauer is now explaining that when Kwame was a state rep his credit union account shows no big cash deposits, only his paycheck going into the account. Sauer says there were frequent withdrawals from ATM's but no large ones. No significant cash withdrawals.

Bullotta asks if Sauer prepared a cash expenditure summary. Yes, looked at money going out and money coming in. from 2002 through 2008.

Total wages 605.777. Kwame's take home pay in those years. 188,000 in cash deposits. 166,000 in other check deposits.

A juror asks to see the cash deposit column again.

188,000 total from 2002 through 2008. Sauer says he subtracted out 15,000 to get 172,945, less the cash withdrawals.

Other check deposits, Sauer says, total 166,000. The transfers in column totals 139,343. Sauer says these are transfers from his credit card or overdraft protection. Sauer says the total deposits is1,099,841.03.

Next column is total checks paid and other debits. The last is cash payments and other expenditures.

Sauer then totals the net wages, total checks paid, 1,446,739.90 and comes up with a figure called Expenditures in excess of wages. $840,962.33. Sauer says Kwame spent more than he made, was living beyond his means.

Bullotta asks if he can take a moment to look at this notes.


Bullotta waits for the jury to be seated. Agent Sauer takes his seat in the witness box, and we're back on Kwame's cash.

Third row of the chart, Sauer says this shows cashier's checks bought with cash. In 2004, one for 14,000. In 2008 one for 20,000 and a total of 34,000. Just two cashier's checks.

Bullotta now moves to the joint account opened in 2008, one deposit for 8,000. Sauer says they're talking about currency.

Bullotta asks about loan payments. Sauer says the total here is $6,677.26.

Bullotta asks about Premier Bank in Tallahassee. Sauer says this account was opened in 2007 related to a home purchase. Cash deposits, 3000.

Bullotta asks about the summary chart, Sauer says the total from 2001 through 2008 is $531,401.72.

Bullotta asks if he remembers hearing Thomas say Carlita's business could have accounted for the cash. Yes.

Bullotta shows a chart summarizing the funds to Carlita and cash withdrawals for the U.N.I.T.E. Account.

Chart shows date of transaction in first column, deposit or withdrawals, and who got paid. Sauer says the maximum amount of cash in this account was 17,021.75. Not nearly enough to make up for the 531,000 figure. Sauer says none of these charts show what Kwame may have spent in cash that didn't go into these accounts, like the cash payment to his Crisis manager Judy Smith.


Bullotta just mentioned that "I think we need to talk to the judge before the jury comes out."

The "all rise" is announced and the attorneys approach the bench.


 and the judge says this is a good time to take a break.


Bullotta puts Kwame's cash summary on the screen. Sauer says the first row shows cash payments to his credit cards. Sauer says there are cash payments on the card in 2003,2004,2005, 2006,2007. These payments are in the tens of thousand of dollars, for a total of $282,150.

Bullotta goes to the second column. Sauer says this is cash to his J.P. Morgan Chase bank accounts including a joint account with Carlita, 7000 in 2002, 36,000 in 2003, in 2004 it was 25,000, up to 2008 for a total of $194,000.


Sauer tells Bullotta that even though bribes and kickbacks are illegal, they are taxable.

Sauer says he interviewed the tax guys and also Kwame's financial advisers. Bullotta asks him to explain what is not taxable. Loans, gifts, civil judgments, says he instigated and eliminated things that were not taxable.

Bullotta asks if his Mom went before the grand jury, congress woman Carolyn Cheeks Kilpatrick. Sauer says yes, and other family members, who were asked about gifts, inheritances, etc.

Sauer says he also looked at home loan documents to see if they listed any cash on hand at the time of the application.

Bullotta asks if Carlita had income. Sauer says after 2003 she didn't report any income.

Bullotta asks if he also looked for taxable income. Yes.

Did you investigate the Civic Fund. Sauer says he looked to see if anything was paid out of the fund to the personal benefit of Kwame or his family because it would be considered income.

Bullotta asks if he found any non taxable sources. Sauer says no large amounts, over 5,000. Didn't find anything.

Bullotta asks if he looks at Kwame's account before he became Mayor. Yes, and Sauer says his financial habits changed.

Bullotta asks why looking at cash deposits and expenditures are important. Sauer says Kwame didn't have a cash source of income.


Beeckman steps down. Agent Sauer takes the stand. Bullotta asks him about Kwame's gift to Florida A&M. This was the $5000 Kwame gave to the college but came from the Civic Fund checking account. Kwame's tax guy Greg Terrell testified that this was taken as a person deduction and had he seen the check he wouldn't have allowed it.

Bullotta asks if it was the Civic Fund that paid...

Thomas objects, says there's no link between the check and the Florida A&M receipt. He's over ruled.

Ballot asks if he heard Thomas say there were two donations. Sauer says he subpoenaed all records and there is no evidence of a second donation.

Bullotta puts up the subpoena, then the copy of the civic fund check dated 10-15-2007 to the Young Alumni Group. Sauer says there was no gift receipt in the initial response but he followed up and got it. Sauer says this is the same date as the check and for the same group.

Sauer says there was no evidence of a speaking engagement, there was a second donation for $100 from a golf outing.

Bullotta puts up a document showing Kwame paid $100 in cash. Sauer says there were no documents that Kwame returned an honorarium check. Bullotta asks had he been paid would the college be forced to generate a 1099. Yes, and Sauer says he didn't get one from the college and he also checked the IRS records, no 1099.


Gerald Evelyn is up now. He's Bobby's attorney. He's asking Shea if Shakib was going to call the guys running the project to find out what actually happened. Beeckman says right.

Evelyn plays the tape where Bernard says he wants to run these guys out of town. That they brought in white buys from the Suburbs. Bobby says on the tape he's busy and will have Shakib call him.

Evelyn asks if he heard Bobby says he'd call Shakib. Yes. Evelyn has no further questions.

Bullotta back up now. Puts up transcript of Bobby and Bernard call. Beeckman reads, can he, can he make trouble for Jenkins over there. Bullotta asks if he was talking about George Jackson at the D.E.C. And wondering if he could get Jenkins kicked off the job. Yes.

Now Beeckman reads from Shakib's call, says His reasons was they wasn't picking up the cans on time.

Bullotta asks about bad mouthing clients. Beeckman says but remember Rosendall had a relationship with Bernard and was worried that if he hired the wrong company, like Jenkins hauling, he could get kicked off the job, and that's not a normal client relationship. 

Shea up, asks if a general contractor doesn't follow the rules they can get kicked off a job. Yes.

So if Bernard thinks he's not flowing the rules it's not out of the realm of possibility. No.

It's not normal to talk about experiences with other contractors. Beeckman says that's not what I said.

Shea says you're saying it's different in this case, the jury will have to decide, but Bernard is just trying to... Beeckman says that's not.... 

Shea asks there's no evidence that Bernard talked to Phillips or Jackson. Beeckman says he doesn't think so.


Shea says there's nothing illegal about filing a legitimate complaint? No. Shea has no further questions and Thomas takes his place.

First thing he asks is was this around the time of the text message scandal. Yes.

No leads that Bernard had reached out to his son. True.

Asks was Kwame charged criminally is state court, went to jail in October 20 of 2008. Correct.

Thomas asks if we talked about City Council approval of The Synagro contract. Yes.

Asks if Beeckman would agree that Kwame was having problems dealing with the media. Yes.

He has nothing further.


Shea asks Beeckman if there were other complaints investigated against Jenkins. Beeckman says yes.

Shea asks if Bobby Ferguson was familiar with the site. Yes.

Because he worked on it. Yes.

Shea says Bernard explained the situation to Bobby. Yes.

Shea puts up a transcript of another call. He let them guys just take then out. Beeckman says right, Jenkins replaced Capitol Waste with Americal.

Shea read, someone white boys from out of town, some white guys from the suburbs, they took the guys across the street from you off.

Shea says Bernard is explaining what CW's beef is with Jenkins. Beeckman says yes.

Shea asks if George Jackson at the Detroit Economic Development Corp. who is involved with the project would also be an appropriate person to complain to. Beeckman says yes.

Shea then asks if Bobby sounds like he doesn't know what Bernard is talking about. Right.

Shea says but Bobby's guy Shakib Durria is the one who calls him back. Right.

Shea says Shakib told Bernard someone at Americal was kicking back money to Jenkins. That's what he's saying.

Shea asks if Shakib knew the phone was tapped. Beeckman answers no.

Shea says there's no evidence that Bernard filed a complaint. No.

No tickets issued? No.

No evidence that Bernard said to Jenkins hire my guys or I'll Report you. Beeckman says T here's not evidence of that. 

Well just a thought here, if Shea is sincere is saying Bernard was advocating for a Detroit based business, why argue that no complaint was filed, wouldn't it look better for Bernard had he actually gone through the proper channels and filed a complaint? 


John Shea is up now, asks if Capitol Waste was a Detroit based business. Beeckman says when Francis of Capitol Waste was calling all he wanted to do was find some way to get Jenkins in trouble. 

Shea asks but in further conversations Mr. Kilpatrick is taking up his clients cause and that's what consultants do. Beeckman says yes they advocate for the client but Bernard is doing more than that here. 

Shea says it appears that Bernard had been trying to discuss this with Jenkins for months. True. 

Jenkins said he'd address the issue. Yes. 

So Bernard discussed going to Phillips at Human Rights who has jurisdiction about not following DBB, DBH, or minority rules. Correct. 

Shea says we heard testimony that the Human Rights Department would investigate these complaints. Beeckman says if they legitimately thought that was a reason that would be the thing to do. 

Shea says they did investigate a complaint. Beeckman says he remembers Shea asking that question but he does' remember what the answer was. 

This is going to boil down to what the jury hears in the calls and how they interpret it. Shea is arguing that Bernard is just trying to get Jenkins to follow the rules. The government is saying Bernard conspired to kick out another contractor and get his client in. The call sounds to me like Bernard and his clients are trying to find any way they can to cause trouble for Jenkins but the jury may see it a different way.


Agent Beeckman is on the stand, the Judge reminds him he is still under oath. Mike Bullotta is asking him about Capitol Waste being taken off the Book Cadillac project. Bullotta puts up the transcript. 

Bernard "Not kinda arbitrarily, arbitrarily they threw them off. " 

"You know I threatened him I talk about him. … I got a line on the , on the guys that's doing this new facility at, at waste water." 

Beeckman says he's talking about Jenkins tossing out Capitol Waste. 

Bernard: " and they trying to get him in you know so I told him under no circumstances that motherfucker get in fuck him." 

Beeckman says Bernard is saying he's not going to let Jenkins get work on the Synagro project


Jim Thomas just asked the Judge if he could approach the bench. All the attorneys have left there seats and are huddled at the side of the bench next to the witness box. That's to the Judge's right.


Gerald Evelyn and Bobby Ferguson just walked in, a little late. Bobby's Attorney Mike Rataj was with them. He was just complaining about getting stuck in the line for security. 

All Rise. Court is in Session. Judge Nancy Edmunds takes her seat.


The picture is up, we can see the Bernard Kilpatrick in his regular seat at the defense table talking to Kwame, who is sitting next to him, and attorney Susan Van Dusen on his right. Jim Thomas is unloading his brief case. Prosecutor Mike Bullotta is across the aisle making note on documents. Bernard's attorney John Shea is chatting with the court clerk. 


Good morning from the down-right balmy (13 degrees) City of Detroit and the Theodore J. Levin Federal Court House.

Ken Martinek is Senior Producer-Investigations for Fox 2 News. You can contact him at

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