DETROIT (WXYZ) - Prosecutors say they will be wrapping up the first phase of the Kilpatrick corruption case on Tuesday. The attorneys confirmed the information after Monday's session.
Follow along with the latest news to come out of federal court as 7 Action News Investigator Ross Jones blogs from the Kilpatrick corruption trial:
12:57--The end: Thanks for joining us. We'll be back tomorrow.
12:55--No knowledge: Schuch acknowledges that she doesn't know what Ferguson did with the money he withdrew.
12:47--Checks: Of the 83 checks found in Ferguson's safes for 2002, only three were actually endorsed (signed) by Bobby Ferguson, says Rataj.
12:41--Legal: There's nothing illegal about having large amounts of cash in a safe, in your pocket or in a shoe, says Ferguson lawyer Mike Rataj as he cross-examines Schuch. She agrees.
12:31--Withdrawals: Between 2002 and 2008, Schuch says Ferguson withdrew almost $2.6 million in cash. That included 17 or 18 withdrawls of about $9,500, just below the $10,000 threshold where a currency transaction report is filed by a bank.
12:24--Another agent: It's a carousel of federal agents on the stand today. Netxt up: IRS agent Rowena Schuch.
12:18--Rataj: Ferguson lawyer Mike Rataj is up cross-examining agent Rosenthal.
Sorry for the delay in blog posts. Had to do a quick liveshot outside for our 7 Action News at Noon viewers.
12:00--Big money: All told, the feds found about $2.3 million in cash, cashiers checks and CDs in Ferguson's home and offices.
11:51--Cash stacks: $7,000 in stacks of cash was found inside a safe at Ferguson's Detroit offices.
11:50--New witness: FBI agent Gwen Rosenthal is up now. She executed some of the raids on Ferguson's offices.
11:29--Moving on: Now, Paskiewicz is being questionined by Asst. U.S. Attorney Eric Doeh regarding her search warrant to enter Bobby Ferguson's Detroit offices.
11:09--Math issues: Without getting too much in the weeds here, Rataj is suggesting that Paskiewicz's math is off with her Ferguson contract totals.
10:59--Not fans: I think it's fair to say that these two don't like each other. Rataj, who's not known for his fondness of any government witness, has often tangled with Paskiewicz. For her part, the feisty EPA agent isn't even looking at Rataj when his questioning turns aggressive.
10:52--Rataj up: Ferguson lawyer Mike Rataj is up to cross-examine EPA agent Paskiewicz.
10:48--Total: The grand total for Ferguson contract revenue that the feds have filed charges over is $83,829,612. In other words, this total doesn't include all contracts Ferguson received while Kilpatrick was mayor. These are just the ones where there's been testimony for this trial. That number grows to more than $124 million when it includes city-related revenue paid to Ferguson companies.
10:41--Totals coming: I expect a grand total will be coming at some point, but for just three jobs, Ferguson-related companies were paid more than $42 million. Of course, he did a lot more than just three projects.
10:09--Short break: Agent Paskiewicz seems to be a little under the weather, so we're taking a short break. Stay with us.
10:00--Summary: Paskiewicz is going over some government exhibits that outline the revenues paid to Bobby Ferguson and his affiliated companies. This appears to be an effort to summarize Ferguson's payouts.
9:51--She's back: EPA agent Carol Paskiewicz is back on the witness stand.
9:45--Cash hoard: There's no evidence, Selz says, that Kilpatrick was hoarding cash (keeping it in his home, in a safe, etc.). That would fly in the face of the defense's argument that Kilpatrick was depositing all of this cash into his accounts because he was holding on to it for some reason.
However, Jim Thomas points out that there was testimony that Kilpatrick had at least $1,500 in a shoe at one point. That would be evidence of a hoard, Selz concedes.
9:29--Chipping away: Thomas points out, and Selz agrees, that he doesn't have a certified public accountant's license (CPA), nor is he an expert on non-profits like the Kilpatrick Civic Fund.
9:25--Sources unclear: Selz acknowledges that he can't establish the sources of many of Kilpatrick's cash deposits (i.e., can't say that it came from Emma Bell, Derrick Miller, Karl Kado, etc.).
"You have a number of people saying Mr. Kilpatrick took money, that may be true, that may not be true," Selz said.
But this much is clear, he says: Kilpatrick was receiving lots of cash.
9:15--Oops: Well, this is awkward. Under questioning from Asst. U.S. Attorney Michael Bullotta, Selz acknowledges that he learned Friday that his certification as a fraud investigator is suspended because he negelected to pay his annual dues. He says he takes full responsibility.
9:02--Hello, Naughton: I received some good-natured ribbing from Michael Naughton, who's one of Kwame Kilpatrick's lawyers, while standing in line for security this morning. He said my blog often reads like a fashion report, including information about the ex-mayor's bow ties, sweaters and other pieces of clothing.
Truth be told, it's been months since I had a running tally of Kilpatrick's bow tie to necktie ratio...but for what it's worth, Naughton is wearing a sharp green and white striped necktie this morning.
9:00--Day 62: Welcome back to federal court. Kwame Kilpatrick is back after a weekend trip to a Detroit jail, serving less than three days behind bars for 14 parole violations.
On the stand is Carl Selz, an IRS civil division employee and fraud investigator. He's been sitting in trial, listening to the testimony and reviewing all of the evidence, and said last week that Kilpatrick owes almost $200,000 in federal taxes.
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