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2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15789
Hon. Nancy Edmunds
No. 10-CR-20403
Sentencing Date: October 10, 2013
The United States submits the following memorandum regarding the
sentencing defendant Kwame Kilpatrick October 10, 2013.
Respectfully submitted,
United States Attorney
Assistant United States Attorney
Assistant United States Attorney
Assistant United States Attorney
Assistant United States Attorney
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15790
TABLE AUTHORITIES ......................................................................................... iii
ARGUMENT............................................................................................................ The Nature and Circumstances Kilpatrick Crimes (18 U.S.C. 
3553(a)(1)) ................................................................................................. Overview the Racketeering Enterprise ............................................... Fraud...................................................................................................... Bribes ................................................................................................... Extortion .............................................................................................. Kilpatrick History and Characteristics (18 U.S.C. 3553(a)(1)) ................. Misappropriating City Resources ......................................................... Perjury and Cover Text Messages ............................................... Refusal Pay Restitution .................................................................... Lack Remorse ................................................................................... Positive Actions Mayor .................................................................... Seriousness Kilpatrick Crimes, Just Punishment, and Respect for the
Law (18 U.S.C. 3553(a)(2)(A)) ................................................................ Deterring the Criminal Conduct Others (18 U.S.C. 3553(a)(2)(B)) ....... Protecting the Public from Further Crimes Kilpatrick.............................
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15791 Sentences Contemplated the Sentencing Guidelines............................. Specific Offense Characteristics .......................................................... Role Offense .................................................................................... Avoiding Sentencing Disparities Among Similarly Situated Defendants .....
CONCLUSION .......................................................................................................
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15792
Brown Mayor Detroit, 478 Mich. 589, 734 N.W.2d 514 (2007).....................
Gall United States, 552 U.S. (2007) .............................................................. Cook, 551 F.3d 542 (6th Cir. 2009) ...............................................................
United States Anthony, 280 F.3d 694 (6th Cir. 2002) ........................................
United States Benson, 591 F.3d 491 (6th Cir. 2010) ..........................................
United States Bistline, 665 F.3d 758 (6th Cir. 2012) ..........................................
United States Blackwell, 459 F.3d 739 (6th Cir. 2006) ......................................
United States Bolar, No. 10-30879, 483 Fed. Appx. 876, 2012 1994728
(5th Cir. 2012) ...................................................................................................
United States Campbell, 279 F.3d 392 (6th Cir. 2002) ......................................
United States Ciavarella, 716 F.3d 705 (3d Cir. 2013) .......................................
United States DeRiggi, F.3d 7(2d Cir. 1995) .................................................
United States Ganim, No. 3-01-CR-263, 2006 1210984
(D. Conn., May 2006) .....................................................................................
United States Hamilton, 263 F.3d 645 (6th Cir. 2001).......................................
United States Langford, 647 F.3d 1309 (11th Cir. 2011) ...................................
United States Manjate, 327 Appx 562 (6th Cir. 2009) ..................................
United States Martin, 455 F.3d 1227 (11th Cir. 2006) ......................................
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15793
United States Peppel, 707 F.3d 627 (6th Cir. 2013).......................... 34, 39, 44,
United States Reagan, al., 725 F.3d 471 (5th Cir. 2013) ...............................
United States Serafini, 233 F.3d 758 (3d Cir. 2000)...........................................
United States Spano, 411 F.Supp.2d 923 (N.D. Ill. 2006)...................................
United States Triana, 468 F.3d 308 (6th Cir. 2006) ...........................................
United States Vrdolayk, 593 F.3d 676 (7th Cir. 2010) .......................................
Statutes U.S.C. 3553(a)........................................................................................ passim
U.S.S.G. 1B1.3(a)(1)(B) ......................................................................................
U.S.S.G. 2B1.1 ...................................................................................................
U.S.S.G. 2C1.1(a)(2) ............................................................................................
U.S.S.G. 2C1.1(b)(2) ...........................................................................................
U.S.S.G. 2E1.1....................................................................................................
U.S.S.G. 3B1.1(a) ...............................................................................................
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15794
INTRODUCTION January 2002, Kwame Kilpatrick became the sixty-eighth mayor
Detroit. ran for office the slogan Our Future: Right Here, Right Now! 
promising that would devote his energy and talent turn around struggling
city. Instead, made its citizens endure tumultuous period corruption,
scandal, mismanagement and greed, followed years civil and criminal
litigation the courts. created pay-to-play system for the provision city
goods and services which compromised vast swaths city government, including
the water and sewer system, the convention center, the pension system, casino
developments and recreation centers. City government essentially became for
grabs for the right price.
This was not politics usual Kilpatrick defense team would later
argue during his trial federal racketeering charges. Kilpatrick extorted city
vendors help his coconspirators and line his own pockets. rigged bids and
took bribes. defrauded non-profits enrich himself, his wife and his
associates. And worst all, did all city where poverty, crime and lack
basic services made one the most vulnerable metropolitan areas the
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15795
nation. The scale his corruption was astonishing. The impact the region was
devastating. career public servant and licensed attorney, Kilpatrick was especially
qualified understand the gravity his crimes. understood the power and
trust given elected officials and that corruption benefits the few the expense the many. His crimes were not the result momentary lapse judgment.
systematically exploited his office enrich himself, his friends and his family.
Kilpatrick crimes put him the very top the most significant municipal
corruption cases this country decades. Since 2004, when the federal
sentencing guidelines were amended reflect the grave consequences
corruption communities, the sentences imposed major state and local
corruption cases have ranged from years prison. When taking into
account these cases, well the sentencing guidelines and the statutory factors
set forth Title 18, United States Code, Section 3553(a), sentence least years prison justified.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15796
ARGUMENT The Nature and Circumstances Kilpatrick Crimes (18 U.S.C. 3553(a)(1)) Overview the Racketeering Enterprise
The evidence produced during the six-month trial established beyond
reasonable doubt that Kilpatrick ran criminal enterprise using the office the
mayor Detroit. schemed with codefendant Bobby Ferguson and others
cash his position mayor. lived well beyond the means public
servant taking public money for himself and his associates, and away from the
impoverished city took oath serve.
Before Kilpatrick became mayor his finances were unremarkable: his
paychecks from the State Michigan were direct deposited regularly into his
bank account, enabling him make withdrawals when needed cash and
write checks pay for ordinary household expenses. After became mayor, his
banking radically changed: cash withdrawals almost ceased, replaced regular
round number cash deposits and cash payments his credit card bills. See Trial
Exhs. KKF-1 shown the chart below, his net monthly cash activity was
the red during the entire year before took over mayor. continued the
red during his first six-months mayor until became accustomed the job.
Thereafter, the color his cash activity his banks changed green and stayed
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15797
that way---increasing each year until hitting peak just before went jail for
the first time. all, while was mayor, Kilpatrick conducted more than half million
dollars cash transactions, mostly cash deposits and cash payments his credit
card bills. His bank records alone showed more than $840,000 unexplained
expenditures above and beyond his salary mayor. Trial Exh. KKF-30. None
this extra money was disclosed his tax returns. And was bare minimum--just the money and expenditures investigators could identify from his financial
records. does not account for any the cash bribes and kickbacks that
Kilpatrick kept spent outside his financial institutions.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15798
Bobby Ferguson was the coconspirator who benefited most from
Kilpatrick tenure mayor. Kilpatrick made Ferguson rich, improperly steering
tens millions dollars city contracts Ferguson companies associated
with him. Before Kilpatrick came office, Ferguson did some demolition and
excavation work for the city, but was not major player. After Kilpatrick took
office, Ferguson and his companies received city-related gross revenues more
than $120 million, least $73 million which came from extortion and bidrigging. The relationship was not one-way street. benefited both men
illustrated text exchange between the two regarding the restoration the
Book-Cadillac Hotel overseen the city:
KMK: Anything happens Book Caddy will the
BWF: Lol, what have you gotten into, any thing with
kwame kill, next news worthy. famous
now. just need get some money.
KMK: Lol! Right. Let get you some.
BWF: Us.
Trial Exh. BCD-09. the same time that Kilpatrick bank accounts showed regular influx
cash, the cash his partner Ferguson accounts---brimming with money from
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15799
city projects---flowed the other way. Their text messages give partial snapshot why their cash-streams went opposite directions: furtive meetings parks
and other locations around the city; promises Ferguson and thank-yous from
Kilpatrick for cash; codes hotel safe containing $7,500 loot. all, during
Kilpatrick time mayor, Ferguson withdrew more than $2.5 million cash
from his bank accounts. the fall 2008, Kilpatrick partnership with Ferguson city contracts
was coming end, Ferguson cash withdrawals increased. the same time, shown the chart above, Kilpatrick cash deposits spiked---with more than
$50,000 cash going into his accounts just the two month period from
September the end October, when began his jail sentence.
September 2008, the day Kilpatrick pled guilty the state charges and
announced his intention resign mayor, one Ferguson associates
obtained $50,000 cash using check from Ferguson company, Xcel
Construction. The next day different Ferguson associate obtained another
$30,000 cash from Xcel account. With the news media pursuing Kilpatrick
because the scandal, Ferguson could not easily get him recruited
Mahlon Clift, friend Kilpatrick from Chicago, deliver $90,000 cash
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15800
Kilpatrick. Clift hid the cash vacuum cleaner for safekeeping, then delivered
the cash Kilpatrick two installments: once Detroit and once Texas. September 17, 2008, the day before Kilpatrick left office, Ferguson
cashed certificate deposit worth $1.1 million representing prior payments
DWSD contracts. used those funds purchase twenty sequential cashier
checks $50,000 more, each made payable Xcel. Several months later --shortly before Kilpatrick was released from jail for his first state sentence --federal agents executed search warrant Ferguson offices. They found large
safe concealed behind wall Ferguson personal office. Ferguson told the
agents that the safe contained only personal items, but when the agents
opened they found stuffed with over $260,000 cash. Later, different
location, agents found another safe owned Ferguson with more than $275,000 cash, well $500,000 cashier checks. Fraud
Even before Kilpatrick took his oath office mayor, and Ferguson
had plan take public money for themselves. member the Michigan
House Representatives, Kilpatrick secured half-million dollar grant from
state arts, culture and quality life fund for non-profit set Ferguson.
Ferguson claimed would use the grant help seniors and runaway youth.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15801
But the very first thing Ferguson did after receiving the state funds was wire
$100,000 Kilpatrick wife, Carlita. Ferguson then took another $100,000
and used renovate his new corporate headquarters. This had nothing
with helping seniors runaways, the cover story Ferguson gave the state
justify his expenses. When Kilpatrick learned that the state had refused give
Ferguson the second installment money because Ferguson lack
documentation, Kilpatrick became livid, accusing state administrators bias
their scrutiny grant recipients.
Kilpatrick also persuaded his pastor apply for state arts grant the
condition that the pastor give portion the money Kilpatrick wife, Carlita, teach non-violent conflict resolution local schools. When the pastor nonprofit organization received the grant, paid Carlita $37,500, which was the first
installment promised $75,000 payment her. After the payment, Carlita did
not teach any schoolchildren despite repeated attempts the non-profit get
her fulfill her promise. When Kilpatrick learned that his pastor non-profit
coordinator had told the state about Carlita involvement, angrily scolded the
coordinator about the disclosure. Carlita did not return the money, the nonprofit had use its own funds reimburse the state.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15802
After became mayor, Kilpatrick cooked more fraudulent schemes,
including misappropriating funds from other non-profits. The most important
these new schemes involved non-profit created called the Kilpatrick Civic
Fund. promised donors the civic fund that would use the money
improve Detroit neighborhoods and the lives city youth, and that would not
use for personal purposes for his political campaigns. See, e.g., Trial
Exh. KCF-99. televised debate during his first campaign for mayor declared
emphatically, haven used one penny, one penny the civic fund this
campaign because not allowed law. Trial Exh. KCF-1A. Contrary his
assurances, used $159,000 from the civic fund finance his campaigns. This
was not for city neighborhoods for children promised but keep himself office and thus position continue enrich himself.
Kilpatrick donor solicitation letters boasted that the civic fund helped
support local youth football leagues and educational seminars. The civic fund did fact make token contributions these activities, but they paled comparison the more than $200,000 donor money Kilpatrick used for personal purposes
like getaway weekend Vail with his Chief Staff Christine Beatty; spa
treatments; yoga sessions; high-end golf clubs and lessons; anti-bugging
equipment; and private preschool, waterparks and summer camp for his children.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15803
Kilpatrick did not hesitate cover his improper uses the civic fund when
caught. instructed his communications director, Matt Allen, tell the news
media that Kilpatrick had personally paid for family vacation the four-star Costa Resort Spa outside San Diego. After the media got copy the $8,605
civic fund check Kilpatrick used pay for the resort, Kilpatrick switched his story,
falsely claiming that had traveled the upscale retreat find wealthy West
Coast donors the civic fund.
When the text message scandal broke, Kilpatrick used $100,000 civic
fund money hire nationally-renowned crisis manager minimize the damage his reputation. his grip the mayor office loosened, drained the civic
fund, handing out nearly $200,000 more his friends and family, including
$50,000 his father Bernard Kilpatrick and another $110,000 his Chief Staff
Christine Beatty for supposed services the non-profit. prepared depart
from Detroit, used the civic fund pay for his relocation expenses, including
hotels, rental homes and moving vans. his way out, even offered the
caretaker the Manoogian mansion $10,000 civic fund check for the furniture the mayoral residence. total, Kilpatrick used his civic fund siphon away
least half million dollars expenses that had nothing with the fund
purpose helping the community Detroit.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15804
The civic fund was not the only non-profit Kilpatrick raided for personal
gain. required Emma Bell, his fundraiser for his non-profits and woman who
had known him since was child, kick back nearly half her commissions him. Through this scheme, took over $250,000 cash from his non-profit
campaign and inaugural funds, none which declared his income taxes. Bribes
While was mayor, Kilpatrick also took bribes from local vendors who
wanted city business. least three occasions, took $5,000 $10,000 cash
from businessman Karl Kado protect Kado cleaning and electrical contracts
Cobo Civic Center. Derrick Miller, Kilpatrick Chief Administrative Officer,
delivered thousands more cash from Kado Kilpatrick for Kado Cobo
contracts. addition, Miller gave Kilpatrick about $50,000 Miller own cash
kickbacks that had received from real estate broker who did business with
the city. Near the end Kilpatrick time office, Miller met Kilpatrick
restaurant bathroom give him another $10,000 cash kickback from
businessman who received financing from the city pension funds.
Jon Rutherford, homeless shelter owner who pulled $650,000 year from
his publicly-financed homeless shelter and adult foster care service, gave much
that money politicians and their campaigns could land casino
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15805
Detroit riverfront. Kilpatrick was the biggest beneficiary. Rutherford gave several
hundred thousand publicly-derived dollars Kilpatrick, his father, and his nonprofit and campaign organizations. This included several thousand dollars cash
Rutherford gave Kilpatrick Las Vegas and another $10,000 cash gave
Kilpatrick buy custom-made dress suits trip Dubai.
Others were drawn into Kilpatrick corrupt orbit. Construction contractor
Johnson Akinwusi won contract build the city Heilmann recreation center
after paying off Kilpatrick outstanding bills for custom-made suits and partnering
with one Ferguson companies. Investment advisor Chauncey Mayfield, who
received tens millions dollars city pension funds invest, gave $50,000
the Kilpatrick Civic Fund and more than $100,000 worth entertainment
expenses and private jets Kilpatrick and his friends for junkets Las Vegas,
Bermuda and Florida. See Rule Plea Agreement Chauncey Mayfield,
No. 12-CR-20030-NGE (E.D. Mich., Feb. 2013). Kilpatrick took flights worth over
$300,000 from Anthony Soave, including shopping trip New York City where
Soave bought him Rolex watch, ensure that Soave Detroit-based companies
would not harmed Kilpatrick.
Kilpatrick also directed city vendors pay his father, Bernard Kilpatrick,
order receive favorable treatment city contracts and pension deals. This
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15806
included Kilpatrick college friend, Marc Andre Cunningham, who paid regular
cash kickbacks Bernard Kilpatrick, Kilpatrick direction, for $30 million city
pension fund financing for venture capital firm run Cunningham uncle. Extortion
But none these bribers got anywhere near the largesse Kilpatrick
reserved for Ferguson. After Kilpatrick became mayor, and Ferguson
dramatically scaled their criminal ambitions from their initial theft state arts
grants. Kilpatrick authority and influence over public resources mayor far
outstripped his power state legislator, enabling him steer stunning
amounts city business Ferguson. City contractors quickly learned that they
had cut Ferguson their city contracts would held hostage, even
canceled. did not matter whether the contractors needed wanted Ferguson, whether would anything for the payouts. Tens millions dollars
city business went Ferguson, some for work all.
Early on, Kilpatrick and Ferguson figured out that the Detroit Water
Sewerage Department (DWSD) was one the few remaining sources ready
capital the cash-strapped city, with more than billion available use for
contracts with outside vendors. Adding its allure was the fact that the mayor
had been appointed special administrator over the DWSD which allowed him
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15807 approve large DWSD contracts without oversight scrutiny the Detroit City
Ferguson used threats financial harm pressure businessmen hand
over money city business Ferguson. Kilpatrick backed these threats
holding canceling public contracts when businessmen did not play ball. The
partnership extorted and bid rigged least $73 million city contract revenues Ferguson. Shortly after taking office, Kilpatrick held hostage $50 million
contract fix aging sewers beneath the city until Inland Waters, the company
awarded the contract, agreed Kilpatrick demand dump its minority
subcontractor for Ferguson.
Kilpatrick and Ferguson used this same formula throughout Kilpatrick
tenure mayor extort and steer contracts for Ferguson benefit. DLZ,
minority-based company with subsidiary headquartered Detroit, was the top
bidder for another sewer project, besting Ferguson team. Kilpatrick quietly
summoned his Human Rights Department Director, Gerard Grant Phillips, the
Manoogian mansion, took him side-room, turned the television full
volume, and ordered Phillips pull DLZ Detroit headquarters certification.
See Report Interview Phillips, dated June 2010. Phillips did was
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15808
told which caused Ferguson team leapfrog DLZ for the bid award, costing
taxpayers more than $1.6 million. Trial Exhs. LS3-11, LS3-18 LS3-36.
Another Detroit-based minority-owned construction company, Lakeshore
Engineering, had its $10 million contract for sewer repairs canceled because
declined give Ferguson 25% the deal. Before making his demand, Ferguson
text messaged Kilpatrick make sure would hold the contract long enough Ferguson could make his move. See Trial Exh. LS1-11. After Lakeshore declined,
Ferguson and Kilpatrick mulled over the best approach benefit Ferguson. See,
e.g., Trial Exh. LS1-12. According Kilpatrick Chief Administrative Officer,
Derrick Miller, Ferguson decided wanted the contract canceled Kilpatrick
directed Miller tell DWSD Director Victor Mercado cancel it. The work was
given instead Inland Waters, the company that previously had agreed play
ball with Ferguson dumping its minority partner for Ferguson.
When the DWSD announced the next major contract repair sewer
outfalls, Lakeshore had learned its lesson and made sure Ferguson was its
team. During the negotiations, Ferguson gloated Miller that Lakeshore had
 gotten smart that there would deal without [Ferguson]. Trial
Exh. LS2-2. ensure did not lose the contract, Lakeshore made $1.7 million show payments Ferguson.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15809
Other local companies also had enter into dubious deals with Ferguson ensure they did not lose city contracts they had legitimately earned. Early
the Kilpatrick administration, Detroit-headquartered construction firm Walbridge
Aldinger was confident that had submitted the lowest equalized bid
construct the Baby Creek combined sewer overflow facility near the Rouge River.
After the bids were opened, Chief Administrative Officer Derrick Miller,
Kilpatrick request, told Walbridge official that his company needed put
Ferguson the deal. Although Walbridge had prepared its bid without any
involvement Ferguson, signed one-page handwritten agreement with
Ferguson promising him that Walbridge were awarded the contract, Walbridge
would give $12.73 million the work Ferguson. Trial Exh. WA1-14. Walbridge
already had its team place, but felt had give sizeable piece the
project Ferguson ensure did not lose the contract.
One week after Walbridge signed this hastily-drafted side agreement,
DWSD director Victor Mercado recommended Walbridge for the contract, which
Kilpatrick later approved his role special administrator. When subcontractors
later bid the project, Ferguson wanted influence the results for his benefit
without interference DWSD, told Kilpatrick: Baby Creek, told you
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15810
would call your when need help, help f--king victor [Mercado, expletive deleted], don need DWSD set the bid opening. Trial Exh. WA1-33.
City contractors had gotten the message loud and clear: deal without
Ferguson. Much the contracting community was convinced that they had
hire Ferguson they wanted city job. Many the largest city projects now had
Ferguson them. And was not because had the lowest prices. The scheme
worked well that Ferguson needed use second company controlled,
Xcel Construction, would not attract attention being many major
city projects.
The steering city business Ferguson became extreme that
trumped family ties. Even Kilpatrick sister, Ayanna, complained Kilpatrick and
Derrick Miller that she wanted make money from her brother administration
too, but she could not compete against Ferguson obtaining city contracts:
 Here with this Bobby bull again! [Kilpatrick political operative Michael]
Tardiff cancelled meeting with guys today. Just stated bobby wants
same thing.. (Waste Hauling). Great its room for him, terrible holding
up! Can make too?!! Trial Exh. RC-46.
Kilpatrick did not consider costly public works disasters setback for
the city but financial opportunity for Ferguson and ultimately himself. huge
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15811
sewer collapse Sterling Heights cost DWSD customers southeast Michigan
tens millions dollars. Kilpatrick immediate concern was making sure
Ferguson got piece it, directed him meet with DWSD Director
Mercado the site the emergency response. Ferguson texted Kilpatrick that had great idea how Ferguson would move in, then sketched out his
plan. Kilpatrick responded enthusiastically, saying, Perfect! That what
needed. Trial Exh. IN1-34. Inland, the general contractor overseeing the
emergency response, gave Ferguson more than million worth work, but
thought deserved more. When amendment Inland contract was sent
the mayor office August 2005 cover part the cost the repairs,
Kilpatrick did not sign off special administrator until December 23, 2005,
after Inland finally agreed give Ferguson more money. Trial witnesses like
Derrick Miller and Bernard Parker III confirmed that Kilpatrick would not approve
Inland payments until the situation with Ferguson was resolved. this time Kilpatrick was running out time exploit his power
special administrator help Ferguson. January 2006, less than two weeks
after Kilpatrick signed Inland contract amendment for the emergency repairs,
U.S. District Judge John Feikens terminated Kilpatrick authority special
administrator over the DWSD. Kilpatrick rushed over the judge chambers,
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15812
pleading with him rescind the order because Kilpatrick had number
important things needed special administrator, including getting
payment five DWSD contracts. See Report Interview Brader, dated
Sept. 23, 2011; Trial Exh. DLZ-31. The judge declined reconsider his order, but
Kilpatrick persuaded him approve the five contracts. Four them involved
Even after Kilpatrick lost his special administrator authority 2006, still
wielded enormous influence over the DWSD and its director, Victor Mercado,
who served the pleasure the mayor. For example, 2007, Ferguson
demanded that Walbridge make him 35% joint venture partner $140 million
DWSD contract repair the Oakwood pump station, even though Ferguson
refused assume any downside risk there were losses the job. Before the
bids were submitted, Mercado added pressure Walbridge decision
inappropriately contacting Walbridge executive encourage its partnership
with Ferguson. See Email from Hausmann Rakolta, dated Feb. 2007.
Chief Staff Christine Beatty caused the bidding deadline delayed
specifically Ferguson could work out deal with Walbridge. Ferguson even
arranged for Walbridge president meet privately with Kilpatrick the
Manoogian mansion about Ferguson demands. See Email from Rakolta
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15813 Hausmann, dated Feb. 2007. After Walbridge decided could not accept
Ferguson unreasonable terms, they lost the contract. Ferguson did not get city contract, there could consequences not
only for the winning bidder, but for any official who allowed happen. Toward
the end his tenure mayor, Kilpatrick became furious when learned that
the director the Detroit Economic Growth Corporation (DEGC) had not
awarded Ferguson team the contract demolish old Tiger Stadium, even
though Ferguson bid was $300,000 higher than the winner, joint venture
which included qualified Detroit-based minority demolition company. Kilpatrick
lacked the power outright fire the DEGC director sent one his top
aides, Kandia Milton, ask that the director resign his position. See Reports
Interviews Jackson, dated July 2010, 5-6, and Milton, dated
July 2010.
Throughout Kilpatrick time office, and Ferguson paid lip service
the advancement minority businesses. was smokescreen for their real
agenda---helping themselves and their associates the city limited resources. reality, Kilpatrick and Ferguson were equal opportunity extortionists---pushing
out both black and white contractors who got their way. minority business
enterprises did not play ball, they crushed them, then laughed when the company
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15814
officials went Kilpatrick and his staff for redress. When minority construction
contractor Odell Jones confronted Ferguson about Ferguson failure provide
his workers with safety protection, Ferguson was offended that Jones had the
nerve question him, adding that would simply get Kilpatrick call the
governor get the violations dismissed. After the encounter, Jones invitations bid for city business dried up. went the administration and Kilpatrick
mother, U.S. Representative Carolyn Cheeks-Kilpatrick, for help, only
laughed Kilpatrick and Ferguson:
BWF: Odel jones call your moma [Cheeks-Kilpatrick], lol
KMK: know. And sister [Ayanna].
BWF: Ok, thought was funny, should have followed first mind know wasn s--t [expletive
KMK: Yep.
See Trial Exh. DBB-1.
Similarly, minority contractor Tom Hardiman was shut out when tried
find out why Lakeshore sewer contracts had been canceled and whether had
anything with not giving Ferguson piece Lakeshore business. After
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15815
Hardiman reached out Kilpatrick mother for help, Ferguson and Kilpatrick
mocked him, just like before with Jones:
BWF: Tom hardiman, lakesure they called your mother
office us. Zeke [Chief Administrative Officer
Derrick Miller] just called me.
KMK: Lolol!
BWF: You got talk dedan [Kilpatrick executive
assistant Dedan Milton] and zeke [Miller], this s--t
[expletive deleted] funy about the s--t [expletive
deleted] the union and lakesure saying. Hey
didn know would become the motherf--king
man [expletive deleted] The real man kmk 
See Trial Exh. LS1-13.
For Kilpatrick criminal partnership with Ferguson survive and prosper,
they needed conceal their activities from the public and from law enforcement. least initially, they sent text messages each other instead talking the
phone. During his promotional tour for his 2011 memoir, Kilpatrick told
reporter, The FBI investigated mayor Coleman Young and they had all these
tapes his phone calls. thing was, doing this new texting thing. They
can listen this. Midway through his tenure mayor, however, Kilpatrick got
wise the risks text messaging using his city-owned SkyTel pager when his
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15816
executive assistant Marc Andre Cunningham told him that SkyTel was storing the
messages and that un-stored PIN-to-PIN messaging Blackberry was safer
course. Kilpatrick and Ferguson quickly dumped their Skytel pagers and Ferguson
bought each them Blackberry devices they could continue their
communications without any paper trail. order hide the true nature their relationship from the news media,
Kilpatrick and his public relations team strategized closely with Ferguson about
what they should tell the press about Ferguson financial support Kilpatrick
political campaigns, whether they traveled together, and how much work
Ferguson was getting from the city. See, e.g., Trial Exh. RC-31. the same time,
Kilpatrick tried protect Ferguson increasingly tattered reputation when more
and more his questionable behavior came light. After Ferguson was
convicted bludgeoning one his employees with the butt pistol, Kilpatrick
quickly came Ferguson defense, issuing statement the press calling him dedicated family man and one the hardest-working people know. The
wounded employee was later awarded $1.6 million judge after suing
Ferguson for the permanent brain damage Ferguson caused the brutal beating.
Despite their efforts, the public and the news media started taking notice
the sheer number city projects Ferguson was winning. So, Kilpatrick and
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15817
Ferguson strategized about how hide Ferguson success from public view.
one telling exchange, Chief Staff Christine Beatty texted Kilpatrick about
proposal construct new police department headquarters, asking, Why not
Bobby this? Kilpatrick responded, Bobby wanted strategically lose major
bid. will this one bid time. Trial Exh. RC-28. What contractor would
spend the time and money bidding city contract order lose
purpose? Someone who did not really have bid because was partners with
the mayor. And someone who needed conceal that partnership. Kilpatrick History and Characteristics (18 U.S.C. 3553(a)(1))
Kilpatrick history and characteristics also strongly support very
substantial prison sentence. The bribery, extortion and fraud exposed during
Kilpatrick six-month racketeering trial was just one portion the self-dealing
and abuse trust inflicted the city during his turbulent six years mayor. Misappropriating City Resources mayor, Kilpatrick lived luxury lifestyle his city salary could not possibly
support: jetting around the country private planes supplied city contractors
and pension fund investment recipients; treating himself resort vacations and
seemingly limitless wardrobe custom-made suits. those occasions when his
globe-trotting included legitimate governmental purpose---like conference
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15818
mayors---he often arrived with head-turning entourage bodyguards,
associates and friends befitting foreign head state. Meanwhile, the homefront, the city was supposed govern faced projected $230 million deficit,
its citizens lacked basic services like street lights and police protection, and onethird its adults and one-half its children were living below the poverty line.
Seemingly oblivious these stark realities, Kilpatrick did not hesitate
grab the city dwindling resources for his own personal use. his first three
years office, Kilpatrick charged over $200,000 his city-issued credit card for
expensive dinners, champagne, entertainment, spa treatments Las Vegas, and
travel. Detroit taxpayers were not the only ones rankled his behavior. The
Washington, D.C., police announced that they would longer provide Kilpatrick
after-hours security protection when and his associates partied nightclubs
after difficulties encountered during his previous trips the nation capital. The
Kilpatrick administration lashed out that the statements the Washington police
were part effort ruin him.
Then there were the extravagant gifts that Kilpatrick office staff was
expected give him. Kizzi Montgomery---an office staffer who made just onefifth the salary given Kilpatrick---testified that during Kilpatrick six years
office she was expected give money twice year could get opulent
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15819
birthday and Christmas gifts like getaway golf vacations and $22,000 Rolex
watch. Private parties got into the action, too. Kilpatrick enjoyed large gatherings
where city business people and officials could lavish him with gifts. William Tandy,
the coach the West Side Cubs charity league football team, testified that
had eat ramen noodles for week order afford the $100 contribution
partygoers were handing over the Splash Red party for Kilpatrick
birthday. was not one-way street giving Kilpatrick for all city employees,
though. City payroll records showed that more than two dozen Kilpatrick
appointees were family members close friends. News media analysis city
employment records showed that during time-period when Kilpatrick was
slashing city jobs, his family and friends received average 36% salary increase
while other city workers received only raise.
Kilpatrick also used city resources pamper his immediate family. During
his first term office, text messages show that Kilpatrick arranged for the city
lease series high-end Lincoln Navigator sports utility vehicles for his wife,
Carlita. his first year office, the police department leased maroon Navigator
for her cost $14,000, followed red Navigator with 2-year lease
costing the city $24,995, just below the threshold requiring city council review.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15820
Once the news media got wind the expenditures, Kilpatrick and his staff first denied the SUV was for Carlita. Police officials claimed the fully-loaded
Navigator (with aftermarket DVD player installed for his children), was leased
for undercover police work. The recently-appointed Deputy Mayor denied the
police department had leased vehicles for the mayor. Kilpatrick followed, need absolutely clear. When the Deputy Mayor stands and says there was
never vehicle ordered for wife, that absolutely true. 
This was all charade. According Kilpatrick cabinet officials Derrick Miller
and Sean Werdlow, after the media took notice the pricey SUV, Kilpatrick and
Beatty authorized aides mislead the public about the Navigator. See Reports
Interviews Miller, dated Oct. 12, 2012, and Werdlow, dated
Nov. 2012, Finally, after weeks denying it, Kilpatrick admitted that the
city paid lease the SUV for his wife, chalking off some screw-ups
communication, then criticized the media for aggressively pursuing his family.
Kilpatrick selfish attitude had ramifications for other important city
initiatives. After the city entered into federal consent decree reform how the
police department treated criminal suspects, see United States City Detroit,
No. 03-CV-72258 (E.D. Mich.), Kilpatrick jeopardized the integrity the process having romantic liaisons with the court-appointed monitor overseeing the
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15821
reforms. The monitor resigned her position after text messages uncovered
criminal investigators revealed the affair. The city later sued recover the
$10 million fees had paid the monitor and her employers, which was resolved undisclosed settlement 2011. See City Detroit Sheryl Robinson
Wood al., No. 11-12584 (E.D. Mich.). Perjury and Cover Text Messages
Gary Brown, head the police department internal affairs unit, and
Harold Nelthrope, member the mayor executive protection unit (EPU),
obtained jury verdicts against Kilpatrick and the city lawsuits complaining they
were fired part retaliation for their roles investigation into misconduct Kilpatrick EPU staff well rumored party the mayor residence. See
Brown Mayor Detroit, 478 Mich. 589, 734 N.W.2d 514 (2007). During the trial
and pretrial depositions, Kilpatrick and Beatty falsely testified that they did not
fire Brown, but instead ended his appointment deputy police chief that
would return work police lieutenant. Their testimony was refuted their
own internal text exchanges. Within days firing Brown, Beatty texted Kilpatrick, sorry that are going through this mess because decision that
made fire Gary Brown. Kilpatrick replied, True! had happen though. all the way with that! Kilpatrick later texted his staff, must answer the
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15822
question. Why was Gary Brown fired. will asked. need short, powerful
The jury found that Kilpatrick and his administration had unlawfully
retaliated against Brown and Nelthrope, awarding them $6.5 million damages.
Kilpatrick immediately vowed appeal, but then approved even larger
$8.4 million settlement for Brown, Nelthrope and third officer after learning
that they had obtained text messages showing that Kilpatrick and Beatty perjured
themselves their testimony. Kilpatrick attempted cover the text messages using public funds pay for the return the messages and the silence the
officers. The Detroit City Council and the trial court, unaware the secret side
deal the text messages, approved the settlement.
The scheme began unraveling after news outlets received some the text
messages and began publishing stories about Kilpatrick and Beatty lies and
concealment information relating the settlement. news the scandal
intensified, Kilpatrick accepted Beatty resignation, saying was the right thing do. did not tell the public that Beatty would get $150,000 non-profit
money for taking the fall for the scandal --- $110,000 from the Kilpatrick Civic
Fund and $40,000 from the Next Vision Foundation, his sister non-profit.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15823
But Kilpatrick defiantly refused leave office himself. Instead, engulfed
the city and the region another seven months non-stop civil and criminal
litigation. Fed with the spiraling scandals and gridlock, the Detroit City Council
entered resolution calling for Kilpatrick resignation and, when that did not
work, petitioned the governor Michigan remove him from office.
The Wayne County Prosecutor filed criminal charges against Kilpatrick for
his cover-up the whistleblower suit. See People Kilpatrick, No. 08-58169
(Wayne County Circuit Court). Kilpatrick trial date neared assaulted
sheriff detective who was trying serve subpoena Bobby Ferguson
appear witness the case. According the detective and his partner,
Kilpatrick emerged from the house with his armed bodyguards nearby, began
shouting expletives the investigators, then grabbed the detective and shoved
him into his partner causing him fall. The Michigan Attorney General filed
charges against Kilpatrick for the incident, stating, almost twenty years prosecutor and now Attorney General, cannot recall one case where
someone ever assaulted police officer she tried serve witness. 
The months legal tumult paralyzing the city finally ended when Kilpatrick
agreed plead guilty two felony counts obstruction justice for lying
the witness stand the whistleblower case and contest assaulting the
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15824
sheriff detective. part the plea, Kilpatrick agreed resign his position
mayor, serve four months jail, and pay million restitution the city. Refusal Pay Restitution
Immediately upon Kilpatrick release from jail, departed Detroit
private jet for rented mansion Texas. Almost quickly, lost interest
paying his restitution obligations the financially distressed city left behind. fell into arrears, one point telling the judge overseeing his probation that
could only afford repay per month the city. The judge had conduct four
days hearings get the bottom Kilpatrick claimed lack resources.
During the hearings came out that Kilpatrick received $240,000 from four
Detroit-area businessmen. One the businessmen gave Kilpatrick $180,000 per
year salary plus commissions software salesman Dallas. local bridge
owner kicked another $50,000 for Kilpatrick wife and children.
Rather than paying off his restitution with all this money, Kilpatrick used
the windfall (as well Ferguson cash bribes) attempt recreate the
luxury lifestyle enjoyed mayor Detroit. The restitution hearing revealed
that Kilpatrick paid remarkable $75,000 up-front for 13-month lease
5,866 square foot mansion wealthy Dallas suburb, leased luxury vehicles and
sent his children private schools.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15825
Following the hearings, the judge revoked Kilpatrick probation and sent
him back jail, finding that had repeatedly lied during the proceedings about
his ability repay the city, which was contradicted the hundreds thousands dollars flowing through his bank accounts. The judge found that Kilpatrick
perjured himself when falsely claimed that did not know whether his wife
had job, how much paid for their home, even who paid the family bills.
The judge concluded, Most substantially, most compelling, that you lied this
court. You continued lie, after pleading guilty lying court. Obviously, there
has been rehabilitation. You have not changed. People Kilpatrick,
No. 08-010496 (Wayne County Circuit Court, May 25, 2010). Lack Remorse
Even now, after years civil and criminal litigation, there evidence
that Kilpatrick has accepted responsibility for his crimes office, nor there any
sign remorse contrition. See Cook, 551 F.3d 542, 551 (6th Cir. 2009)( well established that defendant remorse-or lack thereof-is appropriate
consideration meting out punishment. United States Manjate,
327 App 562, 573 (6th Cir. 2009)(considerations such lack remorse come
squarely within the ambit 3553(a) factors). memoir wrote jail,
Kilpatrick claims that has faced down his demons and become new man.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15826
But his book and other recent media pronouncements, minimizes the crimes
for which pleaded guilty, implying that was railroaded disdainful
county prosecutor out destroy him, who, along with the news media,
 executed the most coordinated efforts since the Super Bowl against him. See
Surrendered: the Rise, Fall Revelation Kwame Kilpatrick, Kilpatrick with Turner (2011), 232, 262. further claims that the Wayne County Sheriff
perfectly timed set Kilpatrick lure him assault one his detectives.
Id. 251-52. claims that the Wayne County judges assigned his case were
influenced the dastardly prosecutor well their own vanity and desire for
media attention treat him harshly and illegally. Id. 252-66, 294-304.
Incredibly, now even claims that was lying under oath when stood
court and pled guilty obstructing justice. Id. 263. Positive Actions Mayor
The government anticipates that Kilpatrick will emphasize this court the
positive accomplishments that occurred during his tenure mayor. The
government does not contest that frequently attended his official duties.
was the job for which was elected and for which was given generous
salary and benefits, including mansion, driver and numerous other perquisites office. does not set him apart from other criminals who oftentimes are
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15827
productive members society when not otherwise engaging criminal activity.
Indeed, would astonishing Kilpatrick had not taken some positive official
actions mayor given the authority and influence had over how the city spent
millions dollars for citizen services and capital improvements. part for this reason that the Sixth Circuit cautions sentencing courts
against placing too much weight factors like defendant prior civic,
charitable and good works, well the defendant special qualifications
help the community. United States Peppel, 707 F.3d 627, 640-41 (6th Cir. 2013)
(citing United States Bistline, 665 F.3d 758, 766-67 (6th Cir. 2012); see also
United States Serafini, 233 F.3d 758, 773 (3d Cir. 2000)( public servant
performs civic and charitable work part his daily functions, these should not considered his sentencing because expect such work from our public
servants. Defendants should not sentenced more lightly the ground that
they offer more society than those who not possess similar knowledge and
skill; otherwise criminals with privileged backgrounds would treated better
than those with nothing left lose. Peppel, 707 F.3d 641; United States
Vrdolayk, 593 F.3d 676 (7th Cir. 2010)(defendants who good deeds because
they are position should not gain advantage over those who not
because they cannot).
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15828 Seriousness Kilpatrick Crimes, Just Punishment, and Respect for the Law
(18 U.S.C. 3553(a)(2)(A)) very substantial prison sentence necessary reflect the seriousness
Kilpatrick crimes, provide just punishment for those crimes and promote
respect for the law. Kilpatrick pervasively and systematically corrupted city
government during his six years mayor Detroit. pay-to-play culture
infected large sectors city contracting and the city pension systems. Important
infrastructure projects were delayed shelved Ferguson and Kilpatrick other
associates were not included deals, costing ratepayers the region money and
proper service. the top public official the state largest city, Kilpatrick behavior
reverberated throughout the city vast bureaucracy. Rather than inspiring his city
managers and employees serve the public, set powerful and distressing
example for how abuse public office. alarming number the department
heads and advisors handpicked for high-level city positions followed his
footsteps, resulting their convictions for felony corruption offenses office.
all, least eighteen city officials and sixteen private parties who did business with
the city were convicted corruption offenses during Kilpatrick tenure mayor.
These include Kilpatrick Chief Staff Christine Beatty (perjury and obstruction),
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15829
his Chief Administrative Officer Derrick Miller (bribery), his Deputy Mayor Kandia
Milton (bribery), his DWSD director Victor Mercado (extortion), his two executive
assistants DeDan Milton and Marc Andre Cunningham (bribery), and his two Cobo
Civic Center directors Glenn Blanton and Lou Pavledes (bribery-related offenses).
Kilpatrick cousin Nneka Cheeks---who Kilpatrick selected run the nonprofit which oversaw restorations the Manoogian mansion where Kilpatrick
resided mayor---was convicted stealing from that non-profit. Kilpatrick
college friend Jeffrey Beasley---who became trustee the city two pension
funds virtue Kilpatrick appointment him Treasurer the city---awaits
trial felony charges extortion and bribery discharging his fiduciary duties the pension funds. Many the allegations against Beasley involve shaking
down pension fund investment advisors for lavish trips for Kilpatrick and Beasley
and their associates, well more than $250,000 payments the Kilpatrick
Civic Fund. The indictment, which names Kilpatrick coconspirator, alleges that
the corruption caused more than $84 million losses the financially imperiled
pension funds. difficult quantify the total cost the devastating corruption
instigated Kilpatrick and his criminal confederates. addition the tens
millions dollars extorted city revenues which flowed into the bank accounts
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15830 Ferguson and others, the tens millions dollars losses from corrupt
pension fund deals, and the bribes Kilpatrick took from various city vendors, there the harder-to-quantify costs the corrosive pay-to-play system Kilpatrick set
into motion. one can assess the number qualified, hard-working, ethical
contractors and vendors who simply sat the sidelines went elsewhere rather
than compromise themselves working corrupt municipal environment. But
one thing certain: was the citizens Detroit who were left holding the bag
when they handed over their hard-earned tax dollars the city but return did
not get the best services the best price.
Kilpatrick not the main culprit the city historic bankruptcy, which
the result larger social and economic forces work for decades. But his
corrupt administration exacerbated the crisis. Economists widely recognize the
adverse effects corruption region economic health reducing the
productivity public expenditures, distorting the allocation resources, and
frightening off investors, suppliers and service providers. The World Bank
estimates that corruption worldwide increases the cost doing business 10%
and consumes more than global gross domestic product. should come surprise then that those countries with the highest rates corruption are
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15831
typically countries with high levels political repression and dysfunction, and low
levels economic productivity and social well-being.
More corrosive than the financial costs Kilpatrick crimes was the
intangible harm caused his abuse the public trust. One the things
separating our country from despotic regimes elsewhere the world our
principle that citizen above the law regardless his her station life.
During Kilpatrick six years mayor, acted though the rules did not apply him. The citizens had the right expect honesty, integrity and responsibility
when they elected Kilpatrick. What they got instead was widespread graft,
extortion and theft. His crimes eroded the public confidence city government. described federal judge the prosecution corrupt mayor
Bridgeport, Connecticut:
Government corruption breeds cynicism and mistrust
elected officials. causes the public disengage from
the democratic process because the public begins
think politics only for the insiders. Thus
corruption has the potential shred the delicate fabric democracy making the average citizen lose respect
and trust elected officials and give any hope
participating government through legitimate
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15832
United States Ganim, No. 3-01-CR-263, 2006 1210984,
(D. Conn., May 2006).
After enduring six years widespread corruption city government
created and shaped Kilpatrick, very substantial sentence necessary not only sufficiently punish Kilpatrick, but renew public confidence the rule law. Deterring the Criminal Conduct Others (18 U.S.C. 3553(a)(2)(B))
Imposing significant prison sentence for Kilpatrick also serves the
important purpose deterring future public officials this district and beyond
from engaging similar misconduct. See U.S.C. 3553(a)(2)(B). General
deterrence has its greatest impact white-collar cases, like this one, because
these crimes are committed more rational and calculated manner than
sudden crimes passion opportunity. United States Peppel, 707 F.3d 627,
637 (6th Cir. 2013)(quoting United States Martin, 455 F.3d 1227, 1240
(11th Cir. 2006)). federal judge Chicago stated: need not resign ourselves the fact that
corruption exists government. Unlike some criminal
justice issues, the crime public corruption can
deterred significant penalties that hold all offenders
properly accountable. The only way protect the public
from the ongoing problem public corruption and
promote respect for the rule law impose strict
penalties all defendants who engage such conduct,
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15833
many whom have specialized legal training
experiences. Public corruption demoralizes and unfairly
stigmatizes the dedicated work honest public
servants. undermines the essential confidence our
democracy and must deterred our country and
district ever achieve the point where the rule law
applies all --- not only the average citizen, but all
elected and appointed officials.
United States Spano, 411 F.Supp.2d 923, 940 (N.D. Ill. 2006).
Unfortunately, the prosecutions and resulting penalties past public
corruption cases this region have not been sufficient. They clearly did not
dissuade Kilpatrick and his associates from using the mayor office engage
brazen 6-year crime spree. the contrary, Kilpatrick and his confederates acted
with impunity, they were above the law. For many years now, the citizens
this region have endured corrupt governance though were inevitable cost living here. Kilpatrick defense team mistook the resulting weariness for
cynicism, telling the jurors that they may not like how the sausage government made, but still tastes good. The jury rejected this message decisively with its
overwhelming verdicts against the former mayor. Responding these historic
verdicts, then-Detroit City Councilman Gary Brown declared, culture
corruption existed Detroit for far too long. time for Detroit for all
Detroiters close the era wrong-doing, corruption and lack integrity
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15834
within our city. The young people our city have watched this case and have
been shown that values, integrity and character count they are all worth
fighting for. 
The young people Detroit are not the only ones watching this case,
course. are officials serving the public throughout the region and the state,
some whom may tempted---like Kilpatrick---to enrich themselves the
expense their constituents. While most these current and future generations public servants will serve honorably, those inclined otherwise need know
that there are severe consequences for violating the public trust. very
substantial sentence this case will demonstrate them and the citizens
the region that corruption will seriously addressed and deterred when
discovered. Protecting the Public from Further Crimes Kilpatrick
(18 U.S.C. 3553(a)(2)(C))
Kilpatrick has shown appreciation the gravity his crimes. has
continued flout the law disregarding court orders and blaming his
predicament his perceived enemies, his defense lawyers, and the prosecutors
and judges who have handled his cases. This lack contrition does not give any
confidence that will not commit new crimes given the liberty so.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15835
That said, unlikely that Kilpatrick will hold elected office again
position trust which has significant decision-making authority over public
funds. After was convicted his state felony charges, ended his speech
resigning his position mayor saying, defiantly, want tell you, Detroit,
that you done set for comeback. The voters Detroit and throughout
the state felt otherwise, overwhelmingly approving ballot proposal amending
the state constitution place 20-year ban public officials like Kilpatrick--who are convicted felonies alleging violations the public trust---from holding elected appointed position with control over public assets public policy.
Voters Texas and elsewhere presumably will also hesitate put Kilpatrick
charge their public assets given the notoriety his crimes Michigan.
Accordingly, unlikely that Kilpatrick will given the chance commit crimes significant those which has been convicted this case. Sentences Contemplated the Sentencing Guidelines
(18 U.S.C. 3553(a)(4)(A), (b)(1) (c))
The government concurs with the factual findings and calculations
contained the presentence investigation report (PSIR). The PSIR correctly
assigns Kilpatrick total offense level 43, which when combined with his
criminal history category IV, puts his guidelines range imprisonment life.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15836 Specific Offense Characteristics starting point, Kilpatrick base offense level fourteen because
committed his racketeering and extortion crimes while acting public official. 
U.S.S.G. 2E1.1 2C1.1(a)(2). Adding the severity his crimes the fact that was not run-of-the-mill public official, but was elected mayor responsible
for running large city government, including serving special administrator
over the DWSD. Accordingly, his base offense level should increased four
levels because was both elected public official and public official
 high-level decision making sensitive position. Id. 2C1.1(b)(3). His offense
level should increased another two (2) levels because accepted multiple
bribe payments from various local businessmen, including Bobby Ferguson,
Derrick Miller, Karl Kado and Jon Rutherford. Id. 2C1.1(b)(1).
Kilpatrick offense level must further adjusted upward because the
benefit received the loss suffered result his racketeering conspiracy. Id. 2C1.1(b)(2). calculate this adjustment, the court must make reasonable
estimate, preponderance the evidence, the greater the actual 
benefit/loss and the intended benefit/loss. U.S.S.G. 2B1.1, cmt., app. 3(C);
United States Blackwell, 459 F.3d 739, 772 (6th Cir. 2006); United States
Triana, 468 F.3d 308, 320 (6th Cir. 2006). The court need not establish the value
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15837
the benefit/loss with precision, but simply must publish its resolution contested
factual matters forming the basis for its valuation. United States Peppel,
707 F.3d 627, 645 (6th Cir. 2013). the leader criminal conspiracy, Kilpatrick responsible for all the
financial losses gains within the scope the conspiracy long they were
reasonably foreseeable. U.S.S.G. 1B1.3(a)(1)(B); United States Campbell,
279 F.3d 392, 399-400 (6th Cir. 2002); United States Hamilton, 263 F.3d 645,
654 (6th Cir. 2001). Accordingly, the best measure the harm caused
Kilpatrick racketeering conspiracy the net value benefits (i.e., the profits)
Ferguson derived from the city revenues Kilpatrick helped him illegally obtain
through extortion and bid-rigging. U.S.S.G. 2C1.1(b)(2), cmt., app. Applying conservative average profit margin 10% Ferguson $73 million revenues
from the city contracts comprising the counts conviction, well 10% profit
margin the other contracts that were part the conspiracy, Ferguson obtained total illegal profit $9.6 million. (See United States Sentencing Memorandum Defendant Bobby Ferguson, Docket No. 470.) This total falls comfortably
within the $7-20 million loss range found section 2B1.1(b)(1), increasing
Kilpatrick offense level another twenty levels, which the adjustment
contained the PSIR. Id. 2B1.1(b)(1)(K).
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15838 Role Offense
Kilpatrick role the conspiracy supports four-level enhancement under
section 3B1.1(a) because was organizer leader criminal activity
involving five more participants that was otherwise extensive.
U.S.S.G. 3B1.1(a). conspiracy otherwise extensive when the combination knowing participants and non-participants the offense the functional
equivalent activity involving five criminally responsible participants. United
States Anthony, 280 F.3d 694, 699 (6th Cir. 2002). [W]hen business top
officer knows corruption the business and implicitly approves
participating the corruption, four-level enhancement under 3B1.1(a)
proper. United States DeRiggi, F.3d 8-9 (2d Cir. 1995)(per curiam).
The evidence trial clearly demonstrated that Kilpatrick racketeering
conspiracy was extensive. also showed that Kilpatrick was not merely
participant, but was one the conspiracy leaders and organizers, directing
numerous others, including Derrick Miller, Victor Mercado, Christine Beatty,
Gerard Grant Phillips and Marc Andre Cunningham. Kilpatrick also organized and
led private parties criminal activity including Bobby Ferguson, Bernard
Kilpatrick, Karl Kado, Jon Rutherford and Emma Bell. four-level enhancement
therefore warranted.
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15839 Avoiding Sentencing Disparities Among Similarly Situated Defendants
(18 U.S.C. 3553(a)(6))
Kilpatrick more culpable and his misconduct more pervasive than any
other public corruption defendant sentenced recent memory. His guideline
range reflects that. should his sentence.
Section 3553(a)(6) instructs courts consider the need avoid
unwarranted sentence disparities among defendants with similar records who
have been found guilty similar conduct. That subsection concerned with
national disparities among the many defendants with similar criminal
backgrounds convicted similar criminal conduct. United States Benson,
591 F.3d 491, 505 (6th Cir. 2010). court careful review the guideline range
 necessarily [gives] significant weight and consideration the need avoid
unwarranted disparities. Gall United States, 552 U.S. 38, (2007). And
indeed, one the central reasons for adopting the sentencing guidelines the
first place was ensure stiffer penalties for white-collar crimes and eliminate
disparities between white-collar sentences and sentences for other crimes. 
United States Peppel, 707 F.3d 627, 638-39 (6th Cir. 2013).
That national consensus for stiffer white-collar penalties has intensified
public corruption cases. November 2004, the Sentencing Commission even
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15840
amended the guidelines increase the punishment for corrupt public officials.
The Commission explained that public corruption offenses previously did not
receive punishment commensurate with the gravity such offenses, especially
when compared with other white-collar crimes. USSG, App Vol. III,
(Amendment 666). The Commission thus increased the base offense level for
public officials because offenders who abuse their positions public trust are
inherently more culpable than those who seek corrupt them, and their
offenses present somewhat greater threat the integrity governmental
process. Id.
Since then, federal courts have increasingly handed out substantial
sentences public corruption cases where state and local elected officials have
inflicted serious damage the community. For example:
 James Dimora and Frank Russo, Nos. 10-CR-387 and 10-CR-384
(N.D. Ohio); appeal Dimora pending, No. 12-4004 (6th Cir.).
2011, former Cuyahoga County Commissioner Jimmy Dimora was
convicted racketeering and bribery-related crimes for accepting
items value return for helping contractors obtain county
contracts, grants, and loans, and helping others secure county
employment and salary raises. was sentenced 336 months
(28 years) prison based his receipt $451,000 personal
benefits. related case, former Cuyahoga County Auditor Frank
Russo who pleaded guilty accepting more than million
return for $21.4 million county real estate appraisal contracts,
well other bribery schemes involving jobs and salary increases
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15841
received prison sentence 262 months (almost years).
awaiting hearing Rule motion reduce his sentence based his testimony the Dimora trial and others.
 Mark Ciavarella and Michael Conahan, No. 09-CR-00272 (M.D. Pa.),
aff United States Ciavarella, 716 F.3d 705 (3d Cir. 2013). 2009,
Ciavarella and Conahan, both judges with the Luzerne County Court Common Pleas, were charged with racketeering for accepting
total $2.8 million from the owners several juvenile detention
centers return for the judges support the construction and
operation the facilities, well for the judges failure disclose
their conflicts interest when placing juvenile offenders the
facilities. Ciaveralla was convicted trial and sentenced
336 months (28 years) prison. Conahan pleaded guilty and was
sentenced 210 months (17.5 years) prison.
 Donald Hill, No. 3-07-CR-289-M (N.D. Tex.), aff United States
Reagan, al., 725 F.3d 471 (5th Cir. 2013). 2009, Hill, Dallas City
Councilman, was convicted bribery and extortion for helping
provide public financing, zoning clearance, and political support
affordable housing developers exchange for the developers 
employment Hill associates and appointees consultants. The
evidence sentencing showed that Hill associates received about
$270,000 fees and other benefits through the scheme, and that
losses totaled about $4.8 million, but there was little any evidence
that Hill himself received money from the scheme. Despite his lack
personal enrichment, Hill was sentenced 216 months (18 years)
 Jonathan Bolar, No. 09-CR-00138 (E.D. La.), aff United States
Bolar, No. 10-30879, 483 Fed. Appx. 876, 2012 1994728
(5th Cir. 2012). 2010, Bolar, Gretna, Louisiana city councilman,
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was convicted extortion for pressuring people hire his
construction firm give him campaign donations return for his
support various land-use matters. Although Bolar extorted total only $122,000, the trial court applied upward variance from the
guideline range 121-151 months because Bolar pervasive
extortion, well his obstructive conduct. The resulting 204month (17 year) prison sentence was affirmed the Fifth Circuit.
 Larry Langford, No. 08-CR-00245 (N.D. Ala.), aff United States
Langford, 647 F.3d 1309 (11th Cir. 2011). Langford, the president
the Jefferson County Commission and later the mayor
Birmingham, Alabama, was convicted 2009 accepting bribes for
steering county bond work investment banking firm
exchange for $240,000 cash, clothing, and jewelry. Langford was
sentenced 180 months (15 years) prison based net benefit the investment banking firm $5.5 million. The corrupted bond
deals later contributed Jefferson County billion bankruptcy
filing, the largest municipal bankruptcy U.S. history before the
$18 billion filing the city Detroit.
 Rod Blagojevich, No. 08-CR-888-1 (N.D. Ill.), appeal pending,
No. 11-3853 (7th Cir.). Blagojevich, the former governor Illinois,
was found guilty bribery and extortion conspiracy for attempting trade appointment the U.S. Senate and state funding for
hospital and horse race track, exchange for $1.6 million
campaign contributions private sector job for him. Only one
Blagojevich extortion attempts actually succeeded, resulting
$25,000 campaign contributions. 2011, was sentenced
168 months (14 years) prison.
Kilpatrick widespread and corrosive breach the public trust lasting
throughout his six-year tenure office exceeds even the worst these state
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and local corruption cases. None the other public officials disrupted his
community profoundly Kilpatrick did. The closest analogue Jimmy Dimora,
who received 28-year sentence for corruption Cuyahoga County
Commissioner. Dimora, like Kilpatrick, was convicted racketeering conspiracy
and had guideline range life imprisonment. But Dimora received only
$451,000 from his crimes, far below the $840,000 corrupt personal benefits
that Kilpatrick pocketed here. Dimora also shared power Cuyahoga County with
two other commissioners; mayor Detroit, Kilpatrick power was almost
unchecked his corruption seeping from the apex the executive branch into all
levels city government. And unlike Dimora, Kilpatrick past criminal conduct
includes such things perjury, assault, probation violations, and committing
these federal offenses while under the supervision other courts.
Thus, although there are identical comparisons, Kilpatrick crimes
straddle the upper tier state and local corruption cases sentenced under the
guidelines effect since 2004. His guideline range accounts for that and calls
for severe sentence avoid unwarranted disparities with other defendants.
The court therefore should sentence Kilpatrick least years prison.
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Kwame Kilpatrick was entrusted the citizens Detroit guide their city
through one its most challenging periods. The city desperately needed resolute
leadership. Instead got mayor looking cash his office through graft,
extortion and self-dealing. Detroit has now entered painful period
reassessment and unprecedented financial constraints. With hard work and good
fortune, the city will rise again. But will without and spite its
former leader. For Kilpatrick similarly move forward, will need recognize
and accept the true nature and scale his wrongdoings how many people
let down and exploited, the enormous consequences his criminal choices, and
the fact that was not the victim but the cause the painful circumstances
now faces.
Based the foregoing, the court should sentence defendant Kwame
Kilpatrick term imprisonment least years.
Respectfully submitted,
United States Attorney
Assistant United States Attorney
Assistant United States Attorney
Assistant United States Attorney
Assistant United States Attorney
2:10-cr-20403-NGE-MKM Doc 471 Filed 10/03/13 15845
CERTIFICATE SERVICE hereby certify that October 2013, electronically filed the foregoing
document with the Clerk the Court using the ECF system, which will send
notification such filing the following:
Harold Gurewitz
Attorney for Kwame Kilpatrick
Margaret Sind Raben
Attorney for Kwame Kilpatrick
Assistant Attorney
Dated: October 2013