Feds explore trail of cash at Detroit ex-mayor Kilpatrick's corruption trial

9/24/2012

DETROIT — Large amounts of cash that Kwame Kilpatrick deposited into bank accounts may have been gifts or money that he had saved for years and stored at home, the former Detroit mayor's lawyer suggested Monday.

Prosecutors went right to the money in the first day of evidence in Kilpatrick's corruption trial, showing jurors a $4,000 cash deposit slip he used in 2005. Kilpatrick is charged with committing fraud, bribery, tax crimes and a racketeering conspiracy before resigning from office in 2008.

Internal Revenue Service agent Ron Sauer said the government traced $531,000 in cash transactions from 2001, when Kilpatrick was elected mayor, through 2008. The transactions included deposits, payments on his credit card and cashier's checks, and compared starkly to the few if any cash transactions made at banks before he became mayor.

On cross-examination, defense attorney James Thomas suggested the cash could have been gifts or simply transferred to banks after Kilpatrick had saved it under his bed or in shoes.

"Depending on how big the shoe is," Sauer replied when asked if that was possible.

"Well, this guy's got big feet," Thomas said of the 6'4" former college football player.

Kilpatrick's father, Bernard, city contractor Bobby Ferguson and former Detroit water boss Victor Mercado are also on trial.

The government alleges that Kwame Kilpatrick rigged contracts to benefit Ferguson's construction company and got a share of the spoils. The former mayor also is accused of abusing a nonprofit fund for personal use and shaking down businesses that wanted city work.

Jurors heard opening statements Friday in a trial that could stretch into next year. Kilpatrick quit the mayor's office in 2008 in an unrelated scandal.