Wednesday, June 23, 2010

Ex-Detroit Mayor Kwame Kilpatrick indicted on federal fraud, tax charges


Published: Wednesday, June 23, 2010, 3:14 PM

Updated: Wednesday, June 23, 2010, 5:54 PM

Former Detroit Mayor Kwame Kilpatrick, already in prison for probation violations, was indicted Wednesday on federal fraud and tax charges, accused of a turning a charity into a personal slush fund for cash, travel, yoga, summer camp and even anti-bugging equipment.


The indictment was the latest blow for Kilpatrick, who in May was sent to state prison for at least 14 months for violating probation in a 2008 criminal case tied to sexually explicit text messages and an affair with a top aide.

The indictment said Kilpatrick, 40, created the Civic Fund in 1999 and gained tax-exempt status after declaring that it would be a social-welfare organization to enhance neighborhoods, help youth and improve Detroit's image.

The government, however, said the goal seemed to be to enrich Kilpatrick. He is charged with failing to report at least $640,000 in taxable income between 2003 and 2008, the value of the cash, private jet flights and personal expenses paid by the fund.

Kilpatrick used the fund to pay for yoga and golf, camp for his kids, travel, moving expenses to Texas, a crisis manager, cars, polling, political consulting and much more, including "counter-surveillance and anti-bugging equipment," according to the indictment.

The indictment said donors were fooled into believing their money would be going to other legal purposes.

"It is important that public officials not escape prosecution just because they leave office," U.S. Attorney Barbara McQuade said in a statement. "Public officials need to be held accountable to deter them and others from cheating our citizens in the future."


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