FraudNews
06-24-2010, 01:50 PM
Detroit, MI, United States (AHN) - Already in prison for violating his parole, former Detroit Mayor Kwame Kilpatrick was indicted on Wednesday on 19 counts of fraud and tax evasion.
http://www.allheadlinenews.com/images/cp.gif The indictment announced by federal prosecutors accuses the former mayor of using funds of a tax-exempt organization, the Kilpatrick Civic Fund, to pay for personal expenses such as golf lessons and summer camp for his children, and for campaign expenses such as polling, focus groups and public relations.
The civic fund was set up to pay for voter education and programs to improve communities around Detroit. Kilpatrick is believed to have begun his scheme to use the funds beginning in 1999, and through his 2001 and 2005 campaigns for mayor. He faces 10 counts of mail fraud and three counts of wire fraud over his alleged actions.
Kilpatrick was also charged with five counts of filing a false tax return and one count of tax evasion. While mayor, he failed to report receiving at least $640,000 between 2003 and 2008, according to prosecutors. He filed tax returns through 2003 and 2008 that did not disclose this income, and evaded taxes in 2008.
“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.”
Kilpatrick is set to be arraigned on the new charges on July 13. He faces 20 years in prison and a $250,000 fine for each fraud count, and at least three years and a $250,000 fine for each tax count.
The son of U.S. Rep. Carolyn Cheeks Kilpatrick (D-MI), Kilpatrick officially resigned in September 2008 after pleading guilty to obstruction of justice and assault.
He was accused of retaliating against police officers investigating allegations of misconduct against him. One of the officers was Detroit Police Department Internal Affairs Chief Gary Brown, who received an $8.4 million settlement from the city in 2007 in what has been dubbed the Whistleblower Trial.
The former mayor had faced 10 felony charges in two criminal cases. He was indicted on eight felony charges including perjury and obstruction of justice after text messages between him and his former chief of staff, Christine Beatty, revealed that they had both lied under oath during the Whistleblower Trial to cover up their extramarital affair.
Kilpatrick was also charged with two counts of assault after he tried to stop a sheriff's deputy from serving a subpoena in July 2008.
His plea agreement required him to step down from office and spend 99 days in jail, time he completed by February 2009. The deal also required him to pay the city of Detroit $1 million in restitution and to spend five years under probation.
Last month, he was sentenced to up to five years in prison for probation violations. The judge presiding over the case had found the 40-year-old guilty of hiding hundreds of thousands of dollars of assets and falsely claiming he was unable to pay what he owes the city.
More... (http://news.google.com/news/url?fd=R&sa=T&url=http%3A%2F%2Fwww.allheadlinenews.com%2Farticle s%2F7019090941&usg=AFQjCNEM1TbwGGyGZtkjAy5tgKeFQpeaHA)
http://www.allheadlinenews.com/images/cp.gif The indictment announced by federal prosecutors accuses the former mayor of using funds of a tax-exempt organization, the Kilpatrick Civic Fund, to pay for personal expenses such as golf lessons and summer camp for his children, and for campaign expenses such as polling, focus groups and public relations.
The civic fund was set up to pay for voter education and programs to improve communities around Detroit. Kilpatrick is believed to have begun his scheme to use the funds beginning in 1999, and through his 2001 and 2005 campaigns for mayor. He faces 10 counts of mail fraud and three counts of wire fraud over his alleged actions.
Kilpatrick was also charged with five counts of filing a false tax return and one count of tax evasion. While mayor, he failed to report receiving at least $640,000 between 2003 and 2008, according to prosecutors. He filed tax returns through 2003 and 2008 that did not disclose this income, and evaded taxes in 2008.
“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.”
Kilpatrick is set to be arraigned on the new charges on July 13. He faces 20 years in prison and a $250,000 fine for each fraud count, and at least three years and a $250,000 fine for each tax count.
The son of U.S. Rep. Carolyn Cheeks Kilpatrick (D-MI), Kilpatrick officially resigned in September 2008 after pleading guilty to obstruction of justice and assault.
He was accused of retaliating against police officers investigating allegations of misconduct against him. One of the officers was Detroit Police Department Internal Affairs Chief Gary Brown, who received an $8.4 million settlement from the city in 2007 in what has been dubbed the Whistleblower Trial.
The former mayor had faced 10 felony charges in two criminal cases. He was indicted on eight felony charges including perjury and obstruction of justice after text messages between him and his former chief of staff, Christine Beatty, revealed that they had both lied under oath during the Whistleblower Trial to cover up their extramarital affair.
Kilpatrick was also charged with two counts of assault after he tried to stop a sheriff's deputy from serving a subpoena in July 2008.
His plea agreement required him to step down from office and spend 99 days in jail, time he completed by February 2009. The deal also required him to pay the city of Detroit $1 million in restitution and to spend five years under probation.
Last month, he was sentenced to up to five years in prison for probation violations. The judge presiding over the case had found the 40-year-old guilty of hiding hundreds of thousands of dollars of assets and falsely claiming he was unable to pay what he owes the city.
More... (http://news.google.com/news/url?fd=R&sa=T&url=http%3A%2F%2Fwww.allheadlinenews.com%2Farticle s%2F7019090941&usg=AFQjCNEM1TbwGGyGZtkjAy5tgKeFQpeaHA)