Monday, May 21, 2012

Borrowed Pension funds bought houses given to Drug Dealer… Only in Detroit


The Detroit News  05/03/12  Robert Snell

“Drug Link cited in pension loan:  Fund borrower bought houses, gave some to allege dealer”


A businessman who borrowed $10 million from a Detroit pension fund to buy foreclosed homes had transferred some of the properties to an alleged international heroin dealer's company, The Detroit News has learned.

Agents found property records indicating a company headed by Detroit businessman Abner McWhorter had transferred two dozen houses to a firm headed by Macomb County resident Carlos Powell, who was indicted in January and accused of heading a large-scale drug ring.

The link is the latest fallout from a failed deal that led to McWhorter's suicide, an international manhunt and a search for $5 million in missing pension fund money.

The search warrant describes a connection between one of the largest drug busts in Metro Detroit history and a failed pension fund deal involving McWhorter and his company, Paramount Land Holdings.

The size, scope and profits of Powell's alleged drug ring would rank him among the most prolific drug dealers in recent Metro Detroit history, according to federal investigators.

During the drug probe, federal agents have raided multiple locations in Michigan and Florida and seized more than $21 million in cash, 66 pounds of heroin, 26 pounds of cocaine, 1,000 pounds of marijuana and a fleet of exotic vehicles.

During a November 2010 raid of Powell's home in Washington Township, U.S. Drug Enforcement Administration agents found copies of property records transferring approximately 26 Detroit houses to an Eastpointe company, Grand Towers Inc., according to the search warrant.

The property records were quitclaim deeds transferring Paramount's title to the homes to Grand Towers, according to the federal search warrant application.

The quitclaim deeds found by drug agents were never recorded with the Wayne County Register of Deeds. The deeds were dated Jan. 11, 2008.

Common Sense Review

When the people of Detroit are stand up against a corrupt local govt.  The union workers pension is loaned to a land holder who buys property then transfers two dozen of them to a known drug dealer.  What?!?!

What kinds of investment research did the pension controllers do?  The properties were supposed to be a part of a foreclosure program, but they sit blight.  

When are the people of Detroit going to wake up?  Is there no oversight in Detroit?  Unfortunately this story is not shocking and yet it is shocking that it is not shocking for Detroit.  

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