The Detroit News
05/10/12 Robert Snell &
Christine MacDonald
“SEC says Kilpatrick took favors for pension deals”
Detroit— Former Mayor Kwame Kilpatrick and his fraternity
brother were part of a scheme to strong-arm a city pension fund businessman for
$125,000 worth of private jet flights, Prince concert tickets, steakhouse
dinners, golf trips and VIP hotel rooms in Las Vegas, according to a lawsuit
filed by federal regulators Wednesday.
In return, Kilpatrick and indicted city Treasurer Jeff
Beasley approved deals pitched by Detroit businessman Chauncey Mayfield, whose
firm reaped millions in fees, according to the lawsuit filed by the U.S.
Securities and Exchange Commission.
The lawsuit is the latest controversy involving the Detroit
Police and Fire pension funds and Kilpatrick and comes seven days after
Mayfield's firm was fired over its handling of a $3.1 million pension deal.
"What they've done in the past is finally catching up
with them," Detroit Police and Fire Pension fund Trustee Mark Diaz said.
"Hopefully now, we can get a couple of indictments. This is great
news."
The lawsuit also alleges how Detroit-based MayfieldGentry
Realty Advisors LLC bought its way into managing part of a $300 million
real-estate portfolio.
Kilpatrick and Beasley received the trips and perks while
Mayfield was recommending the city's pension funds invest approximately $117
million in a real estate investment trust, according to the complaint.
"It is a disappointing day when pension fund trustees
such as ex-Mayor Kilpatrick and others corrupt the investment process by
selling out hardworking police officers, firefighters and other municipal
employees for the price of a few vacations and paltry extras like concert
tickets and rounds of golf,"said Robert Khuzami, director of the SEC's
enforcement division.
The civil complaint alleges Kilpatrick and the others
violated the Securities Exchange Act.
Common Sense Review
I continually amazes me that the citizens of Detroit are not
outraged by the blatant corruption that ultimately they will have to pay for in
one form or another. Whether in higher
taxes or the lack of city services, the citizen will pay for the lack of
leadership that has plagued Detroit for decades.
What will it take to stop the criminal enterprise of the
Motor city and I am not even talking about the drugs, prostitution or terrorist
entity…
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