Live Blog: Kwame Kilpatrick Trial Day 5 - Fox 2 News Headlines

Live Blog: Kwame Kilpatrick Trial Day 5


12:37 PM

The Judge is off the bench the attorneys are packing up their brief cases and I'm about to pack up my computer.  Talk to you all tomorrow.

12:35 PM

Court ending early so they can juggle witness around. The attorneys are once again huddling around the judge's bench.  Bobby and Kwame are talking, leaning toward each other, intently.

12:32 PM

Now Sauer is testifying about the new account.  Mike Bullotta is doing the questions.  payment out of this account include checks to the county Board of water commissioners, and the annual fee to Merril-Lynch.

SAuer says he doesn't know what happened to $24,000 dollars in account because Merril-Lunch didn't have any additional records.

12:30 PM

there's also a check payable to Detroit Interiors and another to Airtec.  Another to BellCon Construction inc, Be-SAfe security systems, a payment Doreen Mayhue, and CArla Boynton, DTE, and Manuel Alopista and Attorney.

The remainder was then transferred to another account.

12:27 PM

Sauer say there were 2 accounts and the money from the duplex sale was deposited into one account the quickly transferred to the other.

SAuer say the $250,000 original grant money from the State all went into one account and only money from that grant went into that account.  3-d is the name on the account.

The first transaction was a 100 grand wire transfer to UNITE, Carlita Kilpatrick's company.

12:25 PM

Sauer is still on the stand but now he'll be talking about a different topic.  The court is waiting for an out of town witness who hasn't arrived yet and is taking up a new topic with Sauer in the meantime.

He's now talking about Merrill-Lynch accounts for Detroit 3-D

12:20 PM

On redirect Chutkow asks Sauer if 3-D made a profit on the sale of the duplex and Sauer says, yes, not only because it was sold for more than the purchase price but because state money was used to pay for it 

They're all in a sidebar now.

12:17 PM

VAn Dusen asks Sauer if he knows of anything in the contract that says Detroit 3-D was supposed to pay the State back for the sale and Sauer says he doesn't know of an clause.

VAn Dusen want to know id Bobby, as President has ability and authority to take money out admit of a non-profit.  Sauer says it would be unusual for a non-profit to make a withdrawal and give it's president cash.

VAn Dusen gets Sauer to admit he's not an expert on non-profit's.

12:15 am

Van Dusen wants to know if Sauer remembers that State didn't make an effort to get money back.  VAn Dusen just confused the witness...the question she finally got out was if Sauer knew of any effort to get money back.  he said no.


Van Dusen on cross asks since you were sitting back there (meaning the court room) agent Sauer hear Lisa Shoemaker ( from the state budget office) say the contract had been terminated.  Sauer says correct.

12:07 PM

Sauer testifies that check from sale of property was written to Detroit 3-D but deposited into Ferguson Enterprises' account.   Then a check was written in same amount to "cash."  Sauer says that check was used to purchase a cashier's check payable to Bobby Ferguson and cashed at another bank.  Sauer says the check was signed by Bobby.

12:02 PM

New witness, Agent Sauer from the IRS.  Sauer is testifying about the title of property for the sale of the property on Meyer that Jolly just finished testifying about.

Grantor is Detroit 3-D by Bobbie W. Ferguson, and by Bobbie and Marlin. Ferguson husband and wife,  Purchasers are Martin Jolly and his wife.

12:00 PM

VAn Dusen wants to know if Jolly went into house before he bought it and he says no. 

11:58 AM

Jolly says he bought the property from Detroit 3-d.  never saw a training area, dorm type area, or handicapped ramps or accommodations.

11:55 am

Jolly says he never saw any major renovations on the property, never saw an seniors living there or runaways.  Jolly bought the property for $50,000 but does not know where the money he paid went.  Chutkow started out the question asking if Jolly knew if the State got the money but Judge told him to ask the direct question, "ask him if he knows where the money went."

11:49 am

Murray excused.  New witness is Marty Jolly, whose Mother lived in one side of a Duplex on Meyer Street and the other side was sold to Ferguson. 

Says for a little while a little girl moved in.  He's testifying that the property wasn't being maintained.  He says he eventually bought the other Side of the duplex.

11:46 am

Van Dusen is back up, VAn Dusen wants to know if it's true that Murray has no idea why there were two documents.

11:45 am

Murray say he has no idea if Ferguson swapped out the first page of the contract that was submitted to the state.

11:41 am

Murray says he didn't have the letter drafted by Ferguson in his file.  He says the scope of work paragraph on his company's document is the more accurate of the 2 and he says the Ferguson letter uses different terminology than his letter but the list of materials is the same.

11:37 am

Chutkow now showing "Subcontract" with date of July 12, 2001.  Chutkow asking about discrepancy that VAn Dusen asked about earlier and he's asking if there is an inconsistency in the heading of this document.  Murray has his head bent down to study the document and says there's an inconsistency of the date.  He says it looks like the agreement was post dated, but can't speak to why it doesn't mesh with the actual timeline.

11:35 am

Chutkow now asking if Murray's company did any work in the "big open space" and Van Dusen called it and Murray says no.

11:32 am

"isn't it true," VAn Dusen wants to know if that "big open space got filled in?" Murray says no.  He says it was a loading Ares.  Murray says he didn't have any idea what happened to that area after they left.  He says it was an operating area when he left.

11:30 am

Van Dusen wants to know if Mr. Neil subcontractor that worked for Murray drafted the document and Murray said no, it was drafted by Ferguson but he says that Neil's signature means both companies committed to do the work.

11:26  am

She's asking about an exhibit with he subcontract information talking about work station partitions, flooring material, and eating and training areas. Now she's asking him to go the last pate of the exhibit.

she's asking if it's the same date as the space plan and he affirms.

It's signed by the President of Detroit Interiors who did subcontract work on the project.

Detroit 3-D is also on the document with Marilyn Johnson, Bobbie's wife.


11:25 am

WE're back.  VAn Dusen is continuing her cross examination of Robert Murray, the president of the company that designed and  furnished Ferguson's office.

11:21 am

Well I thought court was back in session.  Everyone is still standing but all the defense attorneys and the prosecutor have left the room.  Conference with the Judge?

11:15 am

There was a light audio problem in the court room.  Looks like someone kicked a microphone cable plug causing a loud hum.  The crew got it fixed and now the room is filling up again.  It's a little bit surprising that with all the lawyers on the defense side, the generally crowded condition with all the technical support people and the aides handling exhibits that things are rolling along so smoothly.  The court staff has obviously done this before...a pretty well oiled machine.

court is back in session.

11:06 am

Still on break.  Ferguson, Kilpatrick are still outside the court room.  Susan VAn Dusen is sitting at the table going through notes.  Witch dark framed glasses, she has black hair, pulled back severely, warring a dark blue suit. 

She looks like a tenured professor of accounting.  One whose class you would not want to fall asleep in.

10:54 am

Immediately after the Judge called for the break Ferguson started talking to his Barony and gesturing forcefully with his hands.  Now Kilpatrick has joined him.  they're both leaving the court room with Ferguson's attorney Gerald Evelyn.

10:49 am

Van Dusen just confused Murray (and me) with a convolutedly phrased question.  She's trying again.

Okay, she's lost me.  She's asking about the document the government submitted as the subcontract on the job and if Murray has any idea why the dates are inconsistent.

Good thing the Judge just called for a break.

10:46 am

VAn Dusen now asking Murray if he told investigating agent that a minority partner was helpful and Murray said yes, and agreed that Fronds was friendly, "very much so."  Also says Ferguson was a hardliner on prices.  Wanted Murray to lower price but not change materials.

10:41 am

Now she's asking about a place on the plan called, "open office." and asking him if a different company printed up with the plan they're now looking at.

Now she wants to know if the job changed or if he would be aware if there were changes.  Murray says he confused by her question.

VAn Dusen asks if things change ... and Murray agrees.

VAn Dusen asks if this is just the estimate and not the actual plan and Murray says he doesn't know if they followed through with this plan.

10:37 am

Van Dusen asks if the Lobby and the Reception ARea would be shared space.  Murray says yes.

Now she asks about the 5 work stations on the plan and she asked if Murray would know if they were used for training.  and VAn Dusen asks if he would now if they would be used for training and he rather surprised her by saying yes,

He's going through the dimensions of the workspace and saying yeah, he'd know what it was for because among other things the trainer would have to see the person their training. 

He has no idea if, as VAn Dusen asked, if this would be perfect for training.  He's testifying that he set up the area for a person to do estimating and not training.

VAn Dusen asks if a person could be trained to do estimating at this space and Murray agrees.

10:35 am

VAn Dusen now asking about an invoice she says looks to her like it covers a lot of areas, "do you agree."  Murray says yes.

10:32 am

Now she's asking if he would know anything about 2 companies that share a building splitting payments for a job, and Murray says if it's an internal arraignment he would not know about it. 

10:29 am

Van Dusen on cross is showing a list of payments and asking about dates.  REferring to first payment on project from June 1st and now second payment is written on Ferguson Enterprises' account.

So she established that second payment was from Ferguson's company. now she's established another check is from Ferguson Enterprises.

VAn Dusen doing math now.  ASking if total amount was 78,000 and that if you deduct 37,000 from the total you get out of it that more  than half the job was paid by Ferguson Enterprises.

Now she's asking if he's done work when there's more than one company in a building.

10:25 am

Murray says Ferguson told him his friend Kwame was going to be the next Mayor of the city of Detroit.  That Ferguson talked about getting demolition work to removed abandoned homes.  Murray testified he believed Ferguson's really believed in the plan to clean up the city but also expected to get work from the plan.

10:20 am

Murray now looking at a check signed by Ferguson's wife from 3-D for $37,000 down payment.

10:17 am

Murray now looking at another invoice that doesn't list the executive office in Ferguson's building but show $71,000.  Murray says he only had one project with Ferguson Enterprises that cost 71 grand.

Murray says he doesn't know what 3-D is.  Doesn't recall doing work on a training session.  Didn't give Ferguson [permission to submit paperwork to state referring to training center.  Murray says he doesn't remember seeing a training center or a dorm that would accommodate a senior.  Murray says he put in accessible bathrooms but doesn't know how they were used.

Says he never did work at a residential house.

10:11 am

Bobbie Ferguson is sitting hunched over studying documents at the defense table two seats to Kwame Kilpatrick's left.  He's dressed all in black.  Black suit, black shirt, black tie.  Attorney Gerald Evelyn is siting between Kilpatrick and Ferguson, he's whispering to Ferguson and gesturing with his right hand.  He looks like he's giving a basic lecture, although quietly.

10:07  am

Murray says the project was $71,000, with  an initial deposit of $37,000.

10:06 am

Prosecution now introducing invoices.   Murray says these show payments received from Bobbie Ferguson to contract design group. 

10:04 am

Murray says Ferguson changed the plan a little because of budget cuts and didn't put in the executive conference area in the office but instead turned it into a place for his friends to hang out.

10:01 am

Now he's describing Ferguson's office, including a spiral staircase going to a loft. Says the stair case is a "kit system" that is ordered by components to fit specific areas.  Murray now looking at a photo of the office and describing the full console wall, (shelves and TV cabinet)  describes the spiral stair case next to the wall leading to the loft.  And the wood desk.

9:58 am

Floor plan is now on the screen.  Chutkow asking Murray to describe the plan and what his company did. refereeing to plan he says his company designed the lobby, did floor in marble or granite, chairs, wood table.

In the conference area, marble, did wall coverings, wood table, with marble counter around perimeter. Fancy.  Says he worked with Ferguson to pick stuff out.

9:55 am

Government introducing new documents, including a "space plan" showing the layout of the offices, floor plan.

9:54 am

If I heard this correctly Murray just identified the Wyoming street office as being on Military St.  Says he went to office to talk about renovation plans.

9:50 am

Asked why Ferguson came to his company Murray says that Ferguson had plans to renovate his office building.  Asked if Ferguson was involved in the plan Murray says "by the minute."

9:47 am

Boetcher excuse.  Now the Robert Murray is on the stand.  his company does interior design work.  Says he knew Ferguson from some other projects and that Ferguson like what he saw and  came to Murray's company and asked them to do his offices.

9:40 am

CHutkow is now up and asking how many doors, Boetcher say 17.  Chutkow asks if he's ever seen and invoice like this and Botchier says no.  Chutkow asks if Boetcher know of any reason why the salesman would have falsified an invoice and Van Dusen objects and the judge upholds.

9:39 am

VAn Dusen asks if the building is 8,000 square feet and Boetcher says he doesn't  know, Van Dusen asked if she told him it looks like an 8,000 square foot building would he agree, and he says if she could show him it was an 8,000 foot building he would agree.  they leave it that'd or it's a large building

Van Dusen is now asking if he saw the building and he says at the time of his visit it was more of a finished building.  Van Dusen asked him if it was largely unfinished.

I walked though a building, saw offices, saw a conference room, worked on a door, it appeared to be an office building.

VAn Dusen is done.

9:35 am

Now Van Dusen is asking Boetcher to look at a portion of the invoice on the screen and asking him if all the info on the Airtec invoice and the other invoice are identical.   Chutkow is objecting and the Judge asks VAn Dusen to be more specific.  Boetcher agrees the quantities are the same and that all the invoices and prices are the same on both sets on invoices.

so far in Boetcher's testimony the only differences aside from the way the invoices look are the customer names.

9:34 am

VA Dusen asked if the salesperson puts the information into the computer, Boetcher says yes.  Van Dusen says well the salesperson is dead so we can't ask  him any questions.  As anticipated Boetcher says yes. 

9:29 am

Van Dusen is asking if Boetcher's company did a lot more work that the invoices shown by the prosecutors.  $19,000 total, with 17 total invoices.  Boetcher affirms.

Now she's walking him through the schedule of when his company issued the invoices. She's asking if he's checked his records to see if there's a balance owed the company.

Now she's asking about the salesperson who has passed away.

9:26 am

Boetcher says he never gave anyone permission to use his invoices to sub mitt to state but he would have if asked.  He adds that he would not have giver permission to use any other invoice.

He also testified that his company did not supply any materials like wheel chair accessible doors, black boards or dormitory type housing supplies.

Bobbies attorney Susan Van Dusen is now cross examining.

9:20 am

Boetcher testifies that this is not an Airtec invoice.  Chutkow is now walking Boetcher through a line by line comparison of the 2 invoices.  Back to a split screen view on the evidence projector.   Boetcher says the appear to have the same invoice number and the customer is Bobbie Ferguson on the Airtec invoice but on the other invoice the customer is identified as 3-D, this is the invoice submitted to the state.  Boetcher says he had not heard of 3-D and he only did business with Ferguson.  the name on the invoice is Marilyn Johnson, Ferguson's wife.  Boetcher says he never heard of her.

9:15 am

Chutkow now has the grant application on the screen, this is from Ferguson's non-profit company 3-D.  Now he's switched it to a spilt screen view of what Boetcher says is an actual Airtec invoice and another invoice that says Airtec on the top but looks nothing like the one Boetcher says is from his company.

Boetcher tells the court that the only way to make a purchase through Airtec is by processing the request through the computer system and there's no other way to order supplies.

9:12 am

Chutkow is now asking about the order processing procedures and Boetcher is describing the computerized record keeping.  They also keep paper copies for 7 years.

9:10 am

Boettcher is now describing an invoice for the material his company supplied for the renovation of Ferguson's building, doors, frames, and hardware for doors.  Boetcher says this is not the off the shelf stuff one would by at a hardware store but commercial grade, heavy duty locks and hardware.  Expensive stuff.

9:06 am

The first witness is on the stand. Christopher Boettcher  President of a Construction supply company that sold materials for the renovation of Bobbie Ferguson's office building on Wyoming street in Detroit.

9:04 am

The "all rise" order has been announced, court is in session, we're now waiting for the Jury to be seated, and the Judge to take the bench.  From the overflow room I can't see the jury because of the way the cameras are pointed.

9:02 am

All of the defense attorneys are in the courtroom.  Kwame Kilpatrick is not sitting alone at his end of the table, head bowed, hands folded on desk.  His attorney Jim Thomas is conferring with the prosecutors.

8:55 am

The prosecutors have taken their seats at the table.  Mark Chutkow is sitting in the first chair this morning..  Mike Bullotta is sitting second chair away from the aisle.  Kwame Kilpatrick sitting back in his chair with his hand to his face, one finger on his temple, thumb on chin.

8:50 am

Kwame Kilpatrick is in the court room, shaking hands and chatting with his father at the defense table.

8:45 am

Good morning from the Theodore Levin Federal Courthouse.


Ken Martinek is Senior Producer-Investigations for WJBK-TV Fox 2 News Detroit.  He will be writing live updates from the courthouse through the duration of the Kilpatrick corruption trial.

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