Live Blog: Kwame Kilpatrick Trial Day 32 - Fox 2 News Headlines

Live Blog: Kwame Kilpatrick Trial Day 32

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Detroit (MyFoxDetroit) -

So we'll pick up with Shea and Kado in the morning.  M.L. Elrick will have a complete wrap up at 5 and 6, and I'll be watching to see if his vantage point in the court room allowed him to hear those recordings better than I could.  Plus, he'll have his takeaway of MyFoxDetroit.com.

1:00pm

Kado starts explaining that he actually talked to federal agents months before he got the letter.  That his copperation with the government started well before he got the letter.  And at that point the judge calls for a halt for the day.

12:59

Shea says but isn't it common sense that he didn't want to go to prison.  Yes.

Shea asks if he got probation, yes.

Shea asks if that did not end his cooperation agreement and had to testify.  Yes.

Shea asks if failure to do so would mean a breach of the agreement. yes.

Shea reads fro the agreement which says he'd have to help prosecutor others. yes.

Shea asks if he met with IRS agents.  No.

Shea asks if they told him they were investigating public  corruption. yes

kwame and Bernard?  Not specifically, says Kado.

12:53

Shea takes a long time to ask the next question, the judge jumps on him, Kado says he didn't say that.  The judge is hollering at Kado to stop talking and telling him to just answer the question.  THis is combative and contentious.  Now Bullotta is jumping up.  Judge Edmunds overrules.

Now a juror is asking a questions and Shea says hundreds of thousands.  Judge asks Shea how come he listens when the jury asks him to slow down.... chuckles in the court room.

Shea has been trying... oooh crap.  Bullotta just objected, says Kado can't answer what's in the governments mind.  Judge sustains.

Shea moves on to the letter saying Kado is under investigation.  asks if he hired an attorney. yes.

asks if  the government said the letter was true and told him they knew about the pay offs to Pavledes. yes.  asks if they told him he cooperated he get a lesser sentence.  asks if he's get prison time. yes.  asks if he were sent to prison had to pay fines it would ruin him. yes.

Shea asks if he had a heavy incentive to cooperate with the government.  Kado says it was 4 months before he got the letter he told  Bernard he was done.

Kado says he wanted to cooperate with government because he wanted to cooperate with the government.

12:45

Kado says initially Pavledes turned down the money but came back later, 3 days,  and asked for his money.

Shea asks if Kado gave money every year he had food service concessions. Yes.  Shea asks if Baton also got money.  Kado says Blanton came to him and asked for money but he told him he won't pay.  Says Blanton started making trouble for him.

Shea asks if he paid Blanton the same way he paid Pavledes.  Asks if whether we call it a bribe or extortion he was paying.  Kado says it was extortion... he's getting excited.  Judge tells Kado to just answer the question.

Shea asks if he paid several hundred thousand dollars to the 2.  Kado agrees MOSt of the money went to Pavledes.

Shea going back to interviews with agents, asks if he discussed payoffs.  Kado says he doesn't recall.

12:37

Bullotta asks if Kado  plead guilty to tax evasion.  Kado says his sentence was zero.  Bullotta asks probation? yes.  Kado says he also had to pay substantial fines penalties and restitution, already paid.

John Shea, Bernard's attorney is up to cross examine.  Judge is asking Kado to please wait until Shea is done asking questions before jumping in with his answers.

Shea's asks how are you? Shea asks if he's here because he obligated to do so.  No.

Shea backs up and asks if he's got a cooperation agreement with government. yes.

Shea asks if he was bribing Lou Pavledes.  Kado says no, Pavledes was extorting everyone at Cobo.

Shea asks if Kado took Pavledes a bag of cash. No, Pavledes came to him and said he was his new partner and wanted his money.

Shea's asks if he told agents he volunteered to take money to Pavledes, Yes.

12:30

Bullotta plays more tape.  then questions Kado about this latest segment.

Kwame is reading over Jim Thomas' shoulder, Bobby is fiddling with stuff in his briefcase bag.  It looks like only Bernard, of all the defendants, got a copy of the transcript.

Bullotta asks if he was talking to Bernard here about the money owed by the City.  Asks if he sees the part where Derrick never agreed to that.  Yes.  Asks what Bernard says about why the didn't get paid.  Kado says they kicked him out of Cobo and didn't pay him because he was cooperating with the government

So I gotta ask, if Bernard knows Kado is cooperating with the government why the heck is he talking to him now?  Hello, has he never heard of a tape recorder?

Bullotta asks if KADO (on bottom of page ten) again tells Bernard he's not going to pay him 10%, and Bernard says the money from the city is ready to be paid.  Bullotta asks if he paid Bernard at this point. NO. Did he ever get money from city.  no.

12:23

Bullotta asks about Kado complaining that paying 10% was too high.  ASks if Bernard said it was so far back on the table it would take 2 years to get his money and did Bernard ask didn't he want to pay him.  Kado says Bernard was extorting him.

Kado is fired up, angry, and talking a mile a minute.  He's more than willing to tell the jury just what he thinks, and he's used the word "extortion" over and over.

12:19

Bullotta asks about talking to Bernard about "the Mayor's money."  Kado says this is the $20,000 he was giving all the time.

more tape.  Lots of loud talking in the back ground, the occasional clanking of dishes,  I can hear the cook calling out order more clearly that Bernard or Kwame.

Bullotta asks about Lotto money.  Kado says he called numbers into one of his stores, (Bernard) says Bernard was playing at stores.  Kado says Bernard didn't pay some times so Kado would buy the tickets, $85,000.  Says he did it for the same reason because he didn't want to lose the contracts.

more tape.  Kado says we paid $250,000 for the .... (lists a bunch of payments he was making.)  Kado is hard to understand but he clearly sounds ticked off.

12:13

Bullotta is asking about conversation.  Kado says he's telling Bernard he doesn't need ARchie on the contract.  SAys it cost him $50,000 to sit in the chair, and Archie did' do nothing'.

Kado listened to the tape for a few seconds then asked Bullotta if he could have a copy of the contract.  Even he could' understand what was being said and  he was there.

More tape.

Bullotta asking about asking Bernard if he wanted 10 percent.  Kado says he's telling Bernard he's not paying 10% just to get his money.

quick summary here.  Kado this part of the conversation is where  he talked to Bernard about not working with the government, about not paying 10%, says it was in the parking lot of the previous restaurant

12:06

Bullotta now asking about the second recording he made in 2008.  This one was made in a breakfast place on east Jefferson.  They haven't mentioned the name of the restaurant yet but I'll bet it's the place where  SAm Riddle used to hang out and where we also got pictures of RAyford Jackson when we were doing stories about the Synagogue sludge hauling contracts.

Bullotta asks if He heard Bernard SAy Amru  is ready.  Kado says Amru (Meah) was head of the city Building and safety department at the time.  Bullotta asks if Meah was involved in helping get the money. 

Kado says it was his understanding that the money was supposed to be released  2-3 years (weeks, months, Hard to understand) but somebody was holding it.

Playing more tape.

12:00

The jury has been very involved this morning, asking for clarifications, spellings, to repeat names.  This is a very jury driven trial.  In most of the trials I've covered you hardly know the jury is in the room. 

And we get the "all rise" and they are now filing back in.

11:54

I'll try to summarized what's been going on for the last half hour or so.  Bullotta is playing the tape from Tom's Oyster Bar made by Kado.  He and Bernard are talking about the money Kado says the City still owes him from his contracts at Cobo hall.  At this point Kado no longer had the contracts.  THis was after Kado Told Bernard he was through and didn't want to see him anymore.  Bernard sounded a little suspicious that Kado would "hide under a rock" then come "out of the blue" with a big payment.  The worked out a "consultant" agreement so Bernard could get paid if he helped Kado get the money. 

So I guess greed won out over suspicion because, as Kado testified earlier this was way after the letter from the US attorneys office telling Kado he was under investigation, and Kado told Bernard about that letter a few days after it came.

11:48

More tape: Bernard asks him why he hid under a rock then came up out of the blue.

Bullotta asks if Bernard asked for the donation.  Kado says now he just came up with the hundred grand.  Kado says if you go to a restaurant, you eat you pay your bill you leave, the restaurant owner doesn't need a consultant to collect his money.  Shea looks away, smiling, looked like he was trying not to laugh.

Judge calls for a 5 minutes break.

11:45

more tape, sounds like they walked out of the restaurant.  Bullotta is asking Kado to look at page 16 of the transcript.  Yea when we do this, when I see the money that's coming we'll do the consultant contract.  Kado says Bernard is talking about the money he was supposed to give Bernard.  Kado says you go to restaurant, you eat, you pay the consultant.  Kado says emphatically he did NOT need a consultant.  He did this to get the money the city owed him.

11:41

Bullotta  asks about the part where Kado said I did give ARchie 20,000 and Bernard said I'll take 100... ARchie didn't do shit.

plays more tape.

Bullotta asks about part where Kado says he'd give Bernard 160,000 and Bernard says he'd be a consultant.  Kado says he wanted his money from the city, that's why he'd call Bernard a consultant.

plays more tape.

Bullotta is asking about Tom Tuskie, Cobo Director at the time who was holding up payment.  Bullotta asks why Bernard told him not to tell anyone.  Kado says he did not need a consultant  I think Kado said Bernard wanted to keep it quiet because he didn't want to report the money. Hard to understand him.

11:34

referring to more tape, Bullotta asks what Bernard meant when he said you kept up for awhile.  Kado says he doesn't know what Bernard was referring to.

Bullotta asks if Bernard asks what do you think is fair and Kado says whatever you want.  Kado tells Bullotta  it's for what the city owes him.

Bullotta's asks about Kado saying he wouldn't pay Bernard anything until he gets his money.  Kado says he wasn't going to pay Bernard ahead of time, says Bernard said that was okay.

11:31

Tape is playing, Kado and Bernard are throwing around large dollar figures.  Bernard is saying something about "no trail."

Bullotta rewinding tape for a Juror. Remember, the jurors are following along with a transcript of the conversation and we're not.

Bullotta now asking about part of the conversation.  Kado says he offered $10 percent of the contract.

Bullotta asks what did you mean when you asked Bernard how much.  Kado starts to asks what Bernard meant.  Shea objects.  Judge tells Kado he can only say what he thought it meant.

Kado says that's what Bernard wanted. 

Kado is trying to say Bernard spent it all at the casino and the defense is  objecting.  Judge sustains.  Kado says he told me.  more objections.  Moving on to tape now.  Sorry, it's really hard to understand Kado, and he and Bullotta are stepping on each other a lot.

11:23

Bullotta plays more tape then stops.  Asks if National Media was ARchie's company.  Bullotta asks why Bernard didn't want Archie's name on contract.  Kado says the purpose is to get something for  nothing.

resumes tape:  Bernard says this would be like a 25% minority contract. Kado says he's buddy's with Joanne Watson.  Bernard says something about someone bad mouthing the Mayor.  They bring up Mildred Gaddis (radio show host)  Bernard says she's an avowed enemy of the Mayor (and he said it with Venom)

Bullotta stops tape.  Asks about involving Henry Hassan... in contract because he has experience.  Says Bernard told him he mayor doesn't want him for sure.  Says Bernard told him Henry didn't have a relationship with the Mayor.

resumes tape.

11:17

Bullotta stops tape, asks if they talked about money owed and about the food extension contract.  Yes.

Resumes tape.  Kado asks what is the possibility of extending the contract.

everyone is the court room is glued to the transcripts they're holding.  I don't have one.

Bullotta stops the tape and asks what they're talking about.  Kado says he's asking how they're going to sell ARchie Clark a former basketball player to City Council.  Kado says Archie was also on the electrical contract.

Bullotta asks about talking Bernard about problems with putting ARchie on contract.  Kado says how was he going to explain putting a basketball player with now experience on a contract.

11:11

Bullotta asks if he set up the meeting for Feb 8th.  Plays tape: Kado is telling Bernard he did extra work in 2003, 2004,2005, for Cobo, and they didn't pay me for that.  Bernard asks for Cobo?  says he gave them 100,000 for election.  Bernard says oh right

Bullotta stops tape and asks if that money was for re-election campaign.  Says yes.

resumes tape.  Kado says they didn't pay me for that.  Bernard says 250 for me... that's a million dollars... Kado says that's 2 and a half.  Bernard says he's trying to give back and make him whole.

You can hear dishes clanking and people talking in the background, music playing.  It's difficult hear what they're saying.  Bernard is especially hard to hear.

11:05

Bullotta now getting ready to play tape made at Tom's Oyster bar where Kado talked to Bernard about what the city owed him and discussed the contract with ARamark.  Judge Edmunds is telling the jury the transcripts are not evidence, just a guide, and they won't have them for deliberations.  It's the tape that's the evidence.

11:03

Bullotta asking about City Department of ADministraive hearings.  Kado says the City decided to take his building on Jefferson for ADministrative hearings.  Says city would pay for remodeling but would charge him if the building wasn't opened in time.

Bullotta asking about Arum Meah, head of Building Safety and Engineering Department.  Judge asks for a clarification.  Kado says city owned him 900,000.  He's now explaining that city was going to pay for renovations, he paid workers, bought furniture.  He's excited, sounds angry, is talking so fast that Bullotta has asked chime several times now to slow down.

Bullotta asking now if Kado because partners in food service with a company called Aramark?  Yes.

10:56

Bullotta asks if Kado wore a recording device and had conversations with Bernard.  Yes.

Bullotta asks if he lost contracts with Cobo.  Says he lost Cleaning and Electrical, and probably Food contract at that time.  Kado says he lost the contracts after he told Bernard he was through.

Kado says the city owed him money, $830,000.  This is for electrical services at Cobo.  Kado says they also owed money on the cleaning contract.  Kado says the cleaning contract was simple, union contract wages had to paid, the price was set, but it took 2 years for City council to approve the payments. 

Kado says City owned him $1.6 total on cleaning.  Director gave him 2 hours to leave.  Defense objects judge sustains so Bullotta moves on.

10:49

The jury is filing in. 

10:47

"All Rise"  Court is back in session

10:46

I had a conversation a long time ago with a friend of mine who once ran a restaurant in Dearborn.  He was lamenting that a restaurant across the street was allowed to open despite not having the required permits and health department training.  He claimed the owners were politically connected.

Omar told me he came to America because he thought everyone here would get equal protection under the law.  He used those words.  He said he thought he was leaving all that unfairness behind when he left Egypt.  He finally had to close the restaurant because he refused to play the game.

Another friend who fled Iraq around the same time Kado left, described very much the same thing.  He runs a party store in Detroit and described for me several run-ins with Kilpatrick, Inc.  Tony, is no Karl Kado, although he comes from the same culture.  Tony didn't cave, because, like that restaurant owner in Dearborn, he said it wasn't fair.  Sure this was common practice in Iraq, he told me, but this wasn't Iraq, it's America.

But Karl Kado did play the game, because, as he says, "when we are asked to pay money we have to pay money or we are going to lose everything, it's like extortion."

It's like Iraq, the culture of Kwame's Detroit was like Iraq.

10:34

Bullotta says this would be a good time for the morning break because he's going to play a long recording next.  So we'll have to wait for 20 minutes to hear the undercover stuff.

10:24

Bullotta showing a letter dated Feb 6th, 2003.  Kado says it's a letter to him from the city assigning electrical contract.  Pavledes signed it.  in upper right corner is says Mayor of Detroit, Kwame Kilpatrick.

new letter now, from Pavledes to Audrey Jackson in the Purchasing Department, this one is the claiming contract.  oaks for $600,000 a year increase.  Bullotta says he wants to focus on the date.   Feb 4, 204  The Letter says Council approved the original contract in June of 2002.  Bullotta asks if this reflects the time frame  he took over the cleaning. yes.

Bullotta asks if Kado talked to Bernard in the Parking lot.  Sorry, Kado is a little hard to understand and Shea tossed in an objection so I didn't get his answer.

Bullotta asks if Kado agreed to wear a wire for the Feds. Yes.

Bullotta asks if he paid cash to Pavledes and Gwen Baton, former directors for Cobo.  Kado says yes.

10:15

Bullotta now showing Kado a letter from Bullotta saying he was under investigation by the FBI, says if he's interested in meeting he can talk about a plea bargain.  Sept 2005 letter .  Kado says he got the letter, was very mad, took the letter to Bernard's office, told him I am done, this is the last time I see you.  SAys Bernard asked who he thought the letter was about?  Kado says Bernard told him it concerned Conrad Mallet.  Kado Aksed him what Conrad had to do with it?

Says Bernard asked who it was about and Kado asked Bernard what it was about.  Conrad? Kado says no.

Bullotta is asking if the witness can come off the stand and demonstrate what Bernard did.  They did something in the stand there but I couldn't see it very well.

Kado says Bernard offered to give him a 10 year extension at Cobo if he didn't work with the government.

Bullotta asks if Kado contracts were running out.  Yes.

10:09

Kado says he made one last payment to Bernard for $100,000 for the Mayor election, this in 2005.  Kado says he told Bernard he never wanted to see him again.

Bullotta is showing a check now from  Metro Services Organization,  Kado's company, to Next Vision Foundation for $10,000.  Kado says Next Vision is non profit but thinks it's supposed to help school kids.  SAys Emma Bell was in charge.

Bullotta asks if this was related to the Kilpatrick's.  Kado says, "when we are asked to pay money we have to pay money for we are going to lose everything, it's like extortion."

Bullotta shows another check.  Kado says Emma asked for it. 

Bullotta asks if Derrick Miller asked for money for himself.  Kado says Miller wanted to go to Europe ad wanted $10,000 and he gave him $10,000.  Says he thought it was auto show related.  Says it was extortion. He had no choice to give it to him.  Says if you don't give him money they kick you out.  Says, "I'm like hostage."

10:01

"how can I give checks...there's no justification for that."  Kado says he paid Bernard $200,000 to $300,000 over 3-4 years in cash.  Says it was 40 to $50,000 at a time.  Kado says he paid because he was the Mayor's father.  Bullotta asks if he hired him as a consultant.  Kado says. "for what do I need consultant?"  Says he paid because he was the Mayor's father.

Shea is objects, Judge over rules, Shea presses the point, Bullotta says if Shea is going to give a speech he's like to go to sidebar.  Judge calls for a sidebar.

Very different tenor here today in Bullotta's demeanor.  He's not letting the defense attorneys go on and on with objections.  He cut this one off immediately.

9:56

Kado says they charged exhibitors costs plus 5% and city got paid 3%.  Kado says city got $340,000 a year.

Shea is asking for clarification on the 3% and 5%.  Kado says they charged exhibitors 5% to cover overhead.

Bullotta asks if it was that money that was used to pay the City.  A juror question: who did the work.  Kado says they'd call the electrical union and they'd send out workers.  Kado says they had 54 electricians on the payroll and they employed 700 electricians during the auto show.

Bullotta says he's changing topics, asks if he owned property on E. Jefferson.  Kado says he  bought it in the late 90's.  Bullotta asks if he leased space to Bernard.  Kado says it was $1200 a month for 2 months, and after that he didn't pay.  Says Bernard told him, Later on he would pay.  Kado says, "He's the mayor's father how can I evict him."

Says Bernard moved out after Kwame left officer.

9:50

Kado says he  got the money from his stores.  He testified earlier that around this time he had 8 or 9 stores in addition to the Cobo contracts. 

Bullotta asks why he paid the Mayor.  Kado says the contract was very big, the director could kick him out in 2 hours.  Says he saw people kicked out everyday.  SAys he was person friend of Kwame.

Bullotta asking about Feb, 2003, if there was a company called Trade show Electrical.  Kado says they had the contract for 25 years.  Kado says he had to pay $500,000 for that contract.   Says it's set up just like the cleaning contract.

Jurors are asking questions again.  Wish there was a mic over there so we could hear.

9:45

Kado says he heard from the mayor several times over the years and he'd call Dedan Milton when he needed to get a meeting with the Mayor.  Says the Mayor would call, say he needs money, would take 4 or 5 days to get money together, 10,000 or 5,000, would take it to Dedan's office.  Says he did this 3 or 4 times.

Kado says the mayor would come with his security people, but would take the money in the office by himself.

9:42

Kado now explaining there are 3 parts to the contract, supervising the cleaning workers, cleaning for exhibitors, and the judge is  asking him to explain the 3rd part of the contract, work that they do for city of Detroit that they don't have money to provide, buying light bulbs, whatever the Cobo Director asks him to do.

Says during one show they needed golf carts so he ordered carts.  Supplies for the City, I think he means specifically related to Cobo.

9:38

Bullotta asks if he took over the Cobo cleaning contract, bought to contract from a company named Unicco.  Kado says all the cleaners were in a Union.  This was in 2002.  Jurors are asking Kado to spell the names of the companies and clarify which company is which.  Unicco was the company that had the contract, Kado bought the contract.  Says Unicco lost money.  Says his company took over the account and was paid 200,000 a month.

Bullotta asks how much money Kado's company, MSL, got from the contract.  Kado  says 4 to 5 million a year.

Kado says he deal had to be approved by the Mayor.  The Judge is  jumping in and asking for a clarification of the revenues.

 

9:32

Kado says the money was in a brown bag.  Thomas is objecting to Bullotta's questions about what kind of bag the money was in.  Kado says he had no choice but to give Kwame the money.  Says the contract at Cobo was unique, the director of Cobo, his word was gospel, Lou Pavledes, who was appointed by the Mayor.  Says Pavledes reported to Derrick Miller.

9:28

Kado says he watched the debate between Kwame and Gil Hill, and saw Bernard and Art Blackwell, and Blackwell asked him to support the Future Mayor.  SAys Bernard told Blackwell not to worry because Karl was already in their group.

Kado says he served them refreshments.  Says shortly after Kwame became Mayor, Kwame called him and said he needed $10,000.  Says he told Kwame he needed a couple of days to get the money together, cash.  Says it was hundreds, 50's, and a few 20's.  100 dollar bills and 50 dollar bills.

Says Derrick Miller came to Cobo and he gave Miller the money.

9:24

Kado says he opened half a dozen stores in Detroit.  Met Bernard when he came to Kado's store in the Millander Center.

Says that's where they first talked about opening a store in the Cobo Center.

Bullotta asks if he got a contract with Ogden, joint venture, when ARcher was the Mayor.  This was to do food service at Cobo.

9:21

Karl Kado is taking the stand.  Kado is telling the jury he was born and educated in Iraq.  Got a Bachelor of ACcounting and Administration.  Kado was indicted in the Cobo Hall Bribery scandal.  Kado says he's a little bit nervous this morning.  Says he came to the U.S. to get his Ph.D. in education in 1973.  Says he never went back because Saddam Hussein took over the schools, including the catholic school where he worked.

Kado says he got a Masters in Economics in 1975.  Says he came to Detroit because there was a large Caldean Community and the Sisters that ran the school where he worked in Iraq were affiliated with the Jesuits in Detroit.

9:15

The Judge is asking the prosecution to correct an exhibit.  Chutkow is telling the jury that the exhibit what was described on Friday as a sewer contract was actually a water main contract.  Chutkow also says the total that went to Ferguson was $36 million.

9:12

"All rise." Court is session.  The jury is coming straight in without any preliminaries this morning.  Looks like we're going to get right to it.

9:08

The picture is up, the defendants are in the court room, and the attorneys are taking their positions.

 8:59

Good morning from the Theodore Levin Federal Court House in downtown Detroit.  There's a line out the door this morning; it's immigration day, so we may be getting a bit of a late start.  We're expecting Karl Kado to take the stand today, right after the defense team finishes cross examining Agent Pazcewicz.

Ken Martinek is Senior Producer-Investigations for Fox 2 News.  You can contact him at ken.martinek@foxtv.com

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