Politics

Judge Orders Kwame and Frat Brother to Pay $700,000 to SEC For Pension Fund Scheme

August 01, 2014, 5:56 PM

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Kwame Kilpatrick

Kwame Kilpatrick is like that regular at a bar who tells the owner: "Hey just put that on my tab."

Here's something else to put on Kilpatrick's federal tab. 

Robert Snell of the Detroit News reports that U.S. District Judge Victoria Roberts ordered on Thursday that Kilpatrick and his fraternity brother Jeffrey Beasley, the city’s former treasurer, pay almost $700,000 to the Securities and Exchange Commission for receiving extravagant gifts from a businessman while serving on the city’s pension funds.

Kilpatrick already owes the city about $800,000 from his sexting case  and another $4.6 million from his federal case in which he was sentenced to 28 years. Plus, he owes the IRS $195,000.

So realistically, this latest imposition puts Kilpatrick in pretty much the same situation as the guy who has no intention of paying his bar tab. 

Snell writes:

The SEC alleged Kilpatrick and fraternity brother Jeffrey Beasley, the city’s former treasurer, 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. In return, Kilpatrick and Beasley approved deals pitched by Detroit businessman Chauncey Mayfield, whose firm reaped millions in fees tied to approximately $115 million in investments made by the city’s pension funds, the SEC alleged.

“From January 2007 through October 2007, Kilpatrick and Beasley solicited personal gifts of private jets and entertainment from Mayfield,” and his firm, the judge wrote in an order. “Kilpatrick and Beasley had a duty to disclose these gifts to the (pension fund boards). They did not.”

Beasily is awaiting trial in a separate corruption case in federal court, the News reports.  -- Allan Lengel


Read more:  Detroit News


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