Detroit thread. Post Kwame, Monica, and $1 houses here.

[citizen k]

[CountDeMoney]

The man is a legend.  Most mayors couldn't be more corrupt if they tried.

No shit, especially in this day and age.  Mayors, hell--third world countries don't have strongmen do as much damage.*


*<insert LULZ BUT DETROIT IS A 3RD WURLD COUNTRY preemptive joke here>

[Savonarola]

I believe in America.  America has made my fortune.

Bobby Ferguson sentenced to serve 21 years in federal prison for corruption

By Jim Schaefer, Tammy Stables Battaglia and Eric D. Lawrence

Detroit Free Press Staff Writers

One day after former Detroit Mayor Kwame Kilpatrick was sentenced to 28 years in federal prison for his role in a widespread public corruption case, his friend and codefendant, Bobby Ferguson, was sentenced to serve 21 years in prison.

"Bobby Ferguson was the catalyst at the center of an historic and unprecedented criminal scheme," U.S. District Judge Nancy Edmunds said.

The government had asked for Ferguson, who was convicted on nine counts, including racketeering, extortion and bribery, to receive a maximum 28-year prison sentence. Edmunds said Ferguson had no elected accountability, which makes him different from Kilpatrick, who was convicted on 24 counts.

Edmunds said Ferguson muscled other companies and got what he wanted by threatening to use his friendship with Kilpatrick to kill deals. She said he intimidated people both physically and economically.

Edmunds called Ferguson "hotheaded" and said he threatened his mistresses not to testify truthfully to a grand jury, submitted false documents, including during this trial, and threatened a police officer if tickets weren't dropped.

She ordered anger management classes for him if necessary.

"Mr. Ferguson was bold and outspoken in his extortion ... laughing at contractors' attempts to reach out for an explanation" as to why their contracts were canceled, Edmunds said. "His criminal activity stopped only because Kwame Kilpatrick was forced to resign."

Edmunds said the atmosphere of corruption forced good people away from Detroit.

She said Ferguson needed to be "substantially punished."

According to the government, Ferguson received $127 million worth of city contracts while Kilpatrick was mayor and, of that, $73 million was awarded illegally. That translated into $9.6 million in illegal profits, which Ferguson shared with Kilpatrick, the government says.

This morning, the attorneys debated how much of the ill-gotten money should be attributed to Ferguson. His lawyers have argued no evidence was produced during the trial showing he made $9.6 million in total profits off water and sewer contracts.

Edmunds said she would use the lower figure of $6.3 million for the purpose of determining Ferguson's sentence. Edmunds also came up with a lower figure of $4.6 million in determining Kilpatrick's sentence on Thursday.

Gerald Evelyn, one of Ferguson's attorneys, said he wasn't surprised at the sentence, which will be addressed by an appeal. Edmunds told Ferguson he has 14 days to file a notice of appeal.

"It's a tough situation," Evelyn said after the sentencing. "The final chapter hasn't been written yet. I agonize over any client that I have. But obviously I agonize over Bobby because I know him and I know part of how this whole thing went. ... It's obviously troubling. Some people say it could be worse. But the reality is that it's still significant."

Ferguson talks about American dream

Ferguson, who was brought into the courtroom wearing prison garb, told Edmunds today that everything in court has been interpreted the way the government wanted. The only thing that can't be misinterpreted, he said, is the word of God.

Ferguson said he is shocked by the justice system. Today, Ferguson said, he was placed in a room with a 19-year-old who said he was going to get 20 years in prison. Ferguson said that young man's life is destroyed.

"In America, it seems like genocide on black people," Ferguson, 44, said. "I'm not trying to make this racist, I'm just telling you how I feel. ... The American dream is supposed to be prosperity, liberty. I just don't see it that way no more, judge."

Evelyn said his client married his high school sweetheart, whom he met at age 14, and raised five children.

Ferguson, gripping a Bible, told Edmunds: "I just pray and ask the Lord that He continues to bless my children and my family as they move through this ordeal."

He said it was strange his sentencing was today, which is his wife's birthday.

"Happy Birthday, Marilyn," Ferguson said of his wife, who filed for divorce earlier this month.

She did not comment after the sentencing.

Attorney: Ferguson's life 'has come crashing down around him'

After the sentencing, Evelyn said people are hearing one side of the story.

"I think it isn't just about trying to take Bobby Ferguson and Kwame Kilpatrick and make them be examples of the decline of the city," he said. "I think that's an ahistorical point of view. It's inconsistent And I think it's blame-shifting to a greater sense than might be necessary."

During the hearing, Evelyn talked about how Ferguson was successful before he met Kilpatrick, building his company in a competitive industry. At its height, Evelyn said, Ferguson's company employed 1,500 people.

Ferguson, Evelyn said, did not hurt other minority businesses.

"He helped build other minority companies," Evelyn said.

Edmunds said Ferguson may have assisted some minority contractors, but in other cases "he was ruthless in putting minority businesses out of contracts and out of business in order" to build his own business.

Assistant U.S. Attorney Michael Bullotta said Ferguson did not help minority contractors and, instead, drove some of them out of business. Before the sentence was handed down, Bullotta said Edmunds should look at Ferguson as a whole.

"He has a history," Bullotta said. "A significant history of criminal violence."

Bullotta said Ferguson once pistol-whipped an employee and was involved in a shooting incident.

He described Ferguson as "the muscle and the money man."

Bullotta said Ferguson received $73 million in illegal proceeds. He said that when citizens elected Kilpatrick, they had no idea they were enabling Ferguson to exercise so much power.

"To all of this there was a cost to the city of Detroit and to its citizens," Bullotta said.

Evelyn said the public does not need to be protected from Ferguson, whose company was destroyed and who he said has grown and changed.

"His life," Evelyn said, "has come crashing down around him."

I'm glad this whole experience has given Bobby an opportunity for personal growth and betterment.  It's just one of the ways the criminal justice system helps everybody.   

[Scipio]

I believe in America.  America has made my fortune.

Bobby Ferguson sentenced to serve 21 years in federal prison for corruption

By Jim Schaefer, Tammy Stables Battaglia and Eric D. Lawrence

Detroit Free Press Staff Writers

One day after former Detroit Mayor Kwame Kilpatrick was sentenced to 28 years in federal prison for his role in a widespread public corruption case, his friend and codefendant, Bobby Ferguson, was sentenced to serve 21 years in prison.

"Bobby Ferguson was the catalyst at the center of an historic and unprecedented criminal scheme," U.S. District Judge Nancy Edmunds said.

The government had asked for Ferguson, who was convicted on nine counts, including racketeering, extortion and bribery, to receive a maximum 28-year prison sentence. Edmunds said Ferguson had no elected accountability, which makes him different from Kilpatrick, who was convicted on 24 counts.

Edmunds said Ferguson muscled other companies and got what he wanted by threatening to use his friendship with Kilpatrick to kill deals. She said he intimidated people both physically and economically.

Edmunds called Ferguson "hotheaded" and said he threatened his mistresses not to testify truthfully to a grand jury, submitted false documents, including during this trial, and threatened a police officer if tickets weren't dropped.

She ordered anger management classes for him if necessary.

"Mr. Ferguson was bold and outspoken in his extortion ... laughing at contractors' attempts to reach out for an explanation" as to why their contracts were canceled, Edmunds said. "His criminal activity stopped only because Kwame Kilpatrick was forced to resign."

Edmunds said the atmosphere of corruption forced good people away from Detroit.

She said Ferguson needed to be "substantially punished."

According to the government, Ferguson received $127 million worth of city contracts while Kilpatrick was mayor and, of that, $73 million was awarded illegally. That translated into $9.6 million in illegal profits, which Ferguson shared with Kilpatrick, the government says.

This morning, the attorneys debated how much of the ill-gotten money should be attributed to Ferguson. His lawyers have argued no evidence was produced during the trial showing he made $9.6 million in total profits off water and sewer contracts.

Edmunds said she would use the lower figure of $6.3 million for the purpose of determining Ferguson's sentence. Edmunds also came up with a lower figure of $4.6 million in determining Kilpatrick's sentence on Thursday.

Gerald Evelyn, one of Ferguson's attorneys, said he wasn't surprised at the sentence, which will be addressed by an appeal. Edmunds told Ferguson he has 14 days to file a notice of appeal.

"It's a tough situation," Evelyn said after the sentencing. "The final chapter hasn't been written yet. I agonize over any client that I have. But obviously I agonize over Bobby because I know him and I know part of how this whole thing went. ... It's obviously troubling. Some people say it could be worse. But the reality is that it's still significant."

Ferguson talks about American dream

Ferguson, who was brought into the courtroom wearing prison garb, told Edmunds today that everything in court has been interpreted the way the government wanted. The only thing that can't be misinterpreted, he said, is the word of God.

Ferguson said he is shocked by the justice system. Today, Ferguson said, he was placed in a room with a 19-year-old who said he was going to get 20 years in prison. Ferguson said that young man's life is destroyed.

"In America, it seems like genocide on black people," Ferguson, 44, said. "I'm not trying to make this racist, I'm just telling you how I feel. ... The American dream is supposed to be prosperity, liberty. I just don't see it that way no more, judge."

Evelyn said his client married his high school sweetheart, whom he met at age 14, and raised five children.

Ferguson, gripping a Bible, told Edmunds: "I just pray and ask the Lord that He continues to bless my children and my family as they move through this ordeal."

He said it was strange his sentencing was today, which is his wife's birthday.

"Happy Birthday, Marilyn," Ferguson said of his wife, who filed for divorce earlier this month.

She did not comment after the sentencing.

Attorney: Ferguson's life 'has come crashing down around him'

After the sentencing, Evelyn said people are hearing one side of the story.

"I think it isn't just about trying to take Bobby Ferguson and Kwame Kilpatrick and make them be examples of the decline of the city," he said. "I think that's an ahistorical point of view. It's inconsistent And I think it's blame-shifting to a greater sense than might be necessary."

During the hearing, Evelyn talked about how Ferguson was successful before he met Kilpatrick, building his company in a competitive industry. At its height, Evelyn said, Ferguson's company employed 1,500 people.

Ferguson, Evelyn said, did not hurt other minority businesses.

"He helped build other minority companies," Evelyn said.

Edmunds said Ferguson may have assisted some minority contractors, but in other cases "he was ruthless in putting minority businesses out of contracts and out of business in order" to build his own business.

Assistant U.S. Attorney Michael Bullotta said Ferguson did not help minority contractors and, instead, drove some of them out of business. Before the sentence was handed down, Bullotta said Edmunds should look at Ferguson as a whole.

"He has a history," Bullotta said. "A significant history of criminal violence."

Bullotta said Ferguson once pistol-whipped an employee and was involved in a shooting incident.

He described Ferguson as "the muscle and the money man."

Bullotta said Ferguson received $73 million in illegal proceeds. He said that when citizens elected Kilpatrick, they had no idea they were enabling Ferguson to exercise so much power.

"To all of this there was a cost to the city of Detroit and to its citizens," Bullotta said.

Evelyn said the public does not need to be protected from Ferguson, whose company was destroyed and who he said has grown and changed.

"His life," Evelyn said, "has come crashing down around him."

I'm glad this whole experience has given Bobby an opportunity for personal growth and betterment.  It's just one of the ways the criminal justice system helps everybody.   

God Bless 'Murica!

[Savonarola]

Fortunately nothing is Detroit's fault:

What bled Detroit dry? (It's not pensions)

Editor's note: Ross Eisenbrey is vice president of the Economic Policy Institute.

(CNN) -- A judge's ruling that the city of Detroit can move forward with bankruptcy and strip the city's public workers of their modest pension benefits will have a devastating impact on Detroit's middle class — many of whom are African-American — and the city's ability to rebuild a strong and sustainable economy.

The largest municipal bankruptcy in our nation's history, the Detroit decision charts a course where Wall Street banks and bondholders are at the front of the payment line while city residents, police officers, firefighters and other public employees are left at the rear, with only pennies.

Kevyn Orr, Detroit's unelected emergency manager, misled the public and succeeded in setting a dangerous precedent that will have ripple effects for other cities and states still struggling to get back on their feet in the post-recession economy.

Michigan Gov. Rick Snyder and Orr, a former corporate bankruptcy lawyer, frequently cited the figure of Detroit's $18 billion in long-term debt as the reason the city must declare bankruptcy. According to a recent report, "The Detroit Bankruptcy," written by former Goldman Sachs investment banker Wallace Turbeville, not only is $18 billion an inflated and inaccurate estimation of Detroit's long-term debt, it is irrelevant. Unlike corporations, cities cannot be liquidated, therefore cash flow, as opposed to long-term debt, is what must be addressed.

Detroit has a cash-flow shortfall of $198 million. Despite the blame placed on public pensions, the truth is that Detroit's path to insolvency had little or nothing to do with pensions, which average just $19,000 per year for most employees and $30,000 per year for police and firefighters, who are not eligible to receive Social Security. There were several drivers of Detroit's downward spiral:

A depleted tax base: The city's wealthier white population has declined by 1.4 million since the 1950s, leaving behind an almost entirely African-American and much poorer population. The remaining tax base continues to decline as unemployment stays stubbornly high: In 2008 alone, the number of working Detroit residents dropped by roughly one-quarter, further diminishing the city's income tax receipts. Property tax revenue also dropped precipitously as home values went through the floor.

Skyrocketing financial costs: Wall Street banks saddled Detroit with $1.6 billion in loan deals that were highly profitable for Wall Street, but exposed the city to risk it could not afford to take. The banks have already extracted $300 million from Detroit to terminate these interest rate swaps, and are posed to collect another $300 million in additional windfalls.

Corporate subsidies and tax loopholes: While public workers were laid off and had salaries cut, Detroit gave away millions of public revenue in tax loopholes and subsidies to big corporations. A wealth of research finds that tax breaks like these are ineffective and it is apparent they have done little to create good jobs for Detroit residents. These tax breaks should be on the table, just like other obligations of the city in resolving the cash-flow crisis.

The dynamics at play in Detroit are the same dynamics creating the growing wealth gap and keeping our economy from making a lasting and sustainable economic recovery. While Wall Street and corporations profit handsomely from a city's decline, public workers—the city's middle class—have sacrificed time and again.

In recent years, thousands of public workers were laid off, and the remaining public employees accepted a 10% pay cut, health benefit reductions and a 40% cut in future pension benefits, saving Detroit $160 million. Not only is it immoral to force the working people to give up even more in the name of fiscal responsibility, but these cuts will only burden the effort to solve the city's long-term challenges by depressing economic activity, pushing more residents into poverty, and making it difficult to retain and attract needed workers.

Instead, Detroit's cash flow shortfall must be addressed by fixing the problems that caused it in the first place. Banks must be told that they have profited enough from interest rate swaps that helped create this mess and will receive no more. The state needs to collaborate by increasing available revenues. Corporate tax loopholes must be closed and ineffective subsidies ended.

Like other cities, Detroit can work its way back toward a healthy local economy with good jobs, quality public services and a robust tax base. But making that happen depends on honoring the promises made to workers and ensuring that Wall Street and big corporations pay their fair share.

I, for one, am outraged that Wall Street would loan Detroit money.  Those fiends!   

[Admiral Yi]

Seems the Economic Policy Institute has taken a turn for the wacko.

[KRonn]

Many of the listed causes, not all, would seem the fault of Detroit's politicians continuously mismanaging finances, which is what led to the city's downfall, is how I read it. If Detroit borrowed too much money with risk then who's fault is that? Giving subsidies to corps was costly but I assume was to try and keep them in Detroit, but it probably went too far and failed anyway. Losing the more affluent due to whatever causes probably isn't the city's fault but some of the other issues are since they're about financial mismanagement.

[Savonarola]

Many of the listed causes, not all, would seem the fault of Detroit's politicians continuously mismanaging finances, which is what led to the city's downfall, is how I read it. If Detroit borrowed too much money with risk then who's fault is that? Giving subsidies to corps was costly but I assume was to try and keep them in Detroit, but it probably went too far and failed anyway. Losing the more affluent due to whatever causes probably isn't the city's fault but some of the other issues are since they're about financial mismanagement.

The author also doesn't mention that the banks are also going to lose money.  Barclays (who loaned the city the $1.6 Billion) is expected to receive 75 cents on the dollar.  (Barclays is a secured creditor, so that's much more than the unsecured creditors will get.)

The tax breaks given to corporations do benefit the city.  The downtown has much more activity than it did before Compuware and Quicken Loans moved downtown from the suburbs.  They also benefited the city financially since Detroit has an income tax.   

White flight did harm the city's revenue; but that happened fifty years ago.  The city had time to make changes.

[Savonarola]

More trouble for Charles Pugh? Racy text messages emerge


(WJBK) -
FOX 2 has obtained a copy of the racy text messages allegedly sent by former Detroit City Council President Charles Pugh to the student he had been mentoring at the time.


Pugh has dismissed allegations before that he was having an inappropriate relationship with the teen, but the allegations carry more weight than many would care to believe.

According to the case report from Madison Heights Police Department, Pugh exchanged several sexually-charged text messages with the student he mentored, offering cash and video games in exchange for nude videos. And the student eventually obliged.

Often times the payout hinged on how much Pugh liked the videos, and the student claims Pugh paid him $160 for one of them.

According to investigators Pugh told the teen to delete the text messages, fearing they could land him in hot water. "Dude, if anyone finds out about this: I'm dead," Pugh allegedly texted. "So please keep this between us."

Despite the evidence that suggests Pugh was preying on the young man, the former City Council President avoided charges.

The prosecutors office's decision on whether or not the charge Pugh boiled down to what happened at the K&G Suit Warehouse in Madison Heights. He had just taken the young man shopping and, when they got into a car, that's where and when Pugh crossed the line.

"In the car he stated that he placed his hand on his thigh and that he immediately rebuffed the advance and, after it was rebuffed, there was no further action," Paul Walton from the Oakland County Prosecutor's Office.

But the text messages kept coming.

In one, Pugh told the student: "I wanna see your body. Front and back. So the video has to show everything. lol. #EVERYTHING."

In another, he wrote: "Dude, your body is f****** AMAZING. I just wanna give u more money to watch u walk around naked. lol."

As for the exchange of text messages and compensation for nude videos, Oakland County says all of that took place in Detroit and, more importantly, the student was 18 years old when it all happened.

Question is - was that by design? The young man met Charles Pugh at the Frederick Douglass Academy in Detroit where Pugh ran his mentoring program. The student was only 17 years old when they met and that's leading many to believe that Pugh was grooming him.

In another text message Pugh told the student: "Truth is: I've had a crush on u all year!! I just couldn't say or do anything about it until now." According to the case report, he even offered to perform oral sex on the teenager. According to police, a former City Council staff member claims she heard Pugh bragging he could sleep with any kid he mentored by giving them cash. It's all painting an unflattering picture of Detroit's native son who became a fan favorite over the airwaves and whose popularity helped put him in City Hall.

It's unclear if the case report will be sent to the Wayne County's Prosecutor's Office, but Pugh will not face any charges in Oakland County.

Read more: http://www.myfoxdetroit.com/story/24234980/more-trouble-for-charles-pugh-racy-text-messages-emerge#ixzz2nqicpdXO

Pugh resigned from the council when this story first broke and he doesn't live in Detroit any more.  It doesn't sound like he did anything illegal; but that doesn't mean we can't be amused by the story.   

[Capetan Mihali]

Dunno about Michigan specifically, but some states have that raise the age of consent when the older party is in a position of authority over the younger one.

E.g. Vermont has a 16 y.o. age of consent that is elevated 18 when it's with a parental figure, teacher, probably coach or therapist too.

[Barrister]

Dunno about Michigan specifically, but some states have that raise the age of consent when the older party is in a position of authority over the younger one.

E.g. Vermont has a 16 y.o. age of consent that is elevated 18 when it's with a parental figure, teacher, probably coach or therapist too.

Same in Canada.

[Savonarola]

Dunno about Michigan specifically, but some states have that raise the age of consent when the older party is in a position of authority over the younger one.

E.g. Vermont has a 16 y.o. age of consent that is elevated 18 when it's with a parental figure, teacher, probably coach or therapist too.

It doesn't sound like they had sex.  Pugh did proposition him (and had him make nudie videos.)

[Savonarola]

I'm back in the 313 for the Holidays.  CB and I used to go to Detroit's Farmers Market, Eastern Market, and then to breakfast at a local diner called "The Fly Trap" every Friday.  We did that today.  Eastern Market has really taken off; this time of year it used to be half empty and most of the people there were either farmers selling the very end of the season produce, farmers from the greenhouses in Leamington, Ontario, butchers, and people selling Christmas trees and poinsettias.  Today the farmers are still there, but it's filled much more with specialty producers selling astronomically-priced foods to appeal to locavores, vegans and what-have-you.  It was packed too, and the homeless were nowhere to be seen (nothing short of a miracle in Detroit.)  I miss the old Eastern Market, it was the real Detroit, but today it's an incredible boost for the city.   

The Fly Trap was featured on the "Dives and Diners" show on the cooking channels.  Now the food is more expensive, the portions are smaller, and the restaurant is filled with 20 somethings who spend the entire meal on their smart phones.   

You can't go back home.   

[Admiral Yi]

Is this downtown revitalization or a suburb that has gone hipster?

[Savonarola]

Is this downtown revitalization or a suburb that has gone hipster?

Eastern Market is in the city; but outside the downtown area.  The Eastern Market corporation has put a lot of work into refurbishing the markets and generating more interest in the market.  Some of their new market is tied to downtown revitalization; a younger and more affluent population lives there now.

The Fly Trap is a suburban diner that has gone hipster; but I liked it before it was popular.