Monday, May 7, 2012

Blue State Graft Watch- Former Kilpatrick Appointee Under Federal Indictment for Fraud, Extortion While Detroit City Pension Loses Millions

A Detroit city treasurer appointed by ousted former mayor and convicted felon Kwame Kilpatrick has been indicted by a Federal Grand Jury on charges of extortion and wire fraud and could face decades behind bars

Jefferey Beasley, a Kilpatrick appointeee who served as City Treasurer between 2005 and 2008 is accused of demanding charter cash, jet flights, Las Vegas concert tickets, limousine service, massages, golf clubs and other favors from companies that wanted to business with the city's pension system. Some deatils from the indictment include:

“’Company G’ was an investment manager for the Police and Fire Retirement System, managing over $150 million in properties owned by the System…” In addition to $50,000 in donations to the Kilpatrick Civic Fund (at the request of Beasley), “Beasley asked the principal of ‘Company G’ to include Kwame Kilpatrick, Beasley, and three other associates on a private jet flight that ‘Company G’ had chartered to Las Vegas over the weekend of April 13, 2007, for a golfing trip. The cost of the flight was approximately $43,000. In addition, ‘Company G’ paid for greens fees, lodging, meals, limousine service, concert tickets, and massages for Kwame Kilpatrick, Jeffrey Beasley, and the three other associates at a cost of approximately $23,000 which was not reimbursed. In July 2007, Jeffrey Beasley asked a principal of ‘Company G’ to charter a private plane for Kwame Kilpatrick to fly to Tallahassee, FL. At a cost of more than $24,000, ‘Company G’ then chartered the private plane so that Kilpatrick could go on a trip to Tallahassee over the weekend of July 20, 2007. One of the passengers on the flight to Tallahassee was the son of Jeffrey Beasley…”

On Friday, the City of Detroit's pension board fired Motor City-based Mayfield Gentry Realty Advisors- reportedly 'Company G' in the Federal Indictment. The firm had reportedly used $3.1 million of retiree's money on two strip malls in California without transferring the deed to the city's pension.

The Detroit Free Press reports that the pension fund's total losses since February 2008 exceeds $480 million. The firms and middlemen who brokered some of these money-losing deals on behalf of the pension fund have drawn scrutiny from the Securities and Exchange Comission.

In case you were wondering, the convicted parties or those who were appointed by the convicted parties are all Democrats.

[Hat tip- Russel Mead, Lonely Conservative]

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