Court Filing: SEC Seeks $390,000 From Kwame Kilpatrick
DETROIT (WWJ) - It looks like former Detroit Mayor Kwame Kilpatrick has another big bill to pay.
The Securities and Exchange Commission has filed a motion seeking a $390,000 from Kilpatrick and $130,000 from former city Treasurer Jeffrey Beasley.
The document filed Friday in federal court says Kilpatrick and Beasley engaged in a "brazen" pay-to-play scheme and received $122,000 in luxury travel and gifts from Mayfield Gentry Realty Advisors while sitting on the boards of the Police and Fire and General Retirement pension boards.
The company was seeking millions of dollars in business from the pension funds. The trips were to Las Vegas, Florida and Bermuda while gifts included tickets to Prince and Toni Braxton concerts, rounds of golf and massages.
The SEC says Kilpatrick and Beasley never disclosed the gifts and their conduct involved fraud, deceit, manipulation and deliberate or reckless disregard of regulatory requirements.
In addition, the commission says the "risk of loss to pensioners was potentially catastrophic as their violations corrupted the integrity of the Pension Funds' investment process."
[View A Copy Of The Court Filing]
Kilpatrick was convicted in March, 2013, of a sweeping scheme to enrich himself and his friends through fixed contracts, bribes and kickbacks. He remains behind bars, serving out his 28-year sentence.
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