New Information In Federal Case Against Kwame Kilpatrick

DETROIT (WWJ) - A fresh indictment from the U.S. Attorneys Office lists additional federal corruption charges and information involving the case against former Mayor Kwame Kilpatrick, his father Bernard, good friend Bobby Ferguson and former Water Department Director Victor Mercado.

The new 101 page indictment includes seven new money laundering charges against Ferguson.  The U.S. Attorney's office also says it is expanding the conspiracy and extortion cases involving the ex-mayor and the group.

The updated indictment alleges Kilpatrick accepted $10,000 each from a Cobo Center contractor and a restaurant developer.

WWJ Newsradio 950 spoke with former Assistant Federal Prosecutor Peter Henning who said this new information comes from former Kilpatrick aide Derrick Miller, who is cooperating in the case against him.

"The government before had information and testimony from the people who paid the bribes but, of course ... that wasn't directly dealing with the former mayor," said Henning. "And now what's included in the indictment is Derrick Miller's side of the story -- this is what happened inside the office, here's where the money went."

"Miller is testifying saying here's what happened to the cash so it can be traced directly into the former mayor's hands ... This is the kind of eyewitness that can say, here's the money, here's how we got it, and here's how much the former mayor received," he said.

The indictment details multiple incidents of corruption, including one in which Kilpatrick allegedly offered city support for a restaurant project, contingent on a good deal for his dad. According to the document, in about the summer of 2002, the then-mayor told a representative of an unnamed company that Detroit would contribute about $10 million toward a proposal to add a "House of Blues" restaurant at Ford Field.

On about September 3, 2002, a city development official allegedly met with a representative of that company, telling them they needed to told them they needed to hire the mayor's father, Bernard Kilpatrick, as their minority partner. The indictment alleges that the representatives declined and, later that month, Kwame Kilpatrick reversed his promise of city funding for that restaurant.

- View a copy of the indictment -

The superseding  indictment was filed Wednesday, the same day Ferguson's offices were raided by the FBI. (More on this here).

Federal prosecutors say if the group is convicted, the government will seek forfeiture money.