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  • Former Detroit Mayor Found Guilty On Multiple Counts, Including Tax Charges

Former Detroit Mayor Found Guilty On Multiple Counts, Including Tax Charges

Kelly Phillips ErbMarch 11, 2013May 21, 2020

Guilty.

It’s a word that former Detroit Mayor Kwame Kilpatrick heard 24 times today. A former political star, Kilpatrick became the youngest person elected to mayor of Detroit in 2001; he was 31 years old at the time.

Detroit residents had high hopes for the new mayor. The city, which had seen its share of tough times, was poised for a renaissance. Kilpatrick was to lead the way. He was almost a symbolic figure: young, energetic, polished, well-educated, and ready to tackle challenges. He became a symbol, however, of something more: of political corruption and greed.

Almost immediately, Kilpatrick faced criticisms for his spending. While in his first term, Kilpatrick allegedly charged at least $210,000 on his city-issued credit card beginning in the month he was inaugurated. The bill included nearly 80 charges for expensive dinners – one of which included an $85 bottle of Moet & Chandon champagne. He also leased – on the City’s dime – a Lincoln Navigator for his family. Kilpatrick had defended his spending as necessary for the prestige of his position. To appease his critics, however, he repaid a few thousand dollars of the charges.

Despite the controversy, Kilpatrick was re-elected as mayor in 2005. His second term was marred by additional scandal including a 2007 civil lawsuit brought against Kilpatrick by his ex-bodyguard Harold Nelthrope and former Deputy Chief Police Gary Brown. During the trial, which was meant to focus on whistleblower laws, it was revealed that Kilpatrick was having an affair with his chief of staff, Christine Beatty. Kilpatrick lost at trial and the plaintiffs were eventually awarded $6.5 million in damages. Kilpatrick blamed his loss on the racial make-up of the jury and vowed to appeal. He didn’t, however, and instead, increased the payout as part of a settlement of public money worth $8.4 million to be paid to the officers in exchange for their silence about the alleged affair.

In 2008, the walls were closing in on Kilpatrick. The Detroit Free Press requested – and received – transcripts of the nearly 14,000 text messages between Kilpatrick and Beatty which allegedly revealed their affair. The texts, sent using city-owned equipment, also revealed something more: evidence that Kilpatrick lied under oath at the 2007 trial.

Kilpatrick fired back, again, at his critics, using his 2008 State of the City Address as an opportunity to paint himself as a victim. At the end of his speech, he went off-script, using controversial language and accusing those opposed to him of having an “unethical, illegal, lynch mob mentality.” The speech marked the end of most of his public support. He was viewed as having played the race card one too many times, especially in light of the increasing evidence against him. Less than a week later, he was asked by City Council to step down as mayor. Kilpatrick refused.

Approximately one week later, prosecutors announced that an eight-count criminal indictment had been filed against Kilpatrick (his former Chief of Staff Christine Beatty was charged with seven). Kilpatrick eventually took a plea and agreed to serve 120 days in jail, pay $1 million in restitution to the City of Detroit, give up his law license and not seek public office for five years. He returned to jail in September 2010 after a judge ruled that he was hiding assets in an effort to avoid making restitution.

While Kilpatrick was serving that sentence, he was indicted on 19 federal counts of fraud and tax evasion. Among the allegations was the claim that Kilpatrick used a tax-exempt charity, the Kilpatrick Civic Fund, as his own personal piggy bank. He is said to have spent more than $640,000 of the charity’s money on personal expenses including cars, personal trips, and paying college expenses for relatives. He was specifically accused of filing false tax returns for the years 2003-2007 by not reporting $470,951 in income and failing to report $171,751 in income for 2008. He was also charged with 13 counts of mail and wire fraud related to activities used to raise money for the Kilpatrick Civic Fund by falsely declaring that it would be used for charitable purposes. His father, Bernard Kilpatrick, was also indicted, along with other city workers.

The saga might have finally come to an end with today’s verdict. Kilpatrick was convicted of the most serious of the charges against him, including one count of tax fraud. Kilpatrick’s father, Bernard Kilpatrick, was also convicted of submitting a false tax return.

Kilpatrick could spend 20 years in prison following his sentencing. As for his political career? Over. I don’t think there’s any spin – or any card – that could prove different.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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City Council, Detroit, Kwame-Kilpatrick, tax

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