Kwame's aide pleads guilty, agrees to testify against Kwame
Original story on Freep.com >>
Kwame Kilpatrick aide Derrick Miller pleads guilty in stunning setback for former mayor
1:16 PM, Sep. 12, 2011
Derrick Miller, one of former Detroit Mayor Kwame Kilpatrick's closest friends and trusted aides, pleaded guilty to corruption and lying on his taxes this morning in U.S. District Court in downtown Detroit. As part of his guilty plea, he will be cooperating in the case against Kilpatrick and is expected to testify at the ex-mayor’s trial, which is scheduled for September 2012. Kilpatrick; his father, Bernard Kilpatrick; Miller, longtime pal and controversial contractor Bobby Ferguson and former head of Detroit's water and sewerage department Victor Mercado were indicted in December on charges they perverted the city’s contracting system by shaking down city contractors to steer millions in public funds into their own pockets. Miller’s guilty plea today provided a detailed look at how Kilpatrick and his codefendants carried out that alleged scheme, including admissions that the ex-mayor directed him to steer millions of dollars of city business to Ferguson. Miller also admitted to delivering a $10,000 cash bribe to Kilpatrick when he was running for mayor in 2001, according to the plea agreement. Assistant U.S. Attorney Mark Chutkow today recommended a 10-year prison sentence for Miller, but said that he would consider a lighter sentence depending on Miller's cooperation in the pending public corruption case against Kilpatrick and the others. He also recommended a $200,000 fine and restitution, which has not yet been determined, but will be based on the amount of money Miller’s crimes earned him, or the amount of money the city lost due to his actions. Miller, meanwhile, is asking for a 41- to 51-month prison sentence in exchange for his plea. He pleaded guilty to two crimes: committing a federal funded program violation and lying on an income tax form. Specifically, Miller admitted that while working for Kilpatrick, he accepted a $115,000 bribe from a real estate broker who received commissions on the sale and lease of city-owned property. “And you received that intending to be corruptly rewarded?” Chutkow asked during the plea hearing. “Yes,” replied Miller, who wore sunglasses and a charcoal gray suit during his guilty plea hearing. He offered no detailed explanation for his actions, making only “yes” and “no” statements following questions from the prosecutor and U.S. District Judge Nancy Edmunds. Miller also admitted that he failed to disclose $46,275 of the money he received from the real estate broker on his 2007 income tax form. He also admitted that he failed to report $568,000 he received from a real estate company that bought and leased a portfolio of properties. Specifically, in October 2007, that real estate company paid Miller a retainer of $22,000, according to the plea agreement. Then, on Dec. 21, 2007, the real estate company paid Miller's company, Atrium Financial, another $546,000 as a consulting fee for Miller's work on a purchase/lease-back deal. "This guilty plea marks an important step in the investigation and prosecution of those involved in municipal corruption during the Kilpatrick administration of the city of Detroit, " said U.S. Attorney Barbara McQuade. "It also serves as a warning to those who hold public office throughout this region that there are serious consequences to abusing the trust of the citizens they are supposed to serve," she said. According to the plea agreement, in about 2003 and 2004, Miller twice received $10,000 from Karl Kado, owner of Metro Services Organization. The money was for Miller's helping MSO obtain and keep contracts for electrical and cleaning services at Cobo Civic Center. Miller also delivered $10,000 from Kado to Kilpatrick in about late 2001, when Kilpatrick was running for mayor of Detroit, the agreement said. The plea agreement further indicates that from 2006 to 2007, Miller authorized that at least $4.4 million in U.S. Department of Homeland Security funds be paid to Security Communications Alert Network to install security cameras and television screens in the city to detect potential threats to the public. For helping in that deal, Miller received more than $10,000 from Andrew Park, one of the owners of SCAN, the agreement said. Miller also admitted in his plea agreement that at the direction of Kilpatrick, he and other city officials helped Kilpatrick and contractor Ferguson by steering millions of dollars of city business to Ferguson. Kilpatrick, as well as his top assistants including Miller and Mercado, pressured contractors to put Ferguson on city contracts they had received, or risk having the contracts held up or canceled, according to the plea agreement. Mercado and other city officials influenced the award of contracts to teams that included Ferguson on them, including re-evaluating bids if Ferguson was not part of the winning team, according to the plea agreement. Miller and other city officials also gave Ferguson inside information about contracts or bids to give Ferguson's team an edge over competing bids, according to the plea agreement. Miller left Detroit about two years ago and has lived in the Washington, D.C., area with his family. Outside the courthouse, Miller declined comment. His attorney, Byron Pitts, only said, "My client, like all of you, is human. Some mistakes were made. He acknowledged those mistakes. Today is the first day of the rest of his life."