Robert Davis charged with stealing from Highland Park school district

A file photo of Robert Davis, 30 of Highland Park. / PATRICIA BECK/Detroit Free PressA Highland Park school board member, who has brought Open Meetings Act lawsuits against the state's financial review process for Detroit, was indicted today on charges he ran a phony invoice scheme that put thousands of dollars into his own pocket, according to the U.S. Attorneys office.

Robert Davis, who was indicted on charges of federal program theft, faces up to 10 years in prison if convicted.

According to the indictment, between 2004 and 2010, Davis pocketed more than $125,000 from the Highland Park School District through two schemes in which he used cover companies to submit fake invoices to the school district for payment.

One of the schemes involved submitting false invoices for more than $380,000 for advertising on behalf of the school district, the indictment said. The other scheme involved invoices in excess of $49,000 for services and expenses relating to a Saturday educational program for district students.

In both schemes, the indictment said, Davis hid his involvement with the companies, whose names appeared on the ionvoices. He also concealed the fact that he took a substantial portion of the payments for his own use, the indictment said.

Davis declined comment pending a press conference this evening.

Attorney Ben Gonek, who represented Highland Park school board member Debra Humphrey in suit against Davis, said the indictment "is long overdue."

"It's refreshing when the government goes after such alleged corruption," he said.

"Stealing from children is bad," Gonek said. "And it's especially so when it's from a school district that's almost bankrupt."

He also noted that Davis fought a state intervention that he said could have uncovered the irregularities.

Davis’s attorney Carl Marlinga said that his client “strongly asserts his innocence. And he looks forward to clearing his name.”

"It is a misfortune that individuals are comfortable with stealing from the children of this city. We, as citizens, must not become comfortable or tolerate this greedy behavior," said Erick Martinez, special agent in charge of the Internal Revenue Service.

U.S. Attorney Barbara McQuade warned that public corruption remains a high priority in her office.

"We are committed to uncovering all forms of public corruption, but stealing from the public is especially egregious when the victims are school children," McQuade said.

Added Detroit's FBI chief Andrew Arena, "Crimes against our children such as these are not only despicable but also a drain on the entire school system. This indictment should serve as a strong reminder we will vigorously pursue anyone who uses school funds as their personal ATM."

The case was investigated by the FBI-led Public Corruption Task Force and the IRS.

Today's indictment comes one year after the Free Press ran an in-depth article about Davis's ties to a controversial $400,000 radio ad campaign that was aimed at attracting students to the struggling Highland Park School district.

• Highland Park schools ad campaign probed (Adobe PDF)

The company that received the nearly $400,000 was Zenoco, a Macomb-County start-up company that was supposed to oversee the promotional advertising campaign.

But Zenoco, the Free Press reported, had no formal contract during its four-year run with Highland Park schools. And its services were never formally approved by the school board.

Yet under that setup, the distressed Highland Park Public Schools wrote nearly $400,000 in checks from 2007 to 2010 to Zenoco.

At the time, the district's attorney and other officials wondered what they got for their money.

Records reviewed by the Free Press showed that Davis – who at the time was a former school board president -- recommended Zenoco for the business, which was handled outside of normal contracting and review processes.

George Butler III, the district's lawyer, said school officials found no evidence that Zenoco developed the ad campaign as promised.

Butler ended up calling for a criminal investigation by the state attorney general. The FBI jumped in and raided Davis' home in search of financial records and information about Zenoco and its owner, court records show.

In August 2010, Davis agreed to repay $4,500 to the Highland Park School District as part of a settlement in Wayne County Circuit Court for submitting an inaccurate court judgment for legal fees. The settlement was announced before Wayne County Circuit Judge Robert Colombo Jr., who wanted to know how two conflicting court orders wound up on the record in a Freedom of Information lawsuit filed by Davis against the school board.

That case was dismissed in November 2009. One of the orders dismissed the case without providing fees; the other dismissed the case providing fees and costs of $4,500. Both documents were signed by Davis on behalf of his attorney and an attorney for the district, and had Colombo's stamped signature.

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Cocktails & Popcorn: Butch Hollowell Is Definitely Going To Have Some Serious Attorney Client Privilege Immunity Issues When It Comes To The Detroit Elections Commission

"I did not interfere in any elections...or money laundering."

Ah, I remember when I first sprinkled magical stinky dust over the Hamtramck Board of Elections and the Wayne County Election Commission......

I bet Butch remembers, too.

Someone should ask him or we could just follow the campaign contributions.

Election commission rules Duggan recall petition can proceed

Detroit — The Wayne County Election Commission on Thursday signed off on a recall petition filed by a west side resident hoping to mount a campaign to oust Mayor Mike Duggan.

The petition, brought by activist Brenda Hill, was filed on April 22 with the Wayne County Clerk's Office. In her petition, Hill cites an investigation into whether the city gave favor to a nonprofit dedicated to preventing premature births and the mayor's alleged ties to the doctor who heads it.

The Election Commission, comprised of Wayne County Probate Court Chief Judge Freddie G. Burton Jr., Wayne County Clerk Cathy M. Garrett and Wayne County Treasurer Eric Sabree, signed off on the clarity of Hill's petition. It is now fit for gathering signatures. The mayor's legal counsel has the option of challenging the ruling.

Hill contends Duggan "has no respect for citizens" and that he should be "very afraid."

"This specifically has brought to the forefront his ability to have relationships and use the city's taxpayer money in relation to an employee ... to get grants for this person and to fundraise as well," Hill said. "We're going to sit down and discuss some strategy. We have 180 days to do what we're going to do."

Gary Gordon, an attorney for the Dykema law firm representing Duggan at the hearing, argued that Hill's language was "sloppy" and "inaccurate" and "demonstrated a lack of due diligence." He also pointed out what he contends are factual inaccuracies in the petitions, saying they are "salacious, unnecessary" and "don't address the conduct of the mayor."

Melvin Hollowell, Detroit's former corporation counsel and an attorney for the Miller Law Firm also representing Duggan, noted the allegations referenced in Hill's petition have to be based on conduct in Duggan's current term. That began Jan. 1, 2018, he said. Ultimately, the commission voted 2-1 on the petition, with Sabree voting no.

"I move that the language is sufficient and clear to warrant distribution of the recall petition," Burton said. "To be very clear, I am not making a determination that anything in this recall petition is true. That's not for this body to decide whether it's true or not."

A second petition with nearly identical wording was rejected by the commission.

Hollowell said that the mayor's legal team is confident the recall ultimately will not appear on a ballot.

"We'll carefully examine the remaining issue and determine whether or not to appeal, but I think it's a pretty safe bet," he said.

The city's Office of Inspector General launched a review on April 5 to determine whether Duggan and city officials potentially "abused their authority" by providing preferential treatment to the Make Your Date program.

The investigation came after the Detroit Free Press reported that the program received $358,000 in city grants and benefited from a fundraising campaign that a city official led at the mayor’s request.

A third petition filed by litigious activist Robert Davis of Highland Park was unanimously rejected by the panel after a debate over his residency.

Davis, who will be assisting Hill in the campaign, said a formal political action committee will be formed in the coming days to raise funds for the recall campaign.

Davis said commitments have been made by “Detroit businessmen” toward the effort. He said the pledged funding is about $50,000 but declined to specify who was planning to kick in funding in advance of the filing.

Political analyst Mario Morrow filed a complaint Thursday with the state Bureau of Elections, accusing Davis of violating the Michigan Campaign Finance Act.

Morrow, in his complaint, said Davis failed to file a statement of organization in the time required as well as a finance statement to reveal how much funding has been allocated toward the effort and who is supplying it.

"It doesn't seem above board to me as a political observer and a political watchdog," he said. "I have no problem with people calling for recalls or filing complaints, but if you are going to hold somebody to a higher standard, you better make sure that you are holding yourself to a high standard as well."

Davis said Thursday evening that “Mr. Morrow has 24 hrs to withdraw the complaint that has been filed with the Secretary of State, otherwise my team of lawyers will be suing Mr. Morrow for filing such a frivolous complaint.”

Shawn Starkey, a spokesman for the Secretary of State's Office, confirmed a complaint against Davis was received and that the state has five days to review it and determine whether it warrants an investigation.

Davis contends that he's complied with the rules, since no donations have been accepted yet, only "verbal commitments."

Davis said that the campaign plans to gather signatures during the summer months.

In response to the prospect of an appeal, Davis said that Duggan is “wasting the taxpayers’ money in the city of Detroit on a useless legal fund.”

Davis argued during the hearing that the statue doesn't require he be a resident for his petition to be valid. A prior recall petition targeting Duggan, he said, was permitted to proceed by a federal judge.

Davis has said that his residency hasn't changed since his last recall petition was filed and it isn't a factor. 

At that time, Davis filed a recall petition against Duggan for his hiring of the city's former corporation counsel. After a legal dispute in Davis' effort, which also sought to recall former Gov. Rick Snyder over his role in the Flint water crisis, U.S. District Court Judge Judith E. Levy ruled Davis could circulate the Duggan recall petition. Ultimately, he did not collect the signatures.

Prior to the commission's vote, Gordon argued that Davis "has no standing to argue Mike Duggan should be recalled,” and that “any petition filed by him in his name is invalid.”

Duggan last week took a shot at Davis over a past criminal conviction and attempt to spearhead a recall against the mayor.

The activist has a federal conviction for embezzling taxpayer funds while he served as a school board member in Highland Park.

Duggan added that he was sure the recall effort would "work itself out" and that "the people in the city will decide; it's in the charter."

Davis has argued Duggan's remarks are an "absurd" attempt to deflect from his own actions.

Davis served 10 months in prison for stealing $200,000 from Highland Park Schools between 2004 and 2010. The former school board member was accused by prosecutors of funneling money from a school contractor to two separate companies he had created.

Duggan's spokesman, John Roach, on Thursday said the mayor has "tremendous support" in the city.

"They need 50,000 recall signatures from a city where only 22,000 people even voted against the mayor in November 2017," said Roach in an email, adding Duggan's legal representation in the matter is being paid for out of his campaign fund.

Duggan this month said he intends to be "100 percent" cooperative in the inspector general investigation.

The mayor has said the city didn't direct any dollars toward the nonprofit. The partnership was with Wayne State University directly, which runs the program.

The News reviewed a 2017 email from Alexis Wiley, Duggan's chief of staff, to the program's leader, Dr. Sonia Hassan, who is affiliated with Wayne State University.

"Dr. Hassan, I’d like to introduce you to Ryan Friedrichs. He is our chief development officer and the Mayor has tasked him with launching a large scale fundraising effort to Make Your Date. He’ll be in touch soon!”

Duggan's relationship to Hassan has been publicly questioned in recent months.

Businessman Robert Carmack, who has been locked in a legal battle with the city and a public feud with Duggan, recently accused the mayor of bribery and infidelity in banners flown over Comerica Park and Hart Plaza in Detroit.

Carmack last year aired private investigator footage of the mayor's comings and goings on a billboard truck outside City Hall.

On Friday, Carmack called Inspector General Ellen Ha's review a "sham" based on statements Ha made to Carmack during a recently secretly recorded meeting.

Ha's office stood by its probe and her credentials. 

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House Judiciary Committee Members Send Emergency Letter to Georgia State Parole Board

Date: Wednesday, September 21, 2011 

Contact: Matthew Morgan  (Conyers) – 202-226-5543

              David Dailey (Scott) – 202-225-8351

              Andrew Phelan (Johnson) – 404-593-9126

House Judiciary Committee Members Send Emergency Letter to Georgia State Parole Board

Letter Urges Reconsideration of Clemency Hearing before 7 p.m. Deadline

(WASHINGTON) –  Yesterday, House Judiciary Committee Ranking Member John Conyers, Jr. (D-Mich.), Crime, Terrorism and Homeland Security Subcommittee Ranking Member Bobby Scott (D-Va.), and House Judiciary Committee Member Hank Johnson (D-Ga.) wrote a letter to the Georgia State Board of Pardons and Paroles urging them to reconsider the decision to conclude Troy Davis’ death penalty clemency hearing.  Mr. Davis’ defense team was unable to finish presenting evidence in support of his request for clemency.  Specifically, Mr. Davis’ defense team wished to present the testimony of an expert on eyewitness identifications, a critical aspect of Mr. Davis’ request which turned on the fact that several eye witnesses at his trial had since recanted their testimony.

“Since 1973, more than 135 individuals on death row have been exonerated based on their innocence.” Conyers said.  “There is overwhelming evidence that casts doubt on Troy Davis’s conviction.  Before Mr. Davis is executed, the Georgia State Board of Pardons and Paroles should consider re-opening Mr. Davis’ clemency hearing because the defense team was unable to present all evidence establishing his innocence.”

“Under the Antiterrorism and Effective Death Penalty Act, the burden is on the defendant to prove actual innocence by 'clear and convincing evidence,'” Scott said.  “This standard is more stringent than preponderance of the evidence and so a defendant demonstrating that he is probably innocent will not meet this burden. Lack of evidence of guilt is not affirmative evidence of innocence.  Despite the fact that Troy Davis demonstrated that the evidence against him left substantial reasonable doubt of his guilt, the District Court found that he was unable to prove with clear and convincing evidence that a jury would not convict him, based on the available evidence.  Similarly, the Georgia Board of Pardons and Paroles did not find the evidence compelling enough to grant clemency, even though they did not hear all of the evidence.  There is something fundamentally wrong with our system when someone may be put to death when the evidence we have available today casts serious doubt about his guilt."

“As a criminal defense attorney, judge and member of the House Judiciary Committee, it disturbs me to my core that an unnecessary and unjust killing may take place,” Johnson said.  “If we execute a man despite new evidence that casts doubt on his guilt, it shakes the public’s faith in the integrity of justice in Georgia.”

Previously, Representatives Conyers,  Scott, and Johnson wrote Chatham County District Attorney Larry Chisolm urging him to drop the death warrant against Mr. Davis and support his appeal for clemency in light of the substantial doubt surrounding his guilt.  A copy of this letter can be found at the following link:http://democrats.judiciary.house.gov/sites/democrats.judiciary.house.gov/files/JudMembers4Davis110916.pdf   

The letter to the Georgia State Board of Pardons and Paroles  is attached as a pdf and follows below.

Chairman James E. Donald

Georgia State Board of Pardons & Paroles

2 Martin Luther King, Jr. Drive, SE

Suite 458, Balcony Level, East Tower

Atlanta, Georgia 30334

RE: Troy Anthony Davis Pending Execution Scheduled for September 21, 2011

Dear Chairman Donald and Members of the Georgia Board of Pardons and Paroles:

We are writing to urge you to reconsider your decision to conclude Troy Davis’ clemency hearing on September 19, 2011.  It is our understanding that Mr. Davis’ defense team was unable to finish presenting its evidence in support his request for clemency.

We understand that, due to time constraints, the Board was unable to hear from Dr. Jennifer E. Dysart, an expert on eyewitness identifications.  We attach the letter written by the Innocence Project, which elaborates the myriad reasons that Dr. Dysart’s testimony is critical.  As you are well aware, the only evidence linking Mr. Davis to the crime is eyewitness testimony.  Given the gravitas of the task with which you were charged, and what the research tells us about this type of evidence, we urge you to give new consideration to concluding Mr. Davis’ hearing without hearing from this critical expert.

Sincerely,

John Conyers, Jr., Ranking Member

               

Robert C. “Bobby” Scott, Ranking Member, Subcommittee on Crime, Terrorism, and Homeland Security

                               

Hank Johnson, Member

U.S. House Judiciary Members Letter Regarding Troy Anthony Davis Execution Scheduled September 21, 2011

Cocktails & Popcorn: Brenda Jones & The Detroit Land Bank Authority Campaign Finance Depositions?

Interesting line of questioning.

I wonder if this has anything to do with the Detroit Land Bank Authority and campaign finance?

Why Detroit city council president's deposition was abruptly halted

A lawyer for the City of Detroit abruptly ended a deposition of City Council President Brenda Jones on Wednesday after Jones was asked repeatedly whether she had been contacted by the FBI in the last year.

Jones responded "I do not wish to answer" three times during the line of questioning in the deposition, which is part of a civil lawsuit unrelated to the FBI.

A city lawyer later said the deposition was ended because the questions were part of a "fishing expedition" and a plan to embarrass Jones, who is not a defendant in the lawsuit in which she was slated to give the deposition. Jones also has not been named in connection with two ongoing, unrelated FBI investigations involving city officials: a probe of the city's demolition program and separate scrutiny of towing magnate Gasper Fiore.

The council president's sworn deposition was being taken as part of a lawsuit that two downtown bar owners filed in November 2016 against Mayor Mike Duggan and other city officials based on claims of police harassment and alleged favorable treatment that Dennis Archer Jr., former mayor Dennis Archer's son, received while buying the building their bar occupies. The plaintiffs allege that Jones is one of the council members the bar owners had contacted about their situation.

Although Jones has not been implicated in the separate federal investigations, her colleague, Councilman Gabe Leland, was described in January in FBI wiretap recordsas willing to keep the Fiore family updated with information that might help their towing businesses.

Drew Paterson, the bar owners' lawyer, asked Jones during the deposition whether any FBI agents had contacted her in the last year. Paterson's fifth question honed in on Leland.

It came after she repeatedly said she did not want to answer such questions.

Jones told the Free Press on Thursday she didn't answer the questions about the FBI because the deposition was supposed to be about the bar involved in the lawsuit, the Centre Park Bar. "You want to do a deposition about the Centre Bar and what I know about the Centre Bar, I don't have a problem," she said.

Jones said she has not been in touch with the FBI. "The FBI has not contacted me for anything," she said.

READ MORE: Detroit Councilman Gabe Leland targeted in FBI investigation of towing titan Gaspar Fiore

READ MORE: Downtown bar: Paradise Valley land deal is tainted

During the deposition, city attorney James Noseda appeared fed up with the FBI questions, according to a transcript of the deposition.

Noseda already had objected to previous questions about Jones' political fund-raisers, use of her city-owned vehicle and how she hires staff.

"Counsel, if you want to continue with this line of questioning and all the similar lines of questioning that has nothing to do with this case, I am adjourning this deposition and I'm going to seek a protective order. Are you going to — then fine, we're adjourned. I'm seeking a protective order," Noseda said, according to the transcript.

Jones was escorted out by counsel, the transcript reads.

Hours later, Noseda followed through, filing a motion to prohibit the depositions of Jones and two other council members who were scheduled to give testimony out of court — Mary Sheffield and Leland — because, the document alleges, the depositions are being taken in bad faith and seek to embarrass council members.

The filing also claimed the questions asked during Jones' deposition were the work of community activist and political agitator Robert Davis, who has been represented by Paterson in scores of lawsuits filed against various municipalities in recent years, often alleging violations of the state's Open Meetings Act and Freedom of Information Act.

"The questions were undoubtedly drafted by Robert Davis and are nothing more than a fishing expedition by a non-party intended to harass and annoy high-ranking city officials," the filing reads.

Davis, who is working as Paterson's law clerk on this case, said the assertion is absurd.

Paterson responded Thursday, asking the court to continue with the council members' depositions. The city's objections to questions about the FBI do not fall within the legal framework for withholding an answer during a deposition, Paterson wrote in his court filing.

"Brenda Jones is an 'elected' official. If she was contacted and/or interviewed by the FBI concerning certain activities in her official capacity as a duly elected official of the defendant City of Detroit, that is certainly public information," Paterson wrote.

Detroit Corporation Counsel Lawrence Garcia, the top lawyer for the city, said in a statement that Paterson and Davis clearly are trying to harass the council members with matters irrelevant to the case. "In our latest filing, we are seeking sanctions against Mr. Paterson, as we have been successful obtaining in past cases involving Mr. Paterson and Mr. Davis," the statement read.

Depositions of the council members were sought to shed light on their knowledge of the dispute between the Centre Park Bar owners and city officials. One of the owners, Christopher Williams, talked with the council members about his problems with the deal to sell the building his bar occupies to Archer Jr., according to court records.

The Centre Park Bar was shuttered about a month ago, Paterson said.

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Detroit Land Bank Authority Gets Back Up Authority In Its Cover Up

Authorities, the final frontier in privatization

How can you rig bids when you are not even incorporated?

In order to rig a bid you have to first enter into a contractual relationship with the corporation.

The Michigan Housing Authority is a domestic Limited Liability Company.

The Michigan Homeowner Assistance Nonprofit Corporation is a domestic non-profit corporation.

Michigan State Housing Development Authority is not incorporated but it statutorially operates through the State of Michigan, engaging in financial transactions in the name of the State of Michigan.

The Detroit Land Bank Authority, a domestic Limited Liability Company was dissolved 11-27-2017.

Since the Detroit Land Bank Authority never incorporated, where it recently admitted to the court that it worked through the Detroit Land Bank Community Development Corporation, and never filed this relationship with the State LARA Corporation Division, then how could it rig bids?

Who entered into the contracts and who signed?

Who wrote the checks to the contractors?

How did the contractors cash the checks?

How did the Detroit Land Bank Authority pay back Michigan State Housing Development Authority if it is not incorporated and has no bank account to engage in any financial transactions?

That is not bid rigging, that is fraud.

One good thing about being an authority is that it is beholden to no laws because it is a nullified entity.

How can you prosecute, or even sue, something that does not exist?

How can you lie to SIGTARP when you do not exist?

Quintessentially, the State was proper in reversing its course because bid rigging never happened and I concur.

State reverses course, says Detroit demo 'bid rigging' never happened

A state audit of Detroit’s blight demolition initiative suspected “possible bid rigging” last year in the midst of an ongoing federal investigation into the program, according to records obtained by the Free Press.

But a state official involved in the audit said Thursday that the bid rigging suspicions discussed privately in August 2016 ultimately did not turn out to be true.

"We didn't see any bid rigging," Mary Townley, a state housing official who was at a meeting last year where bid rigging was discussed as a possibility, said in an interview Thursday. "It was probably brought up not knowing what we were dealing with until we further completed, or further got into our analysis."

A state analysis released in January may not have specified “bid rigging,” but it found $7.3 million in improper billings from Detroit seeking federal funds for demolitions, including about $900,000 in billings tied to bid manipulation in which demolition costs were moved from one house to another so that prices did not exceed a cap of $25,000 per house.

The city ultimately agreed to repay $6.3 million of the billings.

Michigan finds $7M wrongly reimbursed demolition costs

The suspicions of bid rigging arose in the summer of 2016 during a forensic audit of the city demolition program performed by two firms hired by the state— Holland & Knight and Ernst & Young. The suspicions coincided with a three-month suspension of the city's federally funded demolition program imposed by the U.S. Treasury.

The possibility of bid rigging was raised at an Aug. 17, 2016, meeting of the Michigan Homeowner Assistance Nonprofit Housing Corporation, or MHA, which began its audit the previous December.

“Holland & Knight along with Ernst & Young have been digging deep into the Detroit Building Authority and findings are not very good. Possible bid rigging going on. Funding has been immediately suspended,” minutes from the meeting show.

The minutes represent the first known instance of state officials involved in the Detroit demolition program discussing possible criminal activity.

Detroit's demolition program has been under heavy scrutiny for the last two years. Following media reports in the fall of 2015 of skyrocketing demolition prices under Mayor Mike Duggan, federal authorities launched a criminal investigation that remains ongoing.

The MHA, along with its partner agency, the Michigan State Housing Development Authority (MSHDA), reviews the city's demolition invoices and approves federal funding for demolitions of vacant, blighted properties in Detroit.

Last week, government watchdog Robert Davis received complete, detailed minutes of private MHA board meetings as part of a lawsuit his nonprofit, A Felon's Crusade for Equality, Honesty and Truth, filed against the MHA in October. The lawsuit seeks to make sure the MHA is subject to the state’s Open Meetings Act, and it seeks a copy of the state’s audit report.

Davis gave copies of the MHA meeting minutes to the Free Press. Although the MHA was created by the state to distribute federal funds, it does not consider itself a public body subject to the state’s Open Meetings Act.

The minutes show the MHA board received regular updates on the state's audit of the Detroit demolition program. While the meeting minutes say bid rigging was believed to be in play, specific contractors or employees were not named.

The audit findings ultimately were given to the FBI and SIGTARP, a federal watchdog tasked with monitoring the federal funds made available to Detroit for demolitions.

Townley, vice president of the MHA board, said she typically updated the board on the state's Detroit demolition audit. She said she likely was the person who brought up bid rigging as a possibility. But on Thursday she could not immediately recall what auditors had found that drove the discussion.

Davis said the records put the federal demolition investigation in a new light. He said Duggan and state officials have misled the public by downplaying the state audit findings. When discussing the findings at a press conference in January, Duggan said he saw nothing to suggest anything criminal was going on in the demolition program.

“This is why transparency is so important in government,” Davis said. “When you have governmental entities conspiring with one another with concealing the truth to the public. The governor and (the state) all should’ve came out when the mayor flat-out lied and said this is more serious.”

Duggan spokesman John Roach denied assertions that the mayor misled the public concerning the demolition program.

"Robert Davis is the one who continually says things that are not true and the facts continue to prove that," Roach said.

Erica Ward Gerson, chairwoman of the Detroit Land Bank Authority, said the state audit was thorough.

"At the end of an exhaustive audit process that lasted several months, (the state) did not find any bid rigging," she said in a statement.

"We worked closely with the state to implement a series of new internal controls. Since those improvements were put in place, MSHDA and the Treasury Department have released another $130 million to continue the demolition program and MSHDA has fully released us from any claims regarding the bid process."

Duggan met with state auditors on Jan. 4 in Chicago to discuss the audit that ultimately found $7.3 million in improper billings.

When the audit was released in January, the city agreed to repay only $1.3 million of the improper billings. The city disputed the rest.

"The feds are doing what they should be doing. We have given them, I think, every single document that exists," Duggan said then. "I have not seen anything in this that suggests anyone did anything criminal."

Eventually, the city and the state reached a settlement. The Detroit Land Bank Authority agreed to repay $5 million in outstanding claims of improper billings. At the same time, the state agreed to make $5 million available to the city to pay for more demolitions.

Detroit Land Bank Authority LLC Dissolution Order 11-27-2017 by Beverly Tran on Scribd

Please note that the Assistant Attorney General entered into the record that I was to be deemed by the court as a "public nuisance", a moniker I shall forever embrace.

Detroit Land Bank Authority Reply in Support of Motion To Dismiss 12-01-2017 by Beverly Tran on Scribd

Please note, the Detroit Land Bank Authority has never been created, per its own articles.

The one good thing that came out of its repsonse was that it called me a conspiracy theorist.

Awwww, how sweet.

Certificate of Michigan Land Bank 12-01-2017 by Beverly Tran on Scribd

Yes, I know.  There are errors, but hey, remember, I am pro se.

Beverly Tran Response To Detroit Land Bank Authority, et al Motion To Dismiss 11-15-17 by Beverly Tran on Scribd

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Shanelle Jackson Part Of Wayne County Medicaid Fraud Scheme

Told you so. There is so much Medicaid fraud in Wayne County it is ridiculous.  State Representative Shanelle Jackson who had the audacity of going around advocating for more Medicaid money to be pumped into Wayne County Mental Health was getting some of that money pumped into her little campaigns.,

Shanelle Jackson then thinks she is going to run for congress???  Everyone, make sure to tell her Beverly Tran said [sic] "Sit your hair-weave ass down" then tell her to subscribe to my feed, beverlytran.com.

Her weave was paid for by the tears of children who were tortured in foster care in bogus Medicaid funded programs and services justified in fake court reports approved by rubber stamping a judge's signature.

And yes, this is personal and I dare her to challenge my statement.,

Investigation of Wayne Co. widens

Jury probes alleged misuse of mental health funds by Ficano staff

Zoom

The events are the latest in a wide investigation into Wayne County Executive Robert Ficano’s administration. (Detroit News file)

Detroit— A federal grand jury is investigating whether Wayne County illegally spent money intended to help those with developmental disabilities and mental illnesses on spokespeople for Executive Robert Ficano, The Detroit News has learned.
The revelation is the latest in a wide investigation into Ficano's administration — and follows allegations in lawsuits from two former Detroit-Wayne County Community Mental Health Agency directors that Medicaid money was misspent on salaries for administrators and to pay lobbyists.
That could constitute fraud and, if nothing else, is an affront to decency, said Richard Visingardi, a former executive director who received a $200,000 lawsuit settlement in 2007 after he was fired.
"You have a moral responsibility to follow the law and spend the money on people with disabilities and don't piss it away," Visingardi said. "It's morally reprehensible, a violation of federal standards and practices, and it's just wrong."
Two sources told The Detroit News that Visingardi has received a subpoena to talk to federal agents about the allegations. He declined comment except to say "if I was subpoenaed, it would be as a witness, not a target."
Brooke Blackwell, a spokeswoman for Ficano, said numerous studies have found no abuse.
"Anyone can make an allegation, but the truth of the matter is that there have been no irregularities in any of the many audits conducted," Blackwell wrote in an email.
"Mental health is only partially funded by federal dollars, and those funds earmarked for expenses and salaries are carefully accounted for."
Visingardi's accusations, though, aren't new.
His predecessor at the agency, Patricia Kukula, was fired in 2003 and sued Ficano that year, alleging his staff was "misusing mental health funds … (and) employed members of his personal staff using mental health dollars, when in fact they were not performing mental health work."

Previous payout

She dropped the suit months later, but the settlement was kept secret until Friday — just before a judge today was to weigh a request from Robert Davis, a union activist and Highland Park school board member, to open it.
The deal paid Kukula about $60,000 and gave her credit for nearly five years' work that she didn't perform.
That allowed her to retire in 2009 with a pension that pays $90,420, enrichments that could be worth at least $600,000 over a 30-year pension.
Davis, who filed the suit to open the settlement, said the deal is worth closer to $850,000.
Kukula said she hasn't received a subpoena.
"I'm a law-abiding citizen, and my only involvement is responding to (Davis') suit," said Kukula, who is now vice president of corporate development for the Detroit Medical Center, a system run by Mike Duggan, the deputy executive for Kukula's old boss, former Wayne County Executive Edward McNamara.

Investigation branches

The new investigative thread follows several since federal agents began serving subpoenas on the county in October.
What started as a probe into a $200,000 severance to former economic development director Turkia Mullin and her ties to county contractors has since branched into several areas, sources have told The News.
Now, the grand jury is investigating kickback allegations involving a county-affiliated insurance program; a suicide-prevention contract to the ex-husband of a Ficano fundraiser; Mullin's leadership of the county's land bank; a project to build a $300 million jail; and millions of dollars in information technology contracts.
Mohamed Okdie, who served on the mental health board from 1994 to 2008, said he hasn't been contacted by the grand jury.
But he said prosecutors would have plenty to investigate. Okdie said Ficano routinely dipped into Medicaid money on unrelated projects and even to offset budget gaps in the general fund.
Okdie said he objected, but Ficano controls half of the 12 board members.
Detroit appoints the other six board members to the agency that has a $600 million budget and provides services to 75,000 people.
"It's a tragedy," said Okdie, who served on Ficano's transition team when he was elected county executive in late 2002.
"The mentally ill are on the streets, living in the cold, prostituting themselves and Bob Ficano is using money intended to help them to plug a budget hole."
Kukula came aboard about the time Ficano became county executive in 2003, and troubles soon followed, Okdie said.
Ficano, who had been sheriff for two decades, didn't want Kukula because she was a longtime administrator to his predecessor and frequent foe, Edward McNamara.
After the board gave her a two-year contract in early 2003, "I was told there would be blood on the streets and the (Ficano administration) would discredit me and the entire board," Okdie said.

FBI raids office

Ficano fired Kukula on Nov. 12, 2003, over claims the agency had a $17 million deficit. Ten days later, the FBI raided the mental health agency's offices and removed financial records.
Kukula sued but dropped the case months later in 2004. The commission approved the settlement, but unlike most, wasn't allowed to see its details, said Phil Cavanagh, who served on the commission at the time and is now in the state House.
"Patti told me, 'Phil, they made me an offer I can't refuse. It's unbelievable,'" said Cavanagh, D-Redford Township, who also served on the mental health agency's board.
Cavanagh said he plans to introduce legislation this week to turn the agency into an independent authority. It's now staffed and funded by Wayne County, but the agency board hires its director. There has been a dispute between Ficano and the board over whether the county executive can fire the agency's executive director.
Cavanagh's legislation is identical to bills passed by the House and Senate in 2004. They were vetoed by then-Gov. Jennifer Granholm, who at the time said she wanted to give Ficano a chance to fix the problems.
"If anything, it's in far worse condition now," Cavanagh said.

Problems ignored

Visingardi said he was brought aboard as a change agent in 2005.
He said he was stymied at every turn, highlighting problems to officials in Lansing and in Wayne County that were ignored.
Visingardi alleged in reports the agency spent Medicaid money to pay its Lansing lobbyist, Karoub and Associates, to block legislation to make the agency an authority.
He also said the county used $17 million in Medicaid funds to plug a budget hole, failed to provide local matches to Medicaid grants and used federal funds to pay salaries of spokespeople for Ficano.
Blackwell countered that two independent audits found "no discrepancies" and the $17 million was put back into mental health after cost overruns.
By May 2006, Visingardi was effectively out as director. Okdie said the board recognized Visingardi as director, but he was blocked from working by sheriff's officials and wasn't paid.
A career mental health administrator, Visingardi said every agency has some level of misspending.
It's often unintentional but, he said, Wayne County failed to implement simple safeguards to prevent abuse.
"You can't argue stupidity. There were no structures to prevent misspending," said Visingardi, who also has served as the state's Community Mental Health Services director and director of Community Mental Health in Oakland and Ionia counties.
"It was fraud."

DOJ: Ukrainian Man Extradited to the United States to Face Charges in International Money Laundering and Fraud Scheme

Money Mules.  I like that term but I want people to understand, sometimes, when desperation comes to your door, and destruction of your life is at your back door, you will do what you have to do, without asking any questions because these operations are typically validated with the blessings "The Elected Ones", including all the heraldry of those foreign corporations with lots of shiny christian crosses on the flags that loves to fund those election campaigns.

But hey, what do I know?

I just know there was an interesting name that was identified in this release.

I also know this is just another layer of what is going on in our institutions.

Money Mule Operation Allegedly Effectuated the Theft and Laundering of at Least $2.8 Million

South Korean authorities extradited to the United States a Ukrainian man in connection with allegations that he conducted an extensive money laundering and fraud campaign that targeted dozens of victims, including a corporation based in the Western District of North Carolina.   

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office made the announcement. 

Aleksandr Musienko, aka “Oleksandr Serhiyovych Musiyenko,” “Robert Davis,” and “Ply,” a Ukrainian national, was charged in a recently unsealed indictment with one count of wire fraud, one count of bank fraud, one count of money laundering conspiracy and two counts of money laundering.  Musienko had been traveling in South Korea, when, at the U.S. government’s request, South Korean officials arrested him on the charges out of the Western District of North Carolina.  South Korean officials extradited Musienko to the United States on March 28.  Musienko will make his initial appearance at 1:45 p.m. today before U.S. District Court Magistrate Judge David S. Cayer. 

According to the indictment, Musienko is charged with engaging in an extensive international money laundering and fraud scheme targeting U.S. corporations and individuals.  He is alleged to have begun the scheme in 2009 and continued it through at least 2012. 

In particular, Musienko allegedly partnered with overseas cybercriminals who had hacked into, and stole funds from, online bank accounts belonging to a large number of individual and corporate victims in the United States.  One victim was a business based in the Western District of North Carolina.  Musienko operated a network of “money mules” throughout the United States.  According to the indictment, using aliases that included “Robert Davis” and phony front companies that included “Vita Finance AG” and “Hilpert AG,” Musienko recruited money mules throughout the United States using a variety of fraudulent techniques, including by advertising bogus “employment” opportunities to work as “Financial Assistants.”  He promised to pay the money mules a fee of approximately five percent for each overseas wire transfer they completed.

Once Musienko had his network of money mules in place, Musienko then offered his money mule services to his cybercriminal partners to assist them in transferring stolen funds.  He directed his “money mules” to use their own bank accounts to receive and then transfer proceeds from the compromised bank accounts overseas.  As alleged in the indictment, Musienko’s criminal money mule operation effectuated the theft and laundering of at least $2.8 million from 2009 to 2012. 

The investigation was conducted by the FBI Charlotte Field Office.  The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea.  Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Taylor Phillips of the Western District of North Carolina are prosecuting the case. 

An indictment is merely an allegation.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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The Detroit Email Tree Is Not Poisonous When Ending Stealin' Children, Land & Votes

I am pretty sure there shall not be any "fruit of the poisonous tree" going on with the emails.

Those emails contain more than just the Make Your Date activities because no one wants to talk about the Detroit Land Bank Authority....or funding campaigns....or doling out properties to campaign supporters....or the election....or the bitcoin....or SIGTARP....or the trust funds....or me.

Just ask Larry Garcia.

Send him my love.

Emails of Duggan, five aides target of AG's search warrant

Detroit — The Michigan Attorney General's investigation into deleted emails involving a controversial nonprofit is focused on the email accounts of Detroit Mayor Mike Duggan and five aides, according to a copy of a search warrant.

The two-page search warrant document, obtained under a Freedom of Information Act request filed by activist Robert Davis and provided to The Detroit News, was released by the city on Tuesday. The city confirmed the search warrant was released under Davis' request.

The warrant was executed Friday on the City of Detroit's information technology department as part of a probe into city employees deleting emails involving Make Your Date, a nonprofit championed by Duggan that addresses premature birth.

The City of Detroit's Innovation and Technology Department was the focus of the search, which sought any and all electronic records and attachments for city email accounts belonging to Duggan, his chief of staff Alexis Wiley, Chief Development Officer Ryan Friedrichs, the husband of Michigan Secretary of State Jocelyn Benson, and Deputy Chief Development Officer Sirene Abou-Chakra as well as two other lower-level grants staffers, Monique Phillips and Claire Huttenlocher.

The attorney general sought communications between Jan. 1, 2014, and Nov. 7, 2019, according to the search warrant.

Detroit Corporation Counsel Lawrence Garcia had said Friday the city was "fully cooperating" with the attorney general's investigation. In a provided statement Tuesday, Garcia said the attorney general's office "is doing its job."

"We were already prepared to provide emails related to Make Your Date as they already had been pulled for the OIG investigation. Those emails have been online for the public to read for several months," he said. "We continue to cooperate fully with the AG’s staff, and we hope their work is completed soon."


The targeting of Duggan's emails comes after questions were raised about what the mayor knew about the deletion of emails involving Make Your Date.

The mayor has said he wasn't aware nor did he direct staff to delete the emails but later learned that the deletion decision came amid scrutiny that he contends was fueled by criticism from Detroit businessman Robert Carmack.

The auto shop owner had aired private investigator footage on a billboard truck outside City Hall of the mayor's comings and goings. The direction to delete emails, he said, was a "mistake" that was made "to protect two junior staff people" from being dragged into any scrutiny by Carmack.

The city's Office of Inspector General concluded last month in a report that Duggan's treatment of Make Your Date has been preferential but noted the mayor had not abused his power.

Make Your Date, the report said, received a total of $358,368 in grant funds from the Detroit Health Department.

According to Inspector General Ellen Ha's report, the two grants staff members, Phillips and Huttenlocher, were instructed to delete emails regarding Make Your Date "in an attempt to hide the amount of work done by the department to secure grant funding." The program is headed by Dr. Sonia Hassan, who has been linked to Duggan.

Ha concluded that Wiley abused her authority by ordering the workers in the city's grants office to delete emails pertaining to the program through Friedrichs and Abou-Chakra.

The report also indicated "there is no evidence to suggest that Mayor Duggan directed or knew about Ms. Wiley’s order to Mr. Friedrichs for his staff to delete MYD emails."

Kelly Rossman-McKinney, a spokeswoman for Attorney General Dana Nessel, confirmed Friday that the search warrant had been in response to the deleted emails. But Rossman-McKinney declined to comment Tuesday on the city's release of the search warrant.

The warrant, approved Thursday in Ferndale's 43rd District Court, also asks for any backup or archived files and emails from past email services used by the city.

"The search shall include the recovery of data from any and all computers and servers off site, across the network, or cloud-based storage solutions under the control of the City of Detroit," it reads.

Michigan state law bars government employees from destroying public records outside of set schedules. The Attorney General's Office and the Michigan State Police had previously been investigating actions involving the Make Your Date.

Meanwhile, Duggan and Garcia have said Ha's review found no city rules or policies were broken by the mayoral aides who directed that the emails be deleted. But Ha has noted her review didn't take into account whether city procedures and state law were violated.

That is being investigated by the Public Integrity Unit of the state Attorney General's Office, she said.

Duggan has said Wiley, Friedrichs and Abou-Chakra would undergo document management training in the wake of Ha's investigation.

In the aftermath of the inspector general's report, Detroit City Council President Brenda Jones called for an ordinance to prevent the deletion of city governmental emails and a five-year retention policy.

When questioned about whether document training is enough of a penalty for his chief of staff and two other aides, Duggan has said there’s been no finding as of now that Wiley — a former WJBK-TV reporter — broke any rules or policies.

“If that changes, I’ll deal with that,” he said, adding the deleted emails were “completely innocuous.”

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Wanna Bet The SEC Investigating The Detroit Land Bank Authority?

The Goddess of the Woodshed enjoying the magical
investigative petals of the SEC.

One day, while on my mission, I found a beautiful concept, blossom right before my eyes.

It was the jurisdiction of the U.S. Securities and Exchange Commission.

SEC probes Miami Gardens’ $60-million bond issue; Were bond funds diverted?

The U.S. Securities and Exchange Commission is investigating Miami Gardens to determine whether city officials violated federal laws in connection with its $60-million general obligation bond issue approved by voters in 2014.

I was so excited because I remembered another city that issued bonds then diverted them.

Detroit!

Since SEC investigations are under seal, and I cannot verify if there is a current investigaiton, so I thought it wise to put it out there that Detroit qualifies to open an SEC investigation for improper use of bonds, just like they did in Miami Gardens.

The bonds were supposed to be for the students of Detroit Public Schools, but instead, City Council voted to shift the funding for the Little Ceasar's Sports Arena.

The Detroit Downtown Development Authority claims it owns the land, but it is not incorporated, just like the Detroit Land Bank Authority is not incorporated, which means it uses an NGO to launder its money, or rather it filed false information to federal financial authorities, just like the Detroit Land Bank Authority did.

How can you own land if you have no instruments of legal authority?

This fake corporations called the Detroit Downtown Development Authority also has the magical powers to levy school property taxes.

Then it dawned on me.

There is no such thing as the Detroit Downtown Development Authority because it is the Detroit Land Bank Authority using it as a strawman.

So, the question for the SEC is: "Where are the taxes?"

If these fake authorities are not incorporated, that means, if they collect taxes, to whom does the taxpayer make the check out to?

Wayne Country Treasurer?

City of Detroit?

And, to who does the Wayne County Treasurer and the City of Detroit make the check out to, since the Detroit Land Bank Authority is not incorporated and has no bank account.

So, I take it the Detroit Brownfield Redevelopment Authority is another front for the Detroit Land Bank Authority, as it is not incorporated, yet, according to the article, below, possesses the authority to enter into contracts and negotiate tax incentives with a private corporation, of the Pistons.

I bet they used the same team of "Legal Geniuses" (trademark pending) over at Perkins Coie.

The case was dismissed.

I bet the SEC already has the Detroit Land Bank Authority under investigation, along with all its foreign practice partners, like the Clinton Foundation, et al.

See, are not the components of the SEC just pretty petals of flowers?

I bet the SEC is investigating the Detroit Land Bank Authority, now.

I bet the SEC is investigating the "Legal Genuises" (trademark pending) over at Perkins Coie, too.

Lawsuit: Voters should decide if Little Caesars Arena gets public funding

A lawsuit filed today in federal court seeks to block public funding of Little Caesars Arena and a new Pistons headquarters without a vote of Detroit residents.

The lawsuit claims state law prohibits spending school property tax revenues on the economic development projects as planned because the schools millage voters approved in 2012 was to be used exclusively for Detroit Public Schools' operating expenses.

The Detroit Downtown Development Authority, the public entity that owns the arena and is responsible for its public funding, is expected to collect $726 million in school property tax revenues through 2051. The money will be used to pay off $363 million in public investments in the $862-million arena and the surrounding development district.

If the lawsuit is successful, it could threaten a significant pot of public money vital to construction of Little Caesars Arena and the new Pistons headquarters in New Center.

Government transparency advocate Robert Davis and D. Etta Wilcoxon, who is running for Detroit City Clerk, filed the lawsuit today in U.S. District Court.

They claim their constitutional right to vote has been violated because they should be able to vote against spending tax money on the arena and Pistons headquarters.

"The officials at the DDA and the Brownfield Authority should not have proceeded with these projects until they received all the necessary approvals that were required under the appropriate statutes," Davis said. "How all of those high-priced lawyers missed that, I don't know."

The lawsuit also names as a defendant the Detroit Brownfield Redevelopment Authority, which is involved in a tax-incentive plan that would provide the Pistons with about $20 million in publicly funded reimbursements for its $83-million practice facility and corporate headquarters. The tax-incentive plan still must be approved by the Detroit City Council.

Of the $20 million in proposed reimbursements to the Pistons, $7.9 million would come from the schools' operating fund, according to a report prepared for the Detroit City Council.

Bob Rossbach, a spokesman for the DDA, said he was not yet aware of the lawsuit.

“Obviously we will review its claims and will respond accordingly," Rossbach said, declining to comment further. According to the lawsuit, the state's general property tax act requires voter approval to spend money differently than voters originally approved.

The arena is expected to open in September. Work on the Pistons' facility could start this summer.

Since Little Caesars Arena was announced, the DDA has taken the position that the project does not negatively impact local schools because ultimately they do not lose any operating revenue. Rossbach did not provide any further explanation to that rationale today when asked in an e-mail.

Detroit Public Schools now essentially exists to collect taxes and pay down debt. The debt-ridden district has been replaced by the Detroit Public Schools Community District. Instead of the arena and Pistons practice facility, Davis said, the school taxes should go toward paying down the debt sooner.

The lawsuit also cites another section of the state's revised school code that says voters must have a say whenever tax money is used for any purpose other than that for which it was originally raised. 

Davis shrugged off concerns the lawsuit could hinder the projects, pointing out that the Red Wings and Pistons are owned by billionaires.

Both thy bondmen, and thy bondmaids, which thou shalt have, shall be of the heathen that are round about you; of them shall ye buy bondmen and bondmaids. Moreover of the children of the strangers that do sojourn among you, of them shall ye buy, and of their families that are with you, which they begat in your land: and they shall be your possession. And ye shall take them as an inheritance for your children after you, to inherit them for a possession; they shall be your bondmen for ever. Leviticus 25:44-46. 

Complaint by Deadspin on Scribd

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FOIA Verifies Federal Investigation Of Detroit Land Bank Authority, MSHDA, MHA

In the spirit of fuchsia...

State letter notes firing, reassignment in Detroit demo probe

Please, keep in mind, the Federal Bureau of Investigation only investigates criminal matters, not civil, criminal, like they are pretty darn sure indictments will ensue from their work on a criminal investigation.

Not an audit.

Not an administrative review.

Not even an examination.

The FBI does criminal investigations, that have gone through its administrative structures, via federal law, or even international, depending on the criminal matter, which is not civil, so the likelihood of a successfully communicating the findings of the investigation to the U.S. Attorney's Office is quite significant.

NOTE TO SELF: Find out annual stats on how many FBI investigations were rejected by the U.S. Attorney General.

Detroit — A former high-ranking member of the Detroit Building Authority was terminated and a land bank staffer who oversaw Detroit's blight elimination was reassigned over problematic bid awards for the city's federally funded demolition program, according to a document released amid a 2016 state audit that found evidence of possible "bid rigging" and "collusion."

No, really?

The previously redacted Sept. 30, 2016, letter, sent by the homeownership director of the Michigan Homeowner Assistance Nonprofit Housing Corp. to the U.S. Treasury, identifies former Detroit Building Authority deputy director Jim Wright as a "key staff person" terminated from the program over the issues, and a second Detroit Land Bank staffer, Marti Delgado, reassigned to another area "that does not have any roles and responsibilities with blight elimination or handling of any Hardest Hit blight funding."

Correct me if I am wrong, but is this the same Jim Wright from DMC and Wayne County? Oh, I remember this one.  This goes back to Hamtramck. This is going to get interesting.

The full letter — which also referenced an ongoing federal criminal investigation into the program — was made public Monday as part of a lawsuit filed last fall by activist Robert Davis over the release of audit and financial documents related to the state's investigation of the program.

The beauty of FOIA.  We have official confirmation that there is an ongoing investigation with grand juries. How do I know about the grand juries? This is Detroit.

The revelation comes after the audit, first made public this spring through the Freedom of Information Act, detailed admissions from Wright and Delgado regarding the manipulation of bid awards. The 2016 audit, at the time, also suspected "bid rigging" and "collusion" between the city's building authority, the Detroit Land Bank and program contractors.

They were doing that creative billing of cubic space, like air. Seriously.

Wright, according to the 2016 state audit released to The Detroit News, admitted to contract price manipulation that included hiding some demolition overages by spreading them over other properties so it appeared none of the work exceeded cost limits set by the state.

The practice — which kept each property under a $25,000 required cap — shifted costs "arbitrarily" to other properties, Delgado and Wright both admitted in a July 2016 interview with Tom Golden, who led the investigation for the state.

This was done to abide by a per property funding cap set by the MHA. The Michigan State Housing Development Authority, which distributes federal dollars for the program, was not aware of it, according to the audit. But Detroit's Building Authority Director David Manardo was, according to interviews conducted during the audit.

MSHDA is not absolved from anything at this point.

“He knew of this practice. That it was done. There was no malice intent," Wright told Golden of Manardo. "He wanted to remove the blighted homes at the same contract value. And I agreed to adjust the other properties upwards to make up for the reductions. If the contractors would agree to reduce the price on those properties over the cap then we’d agree to shift those amounts to other properties in the same package. Make up the difference. ... It should not have been done that way."

Wright, who oversaw the blight removal program, abruptly resigned in August 2016, according to city officials at the time. Delgado, a compliance manager for the land bank, left the blight elimination program in January 2017.

I swear, those quit claim deeds were jacked up.  That is why there were issues tearing down the wrong properties.

Wright hung up when reached by phone Monday. A relative for Delgado said she was not available.

Sometimes it is not wise to make public statements during a federal investigation.  Just saying.

The city's demolition program has been the subject of federal, state and local reviews since it came under scrutiny in the fall of 2015 in the wake of bidding concerns and soaring costs.

John Roach, a spokesman for Detroit Mayor Mike Duggan, said the city does not comment on personnel matters. But he added that Detroit "has been completely transparent with its demolition program and has fully cooperated with every state and federal inquiry into the program."

https://webinquiry.courts.michigan.gov/WISearchResults/ViewPage1?commoncaseid=489431&fbclid=IwAR3R9GpAj98Bxx6YYF8c_aXS2fVwhxTYNASLPEaPmMX-vwlNX_6_8F2-HYw

What about transparency with the other programs associated with properties, like...uhm...property taxes and the Detroit Land Bank Authority?  Tell us the story how the Detroit Land Bank Authority levies taxes, what they do with the taxes they levy, and how come they are levying taxes.  Oh, and tell us the tale of how a city fee becomes a county foreclosure tax!  And I really want to hear to story on how the Detroit Land Bank Authority is operating with the city when it never incorporated, and do not forget the one on how the Detroit Land Bank Authority was representing you, Uncle Duggan, in a court of law.

Oh, boy! I am so excited.  Better get more popcorn.

"All of the issues raised in the MHA audit were addressed and resolved a year ago and detailed in two press conferences conducted by Mayor Duggan," Roach wrote in an email.

"The land bank and the state agreed on a financial settlement over disputed billings to the state, and there was no finding of wrongdoing on the part of the city or the land bank. Since these issues were settled, the U.S. Treasury Department has released another $132 million to Detroit’s demolition program to allow it to continue its work."

Roach said initial concerns raised by the auditor involving Manardo were not substantiated after a full investigation of land bank and building authority computers and documents.

"In the preliminary stages of the investigation, the auditors raised the possibility that Dave Manardo may have had some responsibility for the ineligible billing practices," Roach said. "We cannot speak to the statements made by Jim Wright during his interview with the auditors."

Were they demolishing properties they never filed quiet titles on? Hmmmm......

State officials on Monday deferred comment on the audit and Davis' claims to the state Attorney General's Office, which is handling the litigation Davis filed against MHA and the state treasury. A spokesperson reached late Monday declined comment, citing the pending litigation.

Oh, I gotta pull this case.  It will be worth the bottle returns.  Or, I guess I could just email the attorney.

MHA Homeownership Director Mary Townley, during a February deposition in Davis' lawsuit, said there had been concerns of "possible bid-rigging" but the investigation, at the time, was "still ongoing with no final determinations being made."

I believe MHA Homeownership may have a few other issues they are currently dealing with pertaining to SIGTARP.

Katie Bach, a spokeswoman for MSHDA, noted Monday that "it wasn't MHA's role to conclude if there was bid-rigging, as that is a law enforcement determination."

Hold your horses, there, little buckaroo, a judicial determination is coming, too.

MHA, while pursuing its investigation and seeking payback of any funds inappropriately spent by the land bank, also prepared a presentation to update law enforcement on irregularities in the land bank's use of the federal dollars for demolition, she said.

Ladies and gentlemen, it seems we have ourselves whistleblowers, fully cooperating with the federal investigation.  Congratulations MHA, for doing the right thing and help me stop these people from stealin'!!!

"MHA is not aware of the status of any law enforcement investigations that may have resulted from that disclosure," she said.

MHA hired Golden in spring 2016 as well as the firm Ernst & Young to conduct a forensic audit of Detroit's Hardest Hit Fund program expenditures. In August, the state informed the city of the early issues uncovered.

NOTE TO SELF: I need to request a copy of that audit.

The federally funded program shut down for two months in August 2016 after the MHA review, in conjunction with MSHDA, turned up "mistakes" and "errors."

Ah! That is what we call "false claim" in the layman vernacular.  See, you can learn something new every day.

Since then, several controls have been strengthened. Among them, state housing authority employees are now embedded at the land bank and building authority to provide compliance support. Treasury accepted the new procedures Oct. 14, 2016, and work resumed.

Hmmm...are they really MSHDA employees or, oh, how shall I phrase this, "intelligence experts" who are not "Legal Geniuses" (trademark pending). I just love to speculate, but hey, what do I know?

There's no place like Motown!

Duggan first revealed in February 2017 that the state's review of the program's billing practices had turned up a total of $7.3 million in what MSHDA argued were "inappropriate" or "inaccurate" costs.

Early last year, the land bank repaid $1.37 million to address improper expenses identified by auditors for the state.

I am still trying to figure out how the Detroit Land Bank Authority wrote a bogus check considering the fact that I had the bank accounts.

Last June, the city's land bank also reached a settlement with state housing officials to pay $5 million to resolve a dispute over invoices the state said were improperly submitted for repayment in the demolition program. At the same time, the state agreed to make another $5 million available to the city for tearing down houses.

Sshhh...that is what we, who are not "Legal Geniuses" (trademark pending), call kickbacks, money laundering, and racketeering.  Sshhhh....

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