A UAW RICO?

It is looking like the beginnings of a RICO case.

Conyers wrote a counter argument on the core of RICO.

I tried to get it, but there were individuals who were not very cooperative in Judiciary.

Just sharing, for those who are interested in a UAW RICO.

UAW corruption probe hits milestone as Jones aide strikes deal

Detroit — Former United Auto Workers Region 5 Director Vance Pearson pleaded guilty Friday for his role in a racketeering enterprise and agreed to cooperate with an investigation targeting former presidents Gary Jones and Dennis Williams.

Pearson is the 12th person convicted of a crime during the years-long federal investigation into UAW corruption. He pleaded guilty after being accused of helping embezzle more than $1.5 million in union funds spent on personal luxuries for labor leaders, including golf, cigars, private villas and liquor in Palm Springs, Calif., and elsewhere.

"The monies came from member dues?" U.S. District Judge Paul Borman asked Pearson on Friday.

"Yes," Pearson replied.

His cooperation is viewed as a potential tipping point in the years-long probe because Pearson was a close aide to Jones, and his assistance could put pressure on others to cooperate, legal experts said.

“That is certainly problematic for the UAW if Jones cooperates and can point out other sins of the union,” said Peter Henning, a Wayne State University law professor and former federal prosecutor. “He could be a key witness if the U.S. Attorney’s Office wants to bring a racketeering lawsuit."

Pearson faces up to five years in prison for the charge of conspiring to embezzle union funds and aiding a racketeering enterprise. Prosecutors have agreed not to seek more than 30 months in prison, but could ask Borman for a lower sentence if Pearson provides substantial assistance.

The guilty plea continues a steep fall for one of the union's most powerful leaders. In six months, Pearson went from serving on the UAW's governing International Executive Board and overseeing the union's largest geographic region to becoming a criminal target whose home and offices were raided by federal agents. He was placed on leave after being charged in September and resigned two months later.

The plea deal portrays Pearson as carrying out orders from Jones and Williams to rent private villas and buy large quantities of cigars and alcohol, and covering up expenses by filing phony reports with the union. Jones' lawyer declined comment.

The corruption scandal has exposed the UAW to possible federal oversight if prosecutors decide to file a civil racketeering case against the union. Such a move could cost the union tens of millions of dollars, impose prolonged federal oversight and involve replacing labor leaders.

U.S. Attorney Matthew Schneider has said federal oversight of the UAW is an option once the government determines the depth of corruption within one of the nation's largest and most powerful unions.

Outside federal court in downtown Detroit, Schneider called the guilty plea "good news," adding: “This is exactly what we expect and would hope for. A UAW official is pleading guilty and taking responsibility for his actions, admitting his conduct and agreeing (they) did something wrong.”

Pearson has “accepted responsibility and he’s cooperating truthfully … certainly owning everything he did," his lawyer Scott Rosenblum said. He would not comment on the potential for Pearson’s cooperation leading to a federal takeover of the union.

“That would be up to them,” Rosenblum said. “My role is defending Mr. Pearson and making sure he gets the best outcome possible. That’s what I intend to do.”

The UAW condemned Pearson's actions.

"Vance Pearson blatantly violated his oath of office and betrayed the trust of all our hard-working members," the union said in a statement. "In November 2019, the UAW International Executive Board filed its own action against Mr. Pearson not just to remove him from his elected position but taking away his membership in the UAW entirely. While our union is moving forward, we will never forget the costly lessons from our past."

The racketeering enterprise lasted from 2010 until September 2019 and involved Pearson and at least six others, according to the government. Jones and Williams are not identified by name in court filings. Instead, prosecutors refer to them as "UAW Official A" and "UAW Official B."

The embezzlement scheme described by prosecutors involved filing phony vouchers that concealed the true nature of expenses in Palm Springs and in Missouri.

Scott Rosenblum, attorney for former UAW regional director Vance Pearson, talks about his client's guilty plea and cooperation with the government The Detroit News

Pearson's plea deal included new allegations from prosecutors about how "UAW Official A" and "UAW Official B" were involved in the conspiracy.

During the alleged conspiracy, "UAW Official A," who is Jones, directed Pearson to conceal "hundreds of thousands of dollars of personal expenditures," according to the plea deal. "UAW Official B," who is Williams, directed Pearson to use UAW money to pay for "large quantities of cigars, cigar paraphernalia and humidors."

Pearson also ensured that "UAW Official B" was able to use, for months at a time, private villas in Palm Springs from 2015-18, prosecutors said. UAW money paid for the villas, according to the government.

UAW funds also paid for private villas for friends and "UAW Official D," whom sources identified as Williams aide Amy Loasching. The plea deal also describes benefits Williams' spouse received paid for with UAW funds.

Pearson was tasked with providing alcohol and cigars for "UAW Official B" and his spouse, according to prosecutors. Pearson also arranged for the spouse to charge expenses at Loew's Coronado Bay Resort in California "even though UAW Official B's spouse was not an officer or employee of the UAW and the expenses had no legitimate union business purpose," prosecutors wrote.

Williams' criminal defense lawyers did not respond to a message seeking comment Friday.

Pearson, 58, of Saint Charles, Missouri, pleaded guilty six months after emerging as a target of the investigation of corruption within the UAW.

Since those August raids, Pearson has been accused of helping the former presidents embezzle union funds. Prosecutors also have hinted in court filings that they have secret recordings of Pearson, Jones and another aide discussing possible crimes.

Pearson was a close aide to Jones. He served on the board of directors overseeing Jones' charity and succeeded Jones as director of Region 5. The region covers 17 states and is based in suburban St. Louis.

But after Pearson was charged, the union announced it would disband the region as part of a broad series of reforms.

As part of his plea deal, Pearson has agreed to forfeit $119,000. That includes $81,000 from his so-called "flower fund," an account originally established to pay for flowers for auto workers' funerals. Prosecutors, however, said senior staff were forced to contribute to the funds, which are controlled by top UAW officials.

Those top UAW officials, prosecutors said, used the flower fund money for personal expenses. The News first reported about the flower fund aspect of the corruption investigation in March.

Pearson also agreed to forfeit $38,000 from a second fund, called "Members in Solidarity." The money was supposed to pay for UAW election expenses. Missouri business records show Jones served as president of "Members in Solidarity" until becoming UAW president in 2018.

Pearson started negotiating a deal with prosecutors as early as November after prosecutors disclosed that investigators were armed with evidence that includes bank records, cooperation from top labor leaders and what court records suggest are secret recordings.

Court records describe conversations among UAW officials, including Jones and Pearson, last year and directly quote labor leaders talking about destroying evidence and obstructing justice.

The use of direct quotes is a strong indication investigators obtained audio recordings of Jones, Pearson and other UAW officers either through a wiretap or a hidden recording device, legal experts told The News. The government has yet to file discovery notices in federal court that would reveal whether prosecutors have evidence obtained through wiretaps or other electronic surveillance.

A video primer on corruption: Count the kickbacks, cash and bribes pocketed by Metro Detroit's most corrupt UAW bosses, auto execs and politicians. The Detroit News

In court filings, prosecutors quoted a conversation between Pearson and another UAW officer, Edward "Nick" Robinson, in July. Robinson is expected to plead guilty and is due in court Feb. 18.

Pearson told Robinson he would get him a burner phone so UAW officers involved in the conspiracy could talk freely without fear of being recorded by a federal wiretap, according to the criminal filing.

Pearson also told Robinson that if he had anything incriminating "at your house," prosecutors wrote, "then get rid of it."

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James Warner Gets 10 Years For Swallowing A Napkin - Kwame Kilpatrick Revisited

I do enjoy preludes of justice.

Kwame Kilpatrick possesses a wealth of information, you know.

Oh, the tales he shall tell!

Ex-Detroit Metro official sentenced to 10 years for bribery

Detroit — James Warner, a former Detroit Metropolitan Airport supervisor convicted of receiving more than $6 million in bribes — the third-largest amount in U.S. history — was sentenced to 10 years in federal prison Wednesday.

The sentence from U.S. District Judge Victoria Roberts fell far short of the 25 years sought by prosecutors, and below the national record 28-year sentence for corruption. Former Detroit Mayor Kwame Kilpatrick received that record sentence seven years ago, tying the corruption sentence issued to Ohio county politician Jimmy Dimora.

Warner, 53, of Commerce Township was convicted of 10 crimes in June, including bribery, theft and money laundering conspiracies, and obstruction of justice. Prosecutors say he steered $43.7 million worth of airport contracts to three co-conspirators in return for more than $6 million in kickbacks — the highest total in the history of public corruption cases in Metro Detroit.

The judge said Warner has redeeming qualities — family and friends called him a good, supportive man — and said his crimes did not cause as much damage as those committed by Kilpatrick, whose racketeering activity included pocketing approximately $1 million in illegal benefits.

"Kwame Kilpatrick mightily contributed to the slide of Detroit both locally and nationally, contributed to (Detroit's) slide into bankruptcy and the city's tarnished image," the judge said.

"Mr. Warner, while a significantly corrupt public official, is not in the same position," Roberts added.

Warner, who hung his head at hearing the sentence, apologized to his friends, family and airport colleagues. He also apologized to the judge.

"I respect the system and the role everyone plays in it and I am hopeful the sentence allows me to find work in the future and to be there for my friends and family," he said.

The government has seized $11 million from Warner and co-conspirators during the years-long criminal investigation.

Warner's lawyer pushed for no more than a four-year sentence.

The money Warner received from airport contractors is the largest bribe total prosecuted in the history of the eastern district of Michigan.

Warner is among more than 109 public officials, bureaucrats and union leaders charged with public corruption in Metro Detroit in the past decade.

Jurors deliberated for about four hours last summer before reaching the verdict following a trial that lasted parts of three weeks. In a rare move, Warner testified in his own defense.

Warner is a dishonest and deceitful man whose time on the witness stand featured "perjury-laced testimony," Assistant U.S. Attorney Eaton Brown said.

"At the end of the day, Mr. Warner robbed citizens and taxpayers blind," Brown told the judge, "and he had no qualms doing it."

Warner, an airport manager and field inspector who also worked for West Bloomfield Township, is the rare indicted public official to stand trial on corruption charges and risk a decades-long federal prison sentence.

A video primer on corruption: Count the kickbacks, cash and bribes pocketed by Metro Detroit's most corrupt UAW bosses, auto execs and politicians. The Detroit News

Two of the most recent politicians to stand trial in federal court —Kilpatrick and Clinton Township Trustee Dean Reynolds — were convicted and sentenced to double-digit prison sentences.

The bribery conspiracy outlined by prosecutors started in May 2010 when Warner was working as a field inspector at the airport approving maintenance and repair contracts. He headed several related schemes involving Metro Detroit contractors, including Romulus businessman William Pritula, whose company William Pritula & Sons held facilities and maintenance contracts at the airport, prosecutors said.

Warner drafted and submitted inflated invoices for work Pritula was hired to perform at the airport, according to the government. The payments totaled more than $18 million.

In return, Warner received approximately half of the profits from the contracts, or more than $5 million, according to the indictment.

Pritula pleaded guilty to bribery and was sentenced to probation. He agreed to forfeit $5.4 million to the government.

Federal court records describe Warner as a greedy, potty-mouthed felon.

"If it weren't for me, your ass would be out," Warner told one airport contractor, according to the indictment.

That contractor, authorities allege, was Gary Tenaglia of Rochester, who was accused of defrauding the Wayne County Airport Authority of $1.5 million. He was sentenced to 14 months in prison.

Warner allegedly gave Tenaglia inside information so the contractor's company, Envision Electric, could win contracts. In return, Warner received 10% of each invoice, prosecutors said.

At one dinner, Warner and Tenaglia discussed contracts and kickbacks, prosecutors said.

"During the meal, James Warner wrote '5k,' a proposed kickback amount, on a napkin," prosecutors wrote in the indictment. "He folded it and slid it across the table to Gary Tenaglia. After Gary Tenaglia acknowledged the meaning of the writing on the napkin, James Warner retrieved the napkin and ate it."

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If James Warner Gets 25 Years For Swallowing A Napkin, Then It Is Time To Free Kwame Kilpatrick

Now, we wait to see when the feds are going to go after what I call "the other side" of the McNamara Wayne County Kingmaker Airport Audit.

Can you say Clintons?

I can.

I can also say child welfare.

If James Warner gets 25 years for what he did, then, I believe this may be another legal ground, along with the Brady Rule violation, to let Kwame tell his tale and I am pretty darn sure his tale will not fit on a napkin.

#FreeKwame

Feds: Give corrupt Detroit Metro boss 25 years in prison

James Warner
"I swallowed the napkin but I
never thought they would find
my crap"

A former Detroit Metropolitan Airport supervisor convicted of receiving more than $6 million in bribes — and eating the evidence — should spend 25 years in federal prison, prosecutors said Wednesday.

The requested sentence for James Warner falls three years short of the longest public corruption sentence in U.S. history, one imposed on former Detroit Mayor Kwame Kilpatrick seven years ago.

Warner deserves a near-record long sentence because he violated the public’s trust and lied at every step of the investigation, prosecution and trial, according to the government.

The 53-year-old Commerce Township resident was convicted of 10 crimes in June, including bribery, theft and money laundering conspiracies, and obstruction of justice. Prosecutors say he steered $43.7 million worth of airport contracts to three co-conspirators in return for more than $6 million in kickbacks — the highest total in the history of public corruption cases in Metro Detroit.

By comparison, Kilpatrick was convicted of 24 crimes, including racketeering conspiracy, though the amount of illegal benefits he received was approximately $1 million.

Warner’s crimes belied his reputation as a hardworking airport supervisor, prosecutors said.

“But behind this hardworking façade lay a deceitful and dishonest man,” Assistant U.S. Attorney Eaton Brown wrote in a sentencing memorandum Wednesday. “One who abused not just the trust that the airport placed in him to maintain the water system and much of the airport’s infrastructure, but the public’s trust. Rather than serve the public, Warner corruptly served himself by lining his pockets with money that was not his to take.”

Warner will be sentenced Feb. 5 by U.S. District Judge Victoria Roberts.

Warner is among more than 108 public officials, bureaucrats and union leaders charged with public corruption in Metro Detroit in the past decade.

“Specific deterrence is an important consideration in this case, given Warner’s refusal to acknowledge any wrongdoing, let alone show remorse for his long-running crimes,” Brown wrote. “Consequently, a significant custodial sentence would hopefully deter others who, like Warner, are tempted to fraudulently enrich themselves at the expense of the public’s right to honest public services.”

Jurors deliberated for about four hours last summer before reaching the verdict following a trial that lasted parts of three weeks. In a rare move, Warner testified in his own defense.

Warner, an airport manager and field inspector who also worked for West Bloomfield Township, is the rare indicted public official to stand trial on corruption charges and risk a decades-long federal prison sentence.

Two of the most recent politicians to stand trial in federal court —Kilpatrick and Clinton Township Trustee Dean Reynolds — were convicted and sentenced to double-digit prison sentences.

The bribery conspiracy outlined by prosecutors started in May 2010 when Warner was working as a field inspector at the airport approving maintenance and repair contracts. He headed several related schemes involving Metro Detroit contractors, including Romulus businessman William Pritula, whose company William Pritula & Sons held facilities and maintenance contracts at the airport, prosecutors said.

Warner drafted and submitted inflated invoices for work Pritula was hired to perform at the airport, according to the government. The payments totaled more than $18 million.

In return, Warner received approximately half of the profits from the contracts, or more than $5 million, according to the indictment.

Pritula pleaded guilty to bribery and was sentenced to probation. He agreed to forfeit $5.4 million to the government.

Driven by greed: A database of corruption in Detroit

Federal court records describe Warner as a greedy, potty-mouthed felon.

"If it weren't for me, your ass would be out," Warner told one airport contractor, according to the indictment.

That contractor, authorities allege, was Gary Tenaglia of Rochester, who was accused of defrauding the Wayne County Airport Authority of $1.5 million. He was sentenced to 14 months in prison.

Warner allegedly gave Tenaglia inside information so the contractor's company, Envision Electric, could win contracts. In return, Warner received 10% of each invoice, prosecutors said.

During one dinner, Warner and Tenaglia discussed contracts and kickbacks, prosecutors said.

"During the meal, James Warner wrote '5k,' a proposed kickback amount, on a napkin," prosecutors wrote in the indictment. "He folded it and slid it across the table to Gary Tenaglia. After Gary Tenaglia acknowledged the meaning of the writing on the napkin, James Warner retrieved the napkin and ate it."

Wayne County Operational Au... by Beverly Tran on Scribd

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Cocktails & Popcorn: Matt Schneider Said "At Least"- Where is Bob Ficano, Turkia Mullin, Brendan Dunleavy, Raymond Wojtowicz??

I truly hope we did not forget about Bob Ficano.

I wonder what Bob is up to these days.

I wonder what Turkia Mullin is doing.

Where is Brendan Dunleavy?

Where is Raymond Wojtowicz?

We should talk to Kwame Kilpatrick.

Someone should invite them for a lovely evening of cocktails & popcorn and livestream the interviews.

Guilty Detroit Metro airport boss gasps at verdict in $5M bribery case

James Warner

Detroit — A former Detroit Metropolitan Airport official faces the longest corruption crime sentence in U.S. history after being convicted Wednesday of receiving more than $5 million worth of bribes.

James Warner, 52, of Commerce Township, gasped and arched his eyebrows as the jury forewoman said "guilty" 10 times for charges that included bribery, theft and money laundering conspiracies, and obstruction of justice, a charge that carries a possible 20-year prison sentence.

Warner could be sentenced to more than 30 years in federal prison. The sentence would eclipse the current record, a 28-year federal prison sentence being served by former Detroit Mayor Kwame Kilpatrick.

Warner will be sentenced Oct. 8 by U.S. District Judge Victoria Roberts.

"The government is going to come at him guns blazing and seek the maximum sentence," said Peter Henning, a Wayne State University law professor and former federal prosecutor. "Whether Judge Roberts gives that to him is an open question."

Advisory sentencing guidelines call for 24-30 years in federal prison.

U.S. Attorney Matthew Schneider, who was in the courtroom Wednesday, said his office will pursue a sentence within the guideline range, "at least."

U.S. Attorney Matthew Schneider said, "at least".

Roberts has broad discretion and can ignore the guideline range.

Henning does not expect a record-setting sentence even though Warner was accused of receiving five times as much money as Kilpatrick.

"Being an elected mayor versus an airport official, I’m not sure they’re exactly comparable even though (Warner) took much more money," Henning said.

Prosecutors wanted Warner taken into custody Wednesday, calling him a flight risk and a danger to himself, citing what they believe was a suicide attempt in 2017.

More than $1 million remains unaccounted for and the money could bankroll a flight from justice, Assistant U.S. Attorney Eaton Brown told the judge.

Warner’s lawyer Robert Harrison disagreed. All of Warner’s assets have been frozen or seized, Harrison said, adding that Warner is not suicidal.

The judge read letters from Warner’s doctor before deciding to let Warner remain free until October. The letters convinced the judge Warner was not suicidal and she was satisfied he does not have money to fund an escape.

Warner and his lawyer declined comment.

Jurors deliberated for about four hours before reaching the verdict following a trial that lasted parts of three weeks. In a rare move, Warner testified in his own defense.

Warner, an airport manager and field inspector who also worked for West Bloomfield Township, is the rare indicted public official to stand trial on corruption charges and risk a decades-long federal prison sentence.

Kwame Kilpatrick and Dean Reynolds

Two of the most recent politicians to stand trial in federal court —Kilpatrick and Clinton Township Trustee Dean Reynolds — were convicted and sentenced to double-digit prison sentences.

Kwame Kilpatrick, left, and Dean Reynolds.

Warner's alleged appetites distinguish him from the dozens of public officials who have been accused or convicted of corruption-related crimes in the last decade in Metro Detroit. He fabricated invoices, overcharged the airport for work performed by contractors and received more than $5 million worth of kickbacks during a four-year period, prosecutors said.

The alleged bribery conspiracy outlined by prosecutors started in May 2010 when Warner was working as a field inspector at the airport approving maintenance and repair contracts. He headed three related schemes involving Metro Detroit contractors, including Romulus businessman William Pritula, 70, whose company William Pritula & Sons held facilities and maintenance contracts at the airport, prosecutors said.

Warner drafted and submitted inflated invoices for work Pritula was hired to perform at the airport, according to the government. The payments totaled more than $18 million.

In return, Warner received approximately half of the profits from the contracts, or more than $5 million, according to the indictment.

Pritula pleaded guilty to bribery last year and could be sentenced up to 10 years in prison in September. He agreed to forfeit $5.4 million to the government.

Federal court records describe Warner as a greedy, potty-mouthed felon.

"If it weren't for me, your ass would be out," Warner told one airport contractor, according to the indictment.

That contractor, authorities allege, was Gary Tenaglia, 65, of Rochester, who was charged last year and accused of defrauding the Wayne County Airport Authority of $1.5 million.

Warner allegedly gave Tenaglia inside information so the contractor's company, Envision Electric, could win contracts. In return, Warner received 10 percent of each invoice, prosecutors said.

During one dinner, Warner and Tenaglia discussed contracts and kickbacks, prosecutors said.

"During the meal, James Warner wrote '5k,' a proposed kickback amount, on a napkin," prosecutors wrote in the indictment. "He folded it and slid it across the table to Gary Tenaglia. After Gary Tenaglia acknowledged the meaning of the writing on the napkin, James Warner retrieved the napkin and ate it."

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