Day 34: Cobo contractor reverses course, backs off bribery claims

Cobo Center contractor Karl Kado backed off bribery claims one day after telling jurors he paid approximately $360,000 to ex-Mayor Kwame Kilpatrick, his father and a former mayoral aide.

The ex-mayor’s defense lawyer got Kado to admit it was his idea to give an initial $10,000 in cash to the ex-mayor, and pushed the contractor about vague details surrounding alleged bribe payments.

Under cross-examination, Kado said he is concerned that he is suffering from dementia. Kilpatrick’s lawyer suggested Kado cannot accurately remember interactions with the former mayor that date to 2001.

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Kwame Kilpatrick outside federal court.

Cobo Center contractor Karl Kado backed off an allegation that he gave a $10,000 bribe to ex-Mayor Kwame Kilpatrick shortly after the 2001 election.

Under cross-examination by Kilpatrick’s lawyer, Kado said it was his idea to give Kilpatrick the money. That clashes with his testimony Monday, when Kado said he gave $10,000, which was delivered by Kilpatrick aide Derrick Miller.

“It was you that decided to give $10,000 to Derrick Miller,” Kilpatrick lawyer James C. Thomas said.

“Yes,” Kado said.

“Not because anyone asked you for cash or $10,000,” Thomas said.

“Yes,” Kado said.

Kado testified Monday he gave as much as $10,000 to Kilpatrick four or five times.

Thomas probed Kado’s vague memories about where, when and how he delivered the alleged bribes.

“But it must be true because you’re saying it’s so,” Thomas said.

Prosecutors objected.

U.S. District Judge Nancy Edmunds sustained the objection.

Thomas also highlighted that although Kado wore hidden recording devices while cooperating with the FBI, there are no tapes involving the former mayor.

“You never called him on tape to substantiate what it was that you are saying,” Thomas said.

Cobo Center contractor Karl Kado, a key government witness allegedly extorted by Kwame Kilpatrick, said today he feared he is suffering from dementia.

Kado’s testimony came during cross-examination by Kilpatrick lawyer James C. Thomas.

Thomas is attacking Kado’s credibility and motives for alleging he was extorted by the ex-mayor.

“Did you indicate to agents that you thought you were suffering from dementia?” Thomas asked.

“Yes,” Kado said.

James C. Thomas

“Did you consult with a physician?” Thomas asked.

“No,” Kado said. “It is not serious. I said I am forgetting and this (criminal case) is going on a long time. I said I’m scared I have dementia.”

Kado told federal agents he periodically forgets days of the week.

Despite his concerns, Kado has not been diagnosed with dementia.

Thomas questioned Kado about discrepancies between his testimony Monday and allegations that he gave Kilpatrick a $10,000 bribe in 2001.

In 2006, Kado told investigators the money was delivered in an envelope.

“But now you’re saying it was in a brown paper bag?” Thomas asked.

“Yes,” Kado said.

Kado testified he gave the money to Kilpatrick aide Derrick Miller.

“You have no idea whether he gave the money to Mr. Kilpatrick, do you?” Thomas asked.

“No,” Kado said.

Kwame Kilpatrick and lawyer James C. Thomas outside federal court.

Kwame Kilpatrick’s lawyer tried to undercut testimony from a Cobo Center contractor who allegedly paid the former Detroit mayor, his father and mayoral aide Derrick Miller at least $360,000 in bribes to protect city contracts.

Attorney James C. Thomas questioned Karl Kado about his criminal record, skimming money from his various businesses and failing to pay federal taxes.

Kado is a key government witness who cooperated with the FBI and wore hidden recording devices during a City Hall corruption probe.

Kilpatrick’s lawyer suggested Kado cooperated with the government to minimize his tax crimes.

The cross-examination got off to a bad start.

Kado chuckled when Thomas asked if they had ever met before Tuesday.

“Did I say something funny?” Thomas asked.

“You are doing a job,” Kado said.

“Are you doing a job here today?” Thomas said. “Are you working for the government?”

“I am working for the truth,” Kado said.

“Your truth,” Thomas said.

U.S. District Judge Nancy Edmunds intervened.

“Mr. Thomas, come on,” she said.

Bernard Kilpatrick

Bernard Kilpatrick, who allegedly received at least $250,000 in bribes from a Cobo center contractor, ran up an $85,000 bill playing the lottery at a store owned by the contractor’s brother, according to testimony.

Kilpatrick ran up the bill playing at a store owned by Cobo contractor Karl Kado’s brother.

Kilpatrick lawyer John Shea mentioned the debt in a bid to highlight inconsistencies between Kado’s testimony and an earlier interview with a federal agent.

“On March 2008, you mention that Bernard Kilpatrick ran up an $80,000 lottery bill to your brother,” Shea said.

“$85,000,” Kado corrected.

Kado said he was forced to pay off the debt for Kilpatrick, father of ex-Mayor Kwame Kilpatrick, rung up at Kado’s brother’s store.

Shea showed Kado a summary of an interview the contractor gave to a federal agent in which he said the debt was $20,000.

Kado insisted Tuesday that was on top of the $85,000 lottery debt.

Kado’s brother repaid Karl Kado but Kilpatrick did not, Kado testified.

Before wrapping up his cross-examination, Shea attacked a central allegation that Bernard Kilpatrick strong-armed contractors seeking business with the city.

“Isn’t it true that…from 2002 on, Bernard Kilpatrick never said to you ‘you got to pay me. If you don’t pay me, you won’t get a contract.’”

“No,” Kado said.

“Or that he would see that your contract gets canceled?” Shea asked.

“No,” Kado said.

Bernard Kilpatrick

Bernard Kilpatrick was not the politically connected insider who capitalized on his son being mayor of Detroit, his lawyer suggested Tuesday.

Attorney John Shea played conversations Tuesday secretly recorded by the FBI between Kilpatrick and contractor Karl Kado in March 2008.

The recordings showed Kilpatrick failed to convince city officials to pay  Kado $1.6 million for work performed by the Cobo Center contractor.

“Obviously, he didn’t have the juice you thought he might have?” Shea asked Kado, a key government witness.

“Yes,” Kado said.

Shea suggested the recordings contrasted with the government’s portrayal of Kilpatrick as a political maestro who extorted city contractors.

Kado wore a hidden recording device for the FBI during meetings with Bernard Kilpatrick.

Shea suggested Kado was pushed by the FBI to call Kilpatrick and was not extorted by the mayor’s father.

“They’re the ones telling you to make the calls to Bernard Kilpatrick,” Shea said.

“Yes,” Kado said.

“This whole…project, I’m going to call it, is about you enlisting the assistance of Bernard Kilpatrick to help you collect these monies at the request of the government,” Shea said.

“Yes,” Kado said.

Bernard Kilpatrick leaves federal court Aug. 8.

Bernard Kilpatrick did not demand a bribe during a February 2008 meeting in Detroit at Tom’s Oyster Bar, which was secretly recorded by the FBI.

Kilpatrick’s lawyer showed jurors transcripts of the conversation between Kilpatrick and Cobo Center contractor Karl Kado, who allegedly paid ex-Mayor Kwame Kilpatrick’s father at least $250,000 in bribes.

The FBI asked Kado to arrange the meeting during an ongoing probe of City Hall corruption. Kado wore a hidden recording device.

At the time, Kado was trying to recoup approximately $1.6 million owed by the city for various contracts the businessman held with the city.

At one point, Kado offered to pay Kilpatrick 10 percent of any money he helped the businessman recover.

“In that portion of the conversation, you were offering him 10 percent,” Kilpatrick lawyer John Shea told Kado. “That’s not him saying to you ‘I demand 10 percent,’ is it?”

Kado agreed.

Karl Kado demonstrates Monday on Assistant U.S. Attorney Michael Bullotta as to how he was frisked for a listening device by Bernard Kilpatrick at one of their meetings. (Illustration by Ray Stanczak / The Detroit News)

Bernard Kilpatrick’s lawyer tried to cast doubt on a claim that his client frisked Cobo Center contractor Karl Kado for a wire early on in the City Hall corruption probe.

Lawyer John Shea suggested Kado didn’t tell agents early on about the pat down, which allegedly happened in summer 2005.

Kilpatrick allegedly patted down Kado after the contractor said he was a target of an FBI investigation into City Hall corruption.

“It’s not everyday you get patted down for a recording device, is it?” Shea asked.

“I’ve never been patted down before,” Kado said.

“Probably not then or after,” Shea said.

Derrick Miller

A Cobo Center contractor said he paid bribes to Kwame Kilpatrick’s dad and told him to give some of the cash to the sister of Kilpatrick aide Derrick Miller — who also was extorting him.

Contractor Karl Kado disclosed the unusual double-extortion allegation Tuesday while being cross-examined by Bernard Kilpatrick’s lawyer.

The allegation involving Miller’s sister LaDarla Easley caught Bernard Kilpatrick’s attorney off guard.

“You’re suggesting LaDarla Easley tried to extort you?” John Shea asked.

“Yes,” Kado said.

Bernard Kilpatrick

“And rather than pay her extortion money, you paid Bernard Kilpatrick extortion money to give to LaDarla?” Shea asked.

“Yes,” Kado said. “I said ‘listen, I will give you the money, get her out of the way.’”

Kado said he was forced to partner with Easley on a multimillion contract at Cobo Center. Miller originally was indicted in the City Hall corruption case but struck a plea deal with prosecutors and will testify later.

Kado, offering testimony that wasn’t drawn out by Assistant U.S. Attorney Michael Bullotta on Monday, said he was looking to get the electrical contract at the convention center when he learned that Miller’s sister also wanted the contract.

He claimed she tried to extort him but Shea said Kado told federal agents years ago that he he worked with Bernard Kilpatrick to take care of the matter, giving him money to give to her.

It’s unclear from the testimony whether the woman ever worked on the electrical contract at Cobo, where Kado had several contracts. He has admitted to bribing former Cobo Center director Lou Pavledes and others to keep those lucrative contracts.

Later, Kado admitted he didn’t have any records documenting alleged bribe payments made to Bernard Kilpatrick.

“You don’t have any records, do you?” Shea asked.

“No,” Kado said.

Kado later waffled on the amount of bribe money he paid Bernard Kilpatrick.

On Monday, Kado said he paid at least $250,000. Today, he said the number could be as low as $180,000 or as high as $300,000.

Bernard Kilpatrick

Cobo Center contractor Karl Kado not only allegedly paid Bernard Kilpatrick at least $250,000 in bribes, he gave the powerful political consultant a line of credit at his downtown party store.

The nugget emerged Tuesday as Kilpatrick’s lawyer, John Shea, showed jurors his client had a personal and professional relationship with a key government witness who alleges he was shaken down for bribes.

The cross-examination was rocky.

Shea suggested Kado hired the mayor’s father to help navigate City Hall bureaucracy. The lawyer also suggested the money that changed hands was legitimate as Kado tried to expand his contracts at the downtown convention center.

“You asked Mr. Kilpatrick on various occasions for his assistance, isn’t that true?” Shea asked.

“Yes,” Kado said.

“And you agreed to pay him for that, isn’t that true?” the lawyer asked.

“No,” Kado said.

Kado met Bernard Kilpatrick in the early 1980s when he operated a store inside the Millender Center in downtown Detroit.

At the time, Kilpatrick worked for Wayne County and shopped regularly at Kado’s store.

They became friends. Eventually, Kado extended Kilpatrick a line of credit at the shop, Bernard Kilpatrick’s lawyer said.

Kwame Kilpatrick outside court Monday.

There is a cat-and-mouse game that starts every day after testimony ends in the Kwame Kilpatrick corruption trial.

Kilpatrick, his father, Bernard, and pal, Bobby Ferguson, leave court, saying zilch as hungry reporters hover, trying to feed newspapers, airtime and websites with quotes, photos and video.

If we’re lucky, a defense lawyer musters a defense.

Bobby Ferguson and Kwame Kilpatrick outside federal court.

Kilpatrick, a skilled politician who knows the power of the press, is a master of saying plenty by saying nothing.

One day, he pointed across Fort Street, outside the photographers ” viewfinders,” at an empty sidewalk lined with imaginary supporters, guaranteeing dramatic images.

Some witnesses, meanwhile, try to slink away, unnoticed amid the media scrum.

Kwame Kilpatrick’s fundraiser, Emma Bell, leaves federal court.

Some use newspapers to shield their faces, or hide behind courthouse pillars. Some, like Emma Bell, the over-the shoulder-kickback-holder wearing Kilpatrick fundraiser, try to brave the scrum, but blubber amid the shutter clicks and questions.

Cobo Center contractor Karl Kado stood firm Monday on the first floor of federal court, shadowed by two reporters.

He chatted with a federal agent near the Lafayette exit, hatching an escape plan.

Karl Kado

The agent peeled away.

Kado waited.

The reporters watched.

Minutes passed.

Still no agent. Still no escort. Still no ride.

Suddenly, a dusty blue Chevrolet Malibu pulled up outside court.

It was the federal agent.

Kado spotted his ride from inside while standing atop the courthouse steps.

Bernard Kilpatrick outside court Monday.

Instead of following Bernard Kilpatrick’s lead and braving the gauntlet of reporters, photographers and videographers stationed across Lafayette, Kado descended the stairs. He was about 20 feet from the Malibu.

The shooters filmed away, hoping for something useful after waiting for hours to replace Kado’s glowering mugshot.

As Kado hit the sidewalk, pedestrians photobombed the scene, crossing in front of the West Bloomfield Township man and threatening to ruin the shot.

The News’ shooter David Guralnick adjusted on the fly.

Here’s his shot.

Karl Kado leaves federal court Monday.

Robert Snell
Robert Snell is the Detroit News federal courts reporter. He can be reached at rsnell@detnews.com or (313) 222-2028.

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