Day 49: Paranoia, payoffs mark star's Kilpatrick testimony

The government’s star witness injected fresh drama into the Kwame Kilpatrick corruption trial Monday, describing cash payoffs to the former Detroit mayor and steering work to defendant Bobby Ferguson.

Derrick Miller, the longtime Kilpatrick pal and former aide, spent almost four hours on the witness stand describing the inner workings of what prosecutors labeled a corrupt administration and racketeering conspiracy.

Originally charged alongside high-school pal, Miller struck a plea deal after he admitted pocketing bribes, strong-arming contractors and funneling money to the former mayor.

Miller, who was escorted in and out of U.S. District Court by federal agents, returns for more direct examination at 9 a.m. Tuesday.

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Please read below for an archived view of this event.
Kwame Kilpatrick and Bobby Ferguson outside federal court.

Kwame Kilpatrick and Bobby Ferguson outside federal court.

Kwame Kilpatrick was concerned the government had planted listening devices or bugs inside his 11th floor City Hall office and the Manoogian Mansion, according to testimony Monday.

Kilpatrick had the office swept for listening devices at least twice, former aide and longtime friend Derrick Miller testified. Kilpatrick also feared the feds were listening at the mansion and would blast music when discussing “business opportunities” for his pal Bobby Ferguson, Miller said.

“What areas were swept for bugs?” Assistant U.S. Attorney Mark Chutkow asked.

“The entire 11th floor, I believe,” Miller said.

Miller is testifying as the government’s star witness after reaching a plea deal with federal prosecutors.

Prosecutors showed jurors a $1,400 check from the mayor’s nonprofit Kilpatrick Civic Fund to Lathrup Village-based store Spy Ops.

A spy store salesman testified in October that a member of Kilpatrick’s staff visited his shop to buy counter-surveillance equipment for the mayor’s office in 2007.

The staffer spent $1,397 on several pieces of equipment, including a device that finds transmitter bugs and a wireless camera finder.

“It’s the ultimate game of cat and mouse,” spy store employee Brian Lang testified.

In a May 2004 text message, Ferguson suggested hiring a private investigator.

The text, shown to jurors, urged Kilpatrick to not tell Miller or mayoral mistress Christine Beatty about the investigator.

Bobby Ferguson outside federal court.

Bobby Ferguson outside federal court.

Ex-Mayor Kwame Kilpatrick ordered his underlings to steer city deals to his contractor pal Bobby Ferguson, according to testimony Monday.

Star witness Derrick Miller said the mayor made clear they were supposed to prioritize giving work to Ferguson, who owned a Detroit construction company.

“We were supposed to help Bobby,” Miller said.

That testimony addresses a key allegation in the City Hall corruption case. Kilpatrick is accused of steering work to his pal and extorting money from contractors. Prosecutors allege Ferguson got $60 million in city-related business because of the mayor — sometimes for doing no work at all — and shared the money with Kilpatrick.

Kwame Kilpatrick left gestures to passers by as he and Ferguson leave federal court Aug. 8.

Kwame Kilpatrick left gestures to passers by as he and Ferguson leave federal court Aug. 8.

“How was this expressed?” Assistant U.S. Attorney Mark Chutkow asked.

“I was told,” Miller said.

“By whom?” Chutkow asked.

“Mayor Kilpatrick,” Miller said. “We were looking out for Bobby at every opportunity.”

Ferguson grew into a powerful role in the Kilpatrick administration and had his own photo ID badge granting access to the mayor’s heavily guarded City Hall office, Miller said.

“I believe Bobby wielded more influence as the administration went on, more so than me,” Miller said.

The mayor, his father, Bernard, Miller and Ferguson would meet privately outside City Hall to discuss ways to steer work to the contractor, Miller said.

The group also would discuss projects involving clients of Bernard Kilpatrick’s consulting firm, Miller said.

The meetings happened at Bernard Kilpatrick’s condo in Detroit — which was foreclosed in 2009 — and at the Manoogian Mansion, according to testimony and prosecutors.

Kwame Kilpatrick outside federal court.

Kwame Kilpatrick outside federal court.

Star witness Derrick Miller said he split cash payments from a city contractor with Kwame Kilpatrick, who backed the contractor’s real estate deal.

In a blunt description of alleged bribery involving the former Detroit mayor, Miller testified about a real estate deal involving the firm Jones Lang LaSalle and an independent contractor, who was a friend.

The contractor pitched a deal to manage the city’s real estate portfolio and offered to split commissions with Miller.

Assistant U.S. Attorney Mark Chutkow

Assistant U.S. Attorney Mark Chutkow

Miller approached Kilpatrick and offered to give him a piece of the commissions, Miller testified.

“I said it could be good for us,” Miller said. “You know, it could be a windfall.”

“Not the city as a whole, but the two of you?” Assistant U.S. Attorney Mark Chutkow asked.

“Yes,” Miller said.

After the deal was approved, Miller pocketed cash several times.

“How many times…? Chutkow asked.

“Multiple times. Multiple, multiple times,” Miller said. “More than 10.”

“Did you share any with the mayor?” Chutkow asked.

“Half,” Miller said.

“How would you give it to him?” the prosecutor asked. “In cash?”

“I would give it to him in person, in cash,” Miller said.

Derrick Miller

Derrick Miller

Miller said he told the mayor the cash came from the Jones Lang Lasalle deal.

“What would (Kilpatrick) say?” Chutkow asked.

The question startled Miller.

“He’d take it — what do you mean?” Miller said.

“Did he say anything?” the prosecutor asked.

“Cool,” Miller said.

“Did he ever reject the money?” the prosecutor asked.

“No,” Miller said.

“Did he ever tell you he can’t take this?” Chutkow asked.

“No,” Miller said.

Miller also outlined his guilty plea in connection with the corruption trial.

Miller faces up to 10 years in prison and a $200,000 fine after pleading guilty to bribery and tax charges.

Prosecutors have agreed to ask for less prison time if Miller provides substantial help. If not, they will push for 10 years.

Star witness Derrick Miller said he fetched cash from a  Cobo Center contractor and delivered the money twice to ex-Mayor Kwame Kilpatrick.

Karl Kado walks out of federal court on Monday in Detroit. (David Guralnick / The Detroit News)

Karl Kado walks out of federal court on Monday in Detroit. (David Guralnick / The Detroit News)

The money came from Cobo contractor Karl Kado, who was convicted in a long-running FBI probe of City Hall corruption.

Miller, a former Kilpatrick aide who oversaw Cobo operations, testified he picked up money from Kado’s office in Cobo Center and delivered it to Kilpatrick.

“How much?” Assistant U.S. Attorney Mark Chutkow asked.

“I didn’t count it, but you know, a lot of money. Five or $10,000,” Miller testified.

“Cash or check?” Chutkow asked.

“Cash,” Miller said. “In hundreds.

“It was wrong to take cash from a contractor that I was responsible for overseeing his operations,” Miller added.

Miller also said he collected money from Kado and kept it.

“He gave me, personally, cash,” Miller said. “He was constantly offering cash and I accepted a couple times.”

“Where did this occur?” Chutkow asked.

Cobo Center

Cobo Center

“Cobo,” Miller said.

“How much?” the prosecutor asked.

“$10,000. In hundreds,” Miller said.

“These weren’t loans or anything like that?” Chutkow asked.

“No,” Miller said.

“So you never repaid it?” the prosecutor asked.

“No,” Miller said.

Kado also gave $10,000 to the Kilpatrick campaign in 2001, Miller testified.

The payoff happened at Cobo, Miller said.

Kado paid in cash, which Miller said violated rules.

“My understanding was we couldn’t accept cash for the campaign,” Miller said. “It had to be a money order or check.

“Did you get a receipt or documentation?” Chutkow asked.

“No,” Miller said.

Kado had lucrative contracts at Cobo and later cooperated with the FBI.

Kwame Kilpatrick and laweyrs outside federal court Monday.

Kwame Kilpatrick and laweyrs outside federal court Monday.

Star witness Derrick Miller’s testimony Monday triggered the most animated facial expressions from Kwame Kilpatrick during the four-month trial.

At one point early Monday, Kilpatrick scowled, scoffed and shook his head while staring at the jury when Miller testified for the government about the ex-mayor’s support of a riverfront casino project.

The casino was pitched by businessman Jon Rutherford, a homeless shelter operator who bankrolled Kilpatrick’s campaigns and nonprofit group.

At another point, Kilpatrick nodded and stared at the jury when Miller said the mayor supported a riverfront casino that included a convention center.

Miller, meanwhile, has testified in a calm, even voice while responding to questions from Assistant U.S. Attorney Mark Chutkow.

Derrick Miller outside federal court with lawyer Byron Pitts, right.

Derrick Miller outside federal court with lawyer Byron Pitts, right.

Derrick Miller’s value as a government witness emerged early Monday during testimony in the Kwame Kilpatrick corruption trial.

Miller corroborated previous witnesses about allegedly illegal campaign finance activities and revisited some of the most damaging allegations leveled by federal prosecutors.

The ex-mayor’s close friend and former aide painted Kilpatrick as a liar who used donations to the nonprofit Kilpatrick Civic Fund on personal expenses, including lavish resort vacations, golf clubs and yoga classes.

 Kwame and Carlita Kilpatrick check in  with their three sons at the American Airlines ticket counter at Detroit Metro on Thursday, Sept. 18, 2008. (Velvet S. McNeil / The Detroit News)

Kwame and Carlita Kilpatrick check in with their three sons at the American Airlines ticket counter at Detroit Metro on Thursday, Sept. 18, 2008. (Velvet S. McNeil / The Detroit News)

Miller had power to sign Civic Fund checks and said he often signed blank checks. Some of those checks later bankrolled expensive spa trips for Kilpatrick, wife Carlita and their children.

News of the personal expenses were first aired in October, early on in the trial, but Miller’s testimony served as a refresher course for jurors.

One $8,605 Civic Fund check paid for Kilpatrick’s family to travel to the La Costa Resort and Spa in Carlsbad, Calif., in summer 2006.

A TV reporter found out about the trip and that the Civic Fund paid for the vacation.

Again, Kilpatrick huddled with his inner circle to hatch a response.

“We had to come up with some story for why this check was used for this resort and spa,” Miller said.

The plan: Kilpatrick would say the trip was to raise money for the Civic Fund, Miller said.

Kwame Kilpatrick's fundraiser, Emma Bell, leaves federal courthouse Thursday after an explosive day of testimony. (David Coates / The Detroit News)

Kwame Kilpatrick’s fundraiser, Emma Bell, seen leaving federal courthouse after an explosive day of testimony in the fall. (David Coates / The Detroit News)

There was no evidence Kilpatrick raised any money while staying at the $625-a-night resort, Miller said.

Miller also told jurors the mayor met privately with fundraiser Emma Bell in the infamous “Barber Room.”

Bell testified earlier that she delivered kickbacks to Kilpatrick inside the barber room. The kickbacks allegedly were stuffed in Bell’s bra.

The “Barber Room” was an office within Kilpatrick’s suite that featured leather furniture, a shower and a barber chair. The leather padding on the chair read “The Mayor 2002.”

Prosecutors showed jurors a photo of the barber chair Monday.

Derrick Miller

Derrick Miller

Star witness Derrick Miller took jurors inside Kwame Kilpatrick’s inner circle Monday, describing fallout from an early scandal related to suspicious campaign contributions and a televised lie.

Miller testified about a $50,000 donation in summer 2001 from a homeless shelter operator Jon Rutherford to the Kilpatrick Civic Fund, which prosecutors allege served as Kilpatrick’s personal slush fund. The donation led to a front-page story in The Detroit Free Press.

After the newspaper article, Kilpatrick’s inner circle huddled to plot a response.

Christine Beatty

Christine Beatty

Present were Kilpatrick, Miller, future Chief of Staff Christine Beatty, former Supreme Court Chief Justice Conrad Mallett and others.

At the time, Kilpatrick was locked in an election battle with Councilman Gil Hill. Kilpatrick’s team decided the future mayor would publicly state the money did not bankroll the Kilpatrick campaign.

Kilpatrick made the statement during a televised debate, saying not “one penny” was spent on the campaign because doing so was illegal.

“Was that a true statement?” Assistant U.S. Attorney Mark Chutkow asked.

“No,” Miller said.

Earlier, Miller largely corroborated previous testimony about a controversial state grant and Kilpatrick’s rise to power.

Miller was shoring up testimony from earlier in the corruption trial that  Rutherford gave more than $134,000 to help get Kilpatrick elected to the state House and as Detroit mayor.

In October, Rutherford testified he gave money to Kilpatrick, his father, Bernard Kilpatrick, and related groups while pursuing a casino project in Detroit.

He also said he gave $113,000 to Bernard Kilpatrick for no-show work.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller’s been living a country song in recent years.

Foreclosure, lawsuits,  tax debt, you name it.

His financial and personal problems are a steep fall from Kilpatrick’s two terms in office, when Miller was the mayor’s most trusted adviser and allegedly splitting $115,000 in kickbacks with Kilpatrick.

Back in Kilpatrick’s heyday, Miller lived in this Indian Village beauty on Burns Street.

Miller's former Indian Village home.

Miller’s former Indian Village home.

Miller bought it for $390,000 during Kilpatrick’s first term in 2002, the start of Kwamelot. The county launched forfeiture proceedings against the property in April, according to Wayne County property records.

Miller has since moved to Falls Church, Va., and is living in this apartment building.

Like fellow Kilpatrick insider Christine Beatty, Miller has run into financial problems in recent years.

On Dec. 9, 2010, the state of Michigan filed a $9,952 tax lien against Miller. Wayne State University and others have won civil judgments against Miller for more than $7,000, according to public records.

Miller faces up to 10 years in prison and a $200,000 fine after pleading guilty to bribery and tax charges.

Prosecutors have agreed to ask for less prison time if Miller provides substantial help. If not, they will push for 10 years.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller, the government’s star witness, took the witness stand shortly after 9 a.m. and is testifying against his high-school friend and political boss, ex-Mayor Kwame Kilpatrick.

Miller is talking about the earliest roots of his friendship with Kilpatrick and alleged corruption during the former Detroit politician’s public career, which started in the state House.

Miller said the two met in a 9th grade English class at Cass Tech and played together on the basketball team.

Kilpatrick is projecting a casual air, resting his chin on his right fist while Miller, dressed in a dark suit and blue shirt, is testifying about helping obtain state grant money that benefited Kilpatrick’s wife, Carlita, and co-defendant Bobby Ferguson.

Carlita Kilpatrick eventually received $137,500 in state grant money. She did no work for the cash and pocketed a $91,000 salary, prosecutors allege.

Bobby Ferguson

Bobby Ferguson

Ferguson, meanwhile, spent about $100,000 in state grant money renovating his company’s offices and repairing the roof, according to the indictment.

Ferguson’s defense team claimed the money was spent building training rooms for area youths to learn construction skills.

Miller, who visited Ferguson’s offices on Wyoming in Detroit several times, disagreed.

“Did you see anything that would support vocational training?” Assistant U.S. Attorney Mark Chutkow asked.

“Vocational training? No,” Miller said.

“You didn’t see training of young people to get jobs in the construction trades?” Chutkow asked.

Kwame Kilpatrick

Kwame Kilpatrick

“Not to my knowledge,” Miller said.

Miller’s testimony started slowly as the former political aide backed up earlier testimony about allegedly illegal expenses paid by Kilpatrick’s nonprofit group.

In a clam, flat voice, Miller testified Kilpatrick’s non-profit group spent almost $36,000 for polling work.

Derrick Miller

Derrick Miller

Former Kwame Kilpatrick aide Derrick Miller wore rose-colored sunglasses to court when he struck a plea deal with federal prosecutors in fall 2011.

Prosecutors don’t want that rosy view when Miller takes the witness stand today to help the government send Kilpatrick to prison for 20 years.

Miller, known within Kilpatrick’s inner circle as “Zeke” or “Point Guard,” could have an extended stint on the witness stand. He is expected to testify about bribery, extortion and delivering Kilpatrick a $10,000 payoff inside a restaurant bathroom.

Miller, who moved to Virginia after leaving the Kilpatrick administration, has made several cameos during the trial.

He intimidated a powerful businesswoman during a Mackinac Island in 2002. Miller Former Soave Enterprises executive Kathleen McCann testified Miller leaned on her to hire Bobby Ferguson before the city approved a $50 million sewer deal in 2002.

Miller also was a frequent flier on Air Soave and sat on a powerful — and pro-Kilpatrick — city board that awarded Kilpatrick pal Bobby Ferguson’s firm a $7 million deal despite low bid results.

While we wait for Miller to testify, check out his plea deal.

 

Live Updates Ended

Please read below for an archived view of this event.
Kwame Kilpatrick and Bobby Ferguson outside federal court.

Kwame Kilpatrick and Bobby Ferguson outside federal court.

Kwame Kilpatrick was concerned the government had planted listening devices or bugs inside his 11th floor City Hall office and the Manoogian Mansion, according to testimony Monday.

Kilpatrick had the office swept for listening devices at least twice, former aide and longtime friend Derrick Miller testified. Kilpatrick also feared the feds were listening at the mansion and would blast music when discussing “business opportunities” for his pal Bobby Ferguson, Miller said.

“What areas were swept for bugs?” Assistant U.S. Attorney Mark Chutkow asked.

“The entire 11th floor, I believe,” Miller said.

Miller is testifying as the government’s star witness after reaching a plea deal with federal prosecutors.

Prosecutors showed jurors a $1,400 check from the mayor’s nonprofit Kilpatrick Civic Fund to Lathrup Village-based store Spy Ops.

A spy store salesman testified in October that a member of Kilpatrick’s staff visited his shop to buy counter-surveillance equipment for the mayor’s office in 2007.

The staffer spent $1,397 on several pieces of equipment, including a device that finds transmitter bugs and a wireless camera finder.

“It’s the ultimate game of cat and mouse,” spy store employee Brian Lang testified.

In a May 2004 text message, Ferguson suggested hiring a private investigator.

The text, shown to jurors, urged Kilpatrick to not tell Miller or mayoral mistress Christine Beatty about the investigator.

Bobby Ferguson outside federal court.

Bobby Ferguson outside federal court.

Ex-Mayor Kwame Kilpatrick ordered his underlings to steer city deals to his contractor pal Bobby Ferguson, according to testimony Monday.

Star witness Derrick Miller said the mayor made clear they were supposed to prioritize giving work to Ferguson, who owned a Detroit construction company.

“We were supposed to help Bobby,” Miller said.

That testimony addresses a key allegation in the City Hall corruption case. Kilpatrick is accused of steering work to his pal and extorting money from contractors. Prosecutors allege Ferguson got $60 million in city-related business because of the mayor — sometimes for doing no work at all — and shared the money with Kilpatrick.

Kwame Kilpatrick left gestures to passers by as he and Ferguson leave federal court Aug. 8.

Kwame Kilpatrick left gestures to passers by as he and Ferguson leave federal court Aug. 8.

“How was this expressed?” Assistant U.S. Attorney Mark Chutkow asked.

“I was told,” Miller said.

“By whom?” Chutkow asked.

“Mayor Kilpatrick,” Miller said. “We were looking out for Bobby at every opportunity.”

Ferguson grew into a powerful role in the Kilpatrick administration and had his own photo ID badge granting access to the mayor’s heavily guarded City Hall office, Miller said.

“I believe Bobby wielded more influence as the administration went on, more so than me,” Miller said.

The mayor, his father, Bernard, Miller and Ferguson would meet privately outside City Hall to discuss ways to steer work to the contractor, Miller said.

The group also would discuss projects involving clients of Bernard Kilpatrick’s consulting firm, Miller said.

The meetings happened at Bernard Kilpatrick’s condo in Detroit — which was foreclosed in 2009 — and at the Manoogian Mansion, according to testimony and prosecutors.

Kwame Kilpatrick outside federal court.

Kwame Kilpatrick outside federal court.

Star witness Derrick Miller said he split cash payments from a city contractor with Kwame Kilpatrick, who backed the contractor’s real estate deal.

In a blunt description of alleged bribery involving the former Detroit mayor, Miller testified about a real estate deal involving the firm Jones Lang LaSalle and an independent contractor, who was a friend.

The contractor pitched a deal to manage the city’s real estate portfolio and offered to split commissions with Miller.

Assistant U.S. Attorney Mark Chutkow

Assistant U.S. Attorney Mark Chutkow

Miller approached Kilpatrick and offered to give him a piece of the commissions, Miller testified.

“I said it could be good for us,” Miller said. “You know, it could be a windfall.”

“Not the city as a whole, but the two of you?” Assistant U.S. Attorney Mark Chutkow asked.

“Yes,” Miller said.

After the deal was approved, Miller pocketed cash several times.

“How many times…? Chutkow asked.

“Multiple times. Multiple, multiple times,” Miller said. “More than 10.”

“Did you share any with the mayor?” Chutkow asked.

“Half,” Miller said.

“How would you give it to him?” the prosecutor asked. “In cash?”

“I would give it to him in person, in cash,” Miller said.

Derrick Miller

Derrick Miller

Miller said he told the mayor the cash came from the Jones Lang Lasalle deal.

“What would (Kilpatrick) say?” Chutkow asked.

The question startled Miller.

“He’d take it — what do you mean?” Miller said.

“Did he say anything?” the prosecutor asked.

“Cool,” Miller said.

“Did he ever reject the money?” the prosecutor asked.

“No,” Miller said.

“Did he ever tell you he can’t take this?” Chutkow asked.

“No,” Miller said.

Miller also outlined his guilty plea in connection with the corruption trial.

Miller faces up to 10 years in prison and a $200,000 fine after pleading guilty to bribery and tax charges.

Prosecutors have agreed to ask for less prison time if Miller provides substantial help. If not, they will push for 10 years.

Star witness Derrick Miller said he fetched cash from a  Cobo Center contractor and delivered the money twice to ex-Mayor Kwame Kilpatrick.

Karl Kado walks out of federal court on Monday in Detroit. (David Guralnick / The Detroit News)

Karl Kado walks out of federal court on Monday in Detroit. (David Guralnick / The Detroit News)

The money came from Cobo contractor Karl Kado, who was convicted in a long-running FBI probe of City Hall corruption.

Miller, a former Kilpatrick aide who oversaw Cobo operations, testified he picked up money from Kado’s office in Cobo Center and delivered it to Kilpatrick.

“How much?” Assistant U.S. Attorney Mark Chutkow asked.

“I didn’t count it, but you know, a lot of money. Five or $10,000,” Miller testified.

“Cash or check?” Chutkow asked.

“Cash,” Miller said. “In hundreds.

“It was wrong to take cash from a contractor that I was responsible for overseeing his operations,” Miller added.

Miller also said he collected money from Kado and kept it.

“He gave me, personally, cash,” Miller said. “He was constantly offering cash and I accepted a couple times.”

“Where did this occur?” Chutkow asked.

Cobo Center

Cobo Center

“Cobo,” Miller said.

“How much?” the prosecutor asked.

“$10,000. In hundreds,” Miller said.

“These weren’t loans or anything like that?” Chutkow asked.

“No,” Miller said.

“So you never repaid it?” the prosecutor asked.

“No,” Miller said.

Kado also gave $10,000 to the Kilpatrick campaign in 2001, Miller testified.

The payoff happened at Cobo, Miller said.

Kado paid in cash, which Miller said violated rules.

“My understanding was we couldn’t accept cash for the campaign,” Miller said. “It had to be a money order or check.

“Did you get a receipt or documentation?” Chutkow asked.

“No,” Miller said.

Kado had lucrative contracts at Cobo and later cooperated with the FBI.

Kwame Kilpatrick and laweyrs outside federal court Monday.

Kwame Kilpatrick and laweyrs outside federal court Monday.

Star witness Derrick Miller’s testimony Monday triggered the most animated facial expressions from Kwame Kilpatrick during the four-month trial.

At one point early Monday, Kilpatrick scowled, scoffed and shook his head while staring at the jury when Miller testified for the government about the ex-mayor’s support of a riverfront casino project.

The casino was pitched by businessman Jon Rutherford, a homeless shelter operator who bankrolled Kilpatrick’s campaigns and nonprofit group.

At another point, Kilpatrick nodded and stared at the jury when Miller said the mayor supported a riverfront casino that included a convention center.

Miller, meanwhile, has testified in a calm, even voice while responding to questions from Assistant U.S. Attorney Mark Chutkow.

Derrick Miller outside federal court with lawyer Byron Pitts, right.

Derrick Miller outside federal court with lawyer Byron Pitts, right.

Derrick Miller’s value as a government witness emerged early Monday during testimony in the Kwame Kilpatrick corruption trial.

Miller corroborated previous witnesses about allegedly illegal campaign finance activities and revisited some of the most damaging allegations leveled by federal prosecutors.

The ex-mayor’s close friend and former aide painted Kilpatrick as a liar who used donations to the nonprofit Kilpatrick Civic Fund on personal expenses, including lavish resort vacations, golf clubs and yoga classes.

 Kwame and Carlita Kilpatrick check in  with their three sons at the American Airlines ticket counter at Detroit Metro on Thursday, Sept. 18, 2008. (Velvet S. McNeil / The Detroit News)

Kwame and Carlita Kilpatrick check in with their three sons at the American Airlines ticket counter at Detroit Metro on Thursday, Sept. 18, 2008. (Velvet S. McNeil / The Detroit News)

Miller had power to sign Civic Fund checks and said he often signed blank checks. Some of those checks later bankrolled expensive spa trips for Kilpatrick, wife Carlita and their children.

News of the personal expenses were first aired in October, early on in the trial, but Miller’s testimony served as a refresher course for jurors.

One $8,605 Civic Fund check paid for Kilpatrick’s family to travel to the La Costa Resort and Spa in Carlsbad, Calif., in summer 2006.

A TV reporter found out about the trip and that the Civic Fund paid for the vacation.

Again, Kilpatrick huddled with his inner circle to hatch a response.

“We had to come up with some story for why this check was used for this resort and spa,” Miller said.

The plan: Kilpatrick would say the trip was to raise money for the Civic Fund, Miller said.

Kwame Kilpatrick's fundraiser, Emma Bell, leaves federal courthouse Thursday after an explosive day of testimony. (David Coates / The Detroit News)

Kwame Kilpatrick’s fundraiser, Emma Bell, seen leaving federal courthouse after an explosive day of testimony in the fall. (David Coates / The Detroit News)

There was no evidence Kilpatrick raised any money while staying at the $625-a-night resort, Miller said.

Miller also told jurors the mayor met privately with fundraiser Emma Bell in the infamous “Barber Room.”

Bell testified earlier that she delivered kickbacks to Kilpatrick inside the barber room. The kickbacks allegedly were stuffed in Bell’s bra.

The “Barber Room” was an office within Kilpatrick’s suite that featured leather furniture, a shower and a barber chair. The leather padding on the chair read “The Mayor 2002.”

Prosecutors showed jurors a photo of the barber chair Monday.

Derrick Miller

Derrick Miller

Star witness Derrick Miller took jurors inside Kwame Kilpatrick’s inner circle Monday, describing fallout from an early scandal related to suspicious campaign contributions and a televised lie.

Miller testified about a $50,000 donation in summer 2001 from a homeless shelter operator Jon Rutherford to the Kilpatrick Civic Fund, which prosecutors allege served as Kilpatrick’s personal slush fund. The donation led to a front-page story in The Detroit Free Press.

After the newspaper article, Kilpatrick’s inner circle huddled to plot a response.

Christine Beatty

Christine Beatty

Present were Kilpatrick, Miller, future Chief of Staff Christine Beatty, former Supreme Court Chief Justice Conrad Mallett and others.

At the time, Kilpatrick was locked in an election battle with Councilman Gil Hill. Kilpatrick’s team decided the future mayor would publicly state the money did not bankroll the Kilpatrick campaign.

Kilpatrick made the statement during a televised debate, saying not “one penny” was spent on the campaign because doing so was illegal.

“Was that a true statement?” Assistant U.S. Attorney Mark Chutkow asked.

“No,” Miller said.

Earlier, Miller largely corroborated previous testimony about a controversial state grant and Kilpatrick’s rise to power.

Miller was shoring up testimony from earlier in the corruption trial that  Rutherford gave more than $134,000 to help get Kilpatrick elected to the state House and as Detroit mayor.

In October, Rutherford testified he gave money to Kilpatrick, his father, Bernard Kilpatrick, and related groups while pursuing a casino project in Detroit.

He also said he gave $113,000 to Bernard Kilpatrick for no-show work.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller’s been living a country song in recent years.

Foreclosure, lawsuits,  tax debt, you name it.

His financial and personal problems are a steep fall from Kilpatrick’s two terms in office, when Miller was the mayor’s most trusted adviser and allegedly splitting $115,000 in kickbacks with Kilpatrick.

Back in Kilpatrick’s heyday, Miller lived in this Indian Village beauty on Burns Street.

Miller's former Indian Village home.

Miller’s former Indian Village home.

Miller bought it for $390,000 during Kilpatrick’s first term in 2002, the start of Kwamelot. The county launched forfeiture proceedings against the property in April, according to Wayne County property records.

Miller has since moved to Falls Church, Va., and is living in this apartment building.

Like fellow Kilpatrick insider Christine Beatty, Miller has run into financial problems in recent years.

On Dec. 9, 2010, the state of Michigan filed a $9,952 tax lien against Miller. Wayne State University and others have won civil judgments against Miller for more than $7,000, according to public records.

Miller faces up to 10 years in prison and a $200,000 fine after pleading guilty to bribery and tax charges.

Prosecutors have agreed to ask for less prison time if Miller provides substantial help. If not, they will push for 10 years.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller, left, outside federal court with lawyer Byron Pitts.

Derrick Miller, the government’s star witness, took the witness stand shortly after 9 a.m. and is testifying against his high-school friend and political boss, ex-Mayor Kwame Kilpatrick.

Miller is talking about the earliest roots of his friendship with Kilpatrick and alleged corruption during the former Detroit politician’s public career, which started in the state House.

Miller said the two met in a 9th grade English class at Cass Tech and played together on the basketball team.

Kilpatrick is projecting a casual air, resting his chin on his right fist while Miller, dressed in a dark suit and blue shirt, is testifying about helping obtain state grant money that benefited Kilpatrick’s wife, Carlita, and co-defendant Bobby Ferguson.

Carlita Kilpatrick eventually received $137,500 in state grant money. She did no work for the cash and pocketed a $91,000 salary, prosecutors allege.

Bobby Ferguson

Bobby Ferguson

Ferguson, meanwhile, spent about $100,000 in state grant money renovating his company’s offices and repairing the roof, according to the indictment.

Ferguson’s defense team claimed the money was spent building training rooms for area youths to learn construction skills.

Miller, who visited Ferguson’s offices on Wyoming in Detroit several times, disagreed.

“Did you see anything that would support vocational training?” Assistant U.S. Attorney Mark Chutkow asked.

“Vocational training? No,” Miller said.

“You didn’t see training of young people to get jobs in the construction trades?” Chutkow asked.

Kwame Kilpatrick

Kwame Kilpatrick

“Not to my knowledge,” Miller said.

Miller’s testimony started slowly as the former political aide backed up earlier testimony about allegedly illegal expenses paid by Kilpatrick’s nonprofit group.

In a clam, flat voice, Miller testified Kilpatrick’s non-profit group spent almost $36,000 for polling work.

Derrick Miller

Derrick Miller

Former Kwame Kilpatrick aide Derrick Miller wore rose-colored sunglasses to court when he struck a plea deal with federal prosecutors in fall 2011.

Prosecutors don’t want that rosy view when Miller takes the witness stand today to help the government send Kilpatrick to prison for 20 years.

Miller, known within Kilpatrick’s inner circle as “Zeke” or “Point Guard,” could have an extended stint on the witness stand. He is expected to testify about bribery, extortion and delivering Kilpatrick a $10,000 payoff inside a restaurant bathroom.

Miller, who moved to Virginia after leaving the Kilpatrick administration, has made several cameos during the trial.

He intimidated a powerful businesswoman during a Mackinac Island in 2002. Miller Former Soave Enterprises executive Kathleen McCann testified Miller leaned on her to hire Bobby Ferguson before the city approved a $50 million sewer deal in 2002.

Miller also was a frequent flier on Air Soave and sat on a powerful — and pro-Kilpatrick — city board that awarded Kilpatrick pal Bobby Ferguson’s firm a $7 million deal despite low bid results.

While we wait for Miller to testify, check out his plea deal.

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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