Bernard Kilpatrick deposited more than $605,000 in cash into his personal bank accounts during his son’s tenure as Detroit mayor — a period when prosecutors allege he was extorting money from city contractors.
IRS Special Agent Rowena Schuch described the deposits as prosecutors tried to prove Kilpatrick understated his income and filed phony tax returns.
Assistant U.S. Attorney Jennifer Blackwell asked the agent if the deposits from 2002 to 2008 could have included money given as gifts or loans, which are not taxable.
“With everyone I interviewed, I asked if those payments to Bernard Kilpatrick were in the form of gifts or loans and I did not find anybody who indicated he had been paid as a gift or a loan,” Schuch said.
From 2004 to 2007, Kilpatrick failed to pay the IRS $182,796 in taxes, the agent testified.
In 2007, he understated his income by almost $325,000, Schuch said.