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Detroit Research Paper (Econ/English)

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Feds public corruption probe: 17 avoided prison. While former Detroit Mayor Kwame Kilpatrick spends 28 years in prison for public corruption, many of the people who helped put him behind bars also broke the law — but they're free.

Feds public corruption probe: 17 avoided prison

They cooperated, and it paid off. Among them is Marc Cunningham, Kilpatrick's former fraternity brother, who on Tuesday became the 17th person to avoid prison time for crimes that were uncovered in the FBI's decades-long public corruption probe. That investigation has netted 44 convictions. Kwame Kilpatrick’s conviction and sentence upheld. Ex-Detroit Mayor Kwame Kilpatrick lost his appeal seeking to have his public corruption conviction, which led to a 28-year prison sentence, overturned.

Kwame Kilpatrick’s conviction and sentence upheld

A decision by a panel of three judges with the Cincinnati-based 6th Circuit U.S. Court of Appeals was released today. It upheld the convictions and sentences of Kilpatrick and his longtime contractor friend and co-defendant, Bobby Ferguson, who was sentenced to 21 years in prison. But the ruling found the district court’s restitution award against Kilpatrick for $4.58 million to the Detroit Water and Sewerage Department wasn’t properly calculated and ordered it be calculated again by the court in Detroit.

Kilpatrick's six-month trial included dozens of witnesses, hundreds of exhibits and ended with Kilpatrick being convicted of 24 counts for crimes including racketeering, extortion and bribery. Detroit Looks to Re-Engineer How City Government Works. Deadbeat Governments. ’Tis the season for taking retirement benefits away from public workers.

Deadbeat Governments

In Detroit, an emergency manager has steered the city into bankruptcy, in part to avoid its pension obligations. In Illinois, the legislature just passed a bill cutting pensions and raising the retirement age for state workers, in the hope of saving a hundred and sixty billion dollars in pension costs over the next thirty years. And these moves are only the most dramatic instances of a broader trend: between 2009 and 2012, forty-five states passed some kind of pension reform.

Pensions are supposed to be dull and reliable. But they’re now the locus of bruising political battles. The reason is simple: though plenty of states and cities have managed to maintain healthy pension funds, in many places pension costs are eating up huge chunks of the budget. How did states and cities get into this jam? That doesn’t mean, as many have argued, that we should scrap pensions and replace them with something like 401(k)s. Former Detroit Mayor Kilpatrick Sentenced To 28 Years. Kwame M. Kilpatrick, Former Detroit Mayor, Sentenced to 28 Years in Corruption Case. DETROIT — Kwame M.

Kwame M. Kilpatrick, Former Detroit Mayor, Sentenced to 28 Years in Corruption Case

Kilpatrick, the former mayor of Detroit, stood before a federal judge on Thursday and apologized for putting the people of his city through a corruption scandal so vast that prosecutors say it helped accelerate Detroit’s march toward bankruptcy. “They’re hurting,” Mr. Kilpatrick said. “A great deal of that hurt I accept full responsibility for.” They were solemn words from the formerly boisterous figure, a bear of a man at 6 feet 4 inches who many believed would lead Detroit out of its long economic downturn. Then, declaring an end to the bribery and thieving that marked the Kilpatrick administration, Judge Nancy G. Mr. Lawyers for Mr. The hearing came at a sobering moment for the city he once led, which is now remaking itself in bankruptcy court as residents wrestle over whom to blame for the fiscal mess.

“He’s become the poster child of what went wrong with the city and why it went bankrupt,” said Adolph Mongo, a political consultant who worked for Mr. For Detroit, a Crisis Born of Bad Decisions and False Hope. DETROIT — This city was already sinking under hundreds of millions of dollars in bills that it could not pay when a municipal auditor brought in a veteran financial consultant to dig through the books.

For Detroit, a Crisis Born of Bad Decisions and False Hope

A seasoned turnaround man and former actuary with Ford Motor Co., he was stunned by what he found: an additional $7.2 billion in retiree health costs that had never been reported, or even tallied up. “The city must take some drastic steps,” the consultant, John Boyle, warned the City Council in delivering his report at a public meeting in 2005. Among the options he suggested was filing for bankruptcy. “I thought all hell would break loose — I thought the flag would finally be raised,” Mr. Boyle recalled in an interview last week. Some factors were out of the city’s control.

But recent findings from a state-appointed review team and interviews with past and present city officials also suggest a city that over the years was remarkably badly run. Photo. Detroit's Bankruptcy Should Be A Warning To Every Worker Expecting A Pension, Or Social Security. Detroit (Photo credit: Ann Millspaugh) The City of Detroit tried to file for bankruptcy last week.

Detroit's Bankruptcy Should Be A Warning To Every Worker Expecting A Pension, Or Social Security

A state judge initially blocked the filing, but a federal judge ruled Wednesday this week that the bankruptcy case can move forward.