{"id":7867,"date":"2014-12-09T11:58:00","date_gmt":"2014-12-09T19:58:00","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=7867"},"modified":"2014-12-10T17:55:17","modified_gmt":"2014-12-11T01:55:17","slug":"former-detroit-city-treasurer-pension-officials-convicted-conspiring-defraud-pensioners-bribery","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=7867","title":{"rendered":"Former Detroit City Treasurer, Pension Officials Convicted of Conspiring to Defraud Pensioners Through Bribery"},"content":{"rendered":"<p><strong>DETROIT<\/strong> &#8211; \u00a0The former Treasurer of the City of Detroit and two former pension officials were convicted Monday by a federal jury of conspiring to defraud retirees through bribery and kickbacks, officials said Monday.<\/p>\n<figure id=\"attachment_7871\" aria-describedby=\"caption-attachment-7871\" style=\"width: 150px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/beasley640x480_20120228115945_640_480.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-7871 size-thumbnail\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2014\/12\/beasley640x480_20120228115945_640_480-150x150.jpg\" alt=\"beasley640x480_20120228115945_640_480\" width=\"150\" height=\"150\" \/><\/a><figcaption id=\"caption-attachment-7871\" class=\"wp-caption-text\">Jeffrey Beasley<\/figcaption><\/figure>\n<p><strong>Jeffrey Beasley,<\/strong> 45, of Chicago, the former Treasurer of the City of Detroit, <strong>Ronald Zajac,<\/strong> 70, of Northville, Michigan, the former General Counsel of Detroit\u2019s two pension systems for more than 30 years, and <strong>Paul Stewart<\/strong>, 57 of Detroit, a trustee of Detroit\u2019s Police and Fire Retirement System, were convicted following a two-month jury trial, authorities said.<\/p>\n<p><script type='text\/javascript' src='http:\/\/v9.anv.bz\/scripts\/anv_mcp_9.js'><\/script><script type='text\/javascript'>var p = new anv_pl_def(); p.config = {}; p.config.width = 640; p.config.height = 360; p.loadVideoExpressV3('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|1000011|SPS');<\/script><br \/>\nAll three defendants were convicted of conspiring to defraud the city\u2019s pensioners of the honest services to which they were entitled by accepting bribes, officials said.<\/p>\n<p>In addition, authorities said Beasley was convicted of two counts of extortion and one count of bribery. Beasley was acquitted on three other counts of extortion.<\/p>\n<blockquote><p>\u201cThe perpetrators in this case criminally conspired with one another to sell their influence over the city\u2019s pension systems,\u201d stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. \u201cTheir breach of the public\u2019s faith and their fiduciary responsibilities to Detroit retirees resulted in nearly $100 million in losses. &#8220;<\/p><\/blockquote>\n<p>For the convictions for conspiring to engage in honest services mail and wire fraud, \u00a0prosecutors said Beasley, Zajac, and Stewart each face up to 20 years in prison and a fine of up to $250,000. \u00a0In addition, Beasley also faces an additional twenty years in prison and a fine of $250,000 for each of his two convictions for extortion, and an additional ten years in prison and a fine of $250,000 for his bribery conviction, prosecutors said.<\/p>\n<p><strong>The evidence at trial showed the following:<\/strong><\/p>\n<p>Detroit\u2019s two retirement systems lost more $97 million on pension deals corrupted by bribes and kickbacks taken or paid by the defendants.<\/p>\n<ul>\n<li><strong>Beasley,<\/strong> <strong>Zajac<\/strong>, and <strong>Stewart<\/strong> conspired with each other and with former <strong>Detroit Mayor Kwame Kilpatrick<\/strong> and others to take bribes and kickbacks in return for votes on investment decisions made by the boards of trustees of Detroit\u2019s two pension systems.<\/li>\n<li><strong>Beasley<\/strong> forced investment sponsors and consultants to pay <strong>Bernard Kilpatrick<\/strong> hundreds of thousands of dollars in exchange for his support of their proposed pension investments.<\/li>\n<li><strong>Beasley<\/strong> also accepted tens of thousands of dollars in cash from investment sponsors and consultants in exchange for his support of their pension deals.<\/li>\n<li>As part of the conspiracy, <strong>Zajac<\/strong> organized so-called \u201cbirthday parties\u201d for <strong>Beasley<\/strong>, <strong>Stewart,<\/strong> and another trustees. At the parties, people having business before the pension systems gave each trustee thousands of dollars in cash.<\/li>\n<li><strong>Zajac<\/strong> also directed investment sponsors and pension consultants to give thousands of dollars in cash and entertainment to <strong>Beasley<\/strong> and <strong>Stewart<\/strong>. <strong>Zajac<\/strong> also demanded that an investment sponsor pay for a trip to London for <strong>Zajac<\/strong> and a pension trustee in exchange for a $10 million investment in Detroit pension money.<\/li>\n<li>During the conspiracy, <strong>Stewart<\/strong>\u00a0accepted more than $48,000 in cash, trips, meals, drinks and other things of value in return for his support on pension deals proposed by the givers of the bribes.<\/li>\n<li>Among other things,<strong> Stewart<\/strong> accepted a Christmas basket stuffed with cash, a $5,000 Greektown casino chip, and a $4,000 trip to the Ritz-Carlton in Naples, Florida.<\/li>\n<\/ul>\n<p><strong>In addition, a number of other defendants have been convicted in relation to the pension fund investigation, including:<\/strong><\/p>\n<p><strong>Roy Dixon<\/strong>, an investment sponsor convicted of conspiring with Beasley, Zajac, and Stewart to pay bribes<\/p>\n<p><strong>Monica Conyers<\/strong>, a former Trustee of the General Retirement System and former member of the Detroit City Council, for conspiracy to take bribes, including bribes relating to a proposed multi-million dollar pension fund investment in Wireless Resources and a $10,000 extortion payment relating to the Police and Fire Retirement System\u2019s investment in the Romulus Deep Injection Waste Well;<\/p>\n<p><strong>Samuel L. Riddle<\/strong>, Conyers\u2019 Chief of Staff, for conspiracy to commit bribery and extortion relating to the Wireless Resources and Romulus Deep Injection Well investments<\/p>\n<p><strong>DeDan Milton<\/strong>, a former Trustee of Detroit\u2019s two pension funds<\/p>\n<p><strong>Andrew Park<\/strong>, an owner of Asian Village, who paid a bribe to obtain a $2.75 million loan from Detroit\u2019s General Retirement System<\/p>\n<p><strong>Derrick Miller<\/strong>, former Chief Information Officer of Detroit, who accepted the bribe from Park and who took a kickback of more than $500,000 on a $44 million investment by Detroit\u2019s two pension funds<\/p>\n<p><strong>Chauncey Mayfield<\/strong>, for conspiracy to commit bribery with Treasurer Beasley by supplying Beasley<\/p>\n<p><strong>Kwame Kilpatric<\/strong>k with tens of thousands of dollars in hotel, entertainment, and private jet flights, as well as a job for Beasley\u2019s paramour and significant contributions to the Kilpatrick Civic Fund, all in return for maintaining Mayfield\u2019s position as an investment advisor controlling more than $200 million in pension fund money<\/p>\n<p><strong>George Stanton<\/strong>, the former Chief of Staff of a pension trustee, who accepted a $15,000 cash bribe from Dixon relating to a proposed investment in the Turks and Caicos Islands.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DETROIT &#8211; \u00a0The former Treasurer of the City of Detroit and two former pension officials were convicted Monday by a federal jury of conspiring to defraud retirees through bribery and kickbacks, officials&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7871,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[1047],"class_list":["post-7867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-pension-fund-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - 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