Former Detroit Mayor Kwame Kilpatrick money hunt leads feds to fat Comerica Bank account
Published in News & Features
DETROIT — Federal prosecutors found more than $13,000 in a Comerica Bank account during an ongoing hunt for money that could be applied toward $823,649 former Detroit Mayor Kwame Kilpatrick owes taxpayers as part of the disgraced politician's public corruption conviction, according to a court filing Wednesday.
In the filing, a bank official responded to a court order seeking to seize assets belonging to Kilpatrick by disclosing an account contained $13,167. The account is in the name of Pathfinder Consulting Firm LLC, a corporation that also owns a 5,673-square-foot home in Novi worth $1 million. The resident agent of Pathfinder is Kilpatrick's wife, LaTicia Kilpatrick, state business records show.
Prosecutors argued Pathfinder is merely a nominee and that the money belongs to Kwame Kilpatrick.
The bank disclosure was filed Wednesday, more than one month after Kilpatrick struck a secret deal with federal prosecutors to pay $823,649 after he waged a prolonged attempt to avoid paying the debt while living a life of luxury.
As part of the deal, Kilpatrick agreed he owes restitution to taxpayers and struck a payment plan that was sealed in federal court because it contains "detailed information concerning (Kilpatrick's) finances . . ."
The order marked the latest chapter in a years-long quest by the government to collect restitution from a 55-year-old felon who prosecutors have portrayed as a remorseless crook who has lied about his ability to pay while pursuing a life of luxury.
To ensure cooperation, prosecutors also slapped a lien on Kilpatrick's mansion.
"If payment becomes past due, penalties totaling up to 25 percent of the principal amount past due may arise," Assistant U.S. Attorney Jessica Nathan wrote on the lien.
The bank account discovery is the second time in recent years that prosecutors have uncovered money while pursuing Kilpatrick.
Two years ago, a federal judge let prosecutors take $6,704 belonging to Kwame Kilpatrick and apply the money toward the restitution debt.
The money was found by state Treasury officials and included overpayments to the city of Detroit, refunds, outstanding checks and vendor checks from the Financial Industry Regulatory Authority Inc., a not-for-profit group that oversees U.S. broker-dealers and protects investors.
Restitution was imposed as part of Kilpatrick's 2013 racketeering conspiracy conviction after he was accused of running a criminal enterprise out of Detroit City Hall, rigging bids and pocketing more than $840,000 in bribes and kickbacks.
President Donald Trump commuted Kilpatrick's 28-year corruption sentence in January 2021 but left intact the restitution order.
Prosecutors have spent years searching for assets and have attempted to seize money from life insurance companies and other financial accounts. Kilpatrick accused the government of placing "court-ordered holds" on personal and business accounts since Dec. 11.
Before reaching the deal, Kilpatrick said he "has been unable to pay for childcare, groceries, utility bills, car payments, education and ministerial supplies," according to a court filing.
But a government investigation showed "Kilpatrick was receiving large payments and soliciting 'donations' for his lifestyle, was selling books and services online, and had obtained a new Ford F-150 Platinum and other vehicles allegedly paid in full by his mother," Nathan wrote in an earlier court filing.
As part of his conviction, Kilpatrick was under court-ordered supervision until January 2024 and made monthly restitution payments ranging from as little as $25 a month to $180.
Kilpatrick stopped paying, however, despite earning $10,000 a month, moving into a mansion and driving luxury vehicles, federal prosecutors said. He also asked a judge to terminate the debt, argued he did not owe the money and called continuing demands for payment and an ongoing money hunt a "burden."
"Once off supervision, Kilpatrick stopped making any attempts to pay his restitution," Nathan, the prosecutor, wrote.
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