We're back and we're done. Judge Edmunds says one of the jurors is feeling ill and can't continue today... so we'll be back on MOnday. M.L. Elrick will have a wrap up tonight on Fox 2 News at 5 and 6 and of course will have his daily take away on MyFoxDetroit.com, always a good read and usually good for a wry chuckle or two as well. Have a great weekend.
And the judge calls for a break, back in 5.
Looking at DWS 864 contract for East side water system, DWS 865 contract. First box shows Inland/Xcel, FEi and Insituform. Xcel got 191k and FEI got $4.6million. 865 is a Lakeshore contract with Lanzo and DCG and FEI got $5 million.
Chutkow asks if Pazcewicz remembers Rachmale saying Lakeshore's gross receipts were 13 million. Yes.
Chutkow asks what Bobby's gross receipts were? Pazcewicz says $10 million. Chutkow says FErguson got about a million less that Lakeshore. Pazcewicz says yes.
First page is 4 boxes, left column is 1361, lakeshore Lanzo Hayes in top box, ox below it says canceled. Right hand side shows 1368, under it is Inland Insituform Williams, box below that shows FEI $20.8M. 1368 is the sewer contract, where 1361 was rolled into 1368.
Pazcewicz says bobby got $20.8 million when contract was complete.
Next box is DWS 849, Lakeshore Lanzo and FEI, bottom box shows Johnson Cons. $1.7 That's Johnson Consulants." Bobbies Wife's company. Got $1.7 million. The company name, as you may recall, was misspelled on the invoice.
Now looking at East Side water main replacement.
2014 and 2015 FEI gets 3.3 million and Xcel gets $882k for 2014, for 2015 Xcel got 3.5 million and FEI got $13.1 million.
Chutkow asks if she remembers testimony from Hardiman that he had to pay unnecessary management fees. Pazcewicz says yes.
Chutkow asking agent Pazcewicz about memo recommending Lakeshore get the contract. Lakeshore got 2914 and Inland got 2697. Lakeshore propose $18,950,000 and INland was about 3 million more.
going to page 5, we're looking at a table summarizing each companies score. Pazcewicz says local economic development score for Lakeshore is better.
Chutkow now introducing a new document, BFF 31, Bobby Ferguson Financial's. High tech numbering and identification system here. Pazcewicz says these are charts she prepared showing companies, contracts, ad revenue Ferguson entities received.
Pazcewicz says she used three sets of documents, negotiated checks, copies of checks from contractors who made payments to Bobby, or general ledgers from those same contractors.
Old text now.
Bobby: "is the same contact, 1361 prices may be less that the other one hey you know the rest.
Chutkow asks if she remembers Hardiman trying to talk to Derrick Miller. Yes
New text from Kwame's secretary. "derrick can you call me the mayor wants you to handle his meeting with Thomas Hardiman today at 4:30pm he wants you to listen and be vague."
Pazcewicz not explaining the water board's award to Lakeshore signed by Mercado and not Inland.
Chutkow asks her to look at a text between Bobby and Kwame on Feb 26 2003.
"are you going to cal victor todaY, three of us break bread this evening."
reply, yea, "I'll holla after I get to work."Now looking at sub contractor form from Inland waters notifying they're adding FEI as a sub contractor to 1368. Says 20% goes to Ferguson. Bobby wasn't on original bid. DAted 3/13/2003
changing to text message from Bobby and Kwame:
Bobby: "Hello, black you haven't release that contract right."
Kwame:" right they know I'm holing it,
using your term it's still cool for you I need to hold it for a long time its know need for it and something else also."
Pazcewicz reads text from Merrit a Ferguson employee that says CS-1361...may be awarded to Lakeshore... anything we can do?" from 2002.
New text. " I got to review 1361 point repairs to see how they look compared to 1368 and Gary is scared."
Chutkow asks if this is after the evaluation team ranked Lakeshore over Inland. Yes.
Chutkow asks whose contract was 1368. Inland Waters.
did Bobby eventually join inland on 1368, Yes.
Mark Chutkow is up now questioning Agent CArol Pazcewicz. Looking at Nov 4 2002 memo about Lakeshore. pazcewicz says Lakeshore scored 3942 and INland scored 2370.
Chutkow asks if Ferguson Enterprises was on the Inland team, Pazcewicz say yes.
Bernard's attorney John Shea's is up, he's explaining to the jury that he's asking Harris now, about some things that will be talked ob out later in the he trial, so it's going to be a little disjointed but this is the only chance he'll get to question this witness.
They're talking about a project at the Book CAdillace Hotel (bobby's asbestos removal maybe?) Asks if he met with agent Beeckman. Harris can't remember, he's nervous, flustered.
Shea shows him a document to refresh his memory about what he talked about with the agent.
Shea asking about Jenkins construction now following DBB rules and employee percentages.
Harris says it could be Jenkins was using sub-contractors and didn't meet the employee requirements.
Shea says thank you and walks away. Incredulous the judge asks does that mean you're done. Shea looks over his should and says yes your honor. Get a few chuckles.
Susan Van Duesen is up and asking about a document Bullotta showed Harris. I was about to say this is a welcome change, then Bullotta jumped up and said he never showed Harris that document, and Harris said he hadn't seen the document before.
She was short and to the point and I have no idea what she was talking about. Maybe it will become clear what she was trying to do later on.
Thomas asks if Harris knew DLZ was going to council about the de certification. Harris say he was probably aware.
Thomas asks if he was aware they didn't have their income tax clearances. Judge Edmunds say, "Mr Thomas!" Tomas says it's his last question. Edmunds says, "last question." Thomas, "very last question.
Harris says he doesn't know he'd have to see the file. And he's done.
Thomas is showing Harris a memo to refresh his recollection but Harris doesn't remember it. Harris says he was aware of the hearings through Director Phillips but didn't participate. Judge Edmunds says move on.
Thomas says they were decertified again. Harris says he doesn't know.
Thomas now reading all the reasons in the ordinance for which a company can be de-certified and asks can't you decertify for all these reasons? Harris says he got a legal ruling and there was no change in the DHB language. Thomas says did you just sit on your hands and do nothing. Harris says he talked to Latimer and others and they were satisfied after he told them they couldn't decertify them.
Harris says he was uncomfortable with the whole process. Thomas asks if there was plausible reason for de certification. Harris says yes.
Thomas asks if it was appropriate under the guidelines. Harris says yes.
Thomas says somebody told you that somebody told them that the Mayor told them... Harris says no there was no reason to decertify.
Harris says contractors complain all the time but there was no written complaint. Tomas asks if he knows there were allegations made that officers were in Lansing. It's interesting here because Thomas is only waiting for answers on 1 out of 3 questions he's asking.
Thomas asks if Harris is aware that Kwame Kenyatta in 2008 there were council hearings about DHB of DLZ on another matter. Harris says yes.
Thomas now moving along to a document that 'S (thankfully) already introduced into evidence Hasn't put it on the screen yet though. asks if DHB is defined by ordinance in City of Detroit. YES.
Thomas says but we've already gone through that right. Harris says it's either by ordinance or executive order.
Thomas asks if Harris was involved in decertifying a company he had already certified. This would be a great line of questioning if Thomas could as straight forward questions instead of making his questions wordy and convoluted. I know he has to ask in a certain way but sheesh, this is getting tedious.
Thomas asks a question, Harris tries to answer, Thomas interrupts, and the judge, sounding peeved tells Thomas, he's trying to answer let him answer the question.
Not too long a sidebar. Thomas says sir, um, DLZ corporation was a corporation that there was a lot of discussion about the certification over the years wouldn't you agree. Judge makes Thomas clarify.
ASks was there discussion in Contracts and Grants. Harris says he can't speak to contracts and grants. Thomas bulls forward. Bullotta objects. Judge sustains.
Thomas asks if the Grants people he talked to wondered about it and talked about it and tells Harris that's a controversy isn't it. Harris says "I guess so depends on what you consider a controversy."
Thomas asks if DLZ has several subsidiary's in many states, Columbus Ohio. Judge says he acknowledged they have offices in many states do we have to list every state/ Just move along Mr. Thomas. So at least I'm not the only one who thinks Thomas's questioning is tedious.
Thomas asks if Harris was satisfied DLlZ was located in Detroit, Yes.
Did you get tax returns for 2004, did they show they were paying taxes in 2004. Yes.
Thomas says if I show you a document... Bullotta Objects... Thomas says it's not the tax record it's for location. Judge sustains.
Thomas asks what Harris found that made him think DLZ had enough of a presence in Detroit to get the Business credits. Harris says documents like tax returns. Thomas asks Judge if he can now ask him about the tax returns. These would be the 2003 tax returns. Prosecution asks for a sidebar.
It looks like because Harris just volunteered the tax returns they are now fair game for the defense. The prosecution had just finished arguing that these were not relevant and the witness just made them relevant with his answer. Could be a long sidebar.
Thomas show certification letter signed by Harris. Now shows Detroit City code purchasing ordinance. Says "Headquarters means the plaCe where the chief executive officer and highest level managerial employees of a business have their office and performs their MANAGEMENT functions."
Harris says the top execs work out of that office and agrees the HQ has to be in Detroit.
Thomas asks what's the purpose of that. Harris says the presence in Detroit, pay taxes, earn income in Detroit.
Thomas says this is the law. Doesn't ask a question here just moves on and says I'm going to withdraw that question.
Asks in order to determine if certifications are correct are there not regulation as to how you make a determination. (A nice straight forward question here.) now Thomas introduces another document.
hasn't put it up on the screen yet. Asks if Harris contacted the law department. Harris says he contracted the law department in FEb. Thomas asks if that was before the first cert. Harris says it appears the company was located in Ohio. Looked at the web site and it showed HQ was in Columbus. Says he was concerned that top officials were working out of Columbus.
WEll, look like Thomas figured out how to get his mini trial after all.
Thomas asks if there was a disparity of income between Columbus and Detroit. Harris says probably but his doesn't recall.
Thomas says it appeared to you that DLz was in Ohio. Yes.
Harris says he talked to Leavey who was staff attorney at time. Thomas asks if she gave him a legal opinion. Harris says yes.
Thomas says he want to explore what it was he was asked to look into. The Judge interrupts asks Thomas which month.
Thomas asks if Harris signed the certification in Feb 2006. ASks if he'd trust him that it's in the record, is that a yes? a reluctant yes.
THoams is showing the document now from Feb 2006. Harris says he doesn't remember if he net to the site or just reviewed someone else's work.
Thomas says but you were satisfied they were a DHB. Yes.
Thomas asks if he has any recollection about looking at state documents about the incorporation. Yes.
Did they have office outside Detroit. Yes. But you still certified them? Yes.
Did you review tax returns. Bullotta object. Judge sustains, THomas ovens on.
We're back. Court is in session. Harris is still on the stand and Thomas is still going to be asking the questions. Right now he's talking with prosecutors and they're looking at documents while they wait for the jury.
Bullotta now arguing that the state documents only show the registered agents address. Thomas says look at the other addresses that show DLZ is inn Ohio. Judge Edmunds says whether certification was appropriate in the first place is not on trial here. SAys she's ruled three or 4 times and she's not going to rule again.
Thomas asks if he can examine the witness on the things she'll allow him to do? Judge Edmunds says, "anything further on this." Thomas says no. We get a ten minute break. So Thomas doesn't get his mini trial but did raise the ire of the judge.
THomas is now telling the judge he wants to introduce a document that shows that DLZ was lying on it's certification papers and this prompted the investigation. Bullotta says this goes to the veracity of DLZ and not the witness and Thomas is trying to do a mini trial on DLZ.
Judge Edmunds says Harris already said according to his investigation and what the law department said DLZ was certified and whether that was proper or not is not the focus here.
Judge says she doesn't think he can do this with this witness.
Thomas says he wants to rebut the legal opinion Harris got and that DLZ was not a DHB and that this goes to the heart of whether they should have been certified.
Susan VAn Duesen arguing now from the table. Not on mic but the judge sustains the prosecutors objection.
THomas says there were inconsistencies, at best, about where DLZ was headquartered.
Thomas say finally, he wasn't to introduce state records that show DLZ wasn't a DHB.
Sidebar!!!! Thomas just asked if Harris knew where some company was located, He was talking fast and I didn't catch the name but HaRris said no he didn't know where it was located. Then Thomas asks if he didn't know it was in the he Murphy building downtown. Harris said no. Really, what a surprise, he already testified he didn't know where it was located. That was just before the judge called for a sidebar.
Now the Judge is saying we're going to take our morning break early, and longer than normal so the attorney's can argue about admissibility of documents. The Jury is filing out.
Thomas has moved along and is now asking for procedure of de-certification relating to DLZ. ASks if a letter would be sent out to a company denied certification. Harris says yes.
Thomas introducing a Log sheet, that Harris is not familiar with, and asks if he knew of Latimer's request for an investigation. Harris says he didn't do anything further after sending copy of certification.
Judge is asking Thomas to keep the document on the screen longer. The Judge is asking Thomas to let Harris read it into the record.
The memo says DLZ's cert is under investigation and they don't have DHB status at this time.
Thomas asks if investigation was in process who'd do it. Harris say the Human rights department. Thomas asks if he did anything after that. Harris says he was satisfied that DLZ was appropriately certified.
Thomas now showing a reporting log sheet from one of the Human Rights department's investigators show did an investigation on a company called Sigma. Harris says it doesn't ring a bell. Thomas asks if the investigator Sherry Ann Davis worked there at the time. Harris says yes.
Thomas asks a slew of questions mixed questions and has apparently confused Harris. Harris keeps asking him to repeat the question. What he's really asking Thomas to do is ask a question. The Judge leaps in and asks her own question. Thomas says that's a great question do you want to answer it. Then in an aside says, "I'm not shining up to you judge." Judge Edmunds says. "riiight."
Thomas now asking if at that time Human Rights was short staffed and busy. ASks if that's why he just sent them the certificate and didn't do a further investigation. ASks if they asked him to do some work. Harris says he never received a directive to investigate.
Thomas asks if DWSD was trying to award a contract, was it up to him to wait for someone else to tell him what to do. Thomas steps on the answer and the Judge admonished Thomas to let him answer the question. THomas says he's just trying to move things along and the Judge tells him he has to at least wait for an answer.
Harris says there was no reason to do a further investigation. They'd already done it and he had the certificate that showed DLZ was certified.
Thomas now showing memo fro Latimer at DWSD to Phillips asking for verification of DLZ's certification. Thomas wants to know if it asks for more... Harris says all he'd do is provide the certificate and he didn't do any further investigating.
Thomas switching to an email from Edwards at DWSD to Harris requesting an investigation. Harris says he wasn't aware of that request. asks if he knew they were asking him to investigate. Bullotta objects. Thomas asks Harris to read it into the record. Asks if he now understand the DWSD wanted more than just the certificate.
Harris says he did a thorough investigation. Thomas wants to know what he thinks is a thorough investigation. Harris says looking at company records, going out to site, verifying if 51 percent of top officials worked out of that office.
Thomas asks where is the file for that investigation. Harris says at the Human Rights office.
Thomas asking if he had several people above him in the pecking order in 2003.
Now asking who the Human Rights Director answered to in the Mayor's office. Says not sure, maybe chief of staff.
Asks if he complained to Phillips about not wanting to be involved in the foolishness. Says yes.
Thomas says Phillips is not here to complain because he's dead and there's not any to dispute what he's saying. Bullotta objects, Judge sustains. Thomas is clearly irritating the Judge here with his questions and by ignoring the sustained objections.
Harris did say that Phillips secretary was in the room when he complained.
Thomas is cross examining now. Asks Harris if the Human Rights Department is an investigative arm of the City. Harris says yes.
Thomas asks if DBB and DBh's are something that give a benefit to someone. Yes.
Thomas showing the raking document prepared by the government showing Superior and DLZ at the top of the Standard ranking column. ASks if Harris was aware of the results. Harris says he wasn't aware.
Thomas asks if he knows there's a consequence if someone isn't headquarter in Detroit. Yes.
Now looking at a Feb 2006 Memo. Asks if Harris knew DLZ had a DHB cert. Yes.
Thomas now showing the Kilpatrick Executive order from 2003 Utilizing DHB. Says all city departments and agencies shall encourage such businesses to participate in the bidding for their professional services contracts." Asks if Harris understand the nature of his charge under the executive order. Harris says Yes.
Thomas now asking about the purchasing ordinance. Harris says he didn't work in the purchasing department.
Thomas asks if Detraining id a company was a DHB was part of his job. Harris says yes.
Harris now reading from a Nov 2007 Memo saying DLZ DHB status was restored. Bullotta asks if any further investigation was done between the time it was revoked and the time it was returned. Harris says "not to my knowledge."
Harris says at some time during the process after the cert was revoked he told Phillips he didn't want to be involved because "it was getting too goofy."
Harris says he doesn't know who wrote the Memo.
Bullotta asks if PHillips had not wanted to pull the cert but the Mayor wanted it could Phillips have stopped him. Thomas and Judge are arguing, Judge overrules says Harris can answer about process. Harris says Phillips could not have stopped the Mayor.
This was interesting. The Judge told Thomas "you've objected several times and I've overruled several times. He can answer the question."
Bullotta asking about the letter from the Human Rights Department sent to Latimer at DWSD. Harris says he doesn't know how the letter was sent but PHillips said it was urgent.
Bullotta asks if he testified that pulling the certification was "tampering" with the contract process. Thomas objects, says already asked. Bullotta says it's a set up question. Harris says yes, then Bullotta asks if Harris knew that DLZ (the company that got it's cert pulled) was first in line for the contract. Harris says he didn't know only that they were in the running.
The Judge reminds Mr. Harris he's still under oath. Bullotta is asking him about a conversation he had with his boss back in 2006. Harris says he worked with Gerard Grant Phillips for 2 years.
Bullotta asks if he observed him in stressfully situations and is asking him to describe his demeanor when he asked Harris to kill the certification. Thomas is objecting but the Judge says Harris can describe what he did. Harris says nervous and fidgeting.
Bullotta asks if it appeared that Phillips wanted to do this. Thomas objects, Judge sustains.
"all rise, court is in session" The Judge is on the bench.
The attorneys are out of chambers and are now huddling at the defense table. Prosecutor Mike Bullotta is studying documents and reviewing notes next to Mark Chutkow on the other side of the isle at their table. Kim Harris is sitting in the witness box. He worked for the Detroit Human Rights Department and uttered the no famous line, "the Mayor wants it." That was during his testimony on Thursday where he said his boss told him to cancel a Detroit Headquartered Business certification that knocked out a company that was in the running for a contract that eventually went to Bobby Ferguson's company.
The picture is up and the defendants are in the court room. Now We're just waiting for the attorneys. They might be in chambers with the Judge.
Good morning from the Theodore Levin Federal Court House in downtown Detroit. We're just waiting for the pictures to come up from the court room. Happy Friday!
Ken Martinek is Senior Producer-Investigations for Fox 2 News. You can contact him at firstname.lastname@example.org