Live Blog: Kwame Kilpatrick Trial Day 26 - Los Angeles News | FOX 11 LA KTTV

Live Blog: Kwame Kilpatrick Trial Day 26


Chutkow tells the judge this is a natural stopping point and she calls a halt to proceedings for the day.  The Judge tells the Jury to have a nice week off.  That's right, we're on hiatus until after thanksgiving.  She reminds the jury not to watch TV news stories about the trial, newspaper reports, or Internet articles.

It was a short morning but M.L. Elrick will still have lots to report on Fox 2 news at 5 and 6.  He'll also have his Daily Take Away posted on tonight.  Have a great week and a great Thanksgiving.


Rachmale says Bobby "loaned" him some employees with good qualifications to put on the bid proposal.

Chutkow now showing a check from Lakeshore to Ferguson Enterprises for $252,060.23.  Chutkow asks if this is one in a series of checks.  RAchmale says these are for work that Bobby's company actually did.

Chutkow now showing a summary of payments made to venders on the East Side project. More than $5 million.

E and T got more than $800,000.  It's not on the proposal.  Ferguson got $5 million.


Chutkow asking about he East and West side sewer contracts now.  Showing Rachmale proposal documents for that job. 

Construction manager is Lakeshore 40%, D'Alesandro 25%, Superior Engineering 5%, A&H 3%.

RAchmale says he decided Bobby was going to be the subcontractor to A&H.  SAys Bobby wasn't included in Lakeshore proposal because he was once again on the proposal for another proposal, Inland Water

RAchmale says the did win one of the contracts, the East Side,  INland got the West Side.

Chutkow asks if he and Ferguson talked about the city policy prohibiting being on both sides of a bid.  RAchmale says no.


Rachmale says Bobby talked to him in a parking lot once and accused him of taking Bobby's work away and says Bobby threatened to have the job shut down.

Says he told Hardiman to give Bobby those streets on one job, and on another job he told Hardiman to get rid of another contractor so Ferguson could do the work.

Rachmale says he took the threat seriously and believed Bobby capable of shutting the job down.


Rachmale says he remembers once that Bobby wanted all the streets on a contract and Bobby accused RAchmale of giving his work to other people.

RAchmales says Bobby told him numerous times that he'd shut down his projects.  Chutkow asks if Bobby used the F - word.  Rachmale says he could only take it one way, it wasn't a physical threat, it was a threat to his jobs.

Rachmale says it's important to him that his employees keep their jobs.

RAchmale say he concluded that Bobby had the power to shut down jobs based on the 2 contracts that were canceled.


Chutkow now showing a Vender Quick Report from A&H for $500,000. RAchmales says along with his payments excel got $800,000 and all they got from Excel was that a few people would show up at meetings once in a while.

RAchmale says he also had discussions with Hardiman to give work to Ferguson on change orders.  SAys he did it to make Bobby happy so Bobby wouldn't do anything to his contracts.


Chutkow is taking a minute to get his exhibits organized.


Chutkow is now showing a check from Lakeshore to Excel Construction services for $200,000.  ( for your info Excel is spelled XCEL but my spell checker doesn't like it.)


Rachmale says he came back from the lunch meeting and told Hardiman to keep paying.  Says they had to keep paying because they lost those 2 contracts and Bobby is sending people to the work sites and meetings and he didn't want anything bad to happed to his contract.


Rachmale's telling about a lunch meeting where Bobby was complaining about Hardiman and that Hardiman wasn't being fair and it was going to hurt Rachmale's company.  Says Bobby was complaining about Hardiman calling him names like "parasite."  Also complained about Hardiman delaying payments.

RAchmale says whenever told Bobby he wanted to stop paying the fees.  SAys when you lost two contracts to a lion you don't want to upset the lion. (at least I think that's what he said.)


Rachmale says he didn't want to upset Ferguson and told Hardiman to pay him and move on.


Rachmale says Bobby never actually did anything but wanted half the management contract.  RAchmale says by the time he paid Bobby, Lakeshore would make very little money.  SAys Bobby insisted in being on the management team,  Says he didn't need Bobby but he "didn't want to upset him, piss him off."

Chutkow asks if he was worried about Bobby getting the contract canceled.  Asks if He had conversations with Hardiman.  Asks if Ferguson was upset with Hardiman over management fees.

Rachmale says A&H was getting money for management and Bobby was going to get some of that money as well as money from Lakeshore.  Rachmale says he didn't need Bobby to provide management and Bobby didn't provide any.  (Hardiman's term "parasite" is rattling around in my brain right now."


Rachmale says at one point Bobby came to him and said he was going to do the contract management as well, what Lakeshore was supposed to do.

Rachmale says Bobby wanted Excel to do the management.  Says Ferguson never explained how he could do both.

RAchmale says Bobby never provided management services to Lakeshore before.

SAys Bobby already had 15% through E and T and Bobby told him he needed help with managing the project.  Rachmale says they had at least 2 meetings, talked about the schedule for managment, says Bobby told him he could cut back on the number of engineers on the project.

Rachmale says Bobby sent his superintendents to the job site.  Rachmale say he already had that covered.


Chutkow asks if Rachmale is aware that there's a rule in Detroit that a company can only be on one team.  Rachmale says yes.

RAchmale say E and T didn't have a Detroit Headquartered designation.  proposal says E and T has 34 years excavating experience.  Chutkow reading list of qualifications.  Says E and T is getting DHB, DBB, and MBE certificates.

RAchmales say the qualifications are actually from Bobby's company.

Lakeshore got the East Side contract, Excel got the West Side.  RAchmale says Ferguson never talked about being on both sides of the winning bids.  This is in 2006.


Chutkow is quizzing Rachmale on the water main contract. ASks if in 2006 Ferguson asked to be a member of the team.  Rachmale says yes, he had internal discussions, they decided to bring in bobby.  Says they already had qualified members but wanted Bobby because they didn't want to lose the contract.

Rachmale says Excel and DCI were also going to submit proposals, and Bobby was already a part of that team.  Says Bobby brought in E and T trucking to hide his participation in the Lakeshore bid.


Court is back in session and the jury is filing in.


RAchmales says this isn't as technical as the sewer lining.  Chutkow now asking about the other companies.  RAchmales says they were all minority owned.  RAchmale says you didn't get extra points but he had a voluntary goal to meet.

Judge is taking a 5 minute break. 


Chutkow now asking about the East Side and WEst Side water main contracts.  RAchmale says they were each 15 million and his company competed for both.

Chutkow now showing the proposal documents.

McCorrmick and Sons, D'Agostini, e&T Trucking, A&H, and others are on the proposal.  Lakeshore is the prime contractor.

The economic development summary indicates that Lakeshore meets the Detroit Headquartered and Detroit based business requirements.  Lakeshore was going to do 5% of the contract.  McCormick was going to do 35%.  McCormick would replace water mains through out city, excavation, taking out old, and putting in new, and replacing the road. (restoration)


RAchmale says as work was completed and once the client paid... he'd pay Bobby.  REmember Rachmale testified yesterday that Bobby had noting to do with the asbestos abatement contract.

Says he his accounting department alerted him that the payments were coming.  Chutkow has asked several times if Bobby told him the payments were coming.  SEveal objections thrown in along the way but Rachmale never said Bobby told him the payments were coming.

Rachmale says Bobby didn't do any work for this money.


Chutkow now asking how much RAchmale had agreed to pay Bobby for a change order on an asbestos contract Lakeshore had with the City.  RAchmale says his partner Tom Hardiman told him there'd be a 5% fee.

Looking at a memo from Hardiman to Avinash.  RAchmale says ASbestos Abatement is where stuff like pipe insulation and wall insulation in buildings is removed.  Says it's specialized and workers have to wear respirators and suits.

Chutkow asks if Ferguson provided an asbestos removal services.  No.  Johnson Consultants. No. RAchmale says he paid $75,000 to Johnson Consultants for no work on the asbestos contract. 


RAchmale says a million dollars would just have covered a small fraction of the excavating work on the project.  Sorry, because of the technical difficulties earlier we didn't hear what contract they were talking about.  I'm guessing it's the East Side Water project where Bobby demanded line items that were supposed to be covered by Hayes construction and they made a million dollar deal to placate Bobby.


Chutkow is now Showing a detailed list of payments from Sky Group to A and F Environmental/Johnson Consultants, the total $1,585,450, this doesn't include another check, which, when added on raises the figure to almost 1.7 million Dollars.

Rachmale says he's never paid another contractor this much money for no work.  Says he hasn't paid any contractor more than 200,000 without a contract.  Says had D"D'Allisandro hadn't reached an agreement to bow to Bobby he would not have paid him a million dollars to go away.


Now Chutkow is showing a deposit slip where 150,000 was deposited into the account of Urban Development.  Moving on to a 100,000 check to Johnson Consultants, for sub contracting, for which Rachmale says no services were provided.  These are all from 2007.

All these checks are coming from Sky Group.  THat's the Real Estate arm of Lakeshore Group.  Rachmale testified yesterday that he made the payments to Ferguson out of this account so his employees at Lakeshore Engineering wouldn't ask embarrassing questions about why Bobby was getting paid.


Court is underway... it looks like they had a few technical difficulties with the feed.  Testimony has already started.

Chutkow is asking if RAchmale ever was asked to write checks to a law firm named Papista and Papista.  They're looking at a check from Sky Group for $200,000 to Bobby Ferguson's wife's company for "building improvements."  RAchmale says no services were provided. 

While the audio was out we says checks for 100,000, 150,000, and now we're looking at one for 147,500 that Rachmale gave to Ferguson.  RAchmale says he didn't get any work from Ferguson.

 Chutkow now showing a $203,000 check to FEI.  RAchmale FErguson didn't ask him to write the checks to the FEI account but it appears that's where they were deposited.

Chutkow is establishing that there were many big payments to Bobby's wife's company, Johnson Consultants, but were deposited into Bobby's business account.  We must be closing in on a million dollars by now.


The court room is full and the prosecution is preparing exhibits.  Rachmale is standing next to the witness box.


The court house is very quiet this morning.  Avinash Rachmale came through security around 8:30.  He's back on the stand and will answer a few more questions from the prosecution.


Good Morning from the Theodore Levin Federal Court House on a bright and sunny morning in downtown Detroit.

Ken Martinek is Senior Producer-Investigations for Fox 2 News.  You can contact him at

Powered by WorldNow

1999 S. Bundy Dr.
Los Angeles CA 90025

Main: (310) 584-2000
News Tips? (310) 584-2025

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices