Wednesday, July 16, 2008

Giving Back to the Community

Mayor Kwame Kilpatrick’s legal defense fund will return $4,500 to two contributors. In one case $1,500 is being returned to Livonia-based Advanced Air Services. The Reason? Company President Ross Bates had been told the money would go to a youth group, not Kilpatrick, whom he does not support. have any other funds been misappropriated?

The remaining $3,000 is being returned to S.A. Restaurants Inc. . S.A. Restaurants is the location of the Penthouse Club in Detroit. In 2001 the location housed another strip club called City Heat. One of its operators, the son of a reputed organized crime figure, was gunned down in the middle of 8 Mile Road.

On another note,the defense fund's IRS filing noted that Donald Davis, president of First Independence National Bank, donated $50,000. He claims that he has only donated $25,000 and has no further involvement in the fund. Kilpatrick wants First Independence to be an investment manager for his proposed stimulus bond sale. Davis also stands to make $4.5 million over 5 years by leasing computer software to the city through another company he runs if a separate contract is approved.

Is this an example of shoddy bookkeeping by the defense fund or are they trying to shield $25,000 worth of contributions from other sources? Will all of this sloppy accounting draw the attention of the IRS? We can only hope.

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