tuscl

What's a little money here and there when millilons of dollars are at stake

Well, nothing surprising in this article today in one of our local newsrags. Detroit's last mayor, you may have heard of the "flamboyant one", Mr. Kwame Kilpatrick, who continues to flaunt the law after his forced resignation and conviction after some rather entertaining escapades. Now as the authorities work their way down the ladder cleaning out some of the most blatant corruption here in Detroit, let me offer a most typical example as it applies to the strip club industry

Strip club owners to testify against Riddle

Paul Egan / The Detroit News
Detroit businessmen who say political consultant Sam Riddle tried to shake them down for $25,000 when they wanted to transfer a strip club license are expected to testify today at Riddle's corruption trial.
Riddle, 63, was a top aide to former Detroit City Councilwoman Monica Conyers, who had a vote on the strip club license transfer.
Detroit businessman Christopher Jackson, who had been hired as a consultant by principals of the strip club chain DéjÀ vu, was told by Conyers in October 2006 to talk to Riddle about his request to get a license transfer for the strip club, the indictment alleges.
"Representatives of the club company met with Riddle at a restaurant in Dearborn, at which time Riddle suggested that they needed to pay Riddle $25,000 if they wanted Conyers' vote," the indictment alleges.
"The DéjÀ vu representatives were floored, they were flabbergasted," Assistant U.S. Attorney Robert Cares said in his opening statement Monday. "They realized this was a blatant attempt to buy Monica Conyers' vote, and they refused."
Riddle is charged in a seven-count indictment with conspiracy, extortion and making false statements to the FBI. He denies the allegations. If convicted, he could face up to 20 years in prison. Today is the third day of evidence in his trial.
Conyers, the wife of U.S. Rep. John Conyers, D-Detroit, pleaded guilty to a bribery conspiracy charge in June and awaits sentencing March 10. She is not a defendant in the trial and is not expected to testify.
After Riddle's meeting with the strip club representatives, Conyers voted against the license transfer on Nov. 13, 2006, the indictment alleges.
Although the strip club officials, Jim St. John and Joe Hall, refused Riddle's demand, consultant Jackson, who stood to benefit from the deal, went ahead and gave Riddle two checks on Nov. 17, 2006, prosecutors allege. One check was for $10,000, earmarked for reconsideration of the vote, and the other was for $15,000, as a success fee, the prosecutors allege.
On Nov. 17, 2006, Conyers sent a memo to the Detroit city clerk that said she wanted to reconsider her vote on the strip club license. Riddle cashed the $10,000 check to his consulting firm, Meridian Management Systems, the same day, the indictment alleges.
But Riddle was unable to cash the check for $15,000, which Jackson had voided, and the reconsideration did not take place.
The strip club principals are now suing the city of Detroit in federal court over denial of the strip club license, with the alleged shakedown included in their allegations.
"They didn't report this to law enforcement, instead they told their lawyer," Riddle attorney John Minock said in his opening statement, noting the denial of the license transfer meant "millions in lost profits."
"These guys have millions of reasons to put a spin on their evidence." The trial is in front of a jury and U.S. District Judge Avern Cohn



4 comments

  • CTQWERTY
    15 years ago
    Regretably, there are other examples far worse. Current Treasury secretary Tim Geithner did some pretty shady stuff as NY Fed president during the crisis. It's just now coming to light, and he may be forced out REAL soon by Obama. Bernanke's renomination may also be in trouble due to his role in the forced merger between B of A and Merril Lynch. Eventhough some senators are saying his role in handling the financial crisis is the reason to keep him there, revelations continue to occur providing more evidence his behavior was not, um, legal.
  • SuperDude
    15 years ago
    Remember Sam Riddle's famous line. "The only difference between Detroit and a third-world country is we don't have goats in the streets."
  • deogol
    15 years ago
    You know America has become a corrupt country when the strip club representatives are the honest ones at the table.
  • CTQWERTY
    15 years ago
    Or, to quote the tavern owner from HBO's Deadwood, "Who gets paid?!?"
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