Businessman latest to plead guilty in Detroit City Hall corruption scandal

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Andrew Park, 46, is the latest figure in the Kilpatrick city hall corruption scandal to plead guilty to charges in Detroit U.S District Court. Property developer and businessman Park, admitted to hiding income totaling $898,000 from three companies controlled by him: Asian Village, Pangborn Technovations Inc. and Security Communication Alert Network.

Park’s tax evasion charges were a byproduct of an FBI investigation of business dealings with former mayor Kwame Kilpatrick’s high school buddy, Derrick A. Miller.  After Kilpatrick was elected mayor in 2002, he appointed Miller as his chief aide and subsequently chief information officer. Miller resigned in 2007 to start his own firm.

In 2008, FBI agents raided the home of Park taking records and computers, looking for evidence of payments to Miller. Investors in a failed real estate development, Asian Village, told authorities that they believed Park was paying bribes to Miller for his help in steering money and business to Park and his ventures. The city helped fund the Asian Village project, providing a $2.75 million loan from the General Retirement System Fund.

In another transaction involving Miller, Park’s company Security Alert Communication Network was given a $4 million city contract to install security cameras in downtown Detroit using federal funds from the U.S. Department of Homeland Security. His company was paid in full, but failed to complete the project.

Prosecutors say that Park failed to report income from the ventures, and then claimed that the receipts were loans. The unpaid tax amounts to over $300,000. In addition to the taxes, he faces up to $100,000 in fines and five years in prison.

Miller was charged last week as part of group of city hall insiders, including Kilpatrick, Kilpatrick’s father, Bernard, close friend Bobby Ferguson, and former Detroit water chief Victor Mercado. The U.S Attorney’s office announced a 38-count indictment against the men, charging them with extortion, bribery and fraud.

Kilpatrick resigned from office in 2008 after being charged with 10 felonies, including perjury, misconduct in office and obstruction of justice. He pleaded guilty to lesser charges and served 99 days in jail, but was sent back for violating the terms of his parole.  He is currently serving time in federal prison in Milan, Michigan.

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