Thaindian News

June 24, 2010 (Pen Men at Work): The U.S. attorney’s office in the Eastern District of Michigan has informed that former Detroit Mayor Kwame Kilpatrick was accused of 19 counts of federal fraud and tax charges on Wednesday.

The Federal prosecutors indicted him of misusing $640,000 from a tax-exempt charity by using it for himself. The charity was created by him to improve the image of the city and benefit the people. But as per the indictment, the ex-mayor used the fund to pay for golf, yoga, travel, camp for his kids, cars, a video about his family and other luxuries.

Defense lawyer James Thomas said he would fight out the charges. According to the U.S. District Court spokesman Rod Hanson, the charges against Kilpatrick include 10 counts of mail fraud, five counts of filing a false tax return, three counts of wire fraud and one count of tax evasion.

On conviction, each fraud count would lead to a maximum sentence of 20 years in prison with a fine of $250,000; each tax count would result in a maximum sentence of up to five years in prison with a fine of $250,000, according to the U.S. attorney’s office.

‘Hi Kilpatrick Civic Fund ‘is at the root of all the accusations. The ex-Detroit mayor used it as a tax-exempt social welfare organization but in reality, it was used for his personal expenses including his campaign expenses for the2001 and 2005 bids as a mayor.

He claimed that the fund would be used for community services and voter registration information. The 40 year old Kilpatrick is now serving five years in prison for violating trial in a 2008 case against him.