SEC sues ex-Detroit mayor for influence peddling
FILE - In this May 25, 2010 file photo, former Detroit Mayor Kwame Kilpatrick is placed in handcuffs a judge sentenced him to prison for violating the terms of his probation on an obstruction of justice conviction. The Securities and Exchange Commission announced Wednesday, May 9, 2012, Kilpatrick is facing federal civil charges of taking part in an influence-peddling scheme involving the city's public-employee pension funds. (AP Photo/Paul Sancya, File)
WASHINGTON - Former Detroit Mayor Kwame Kilpatrick is facing federal civil charges of taking part in an influence-peddling scheme involving the city's public-employee pension funds.
The Securities and Exchange Commission says Kilpatrick and ex-city treasurer Jeffrey Beasley received $125,000 in private jet travel and other perks from an investment firm. The SEC says that was in exchange for getting the city's pension fund to make an investment favouring the firm.
Kilpatrick and Beasley violated federal securities laws, the SEC alleged in a civil lawsuit filed Wednesday in federal court in Detroit.
Lawyers for Kilpatrick, Beasley and Mayfield didn't immediately return phone calls seeking comment
MayfieldGentry Realty Advisors, the investment firm, asked the pension funds' trustees to invest $117 million in a real estate investment trust controlled by the firm, the SEC said.
Kilpatrick and Beasley were among the trustees. The SEC says the two should have told the other trustees that they received perks from the investment firm.
The SEC also accused the investment firm and its CEO, Chauncey Mayfield, of taking part in the influence-peddling scheme in violation of federal securities laws.
Kilpatrick and his father are accused of taking kickbacks and bribes to steer city business to certain contractors. Their corruption trial is set for September in federal court in Detroit.
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