The former Detroit Mayor has rejected an offer to plead guilty in the federal racketeering conspiracy case and serve 15 years in prison, two sources close to the case told The Detroit News.
His co-defendant, an indicted contractor and friend, also rejected a plea deal that would have meant 13 years behind bars. The deal, which was formally rejected April 18, would have resolved charges in the racketeering case and a separate bid-rigging trial scheduled to begin next month in federal court, the sources said.
News of the offers provides the most detailed insight into behind-the-scenes talks preceding the area's highest-profile public corruption case. During a years-long investigation, prosecutors and the FBI have secured 18 felony convictions, including one against a former City Councilwoman, who is serving a 37-month federal prison sentence.
The defense attorney said there is no plea deal with the U.S. Attorney's Office ahead of a September trial.
Sources told The News that the former Mayor, who faces up to 30 years behind bars if convicted, recently rejected a 15-year offer. It was unclear if the offer was formally presented or casually floated by a prosecution team headed by the Assistant U.S. Attorneys.
One legal expert said the offer likely indicates prosecutors are confident they have a strong case.
Offer similar to others
A 15-year offer is in line with sentences imposed on several high-profile public officials nationwide who have been convicted of corruption charges.
The former Illinois Gov. was sentenced in December to 14 years in federal prison, but the former Detroit Mayor's alleged criminal enterprise lasted longer and involved millions in taxpayer dollars.
A former U.S. Rep., a Democrat from Louisiana who hid $90,000 cash in his freezer, was sentenced in November 2009 to 13 years in prison for taking bribes. That was the longest term ever imposed on a congressman for bribery charges.
Judges set plea deadlines in criminal cases but negotiations can continue up until a jury returns with a verdict, said a former federal prosecutor and current law professor at Wayne State University.
A plea deal would help prosecutors avoid the uncertainty of a jury and a trial involving a polarizing public figure.
A 15-year sentence would be the stiffest, by far, for anyone convicted in the Detroit City Hall investigation.
A Detroit businessman convicted of bribery in connection with the Synagro sewage sludge contract, received the longest sentence — five years in federal prison. He is scheduled to be released in July 2014.
According to prosecutors, the former Mayor allegedly headed a criminal enterprise that robbed taxpayers of millions and instilled a culture of corruption in one of the nation's poorest cities.
Among the charges in the indictment: the former Mayor and members of his so-called criminal enterprise threatened witnesses with violence and withheld city funds from firms that wouldn't pay to play. He allegedly pocketed a $10,000 kickback in a restaurant bathroom, according to prosecutors.
The enterprise included his father, a contractor and former Detroit Water and Sewerage Department director, according to an indictment.
The group faces federal charges that include racketeering conspiracy, extortion, bribery, fraud and tax evasion.
The various charges carry penalties ranging from three years in prison to 30 years.
Secured plea deals
Prosecutors already have secured plea deals with several insiders.
Former aide and childhood friend reached a plea deal with prosecutors in September and has agreed to cooperate against the ex-mayor. He faces up to 10 years in prison after pleading guilty to corruption and tax charges, after admitted to playing a central role in the corruption case, saying he pocketed bribes, strong-armed contractors and funneled money to the former Mayor.
And political fundraiser has agreed to testify against the ex-mayor. Prosecutors allege the ex-Mayor demanded $286,500 in kickbacks from her.
She pleaded guilty to tax evasion charges in October, state Detroit Taxation Lawyers. Under a plea deal, she faces 18-24 months in prison, which could be cut in half if she provides substantial assistance.
In the racketeering case, the contractor allegedly obtained more than $58.5 million by extorting contractors and through other illegal conduct according to prosecutors. He spent a fraction of the money on his children's college education, his girlfriend and construction equipment, according to federal court records.
Besides the racketeering case, he was charged in a $12 million bid-rigging scheme in September 2010. If convicted, he faces up to 20 years in prison.
The case is set for trial May 8.
At a final pretrial conference April 18 in front of U.S. District Judge David Lawson, Ferguson formally rejected the plea offer.
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