Former Detroit Mayor’s Dad Gambled Away $218k: On Trial as Tax Cheat

The father of former Detroit mayor Kwame Kilpatrick stands trial for allegedly gambling away approximately $218,000 and underpaying on his taxes.  A former IRS agent testified in the trial this week. 

The trial returned following a 12-month holiday break. 

Kilpatrick reportedly took in more than $2.2 million as a business consultant during his son’s tenure as mayor. 

He gambled away much of his money at casinos in both Detroit and Las Vegas. 

From The Detroit News: 

Schuch said he took $280,000 from his business, Maestro Associates, in 2005, of which $100,000 was recorded as income. It helped lower his tax bill by an estimated $62,212 that year, she said.

Prosecutors have claimed the elder Kilpatrick made frequent cash deposits into his accounts, including $123,000 in 2004.

That could have been income that his accountants were unaware of, they testified.

At the same time Bernard Kilpatrick was pouring millions of dollars in consulting fees into his bank accounts, he was losing big at casinos in Detroit and Las Vegas. He posted net losses of almost $218,000 combined in 2004, 2005 and 2007, Schuch said.

Kilpatrick’s attorney, John Shea, insists his client was unintentionally negligent and hinted that much of the cash deposits made originated from an inheritance. 

Prosecutors also allege Bernard Kilpatrick deposited more than $1.4 million into personal and business accounts during the years 2004, 2005 and 2007.

- Gilbert Horowitz, Gambling911.com