Detroit businessman Abner McWhorter allegedly paid Kilpatrick to secure a $10 million loan from the pension fund. McWhorter has since committed suicide.
The News, citing sources, said it has learned federal investigators believe McWhorter may have gotten the money for the bribe from Carlos Powell, who was charged in January with running a major drug ring. Joseph Brien, a lawyer for McWhorter business partner George Kastanes said the money came from an unidentified drug dealer.
McWhorter borrowed pension money in 2008 for a company that bought foreclosed property in Detroit. He hired a company run by Kilpatrick's father, Bernard, to help with the deal.
Some of the property was later transferred to Powell, the News said.
Kilpatrick and his father are awaiting trial on federal corruption charges.