SEC: Company paid for Kilpatrick trips

DETROIT, May 10 (UPI) -- Federal regulators say former Detroit Mayor Kwame Kilpatrick took lavish trips paid by a company managing real estate for the city Police and Fire Pension Fund.

A lawsuit filed Wednesday by the U.S. Securities and Exchange Commission names Kilpatrick, former Detroit Treasurer Jeff Beasley, Chauncey Mayfield, a Detroit businessman, and his company, MayfieldGentry Realty Advisers LLC, The Detroit News reported.

The SEC charges that MayfieldGentry got business with the pension fund in return for its generosity to Kilpatrick.

"It is a disappointing day when pension fund trustees such as ex-Mayor Kilpatrick and others corrupt the investment process by selling out hardworking police officers, firefighters and other municipal employees for the price of a few vacations and paltry extras like concert tickets and rounds of golf," said Robert Khuzami, head of the SEC enforcement division.

The trips included one to the Bermuda Music Festival where Kilpatrick hobnobbed with local leaders and celebrities. He played golf with comedian Steve Harvey and had his picture taken with members of the band Earth, Wind & Fire.

Kilpatrick, 41, pleaded guilty in 2008 to obstruction of justice and resigned as mayor. He is scheduled to stand trial in September on federal racketeering charges for allegedly running a criminal enterprise through his office to enrich himself.

His father and two others -- Kilpatrick friend Bobby Ferguson and former city employee Victor Mercado -- also are charged. Two others -- former aide Derrick Miller and ex-fundraiser Emma Bell -- have pleaded guilty.