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Detroit pension fund bribery conspiracy
When it rains it pours.
Ronald Zajac, of Northville, Michigan, the general counsel of Detroit’s two pension funds, and Paul Stewart, of Detroit, Michigan, a former trustee of Detroit’s Police and Fire Retirement System, were both charged today in a superseding indictment with participating in a bribery and kickback conspiracy involving over $200 million in investments before the two city of Detroit pension funds United States Attorney Barbara L. McQuade announced today.
Zajac and Stewart were added as defendants in a superseding indictment that had already charged former city Treasurer Jeffrey Beasley and investment sponsor Roy Dixon with the bribery and kickback conspiracy. The charges were set forth in a fifth superseding indictment issued by a Detroit federal grand jury today.
Zajac served as the general counsel of Detroit’s two pension funds, the General Retirement System and the Police and Fire Retirement System, from 1982 through 2012. In November 2012, the Board of Trustees of the Police and Fire Retirement System terminated Zajac as general counsel. Zajac still serves as the general counsel of the General Retirement System. Stewart was a city of Detroit Police officer for more than 30 years and served as a trustee of the Police and Fire Retirement System from 2004 to 2011. Stewart also served as the vice president of the Detroit Police Officers Association, the union that represents most of Detroit’s police force.
According to the 13-count superseding indictment, between January 2006 and April 2009, defendants Zajac and Stewart conspired with Beasley, Dixon, and other individuals to defraud current and retired employees of the city of Detroit of their right to the honest services of former Mayor Kwame Kilpatrick, Beasley, Stewart, and other trustees free from bribery and corruption. During the the conspiracy, Stewart accepted thousands of dollars in cash, trips, entertainment, and other things of value from people seeking investments from the Police and Fire Retirement System. Stewart accepted a $5,000 casino chip, a Christmas basket that included an envelope with thousands of dollars in cash, a cash payment of $2,500 during a trip to New York City, a cash payment of $2,500 during a trip to Florida, an excursion to the Bahamas for Stewart and his mistress, and a trip to Naples, Florida, for Stewart and his mistress. In addition, Stewart accepted a “birthday present” of $5,000 in cash at a party at the Atheneum Hotel. Zajac organized the party, and Zajac solicited and collected the cash from people having business before the Boards of Trustees of the pension funds. Zajac also collected and delivered an additional $5,000 in cash for a second pension fund trustee at the same party. At a party in January 2007, Zajac collected and delivered thousands of dollars in cash for former Treasurer and Trustee Beasley.
Zajac and Stewart were added as defendants in a superseding indictment that had already charged former city Treasurer Jeffrey Beasley and investment sponsor Roy Dixon with the bribery and kickback conspiracy. The charges were set forth in a fifth superseding indictment issued by a Detroit federal grand jury today.
Zajac served as the general counsel of Detroit’s two pension funds, the General Retirement System and the Police and Fire Retirement System, from 1982 through 2012. In November 2012, the Board of Trustees of the Police and Fire Retirement System terminated Zajac as general counsel. Zajac still serves as the general counsel of the General Retirement System. Stewart was a city of Detroit Police officer for more than 30 years and served as a trustee of the Police and Fire Retirement System from 2004 to 2011. Stewart also served as the vice president of the Detroit Police Officers Association, the union that represents most of Detroit’s police force.
According to the 13-count superseding indictment, between January 2006 and April 2009, defendants Zajac and Stewart conspired with Beasley, Dixon, and other individuals to defraud current and retired employees of the city of Detroit of their right to the honest services of former Mayor Kwame Kilpatrick, Beasley, Stewart, and other trustees free from bribery and corruption. During the the conspiracy, Stewart accepted thousands of dollars in cash, trips, entertainment, and other things of value from people seeking investments from the Police and Fire Retirement System. Stewart accepted a $5,000 casino chip, a Christmas basket that included an envelope with thousands of dollars in cash, a cash payment of $2,500 during a trip to New York City, a cash payment of $2,500 during a trip to Florida, an excursion to the Bahamas for Stewart and his mistress, and a trip to Naples, Florida, for Stewart and his mistress. In addition, Stewart accepted a “birthday present” of $5,000 in cash at a party at the Atheneum Hotel. Zajac organized the party, and Zajac solicited and collected the cash from people having business before the Boards of Trustees of the pension funds. Zajac also collected and delivered an additional $5,000 in cash for a second pension fund trustee at the same party. At a party in January 2007, Zajac collected and delivered thousands of dollars in cash for former Treasurer and Trustee Beasley.
http://www.fbi.gov/detroit/press-releases/2013/ronald-zajac-general-counsel-of-detroits-pension-funds-and-paul-stewart-former-pension-fund-trustee-indicted-in-bribery-conspiracy
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