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Jury Convicts Former Detroit Pension Officials In Ongoing Corruption Probe

December 8, 2014

A jury has convicted a former Detroit city treasurer and two others for accepting bribes and kickback payments in exchange for approving illegal deals that weakened the city’s pension system. The jury found former Treasurer Jeffrey Beasley, former pension trustee Paul Stewart and pension fund attorney Ronald Zajac guilty of conspiracy. They were accused of accepting bribes and then approving about $200 million in corrupt investments. The retirement system ultimately lost more than $84 million. The case is part of a wide-ranging federal investigation into government corruption that included former Detroit Mayor Kwame Kilpatrick and former City Council President Monica Conyers. Kilpatrick was an unindicted co-conspirator in the case because some of those doing business with the pension system were allegedly pressured to provide money to the former Mayor’s personal slush fund. Beasley, Stewart and Zajac face up to 20 years in federal prison.