Pubdate: Tue, 03 Jul 2001
Source: Detroit News (MI)
Copyright: 2001, The Detroit News
Contact:  http://www.detnews.com/
Details: http://www.mapinc.org/media/126
Author:  Ronald J. Hanson
Note: Detroit News Staff Writers Charlie Cain and Shawn D. Lewis and the 
Associated Press contributed to this report.
Bookmark: http://www.mapinc.org/corrupt.htm (Corruption)

STALLWORTH TIED TO DRUG GANG

Feds Indict Legislator On Conspiracy, Money-Laundering Charges

DETROIT -- State Rep. Keith Stallworth was accused Monday of laundering 
money for an infamous drug dealer, whose associates kidnapped and murdered 
during an eight-year run of violence.

The indictment, based on a three-year investigation, charges Stallworth 
with conspiring to aid the drug operation and banking money for the 
operation, led by Milton "Butch" Jones, who was also charged in Monday's 
indictment with ordering two murders.

Jones was the founder of Young Boys Inc., a murderous heroin cartel that 
terrorized Detroiters in the late 1970s and early 1980s.

The criminal group, whose violence left an indelible mark on Detroit, at 
its peak collected $7.5 million a week in heroin sales.

Jones gained national notoriety for using children to sell drugs. After a 
highly publicized arrest and trial, Jones was convicted and sent to prison 
in 1983.

Authorities said their investigation established that Stallworth knew he 
was fronting for Jones by using an adult nightclub Stallworth owned to 
launder money from drug sales.

The federal charges cap months of investigations swirling around 
Stallworth, whose political fortunes sank earlier this year after he was 
hit with state charges of seeking a duplicate license and voter 
registration using his brother's name.

Stallworth, D-Detroit, pleaded not guilty to the federal charges during his 
brief arraignment Monday afternoon at U.S. District Court in Detroit.

"I think I've served the people of Michigan," Stallworth said after 
appearing in court. "My constituents know the work I've done."

Stallworth's lawyer, Dennis Mitchenor of Grosse Pointe Farms, strongly 
defended the legislator. "If I were a paranoid person, I would think 
somebody was out to get him," he said. "To put his name on the same paper 
as Butch Jones, it suggests a relationship or a connection. There isn't one."

Mitchenor said Stallworth "has a lot of work to do" but has no intention of 
leaving office.

According to the indictment, Stallworth recruited Clifford Mathews in 
December 1997 to purchase Tiger's Lounge, an adult nightclub in Detroit 
owned by Stallworth that was the subject of numerous alcohol license 
investigations.

In exchange for a bogus change in ownership, Stallworth handled cash for 
drug dealers, authorities charge.

On March 16, 1998, Stallworth took $20,000 in cash from drug dealing and 
obtained four $5,000 cashier's checks from Michigan National Bank. The next 
day, he cashed the checks and gave the clean money back to the drug dealer, 
the indictment charges.

Additionally, Stallworth knew the cash came from drug sales, the indictment 
says.

Mitchenor, however, maintains that Stallworth took the money as a payment 
for the sale of the club and that financial records will prove he kept the 
money for other business expenses.

Stallworth, 45, faces up to life in prison if convicted of the two charges 
against him.

Constituents Stunned

U.S. Attorney Alan Gershel says the 3-year investigation ties Stallworth to 
the founder of Young Boys Inc., a heroin cartel.

Residents of Stallworth's district on Detroit's west side expressed shock, 
anger and disbelief.

"It does not represent the people well at all when something like this 
happens," said Cynthia Turner, 34. "Of course, I am very disappointed. It's 
not very often that an African American gets elected to anything in the 
first place, and then to have something like this happen, just sets 
everything back a bit."

Rita Gillenwater, 54, agreed. "He's supposed to be representing us and 
doing things in our best interest. I don't think very highly of him right now."

Blanche Craig was skeptical about the charges against her representative. 
"I don't believe it. I think he's being framed. It's too convenient. He 
doesn't strike me as the kind of person who would do that," Craig said.

Legislator admonished Rep. Andrew Raczkowski, R-Farmington Hills, who 
served last year as the House majority floor leader, said Stallworth should 
immediately step down from the House Appropriations Committee. "These 
charges are ones that should concern a multitude of people in Lansing and 
throughout the state," he said.

Under state law, legislators are automatically expelled if they are 
convicted of a felony involving a breach of the public trust.

But the House and Senate leadership has the power to expel a legislator on 
other grounds, as they recently did with former Sen. David Jaye.

Stallworth is barred from seeking another term in the House by term limits. 
He is serving his third term in the House, succeeding his mother, former 
Rep. Alma Stallworth.

Others in the Legislature had little to say publicly about his latest legal 
troubles. House Speaker Rick Johnson, R-LeRoy, said: "This is a very 
serious allegation, but until we get more information it would be unfair to 
speculate."

"There is no comment right now," said Alan Canady, chief of staff for House 
Minority Leader Kwame Kilpatrick, D-Detroit. "We just heard about it and 
don't have enough information to make any comment on it yet."

Stallworth's legislative aide Karen Lewis was taken aback by the 
indictment. "I have not been able to contact him. He was scheduled to be 
out of town," she said. "Everything that happened today was a surprise to 
me, and I haven't been able to speak to him or any family members."

Earlier charges State authorities charged Stallworth in February with two 
felony counts of lying about his voter registration and one felony charge 
of falsifying personal information on his driver's license. Those charges 
carry up to five years in prison and a $7,000 fine.

Police claim Stallworth applied for a driver's license and voter 
registration under his brother's name, Thomas Fontaine Stallworth, in November.

Thomas Stallworth has said he didn't know of the alleged scheme until the 
Michigan Department of State sent him a letter in December.
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MAP posted-by: Terry Liittschwager