Posted: 3:07 PM  Last Updated: 18 minutes ago

http://www.wxyz.com/dpp/news/region/detroit/ferguson-released-on-bond-after-arraignment-on-corruption-charges

DETROIT (WXYZ) - Kwame Kilpatrick's friend Bobby Ferguson has been released on $10,000 bond after pleading not guilty to 8 counts in federal court.

Ferguson has been charged with money laundering, mail fraud and conspiracy. He is accused in a multi-million-dollar scheme to rig bids involving work at a former Detroit housing project.

Federal investigators say Ferguson directed several of his associates to inflate their bids on the project so he could appear to have the lowest bid.

Today's hearing comes as information contained in a Search and Seizure Warrant is shedding new light on the case against the controversial Detroit businessman. In the affidavit in support of the warrant, Federal Bureau of Investigation's Special Agent Gwen Rosenthal lays out part of the case she says the government has built against Ferguson.

The warrants, which detail what agents were searching for says they were looking for financial records, records of gifts, correspondence and money, in addition to other documents and records.

It also reveals that in addition to the FBI, the investigation into Ferguson is being handled by the Office of Inspector General for the U.S Department of Housing and Urban Development and the Criminal Investigation Division of the U.S. Environmental Protection Agency.

The investigation centers on the Garden View Estates at the site of the former Herman Gardens project near Tireman and Joy in Detroit. Prosecutors say that between 2007 and 2008, Ferguson used concealment and misrepresentation to get millions of dollars in public works contracts as part of the project.

Also named in the search warrant are Michael Woodhouse and Calvin Hall. The warrant says they are associates of Ferguson that he used to hide his interest in several businesses that were involved in contracting for work on the Garden View project.

The warrant also lays out what federal investigators say is a complex operation to launder money through several area banks through the use of cashier checks.

As part of the investigation into the money laundering, officials executed a search warrant at the offices of XCEL Construction Services at the Guardian Building in Detroit in January 2009. Investigators encountered Ferguson when they arrived on the scene. He then left while they conducted the search.

During the course of that search, agents found a wall safe concealed behind wood panelling. They called Ferguson to get his help opening it. After a few minutes conversation, he told them he was returning with an attorney.

Once back in the office, Ferguson opened the safe. Officials say they found $261,000 in cash as well as a Certificate of Deposit for First Independence Bank in the amount of $507,000.

The warrant then proceeds to lay out the various disbursements of money made by Ferguson and several other people in the days and weeks after that search was conducted.