http://www.freep.com/article/20100913/NEWS01/100913040/0/BUSINESS06/Bobby-Ferguson-arraigned-?odyssey=nav%7Chead

Detroit contractor Bobby Ferguson, longtime friend of ousted Mayor Kwame Kilpatrick, was arraigned in federal court this afternoon in a $12-million bid-rigging scheme involving a public housing project.

Ferguson, 41, of Detroit was arraigned on charges of conspiracy, money laundering, mail fraud and other criminal offenses for allegedly rigging bids to secure more than $10 million in public works contracts awarded as part of the Garden View Estates housing project at Joy Road and the Southfield Freeway.

Clad in alligator shoes, a crisp dark suit with a handkerchief exposed in the breast pocket, Ferguson stood mute as a judge entered not-guilty pleas on his behalf to all eight criminal counts. When U.S. Magistrate Judge Virginia Morgan asked Ferguson if he understood the charges against him, Ferguson hesitated for a moment, looked at his lawyer, and then said, “Yes, your honor.”

Ferguson was released on a $10,000 unsecured bond under the following conditions: he is not allowed to have any firearms; he must undergo drug testing; his travel is limited to the Eastern District of Michigan, unless a written request is submitted to the court, and no excessive use of alcohol is allowed. The judge also ordered him to surrender his passport, although federal agents already have it after seizing it during a recent raid.

After his arraignment, Ferguson quietly left the courtroom and hugged a friend who was waiting in the hallway. He said nothing to reporters, and referred all questions to his attorney, Gerald Evelyn, who declined immediate comment.

Shortly after Ferguson’s arraignment, one of his business associates and alleged coconspirators, Michael Woodhouse, also was arraigned on several criminal charges for his alleged role in the bid-rigging scheme. He stood mute to the charges and was released on a $10,000 unsecured bond.

Ferguson and Woodhouse each face fines of more than $2.5 million and up to 20 years in prison if convicted on the most serious charges

Woodhouse’s lawyer, Anthony Chambers, said: “Today is a difficult today for him and his family. However, we look forward to his day in court where we will have the opportunity to clear his good name and reputation.”