Detroit— Former Detroit Mayor Kwame Kilpatrick's cousin allegedly spent restricted foundation money on furniture, cosmetic injections, personal fitness training, relatives' debts, veterinary services and her own wedding, Michigan Attorney General Bill Schuette said today.
Nneka Cheeks, 40, of Livonia, is to be arraigned Friday in the city's 36th District Court on racketeering charges for allegedly raiding almost $20,000 from the Manoogian Mansion Restoration Society's bank account between 2007 and 2009, Schuette announced at an afternoon press conference.
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"Ms. Cheeks abused her position of trust by converting these funds for her own personal use," Schuette said. "The criminal acts of Ms. Cheeks were not an isolated event, but rather a series of events."
Schuette added that Cheeks apparently acted alone, keeping others involved with the society, "out of the loop."
"Nonprofit organizations are not to be used as a piggy bank for personal gains," Schuette said.
FBI Special Agent Rob Howard said the investigation of Cheeks was an "off-shoot" of the agency's other probes of alleged corruption during Kilpatrick's administration of City Hall. Kilpatrick, already jailed for failing to pay restitution associated with obstruction of justice and assault charges related to the text message scandal, also has been charged with federal racketeering and tax violations.
Howard said the agency received a tip about Cheeks' activities, "and we followed the money."
Cheeks previously faced a civil lawsuit over allegations she tapped the Manoogian Mansion Restoration Society's bank account. The state won a default judgment against her in September.
Cheeks is expected to turn herself in at the court Friday, to face one count of conducting a criminal enterprise, a 20 year felony, and eight counts of embezzlement from a charitable organization, punishable by up to 10 years.
Michigan State Police and FBI agents earlier this month raided Cheeks' Livonia home and her parents' home in Detroit as part of an ongoing embezzlement investigation. The Detroit home on Cherrylawn, which is registered with the state as the restoration society's address, is owned by Kilpatrick's uncle Raymond Cheeks, Nneka Cheeks' father.
Former Attorney General Mike Cox alleged that between 2007 and 2009, Nneka Cheeks raided the Manoogian Mansion Restoration Society's bank account, withdrawing more than $7,000 in cash and making nearly $17,000 in questionable payments to third parties.
Authorities listed specific spending by Cheeks of foundation funds on:
$4,025 — Cash withdrawals
$3,943 — Pioneer Credit Recovery to pay off the debt of Cheek's uncle Thomas Mathis
$3,590 — Roostertail Restaurant
$3,091 — Art Van for living and dinning room furniture delivered to Cheeks home.
$2,631 — Jewelry Factory in Livonia for a loose 1.25 carat diamond and her groom's wedding band
$2,500 — Florida-based golf academy
$1,300 — Michigan Veterinary Specialists for care of Cheek's dog "Trouble"
$1,140 — Brides Made Fit for in-home personal fitness training
$450 — Dr. Mok's Allure Medical Spa for Mesotherapy, a cosmetic injection treatment
The civil complaint asked the court to order Cheeks to return the money and pay triple the amount she diverted.
ghunter@detnews.com
(313) 222-2134
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