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.