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The case centers on charges that Kemp accepted thousands
of dollars in illegal gifts from the late Democratic
fund-raiser Ronald White in exchange for influence over
which companies received city contracts.
FBI
agents tapped White's phones for nine months as part
of the probe, and it was during that investigation that
they allegedly overheard him talking with Detroit fast
food king La-Van Hawkins about enlisting Sharpton's
help with an ambitious business plan.
In
2003, Hawkins had recently sold off an empire of Pizza
Huts and Burger Kings and was hoping to replace them
with Church's Chicken, Popeye's Chicken and Cinnabon
franchises.
To
do it, he needed millions of dollars in new capital.
Investigators said he turned to White, an old friend.
The
plan, prosecutors said, was complex: Hawkins hoped to
get financing from New York City's huge pension fund.
To do so, he needed to persuade the city's controller,
William Thompson, that the investment was worthwhile.
And to do that, he needed to get his foot in the door.
That's
where Sharpton came in, according to the indictment.
Both
Hawkins and Thompson were friendly with the long-shot
presidential candidate. Hawkins hoped Sharpton might
be willing to make an introduction.
White's
job was to warm Sharpton to the idea by raising money
for his cash-strapped campaign. To do it, he turned
to financial services executives who he had helped get
work in Philadelphia.
Several
of the fund-raising calls were recorded by the FBI.
``I
know this is gonna sound strange to you, but, it's not
strange, OK,'' White told Stewart Wolmark, an executive
at CDR Financial Products of Beverly Hills, Calif. ``Let
me tell you, you know, this guy has a lot of contacts
and in particular, ah, he has a very strong relationship
with the controller up in New York.''
Wolmark
agreed to help raise $5,000 for Sharpton.
``I
mean, don't ... don't let them think that we crazy ...
you know what I mean,'' White said, laughing. ``I mean,
this has nothing to do with winning or losing the presidential.''
White
made a similar pitch to Jim Reynolds, an executive at
Chicago-based Loop Capital Markets.
``Don't
think I'm crazy when I tell you this, all right?'' White
said. ``It's, it's, it's Al Sharpton. OK. For, for,
for President.''
``You
are crazy man,'' Reynolds said, laughing, although he
quickly agreed to help raise another $5,000.
``Well,
let me tell you something, man. I'll tell you what he
brings,'' White said of Sharpton. ``He brings access
to, into these corporate rooms. Where we, where we're
not getting these deals from.''
The
plan worked, at least in part.
Thompson
ultimately agreed to speak with White. The meeting took
place on May 8, 2003, at Sharpton's request, according
to Thompson's office.
The
discussion never resulted in a deal. Thompson's spokesman
said that when the meeting took place, White wanted
to talk about hedge fund investments, not restaurants.
Sharpton's lawyer said there was nothing improper about
arranging the meeting.
Neither
Thompson nor Sharpton nor the executives are accused
of any wrongdoing, but prosecutors brought a charge
against White and Hawkins for allegedly asking Kemp
to do a little acting to help salvage the restaurant
deal.
In
a meeting secretly videotaped by the FBI, Kemp sat down
at a New York hotel with Aslam Khan, an Illinois businessman
considering a sale of his Church's Chicken franchises.
Investigators
said Kemp tried to make Hawkins' bid appear more secure
by suggesting that it could get financial backing from
Philadelphia's pension fund. At the time, Kemp had no
authority over the fund.
White
was charged with giving the treasurer $10,000, a new
deck for his house and tickets to the 2003 Super Bowl
in exchange for his help with various business deals.
Defense
attorneys said the gifts were not illegal. They have
also disputed that Kemp, White or Hawkins did anything
wrong during their meeting with Khan.
The
trial is expected to last many weeks. White died while
awaiting trial.
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