Chris Jerome Federal Lawsuit

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.
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UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
CHRISTOPHER JEROME, an individual,
LEO JEROME, an individual, and
STORY COMPANIES, LLC,
a Michigan limited liability company,
Plaintiffs,
v.
Case No.:
Hon.
PLAINTIFFS DEMAND A
TRIAL BY JURY
JOEL FERGUSON, an individual,

VIRGIL BERNERO,
the Mayor of the City of Lansing, in his individual capacity,
LANSING ECONOMIC AREA PARTNERSHIP, INC.,
a Michigan non-profit corporation,
ROBERT L. TREZISE, JR., an individual,
CLARK CONSTRUCTION SERVICES, LLC,
A Michigan limited liability company,
CHARLES CLARK, an individual,
FRANK KASS, an individual,
CONTINENTAL DEVELOPMENT, INC., an Ohio corporation,
HALLMARK CAMPUS COMMUNITIES,
an Ohio partnership,
FERGUSON DEVELOPMENT, LLC,
CHRISTOPHER STRALKOWSKI, an individual,
FERGUSON/CONTINENTAL LANSING, LLC,
A Delaware limited liability company, and
RED CEDAR INVESTOR, LLC, a Michigan limited liability company,
Defendants.
COMPLAINT
Plaintiffs, Christopher Jerome, Leo Jerome, and Story Companies, LLC, by and though
their attorneys, the Mike Cox Law Firm PLLC, for their Complaint against Defendants, Joel
Ferguson, Virgil Bernero, the Lansing Economic Area Partnership, Inc., Robert L. Trezise, Jr.,
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Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.2 Page 2 of 62
Clark Construction Services, LLC, Charles Clark, Frank Kass, Continental Development, Inc.,
Hallmark Campus Communities, Ferguson Development LLC, Christopher Stralkowski,
Ferguson/Continental Lansing, LLC, and Red Cedar Investor, LLC, state as follows:
INTRODUCTION
1.
Defendant Joel Ferguson (Ferguson) has been running and continues to run a
racketeering enterprise (Ferguson Enterprise)1 with his son David Ferguson and son-in-law,
Christopher Stralkowski (Stralkowski) through their company, Ferguson Development LLC
(Ferguson Development). Operating through Ferguson Development, Ferguson, David
Ferguson, and Stralkowski misuse Fergusons political influence to create a pay-to-play system
for municipal and state contract approvals, political favors, and access to public tax dollars related
to public contracts for highly profitable land development projects focused primarily in and around
the City of Lansing, but extending throughout the State of Michigan.
2.
Here, Ferguson and his cohorts have conspired with the Mayor of Lansing, Virgil
Bernero, (Mayor Bernero or Bernero) his staff, the Lansing Economic Area Partnership
(LEAP), LEAP CEO Trezise, and other local economic development officials controlled by
Mayor Bernero to rig the bidding process for public contracts, exchange gifts and bribes for
political favors, and extort Plaintiffs in a successful effort to steal a development called the Red
The Ferguson Enterprise consists of Joel Ferguson, Christopher Stralkowski, and Fergusons
company, Ferguson Development, which has been Fergusons instrument of corruption and
improper political influence for personal financial gain for over two decades. Indeed, Ferguson
lists Ferguson Development LLC on his Michigan State University business cards and Ferguson
Developments contact information is also listed on Fergusons trustee webpage. Stralkowski has
been involved in the enterprise as project manager and officer of Ferguson Development, the
conduit for Fergusons messages to the Plaintiffs, as well as the various political officials, and
has also been involved in the political aspect of the Enterprise by serving as Fergusons
campaign manager.
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1
Cedar Renaissance Project (formerly known as the Capital Gateway Project), (the Project), which
the Defendants call a game changer and worth up to $380 million. In stealing the Project from
the Plaintiffs, Ferguson and his co-conspirators not only threatened economic harm to Plaintiffs,
but have used and continue to use their political access and influence to gain governmental
approvals, funnel public money to themselves, and maximize their private profits with the
assistance of governmental and quasi-governmental organizations such as the Michigan State
Housing Development Authority (MSHDA), the Lansing Economic Development Corporation
(LEDC), Defendant LEAP, the Ingham County Drain Commissioners Office, the Lansing City
Council, and the Michigan State University Board of Trustees.
3.
Such is the measure of Fergusons power that he routinely dispatched Mayor
Bernero and LEAP CEO Bob Trezise as messengers to deliver financial demands to Chris and Leo
Jerome (collectively, the Jeromes.) So brazen was and is Fergusons enterprise that he even
wrote a demand letter in December of 2013 to the Mayor Bernero setting forth his demands for
equity shares of the Project from the Jeromes. Ferguson was clear that this putatively City of
Lansing-run project would be taken from the Jeromes by Bernero if Fergusons demands were not
met. Indeed, Fergusons demands continued to escalate, and he made good on his threats; ordering
Mayor Bernero and LEAP CEO to take the project RFQP award from the Jeromesand in
violation of Lansing contracting ordinancesaward the Project on a no-bid basis to Fergusons
company.
4.
Such strong-arm racketeering tactics are a matter of course and the way of doing
business for Ferguson. During his almost fifty-plus years in politics, Ferguson and companies
associated with him have obtained tens-of-millions in public dollars and tens-of-millions in private
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profits from extortion schemes, bid-rigging, and political bribery in public-sector contracting,
which include an empire of public housing projects and state government buildings (including the
controversial Triangle Project Michigan State Police Headquarters).
5.
This illegal racketeering, violations of 42 U.S.C. 1983, and tortious interference
with the Plaintiffs business expectancies continue as Ferguson and his co-conspirators currently
attempt to misuse this same political power to push the Ingham County Board of Commissioners
to put up $35 million in public bond money for Fergusons and the other defendants private gain.
6.
This lawsuit seeks damages from Defendants pursuant to the civil Racketeer
Influenced and Corrupt Organizations Act (RICO) 18 USC 1961 et seq., 42 U.S.C. 1983 for
deprivation of Plaintiffs property without due process of the law, and state law claims of tortious
interference with business expectancies. Plaintiffs respectfully request this Court award them, inter
alia, compensatory and punitive damages caused by Defendants wrongful and tortious conduct
related to Defendants fraudulent and extortionate racketeering scheme, specifically the scheme to
steal the Project.
JURISDICTION AND VENUE
7.
This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C.
1331 because Plaintiffs claims arise under the United States Constitution and laws of the United
States.
8.
Among other things, Defendants have violated the Racketeering Influenced and
Corrupt Organizations Act (RICO), and this Court has jurisdiction over this matter pursuant to
18 U.S.C. 1964(a).
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9.
Further, Defendants have violated Plaintiffs constitutional rights and this Court
has jurisdiction under 42 U.S.C. 1983 and 1988.

10.
This Court has supplemental jurisdiction over the state law claims pursuant to 28
U.S.C. 1367(a) because they form part of the same case or controversy as the federal claims.
11.
This Court has personal jurisdiction over all Defendants.
12.
Venue is proper in this judicial district pursuant to 8 U.S.C. 1965 and 28 U.S.C.
1391 because one or more Defendants is subject to personal jurisdiction in this judicial district
and resides in this district.
PARTIES
11.
Plaintiff, Christopher Chris Jerome resides in Chicago, Illinois and is a citizen of
the State of Illinois.

12.
Plaintiff Leo Jerome resides in Holland, Michigan and is a citizen of the State of
Michigan.
13.
Plaintiff Story Companies LLC, is a Michigan limited liability company with its
principal place of business in Michigan with an address of 1919 S. Creyts Road, Lansing, MI
48917.
14.
Defendant, Joel Ferguson, is a principal and member of Ferguson Development
LLC. Ferguson is also the chairman of the Board of Trustees at Michigan State University
(MSU). Ferguson is a citizen of the State of Michigan.
15.
Defendant, Virgil Virg Bernero is the mayor of the City of Lansing, a citizen of
the State of Michigan, and is being sued in his individual capacity only. Defendant Bernero is not
entitled to governmental immunity because he has deprived Plaintiffs of their federal constitutional
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rights in violation of 42 U.S.C. 1983. None of Berneros actions to deprive Plaintiffs of their
rights are otherwise protected by governmental immunity.
16.
Defendant, Lansing Economic Area Partnership, LEAP, is an Internal Revenue
Service 501(c)(6), Michigan not-for-profit corporation with an address of 500 E. Michigan

Avenue, Ste. 202, Lansing, Michigan with its principal place of business located in Lansing,
Michigan. Through a contract between the Lansing Economic Development Corporationa 9member board appointed by Mayor Berneroand LEAP, the City of Lansing uses LEAP to act
as its agent to lead, manage, control, and handle all economic development in the City. LEAP is
funded by Lansing area businesses, and prominently promotes these contributors as investors
and preferred vendors on its website.
17.
Defendant, Robert (Bob) L. Trezise (Trezise), is the Chief Executive Officer
of LEAP. Trezise is a citizen of the State of Michigan.

18.
Defendant, Clark Construction Services, LLC, (Clark Construction), is a
Michigan limited liability company with an address of 3535 Moores Drive, Lansing, Michigan,
with its principal place of business located in Lansing, Michigan. Clark Construction is a building
and civil construction general contracting firm.
19.
Defendant, Charles (Chuck) Clark (Clark), is a principal of Clark Construction.
Clark is a citizen of the State of Michigan.

20.
Defendant, Frank Kass (Kass), is a principal of Continental Development, Inc.
Kass is a citizen of the State of Ohio.

21.
Defendant, Continental Development, Inc., (Continental), is an Ohio
corporation, with its principal place of business in Ohio.

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22.
Defendant, Hallmark Campus Communities (Hallmark), is an Ohio partnership,
with its principal place of business in Ohio.

23.
Defendant, Ferguson Development, LLC (Ferguson Development), is a
Michigan limited liability company with its principal place of business located in Lansing,
Michigan at 1223 Turner Street, Lansing, MI 48906.
29.
Defendant Christopher Stralkowski (Stralkowski) is an executive project
manager and officer of Ferguson Development and citizen of the State of Michigan. Stralkowski
is also Joel Fergusons son-in-law and married to Joel Fergusons daughter, Jennifer Ferguson,
who works for the Michigan Housing and Development Authority (MHSDA). Defendant
Christopher Stralkowski ran Mr. Fergusons last campaign for MSU Trustee as campaign manager.
He has been and remains a key political and business advisor to Ferguson for many yearsthey
have known each other for at least two decadeson both local Lansing political issues and
development projects.
24.
Defendant, Ferguson/Continental Lansing, LLC is a Delaware limited liability
company with its principal place of business located in Lansing, Michigan. Defendants Red Cedar
Investor LLC and Continental Development are members of Ferguson/Continental Lansing, LLC.
25.
Defendant, Red Cedar Investor, LLC is a Michigan limited liability company with
its principal place of business located in Lansing, Michigan. Joel Ferguson is a member of Red
Cedar Investor.
26.
None of the Defendants are entitled to governmental immunity.
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COMMON ALLEGATIONS
The Enterprise
27.
The Ferguson Enterprise consists of Joel Ferguson, Christopher Stralkowski, and
Fergusons company, Ferguson Development, which has been Fergusons instrument of corruption
and improper political influence for personal financial gain for over two decades. Indeed, Ferguson
lists Ferguson Development LLC on his Michigan State University business cards and Ferguson
Developments contact information is also listed on Fergusons trustee webpage. Stralkowski has
been involved in the Enterprise as executive project manager and officer of Ferguson
Development, the conduit for Fergusons messages to the Plaintiffs, as well as the various political
officials, and has also been involved in the managerial and political aspects of the Enterprise by
serving as Fergusons campaign manager. Stralkowski is also married to Fergusons daughter,
Jennifer, who is employed by the Michigan State Housing Development Authority (MSHDA).
28.
As detailed in this Complaint, Defendants Ferguson, Stralkowski, and Ferguson
Development (who are culpable persons) have conducted the Ferguson Enterprise in a manner that
affects interstate commerce, through a pattern of racketeering activity (such as fraud, extortion,
and bribery of public officials), to injure Plaintiffs business interests and expectancy as the
winning RFQP bidder for the Project and deprive Plaintiffs of the profits and other financial
benefits of being the selected Developer.
29.
The other Defendants have conspired with the culpable persons to assist the
Enterprise in achieving its objectives, as detailed in this Complaint. The other Defendants have
also deprived Plaintiffs of their constitutional rights to due process, and have otherwise tortiously
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interfered with Plaintiffs business expectancies in the RFQP and separately with an opportunity
for the Plaintiffs joint development venture with Developer A.
Joel Fergusons and the Ferguson Enterprises Misuse of Fergusons Political Influence to
Obtain Financial Windfalls: Fergusons Background and Historical Foundations of the
Ferguson Enterprise
30.
Joel Ferguson is one of the States longest-tenured and most influential political
power brokers: from his initial election as Lansing City Council member in 1967, to his current
decade-long chairmanship of the Michigan State University of Trustees, where he controls
hundreds of millions of dollars in annual spending, Ferguson has wielded his political influence
for his private and corrupt gain.
31.
After his initial election in 1967 to the Lansing City Council, Ferguson has gained
influence and patronage through a long list of politically-important appointments and elections,
including, inter alia:
a.
Chair of the Bobby Kennedy campaign for President in Michigan in 1968.
b.
Chair of the Michigan delegation to the Democratic National Convention in
1972.
c.
Chair of the Jesse Jackson campaign for President in Michigan in 1988.
d.
In 1988, Ferguson began his 20-year plus membership on the Democratic
National Committee (DNC) where he served on and chaired many powerful

committees as well as becoming a vaunted presidential Super delegate.
e.
Becoming a personal friend to former President Bill Clinton and former
Secretary of State and Democratic nominee for President Hillary Clinton.
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f.
As a sign of Fergusons close relationship with Bill and Hillary Clinton, in
1996 President Clinton gave Ferguson a coveted and powerful presidentialappointment to the Board of Directors of Federal Home Loan Mortgage
Corporation (Freddie Mac). Because of Freddie Macs dominant influence on the
building and financing of residential housing in the United States, this appointment
and the personal and political relationships developed there, served and continue to
serve Fergusons personal pecuniary gain as an investor-owner of thousands of
units of HUD Section 8 housing.
g.
In 1986, Ferguson was elected to the Michigan State University Board of
Trustees. In addition to serving on the Board for the past 30 years, Ferguson has
served as the powerful Chair of the Board of Trustees for the past decade. As Chair,
Ferguson influences the spending of hundreds of millions of dollars in university
funds on items like construction expenditures as well as joint-venture financing.
Much of this financing goes to benefit Fergusons long-time friend and business
partner, Defendant Chuck Clark and Clarks family-owned business, Clark
Construction.
h.
Fergusons influence does not stop at the partisan shoreline. In February of
2016, Governor Rick Snyder appointed Ferguson to the Flint Receivership

Transition Advisory Board in attempt to defuse criticism of Snyders handling of
the
so-called
Flint
Water
crisis.
https://www.google.com/webhp?
sourceid=chrome-instant&ion=1&espv=2&ie=UTF8#q=joel+ferguson+snyder+appointment&start=10.
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According to Ferguson,
Governor Snyder frequently calls on Ferguson to get involved in state MSHDA

development projects.
The Ferguson Enterprise and Influence Peddling at Freddie Mac and MSHDA to Build A HUD
Section 8 Empire
32.
Section 8 of the Housing Act of 1937 (42 U.S.C. 1437f) authorizes government
payment of rental housing assistance through the use of voucher or direct cash payments to private
landlords for the benefit of millions of low-income households.
33.
Because Section 8 provides for guaranteed payment by cash or voucher, it is highly
desirable to become a recognized Section 8 housing vendor. The guaranteed payment also
facilitates access to low-cost financing for approved Section 8 developments.
34.
For decades, Freddie Mac has been at the forefront of providing funds at very
favorable rates and terms to Section 8 housing tract developers who meet Freddie Macs
standards. http://www.freddiemac.com/multifamily/product/pdf/hud_section_8_financing.pdf.
35.
In Michigan, the Michigan State Housing Development Authority (MSHDA)
manages the federal grants of Section 8 vouchers and financing of Section 8 housing stock in
Michigan. http://www.sectioneightapplication.com/apply/mi
36.
The MSHDA board consists of political appointees of the Governor.
http://www.michigan.gov/mshda/0,4641,7-141-7559_49253_64548---,00.html.
37.
To further facilitate the availability of low-income housing, such as Section 8,
MSHDA provides low-income housing developers with advantageous low interest financing.
http://www.michigan.gov/mshda/0,4641,7-141-5587_5589-289060--,00.html.
38.
The intersection of Section 8 housing, a Freddie Mac board governed by
presidential political appointees, and local agencies like MSHDA governed by gubernatorial
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political appointees, permits the politically influential such as Ferguson to gain great wealth with
little risk or investment. Such is the widespread use of this practice that even Paul Manafort, who
was until recently the campaign manager for Republican presidential nominee Donald Trump,
used his political influence to get Section 8 subsidies over 30 years ago.
See,
http://www.nj.com/politics/index.ssf/2016/04/trumps_convention_manager_once_embroiled_in_
nj_hou.html.
39.
According to 2015 testimony by Ferguson in a case before the Cook County
(Illinois) Circuit Court, Ferguson entered world of Section 8 housing in the 1970s, without any
construction or housing experience at allonly political connections by preselling units that
were not even built. So I [Ferguson] presold it for 360,000-some and then I had to build it. I did
not know how to build it.
40.
According to Ferguson, he now owns 3,000 apartment units, and manages another
2,000, in 17 different residential apartment complexes across Michigan, from Detroit to Lansing
to Grand Rapids, from Adrian to Kalamazoo, from Traverse City to Bay City.
41.
While building this Section 8 housing empire, Ferguson cemented his relationship
with MSHDA by using his political connections to have MSHDA hire his daughter, Jennifer
Ferguson, who is also the wife of Defendant Stralkowski.
42.
Ferguson recounted to the Cook County Circuit Court his ascendancy to the Freddie
Mac board in the 1990s, which proved indispensable in building his Section 8 empire: Bill
Clinton got elected President. He liked me, and he put me on Freddie Mac for five years. Let me
go to the White House, let me fly with him, have me play golf with him.
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43.
At Freddie Mac, Ferguson increased his political influence and wealth, while doing
favors for his political friends and allies. In describing his influence, Ferguson told the Cook
County Circuit Court that while at Freddie Mac, he (Ferguson) once steered $500,000 to his friend
Jesse Jacksons Rainbow Push Coalition.
44.
Ferguson even bragged to Plaintiffs Chris and Leo Jerome that it was his
(Fergusons) influence that secured an appointment for former Michigan Governor John Englers
wife, Michelle Engler, to the Freddie Mac Board of Directors in 2001.
The Ferguson Enterprise Using Influence Peddling to Build State-Office Buildings in Lansing
45.
According to his own Cook County testimony, Ferguson began building State of
Michigan office buildings in the late 1990s with the construction of the Anderson House Office
Building, which houses the offices of the Michigan House of Representatives.
46.
Ferguson and his partners originally leased the building to the House of
Representatives at a very high rate. Ferguson characterized the deal with the State of Michigan as
a perfect deal because the terms were so advantageous to him and attributed that advantage to
political friendship and favoritism: That was a perfect deal because I knew the State would never
cancel their own lease. The speaker [of the House of Representatives] who is a friend of mine, he
asked me, your rent is too high and then paying property taxes is a triple net lease, and he said, we
would like to buy it.
47.
Ferguson and Ferguson Development have subsequently developed a number of
State of Michigan office buildings around Michigan on very lucrative and advantageous terms.
48.
Perhaps one of the most well-known and controversial projects was the building of
the so-called Triangle Project Michigan State Police (MSP) Headquarters in downtown Lansing.
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This project was the subject of much public, media, and legislative scrutiny for close to a decade
because it was a $45 million dollar no-bid award given to Ferguson to build the MSP Headquarters
during an economic downturn.
49.
For close to a decade, legislators from both parties fought against building the
Triangle
Project.
See,
for
example,
https://www.legislature.mi.gov/(S(i2tv0cqryy1m0f1eb4si0jxy))/documents/20072008/resolutionintroduced/Senate/pdf/2007-SIR-0129.pdf;
50.
While funding was delayed for many years, ultimately Ferguson convinced former
Governor Granholm to authorize the construction monies for the Triangle Project late in her
administration.
51.
At an August 27, 2012 meeting at the restaurant Troppo in Lansing, while
discussing the Red Cedar Renaissance Project (Project) with the Jeromes, Ferguson boasted that
the Triangle Project no-bid award was in exchange for Fergusons influence in getting the wife of
then Michigan Governor John Engler, Michelle Engler, appointed to the Board of Directors at
Freddie Mac.
52.
During a series of meetings between July and November of 2012, Ferguson told
Chris Jerome that Defendant Chuck Clark was Fergusons partner in the Triangle-Michigan State
Police Headquarters deal and that together Ferguson and Clark made over $28 million on the
Triangle Project.
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The Ferguson Enterprise and Influence Peddling in Higher Education: Conflicts of

Interest and Steering Contracts to Friend and Business Partner, Defendant Chuck
Clark.
53.
Since his initial election to the MSU Board of Trustees in 1986, Ferguson has
served almost 30 years. For the past decade, Ferguson has held the powerful position of Chairman
of the MSU Board of Trustees.
54.
As importantly, Ferguson is on the MSU Trustee Finance Committee which
controls and recommends the awarding of construction contracts for vote by the full Board.
https://trustees.msu.edu/board-committees/index.html;
page
11
of
https://trustees.msu.edu/policies/Policy-Manual-Updated-2016-05-07.pdf
55.
Ferguson and Clark have an ongoing business partnership relationshipas well as
what Ferguson described to Chris Jerome as a business referral relationshipin construction

projects throughout the Lansing metropolitan area. For instance:
a. On the Ferguson Development company website, Ferguson Development listed
Mr. Clark and Clark Construction as partners with Ferguson Development in
developing and building projects across Michigan, including the Red Cedar/Capital
Gateway Project at issue in this matter. (Ex. 1, Ferguson Development Website.)
b. During 2012, both Joel Ferguson and Chuck Clark told the Jeromes on many
occasions that they (Ferguson and Clark) were partners in many development and
construction deals, not just the controversial MSP Headquarters/Triangle Project.
c. On December 11, 2012, during one of Fergusons many attempts to extort an
ever increasing share of the Project from the Jeromes, he also demanded an
ownership interest for Chuck Clark individually, with the ability of Clark to break
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any management deadlocks between the Jeromes and Ferguson. (Ex. 2, Dec. 11,
2012 letter from Ferguson to Bernero.)
56.
As Chair and member of the Finance Committee, Ferguson has steered hundreds of
millions of dollars in valuable university contracts to Defendant Chuck Clark and his company,
Defendant Clark Construction. Some of these contracts include:
a.
$88 million for the MSU Grand Rapids Biomedical Research Center at
Secchia
Medical
School.
It
is
currently
under
construction,
https://app.oxblue.com/open/msu/grrc, with an anticipated opening in 2017;

b. $69 million for the MSU Bioengineering Research Facility on campus in East
Lansing;
c. $49.8 million for the MSU Brody Hall dormitory expansion and renovation;
d. $66.5 million for the MSU Spartan Stadium expansion;
e. $17.1 million for the MSU Food Science Building;
f. $13.2 million for the MSU Shaw Hall dormitory dining room renovations;
g. $10 million for the MSU University Library Expansion/Renovation;
h. 10.2 million for MSU Emmons Hall dormitory renovations;
i. $8.5 million for MSU Clinical Center Facility C Wing; and,
j. $2.25 million for MSU Union renovation.
57.
Like most major universities, Michigan State University has a conflicts of interest
policy that applies to its Board of Trustees, including Ferguson. https://trustees.msu.edu/policymanual/.
Page 16 of 62
58.
Notwithstanding this policy, Ferguson has routinely used his political influence and
the power of the MSU Board of Trustees to benefit his partner Defendant Clark in clear violation
of the MSU Board of Trustees conflict of interest policy.
59.
For instance, the Policy states, inter alia:

a. II (a) A conflict of interests or other opportunities for personal benefit may
compromise, or reasonably appear to compromise, the Trustee independence of
judgment in fulfilling his/her Board duties (emphasis added);
b. (b) Trustees will endeavor to remain free from the influence of, or the
appearance of any conflicting interest in fulfilling board duties... (emphasis
added).
c. III. Contracts. No Trustee shall have a pecuniary interest, whether direct or
indirect, in any contract with the University that would induce or have the potential
to induce action on the part of the Trustee to promote the contract for his/her own
personal benefit. (emphasis added.)
62.
Upon information and belief, Ferguson is a partner of Defendants Chuck Clark and
Clark Construction in the MSU construction projects that he voted to approve. Even if Ferguson
is not directly involved, his ongoing partnerships with Chuck Clark and Clark Construction violate
the MSU Board of Trustees conflict of interest policy because, in addition to these relationships
appearing to compromise Fergusons judgment as a Trustee, these relationships directly and
indirectly have the potential to induce Ferguson to award contracts to his past and current partners
for quid pro quos on current or future projects.
Page 17 of 62
63.
Fergusons approval of the MSU-Clark Construction contracts in excess of $250
million also violate Michigan Compiled Laws 15.321 et seq,, which generally prohibit public
servants like Ferguson from engaging in interested and conflicted contracts.
The Ferguson Enterprise and the City of Lansing
64. According to the Lansing Economic Development Corporation, MSU is the Greater
Lansing areas second largest employer with 10,500 employees. https://msu.edu/statetransparency-reporting/assets/documents/2015-16Budgets.pdf. MSU spends close to $1.3 billion
every
year
in
the
Greater
Lansing
area.
https://msu.edu/state-transparency-
reporting/assets/documents/2015-16Budgets.pdf.
65.
As Chairman of the MSU Board of Trustees, Ferguson has an outsized role in
decisions that greatly impact the Greater Lansing areas public and private sector hiring and payroll
decisions, private and public sector capital expenditure decisions, and greatly affect the economies
of Lansing, East Lansing, and Ingham County.
66.
Whether it is through relationships he built as a Lansing city councilman or his
connections with political figures such as President Clinton or Governor Snyder or his roles at
MSU, Ferguson has an outsized political role in the City of Lansingeven though he had not held
an elected position with the City of Lansing for over 40 years.
67.
In both oral and written communications during the course of the Project, Ferguson
told the Jeromes he controls four of the seven votes on the Lansing City Council.
68.
Indeed, Ferguson told the Lansing City Pulse, a news magazine, about a 4 to 2 City
Council vote preventing a Mayor Bernero-backed plan to sell a Lansing-owned parking lot to the
Lansing Community College. Ferguson indicated that he would back the plan unless the City first
Page 18 of 62
considered a competing proposal by Ferguson. In Fergusons own words, I have a lot of political
influence. http://lansingcitypulse.com/article-6470-a-one-sided-look-behind-the-curtain.html
Chris Jeromes Concept and the Birth of the Capital Gateway Project
69.
Father Leo and son Chris Jerome are part of the Story Family whose members have
been prominent car dealers and civic boosters in the greater Lansing area for over 70 years. The
Jeromes owned, inter alia, two car dealershipsStory Oldsmobile Story Olds and Sawyer
Pontiaclocated across from each other on the key commercial strip of Michigan Avenue, which
is a gateway between the cities of Lansing and East Lansing. For the past 60 years, these properties
have been highly valuable because of their prominent and key location.
70.
Leo Jerome ran the two dealerships for most of the last 40 years. However, in 2009,
with the closure of Oldsmobile by General Motors, and then subsequent bankruptcies of General
Motors and Chrysler, Leo Jerome closed Story Olds and Sawyer Pontiac. The properties, which
total approximately 8 acres, became vacant for the first time in decades.
71.
During this time, Chris Jeromea Harvard Business School graduate who worked
in Silicon Valley managing investment funds with assets as much as $6 billionconceived and
began to develop a plan to recruit major national investors and retailers to Lansing to transform
the vacant parcels of land into a large, mixed use development.
72.
Chris Jerome envisioned not only a mixed-use project involving the Jerome family
properties, but also a much larger game-changing project that included the closed 60-acre City of
Lansing-owned Red Cedar municipal golf course.
73.
Chris Jerome began contacting professional developers across the nation. Some of
the parties he contacted included industry leaders such as Carpenter & Company of Cambridge,
Page 19 of 62
Massachusetts and Continental Development of Columbus, Ohio, who both had experience in
developing and managing a complete projector smaller subcontracts of a large project. Other
potential developers, such as Campus Crest of Charlotte, North Carolina, had niches as developers
of student housing. All of these developers actively engage in interstate commerce as developers,
investors, and financiers of multiple-million developments.
74.
Over this two to three year preliminary development period, Chris Jerome
telephoned, emailed, and flew across America to meet potential developers, brokers, and financial
institutions. His plan included the investment and spending of tens of millions and eventually
hundreds of millions in goods and services that would flow across state lines into Michigan and
constitute interstate commerce.
75.
Chris Jerome spent hundreds of hours and several hundred thousand dollars in costs
to achieve these goalsincluding for architectural renderings of the projectbefore 2012.

76.
In November of 2011, Lansing voters approved a ballot measure to sell 12 of the
60 acres of the closed Red Cedar Golf Course.

77.
During 2011, Chris Jerome met Continental and its founding partner and chair,
Frank Kass. Kass and Continental are mixed used developers who are active in the Midwest. Chris
proposed to joint venture between the Jeromes and Kass and Continental and its related companies.
Kass agreed to a joint venture and used one of Continentals subsidiaries as the joint venture
vehicle. Kass subsequently characterized this agreement as one large joint venture between a
Continental Hallmark entity and the Jerome Family. (Ex. 3, Mar. 3, 2012 emails from Kass re
Joint Venture.)
Page 20 of 62
Jeromes Propose a Game-Changing Plan to the Mayor of Lansing

78.
With a joint venture agreement with Frank Kass and his companies, Continental
and Hallmark, in place, Chris and Leo Jerome approached the City of Lansing to share their plan
to jump start the redevelopment of Michigan Avenue.
79.
In May 2012, the Jeromes met with Mayor Bernero numerous times in his office
during which:
a.
Chris Jerome informed Bernero that the Jeromes, Kass, and Continental
were interested in not only developing the Jerome parcels, but also the full 60 acres
of the adjacent Red Cedar Golf Course property; approximately 48 of those acres
had not yet been approved for sale by the voters.
b.
Mayor Bernero was very excited over the proposals scope and potential,
but told the Jeromes that any such development plan would need to get the support
of the Lansing City Council.
c.
Mayor Bernero insisted the Jeromes go and meet with Joel Ferguson
because he controlled a majority of the City Council members votes.

Jeromes Meet with Ferguson: A Fraudulent Misrepresentation of Civic-minded Assistance
Turns Into Extortive Demands for Equity in the Project.
80.
While the Jeromes sought a meeting with Joel Ferguson, on June 6, 2012, the City
of Lansing and Lansing Economic Development Corporation (LEDC) jointly issued a Request
for Qualifications and Proposals (RFQP) for the Sale and Development of Red Cedar
Renaissance Site, the remainder of the closed Red Cedar Golf Coursewith proposals due on
July 9, 2012.
81.
The RFQP stated in relevant part as follows:

Page 21 of 62
The Lansing Economic Development Corporation (LEDC) and City of Lansing are
releasing this RFQP to make potential developers and other interested parties aware
of a great development opportunity. The objective of this RFQP is to identify one
developer who has the vision, experience, capacity and financial wherewithal to
purchase and develop this site to its maximum potential. The selected developer
will enter into a planning and negotiation process with the LEDC and City that
should ultimately result in a Comprehensive Development Agreement. (Ex. 4, at 1,
RFQP excerpts) (emphasis added).
82.
The RFQP also specifically required that Each responding developers proposal
must identify its authorized agent who has unqualified authority to bind the developer with regard
to all matters arising from or related to this process. (Id. at 7.) (emphasis added).
83.
The nine board members of the LEDC are appointed by Mayor Bernero and
approved by the City Council.

http://edc.lansingmi.gov/modules.php?name=Pages&sp_id=2&smenu_id=12. LEDC contracts
with the Lansing Economic Area Partnership LEAP to provide LEAPs officers and staff to
assist in LEDC and City of Lansing economic development efforts.
http://detroit.cbslocal.com/2012/07/02/lansing-edc-signs-contract-with-leap-for-economicdevelopment/. Accordingly, Mayor Bernero controls both the LEDC and LEAP.
84.
Following Mayor Berneros order to meet with Ferguson, on or about June 18,
2012, Chris and Leo Jerome met with Ferguson and Fergusons project manager and son-in-law,
Christopher Stralkowski. At this meeting :
a.
Ferguson was immediately impressed with the Jeromes renderings of the
project that was eventually called the Capital Gateway Project. Ferguson told the
Jeromes that the project would be good for the community and he would help free
of charge because it was the right thing for Lansing.
Page 22 of 62
b.
Ferguson promised Chris Jerome that Ferguson would obtain the votes of a
majority of the Lansing City Council to support the project.

c.
Ferguson explained that his position as the Chairman of Board of Trustees
at MSU gave him great power and political clout in Lansing. Ferguson showed the
Jeromes his business card, which lists his title as Chairman of the Board of Trustees
at MSU. He laughed and stated that the business card is all he needs to push the
Capital Gateway Project through the Lansing City Council.
Initial Offer of Free Help Leads to Insertion of Ferguson Partners Into the Capital Gateway
Project
85.
Shortly after the June 18, 2012 meeting, Chris Jerome met with LEAP CEO Bob
Trezise at LEAPs offices in Lansing. Trezise told Jerome that:

a.
Area businesses received preferential access to municipal-related business
opportunities in exchange for contributions to LEAP.

b.
Jerome must use LEAP investors and LEAP preferred vendors for the
Capital Gateway project or the Project would never be approved by the Lansing
City Council.
86.
budget
According to LEAPs 2015 Annual Report, the largest portion of its operating
comes
from
local
corporate
and
individual
donors.
http://www.purelansing.com/Portals/0/2015%20LEAP%20Annual%20Report%20.pdf
87.
A few days after the June 18, 2012 meeting, Chris Jerome again met with Ferguson
at the Ferguson Development offices and Ferguson told Chris Jerome:
Page 23 of 62
a.
That Chris must hire a local general contractor for the Capital Gateway
Project to get the required votes from the Lansing City Council to approve the
Project.
b.
That Chuck Clark and Clark Construction were a good fit to be a general
contractor. Based on Trezises mandate and Fergusons statement, Chris Jerome

reluctantly agreed to hire Defendant Chuck Clark and Clark Construction in some
construction capacity.
88.
Later that same summer Ferguson told Chris Jerome, inter alia, that Clark, a Lead
Investor of LEAP, and Clark Construction, were a Preferred Vendors of LEAP. Ferguson also
told Chris Jerome that Ferguson and Clark had a business referral relationship.
89.
On numerous occasions between June 21, 2012 and July 9, 2012the latter being
the date the Capital Gateway Project proposal was submitted to the City and LEAP in response to
the RFQPeither Fergusons secretary at Fergusons direction or Stralkowski telephoned Chris
Jerome in Chicago to either discuss by telephone or in person. During one of these conversations
the following occurred:
a.
Chris Jerome told Stralkowski and Ferguson that the student housing
component of the Capital Gateway Project would target international students

because MSU opposes competition from private developers for highly profitable
undergraduate student housing near campus.
b.
Ferguson rejected that idea and stated that conventional student housing is
much more profitable.
Page 24 of 62
c.
Some days later, Ferguson told Jerome that he met with Vinny, a high-
ranking MSU housing official and had reached an understanding: MSU would
not oppose any undergraduate student housing complex adjacent to MSU if it were
part of the Capital Gateway Project.
90.
At another one of these meetings between June 21, 2012 and July 9, 2012,
Stralkowski told Chris Jerome that Ferguson would involve the Michigan State Housing
Development Authority (MSHDA) in assisting with the Capital Gateway Project.
91.
Stralkowski told Chris Jerome that Fergusons empire of public housing (Section
8) contracts are facilitated by his close relationships at MSHDA and that Stralkowskis wife
Jennifer (Fergusons daughter) works for MSHDA.
92.
On July 9, 2012, Chris Jerome submitted the Capital Gateway Project proposal in
response to the RFQP issued by the City of Lansing and the LEDC. As stated above, by July 9,
2012, LEAP had taken the place of the LEDC with respect to the RFQP.
After June 18, 2012 Meeting: Chris Jerome Focuses on Completing the RFQP, Joel Ferguson
Focuses on Adding Ferguson Enterprise Partners to the game changing Project
93.
Between meeting Ferguson on June 18, 2012 and the July 9, 2012 deadline for
submission of proposals in response to the RFQP, Chris Jerome continued to work on the proposal
with the national partners he had contacted such as, inter alia, Campus Crest of North Carolina,
Carpenter & Company from Boston, and others.
94.
In contrast, Defendants Ferguson and Stralkowski focused on promoting and
pushing their longtime business partners into the project proposal, for example:
a.
Adding Chuck Clark and Clark Construction as potential contractors or
subcontractors;
Page 25 of 62
b.
Adding longtime Ferguson development partner Hobbs + Black as potential
architects even though Chris Jerome has already had architectural renderings prepared by
a different national architecture firm;
c.
Adding Huntington Banka MSU corporate sponsor and frequent Ferguson
lenderas a potential lender;

95.
All of the Ferguson additions were redundant to the national team of investors and
developers that Chris Jerome had already put together.

Chris Jerome Submits the Project Proposal in Response to the RFQP, and the City of Lansing
and LEAP Select Jeromes Project Proposal.
96.
On July 9, 2012, Chris Jerome submitted the Project proposal to the City of Lansing
and LEAP in response to the RFQP. The Project proposal was paid for and created by Chris Jerome
and his family. As required by the RFQP, the Project proposal named Christopher Jerome as its
Authorized Agent to meet the RFQPs requirement that each proposal must identify its
authorized agent who has unqualified authority to bind the developer with regard to all matters
arising from or related to this process. (Ex. 4, at 7.)
97.
On August 13, 2012, the City of Lansing announced Chris Jeromes Capital
Gateway Project proposal was selected as the RFQP winner.

98.
To meet Chris Jeromes vison for a much larger development than the initial 12.5
acres of the Red Cedar Golf Course approved for sale by Lansing voters in 2011, the Lansing City
Council authorized a ballot proposal for the 2012 election authorizing the City of Lansing to sell
the rest of the Red Cedar Golf Course.
99.
From August 13, 2012 through November 6, 2012, Chris Jerome was the public
face of the Project as he campaigned tirelessly to rally public support for the November 6, 2012
Page 26 of 62
ballot initiative asking Lansing community voters to authorize the sale of the entire Red Cedar
Golf Course property for the Capital Gateway Project.
100.
On November 6, 2012, Lansing voters approved the sale of the additional acreage
and approved the vision of Chris Jerome.

The Ferguson Enterprise Extorts Increasingly Larger Equity Stakes of the Capital Gateways
Project from Plaintiffs
101.
Within days of agreeing to help the Jeromes for free and to benefit Lansing,
Ferguson and Stralkowski began demanding equity in the Capital Gateway Project in increasingly
larger amounts.
102.
Between June 21, 2012 and June 29, 2012, either Fergusons secretary or
Stralkowski telephoned Chris Jerome to schedule a meeting with Ferguson at Ferguson

Developments offices in Lansing to discuss the Project proposal that was due on July 9, 2012.
103.
In response to calls from either Fergusons secretary or Stralkowski, between June
21, 2012 and June 29, 2012, Chris Jerome traveled to Lansing to meet with Ferguson and
Stralkowski at Ferguson Developments offices several times.
104.
At the first meeting between June 21, 2012 and June 29, 2012, Ferguson demanded
a 5% equity stake in the Project in exchange for his assistance in securing the requisite votes
from the Lansing City Council. Ferguson made clear that if his demand was not met, he would use
his political influence with the Lansing City Council to block the Project.
105.
At a second meeting between June 21, 2012 and June 29, 2012, Ferguson upped his
demand to a 10% equity stake in the Project.

106.
Pushed by Mayor Bernero to deal with Ferguson, the Jeromes met Ferguson a third
time and reluctantly agreed to give Ferguson 20% equity in the Project, as long as Ferguson agreed
Page 27 of 62
that Chris Jerome was in charge and Fergusons demands for increased equity would stop.
Ferguson agreed to those conditions and enthusiastically hugged both Leo and Chris Jerome to
seal the deal.
107.
On June 29, 2012, the day of this third meeting, Fergusons attorney, Patrick Reid,
emailed paperwork for the formation of the Capital Gateway Project, LLC, which gave Ferguson
a 20% equity stake in the Project.
108.
Soon after the June 29, 2012 email that included a demand for a 20% equity stake
in the Project, Stralkowski telephoned Jerome in Chicago and scheduled another meeting at
Ferguson Developments offices in Lansing to discuss further demands for equity made by
Ferguson.
109.
On July 18, 2012, Fergusons attorney, Patrick Reid, emailed an a new draft
operating agreement for the Capital Gateway Project, LLC to Ferguson and Jerome which
contained terms with changed voting rights that essentially gave Ferguson control of the project,
while having him remain as a minority stakeholder.
110.
This email began a continuing pattern: Jeromes would agree to terms for ownership
and management of the Capital Gateway LLC/Red Cedar Renaissance Project; then Ferguson or
Stralkowski (or their attorney Mr. Reid), in person or by telephone or by email, would breach the
current agreement by demanding more equity. Each of these demands were accompanied by either
an implicit or explicit threat the Jeromes should acquiesce or risk losing the RFQP award if
Ferguson used his four votes on City Council to kill the project.
Page 28 of 62
111.
On or around July 19, 2012, Ferguson handed Leo Jerome a third draft operating
agreement which, inter alia, increased Fergusons demand to a 33% equity stake in the Capital
Gateway Project.
112.
To further increase the pressure on the Jeromes, in early August Ferguson and
Stralkowski relayed, after-the-fact, the details of a prior meeting between Ferguson and Mayor
Bernero to demonstrate their political power.
113.
Ferguson told the Jeromes that he had heard a competing local development firm,
DTN, was under consideration by the Mayors appointees on the joint City-LEAP board review of
the RFQP proposals.
114.
Ferguson then met with Mayor Bernero at Lansing City Hall and told Mayor
Bernero that a joint RFQP award and joint development venture with DTN was not acceptable.
115.
Ferguson threatened Mayor Bernero by telling him that the Ferguson-controlled
City Council votes would block any competing project.

116.
Ferguson demanded that Mayor Bernero ensure that LEAP awarded the project to
the Capital Gateway Project.

117.
According to Ferguson and Stralkowski, Mayor Bernero caved to Fergusons
threats and told LEAP to not consider DTN.

118.
On October 25, 2012, Ferguson mailed a letter summary and another proposed new
operating agreement for Capital Gateway Project LLC by United States Postal Service to Leo and
Chris Jerome with a new demand of 50% equity for The Ferguson Family. In a startling
exposition of his political power, Ferguson in the letter again threatened economic harm loss of
the RFQP to the Jeromes:
Page 29 of 62
a. In Section II, Ferguson boasted of Joels political expertise and claimed

Joels role was and is critical to obtaining the necessary governmental approvals
throughout the development process.
b. Ferguson described his use of inside information and his dispatch of bid
competitors: Initially, LEAP decided that the Capital Gateway proposal would be
combined with the proposal by DTN for the 12 acre development. Joel immediately
met with the MayorJoel Ferguson communicated to the Mayor that a joint
venture with DTN was unacceptable and that Capital Gateway proposal should be
accepted as the exclusive RFP proposal
c. Ferguson was clear about his source of power: Joel Ferguson promised that he
could deliver four (4) votes from the City Council if the Mayor could deliver three
(3) votes.
d. Ferguson details the Mayors acquiescence to his power: Following Joels
meeting with the Mayor, the LEAP was instructed by the Mayor to accept the
Capital Gateway RFP proposalAs a result of the Mayors directive, LEAP
announced the Capital Gateway RFP proposal had been selected
e. Ferguson then went on to describe his lobbying the City Council to approve the
Project. (Ex. 5, Oct. 25, 2012 letter and summary)
119.
Fergusons letter put in writing what Stralkowskis prior telephone calls to Chris in
Chicago had threatened: if Ferguson was not paid, then his power could and would kill the Project,
to the detriment and great financial expense to the Jeromes.
Page 30 of 62
120.
For added emphasis, on or around October 27, 2012, Chris Jerome received an
email from Stralkowski that admonished Chris for his lack of respect for Ferguson and praised
Fergusons honed political skills and influence that he has earned over the last 50 years. For
emphasis Stralkowski attached to this email the same documents Ferguson sent by mail two days
earlier including the proposed operating agreement with 50% equity share for Joel Ferguson and
the narrative of Joel Fergusons political power.
121.
After the voters approved the sale of the entire Red Cedar Golf Course on
November 6, 2012, the Jeromes faced a Hobsons choice: either give into Fergusons extortionate
demands or risk loss of Project RFQP award when Ferguson exerted his control over Mayor
Bernero and the Lansing City Council.
122.
According to Fergusons Cook County testimony, at this same time Ferguson was
talking with Mayor Bernero about his negotiations with the Jeromes and ordering Bernero to tell
the Jeromes to agree to his terms. These conversations took place during golf foursomes and other
social occasions involving Mayor Bernero, Mayor Berneros wife, Teri Bernero, Ferguson, and
Fergusons common-law wife, Anna.
123.
On December 5, 2012, Joel Ferguson sent an email from his AOL account to Leo
Jeromes GMAIL account with a memorandum addressed to Chris and Leo Jerome that was dated
December 4, 2012. This memorandum attacked a November counteroffer by Chris Jerome, while
proposing a new operating agreement for Capital Gateway Project LLC with the 50% equity
demand repeated.
124.
This proposal, however, had a new and threatening written wrinkle: the
memorandum carbon-copied Mayor Bernero and LEAP CEO Bob Trezise with the clear message
Page 31 of 62
that if the Jeromes did not accept this reasonable offer, then the Mayor and his economic
development agents would take the Capital Gateway/Red Cedar Renaissance Project RFQP away
from the Jeromes.
125.
Bernero immediately reacted to Fergusons memorandum: Bernero held a meeting
the following dayDecember 6, 2012at Lansing City Hall with Chris and Leo Jerome, Joel
Ferguson, Christopher Stralkowski, LEAP CEO Bob Trezise, and Berneros Chief of Staff Randy
Hannan to discuss Fergusons memorandum. At this meeting:
a. Bernero pushed the Jeromes to agree with Ferguson.
b. Ferguson stated They [the Jeromes] didnt sign them [earlier documents] fast
enough and as a result the price just goes up.
b. Ferguson stated that the project existed only because of his control of the City
Council and if his demands are not met, the Project will die.
126.
On December 11, 2012, the written threat became even more explicit when
Fergusons attorney, Patrick Reid, sent an email from Reids AOL email account to LEAP CEO
Trezise at his LEAP email (@purelansing.com), with carbon copies to Leo Jerome at his AOL
account, Chris Jerome at his GMAIL account, and Chuck Clark at his corporate account
(@clarkcc.com) with an attached letter that Joel Ferguson sent that same day to Mayor Bernero
with the subject line Re: Capital Gateway Project, LLC.
127.
In this letterconcerning private negotiations between the Jeromes and Ferguson
about the structuring of a private company Ferguson complained to the Mayor that the Jeromes
most recent compromise offer was not acceptable because it included a number of egregious
provisions. On the second page of the letter, Ferguson stated his services are worth 50% of the
Page 32 of 62
project and I also believe you would recommend settling somewhere between 33% and 50%,
which would give me approximately 41% ownership interest. (emphasis added).
128.
Fergusons letter then proposed a new split: I am proposing to accept 32% so long
as Christopher Jerome and Leo Jerome accept 64% and have the remaining 4% membership issued
to Chuck Clark. (emphasis added).
129. However this equity split would have an unusual voting component: all voting on
major issues should be based upon me [Ferguson] having 50% of the vote and the Jerome [sic]
having 50%. In the event there is any deadlock, then such matter will be presented to Chuck Clark,
who can break the deadlock by voting his 4% interest.
130.
Put differently, while the Jeromes assumed more financial risk, Ferguson had equal
control. And, if the Jeromes and Ferguson disagree about management of the entity, Fergusons
business partner and the beneficiary of Fergusons MSU largesse Chuck Clark, would break
the tie.
131.
Ferguson closed this December 11, 2012 letter to Mayor Bernero by proposing the
Mayor revoke the August 13, 2012 RFQP award if the Jeromes do not accept this compromise and
then thanked the Mayor for your time and efforts in working toward a settlement in this matter.
(emphasis added). (Ex. 2.)
132.
This letter is an explicit and written acknowledgment that under the color of law
and using the power of his office, Mayor Bernero and his appointees and political allies such as
LEAP CEO Trezise illegally cooperated and aligned with Joel Ferguson and the other Defendants
to threaten economic harm to the Jeromes unless they gave into Fergusons demand.
Page 33 of 62
133.
On December 20, 2012, the Jeromes met with Mayor Bernero, Deputy Chief of
Staff Randy Hannan, and LEAPs Bob Trezise at the Mayors request. Here, Mayor Bernero
continued to push the Jeromes to accept an agreement with Ferguson.
134.
On January 2, 2013, Chris Jerome traveled to Lansing to meet with Trezise at
LEAPs offices in response to a call from a member of Trezises staff. At this meeting:
a.
Trezise informed Jerome that Ferguson had threatened to derail the Mayors
reelection campaign by accusing the Mayor of being a racist if the Mayor did not
meet Fergusons demands with regard to the Capital Gateway Project.
b.
Trezise told Jerome that the racism claim would cripple the Mayor
politically even if it did not remove him from office.

c.
Trezise told Jerome that Ferguson had had control over Lansing politics for
years and told Jerome a story about a time when Ferguson had boasted that taxpayer
money was flowing from MSU into the pockets of Lansing City Council members.
135.
Just after the New Year, on January 10, 2013, Christopher Stralkowski followed up
on Fergusons December threats in an email from his Hotmail account to Chris Jeromes Gmail,
admonishing and threatening Chris Jerome:
a. Stralkowski wrote Jerome, when you ignore the Mayor, remember he insisted
on actual negotiation over these Critical Agreement issues, your actions, or lack
thereof, reflect no respect for the process, no respect for the Mayor, and no respect
for Joel (emphasis added)
b. Further, [s]ince you and Leo have been indifferent to Joels numerous offers,
he has taken his compromise off the table
Page 34 of 62
c. And then Stralkowski threatens no one but the Mayor himself has control of the
Red Cedar property and this potential development project. Everything is still just
pretty pictures and words on a piece of paper. If we cannot somehow find a way to
agree on a fair Operating Agreement, the Mayor said he will walk away from the
deal (emphasis added). (Ex. 6, Jan. 10, 2013 email from Stralkowski to Chris
Jerome.)
136.
Five days after Stralkowskis proverbial stick email threatening Chris Jerome, on
January 15, 2012, Stralkowski sent an email with a carrot to demonstrate the benefit of
cooperating with the Ferguson Enterprise and an additional stick for not working with the
Ferguson Enterprise: :
a.
The carrot: Because of Fergusons negotiating skills, Ferguson, Chuck
Clark and the Drain Commissioner, Pat Lindeman, and the City had reached an
agreement that would potentially save millions in construction costs by having
the Drain Commissioner build the foundations for the Red Cedar Renaissance
Project.
b.
The stickcompromise or else: Most importantly, the Mayor told Joel he
needs an agreement from us in place by February 1st or he will act to modify the
RFQPNot an ideal outcome to say the least. (Ex. 7, Jan. 15, 2013 email from
Stralkowski to Chris Jerome.)
Page 35 of 62
Ferguson Enterprises Use of Mayor Bernero, LEAP, LEAP CEO Trezise and the Mayors Staff
and LEAP Staff Extort Plaintiff and Force Them to Capitulate to Fergusons Demands or Lose
the RFQP
137.
As described aboveincluding Mayor Berneros secret meetings with Ferguson at
Fergusons home and the Lansing Country Club; the meetings on December 6, 2012; December
20, 2012; and January 2, 2013, among othersand the through use of the Office of Mayor of
Lansing, Lansings economic development arm, LEAP, and the Ingham County Drain
Commissioner Pat Lindemanthe Ferguson Enterprise (Joel Ferguson, Christopher Stralkowski,
and Ferguson Development) used public officers and their offices, and quasi-public officers and
their offices to extort the Jeromes for equity and property interests in the Project. The Enterprise
also conspired with Defendant Mayor Bernero to force the Plaintiffs to associate with businesses
and individuals they would not have otherwise chosenand disallow the Plaintiffs association
with competing businesses and individuals who were engaged in interstate commercethereby
causing Bernero, Trezise, and LEAP to deprive Plaintiffs of their property without due process of
law.
138.
The Enterprises acts impacted the interstate commerce of goods and services.
Other factual events that include inter alia these same acts of racketeering, violations of the federal
Hobbs Act, 18 U.S.C. 1951, state extortion laws, tortious interference with business expectancies
and deprivation of individual rights guaranteed by 42 U.S.C. 1983 include the following:
139.
Soon after the award of the RFQP on August 13, 2012, LEAP CEO Bob Trezise
started weekly meetings involving Chris Jerome, the Mayors Office, and other public entities at
LEAPs offices in Lansing to coordinate the private-public interface of the Red Cedar Renaissance
Project. These meetings included private individuals who were not the authorized agent of the
Page 36 of 62
RFQP winner Chris Jeromeand thus forced Chris Jerome to consider as development partners
persons including Joel Ferguson, Christopher Stralkowski, Chuck Clark, and Hobbs + Clark
architects. These meetings necessarily excluded other potential national partners that the Jeromes
wanted to work with.
140.
Trezise soon began meeting with Mayor Bernero, LEAP officers, City of Lansing
and Mayors office staff, Ferguson and/or Stralkowski, Chuck Clark, and Drain Commissioner
Lindeman in secret without the knowledge or consent of the RFQP authorized agent, Chris Jerome.
141.
The violation of the RFQP award conditions became more flagrant during the fall
of 2012 when the LEAP sponsored meetings were canceled and Ferguson began holding his own
weekly meeting with Drain Commissioner Lindemann, Chuck Clark, LEAP CEO Trezise, and
others at his office starting in November of 2012 again without either of the Jeromes including
the RFQP authorized agent Chris Jerome.
142.
In the days immediately before March 6, 2013, someone in Mayor Berneros office
telephoned Chris Jerome in Chicago to schedule a meeting with him at Lansing City Hall.
143.
On March 6, 2013, Jerome traveled to Lansing to meet with Mayor Bernero and his
Chief of Staff Randy Hannan regarding the Project. At that meeting, while attempting to force the
Jeromes to give up more of their equity position, Mayor Bernero called Ferguson our version of
Kwame Kilpatrick and told Chris Jerome that Ferguson and Clark had recently sat in his office
and demanded that Mayor Bernero give the Capital Gateway Project to them outright and cut the
Jeromes out completely.
Page 37 of 62
144.
The following day, March 7, 2013, Trezise informed Jerome that Ferguson was
increasing the political pressure on Mayor Bernero to force the Jeromes to capitulate to Fergusons
equity and control demands, or alternatively to cut the Jeromes out of the Project.
145.
Mayor Bernero and LEAP CEO Trezise asked Chris Jerome to give a progress
update on March 26, 2013, to their staffs in a conference room in Lansing City Hall to outline
Chris Jeromes progress. Chris Jerome brought out-of-state developers such as Carpenter &
Company, on retailers like Whole Foods, Campus Crest of North Carolina on student housing, as
well as renown 9/11 Memorial architect Jeffrey Lee of Washington, D.C, who as a group intended
to invest and spend well over $100 million from out-of-state in Lansing to the meeting.
146.
At this presentation, Mayor Bernero told Chris Jerome that Ferguson would use his
control of the Lansing City Council to derail the Project, regardless of its value to the City, if the
Jeromes did not give in to all of Fergusons demands.
147.
On or about June 11, 2013, Chris and Leo Jerome talked with Mayor Bernero in
front of City Hall. During this conversation Mayor Bernero told the Jeromes:
a.
Bernero and Trezise had been secretly talking with Chris Jeromes Boston-
based investment group, including Carpenter & Company, without approval from
Chris Jerome, the Projects authorized agent.
b.
I may be Mayor for life and unable to find another job, and as a result, he
(Bernero) has to acquiesce to Ferguson on Fergusons demands related to the

Project.
Page 38 of 62
148.
At a subsequent meeting on August 9, 2013, Mayor Bernero admitted that
Ferguson and Ferguson Development had been secretly working to cut Jerome out of the Capital
Gateway Project and stated Frank Kass and Continental were Fergusons partners in that effort.
149.
On September 9, 2013, David Ferguson, Joel Fergusons son, handed Leo Jerome
a proposed Memorandum of Understanding (MOU) and demanded Leo Jerome sign the MOU.
The MOU purported to dissolve the Capital Gateway Project partnership between Jeromes and
Ferguson Development, and provided for the sale of the Jerome family properties at below market
value, gave David Ferguson a commission.
150.
Four days later, on September 13, 2013, LEAP CEO Trezise telephoned Leo
Jerome and asked him to meet Trezise, Mayor Bernero, and Chief of Staff Hannan at the Mayors
office:
a.
At Berneros office, Leo Jerome received an operating agreement for a new
entity named Ferguson/Continental Lansing, LLC, with an attached one-page

proposal entitled Jerome Proposal. Neither of the Jeromes were aware of the new
entity until Leo Jerome received the operating agreement.
b.
The operating agreement purported it was a joint venture between
Continental the Jeromes former joint venture partnerand Red Cedar Investor,
LLC. Ferguson was identified as the Managing Member of Red Cedar Investor,
LLC with a 51% equity stake in the Ferguson/Continental Lansing, LLC.
Continental owned the other 49% equity stake in Ferguson/Continental Lansing,
LLC. The Ferguson/Continental Lansing, LLC operating agreement had been
executed three months earlier on June 28, 2013.
Page 39 of 62
c.
The one-page proposal offered Leo Jerome an opportunity to participate in
the Ferguson/Continental Lansing LLC and develop the Red Cedar Renaissance
Projecteven though the Jerome Family was already awarded the RFQP and Chris
Jerome was the authorized agent for the selected Developer.
d.
The one-page proposal offered Leo Jerome only 1/3 equity in
Ferguson/Continental Lansing LLC (with Ferguson and
Continental each
possessing 1/3), but only if the Jerome family sold their Sawyer Pontiac property
on Michigan Avenue for $3,500,000 which was 50% under the fair market value
of the Sawyer Pontiac property.
151.
After Leo Jerome arrived at City Hall, Mayor Bernero told Leo Jerome that if the
Jeromes did not accept this proposal then they would be cut out of the Red Cedar Renaissance
Project despite their winning of the RFQP.
152.
Later that same day, LEAP CEO Trezise interfered with the Jerome business
relationships and expectancies with Jeromes partners by calling representatives of Carpenter &
Company in Massachusettswho Chris Jerome had brought to Lansing to meet City of Lansing
and LEAP officials many times to share Carpenter & Companys ideas on the financing and design
of a $100 million piece of the Red Cedar Renaissance Project to include amenities like Whole
Foods, boutique luxury hotels, and an outside concert pavilion/ice rink. Trezise told the
Carpenters representative that that Jeromes status in the Project was uncertain and that
Carpenters participation was no longer desired.
Page 40 of 62
153.
On December 2, 2013, Jerome received an email from Karl Dorshimer, the COO
of LEAP, informing him that Jerome and his Capital Gateway Project have been relieved of their
award of the project by LEAP and the City of Lansing.
154.
On December 12, 2013, without rebidding the Red Cedar Renaissance Project, and
in violation of Chapter 206 of the Lansing City Ordinance, Purchasing, Contracts, and Sales,
Mayor Bernero and Trezise held a surprise press conference and awarded the Red Cedar
Renaissance Project to the Ferguson/Continental Lansing, LLC controlled by Joel Ferguson and
Frank Kass an entity that had never bid for any City of Lansing RFQP, let alone the Project that
was bid out in June of 2012.
155.
Less than three weeks later, shortly before January 1, 2014, Mayor Bernero and
Ferguson traveled to Pasadena, California to watch MSUs football team participate in the Rose
Bowl. Upon information and belief, during this trip, Teri Bernero, and Anna (Fergusons
girlfriend/common-law wife) shopped together on Rodeo Drive in Beverly Hills, California. This
trip continued a pattern of gifts and bribes including golf fees, clothes, tickets, meals, trips as
well as political endorsements and donations (including thousands in Clark Construction corporate
contributions) that Ferguson gives and has given to Mayor Bernero to do Fergusons bidding
regarding Lansing public projects.
156.
Upon information and belief, Ferguson has given Bernero many other goods and
services of value including a club membership, greens fees, tickets, meals, trips and other items
over a period of years, in exchange for political influence and favors, such as for example,
delivering the four City Council votes as referenced in the Ferguson narrative of October 2012.
(Ex. 5.)
Page 41 of 62
Ferguson Enterprises Continued Racketeering and Misuse of Its Municipal Political Power to
Appropriate the Jeromes Project, Cause the Jeromes Economic Harm, and Appropriate the
Red Cedar Renaissance Project
157.
On November 6, 2014, the City of Lansing entered into a Real Estate Purchase and
Development Agreement for the sale of the Red Cedar Golf Course property to
Ferguson/Continental Lansing, LLC.
158.
Under the terms of the Agreement, the Joel Ferguson and Frank Kass-controlled
Ferguson/Continental Lansing, LLC purchased the Red Cedar Golf Course property for
$7,147,604, a purchase price of only $220,000 per acre.
159.
Because of the influence of the Ferguson Enterprise, this sale of City land was
dramatically below fair market value. For comparison, directly across the street, the Jeromes sold
the Story Olds property for $2,117,000 per acre. Further, just one year later on August 6, 2015,
three separate parcels near the Red Cedar Golf Course totaling approximately 1.4 acres sold at
auction for $8,000,000, or approximately $5,714,000 per acre.
Defendants Extortion Tactics Continue with Respect to the Jerome Familys Parcels
160.
On March 14, 2014, a representative of Developer A, a national developer with
experience in multi-family, luxury, market rate, senior, and student housing developments who
were interested in partnering with the Jeromes to develop a $90 million stand-alone project using
one Jerome parcel, met with LEAP CEO Bob Trezise and LEAP COO Steven Willobee.
161.
At this meeting, Willobee, speaking for LEAP and Trezise, told the Developer A
representative it was probably best if the Jeromes were not involved as it would risk our company
receiving approvals for the project. When questioned by a representative of Developer A, LEAP
Page 42 of 62
COO Willobee stated further the City would not look positively on our proposal if the Jerome
family was involved
162.
As a result of Trezises threats and the interference by Ferguson and Mayor
Bernero, the Jeromes lost out on a second development opportunity a project in excess of $90
million and were ultimately forced to sell their 3.3 acre Story Olds property at a reduced price
of $7.05 million to Developer A.
163.
On May 7, 2015, LEAP CEO Trezise told the Developer A representatives that
Mayor Bernero wanted them to meet with Joel Ferguson regarding Developer As development
project on the Jerome familys Story Olds property. While Developer A had no interest in meeting
with Ferguson, the Developer A representatives did not want to risk any ill-will with LEAP or the
City of Lansing that would slow down their proposed $90 million young professional and student
housing project. As a result of Trezises comments, the Developer A representatives agreed to
meet with Ferguson
164.
On May 14, 2015, Developer A representatives met with Mayor Bernero, LEAP
CEO Trezise, and Ferguson at an office on the campus of MSU. At this meeting, Ferguson
attempted under the auspices of his connections with Bernero and LEAP to solicit confidential
information and intimidate this potential competitor:
a.
Ferguson demanded to know the details of Developer A project on the
Jerome Story Olds site.

b.
Ferguson told the Developer A representatives that he had managed to
convince MSU to assist in financing a large portion of the Red Cedar Renaissance
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with a master lease arrangement. This development if true could potentially hurt
the competitiveness of the Developer A project.
c.
Ferguson also told the Developer A representatives that MSU was acting as
a joint venture partner with Sparrow Health for one portion of the Red Cedar
Renaissance Project and acting as a joint venture partner with Ferguson (and
presumably Kass/Continental) for residential housing. This development if true
could potentially hurt the competitiveness of the Developer A project.
165.
During the last two weeks of May of 2015, Ferguson and Stralkowski incessantly
called and emailed the Developer A representative. In increasingly hostile terms, they demanded
confidential information from the Developer A representatives about its intended project on the
Jerome familys parcel. Developer A never provided any information to Ferguson, Stralkowski, or
Ferguson Development.
166.
On or around June 5, 2015, a Developer A representative met with Kelly Rossman
of Truscott Rossman, a Lansing public relations firm, to discuss hiring that firm for public relations
related to the Jerome familys parcel. Ms. Rossman a LEAP board member pressured the
Developer A representative to call and meet with Mr. Ferguson.
167.
As a result, the Developer A representative met with Ferguson later that date.
Ferguson told the Developer A representative that the Developer A project was dead unless two
things happened:
a.
Developer A pay Ferguson $147,000;
b.
Developer A persuade Jerome to drop a lawsuit Jerome had filed against
Ferguson, Ferguson Development, Kass, and Continental in Cook County, Illinois.

Page 44 of 62
168.
On November 11, 2015, Mayor Bernero signed a development agreement with
Ferguson/Continental Lansing LLC to develop the Red Cedar Golf Course.

169.
As part of that agreement, the City of Lansing agreed to directly pay up to $38
million in infrastructure costs for this private development headed by the Mayors golf partner,
Rose Bowl traveling companion, and so-proclaimed holder of 4 of the 8 votes on the Lansing City
Council Joel Ferguson.
170.
Earlier this year, on January 2, 2016confirming an email Stralkowski sent Chris
Jerome 3 years earlier on January 15, 2013 (see above) that Ferguson, Chuck Clark and the Drain
Commissioner, Pat Lindeman, and the City had reached an agreement that would potentially save
millions in construction costs by having the Drain Commissioner build foundations for the Red
Cedar Renaissance Project,Drain Commissioner Lindemann filed a permit with the Michigan
Department of Environmental Quality to begin work on a $30 million public project that would
keep water run-off from flowing through the closed Red Cedar Golf Course. This drain
construction will save Joel Ferguson, Frank Kass, and their companies millions of dollars in extra
costs to develop the Red Cedar Renaissance Project.
171.
On or around March 27, 2016, Easter Sunday,Drain Commissioner Lindemann
along with Ferguson and Kass spent $250,000 to cut down hundreds of trees on the Red Cedar
Golf Courseeven though the Red Cedar Golf Course has not yet been sold the
Ferguson/Continental Lansing LLC. This expenditure of public funds (the Drain Commissioners
dollars) was not approved by the taxpayers of Lansing or Ingham Countyyet it was done to
promote a private development.
Page 45 of 62
172.
This move by Lindemann and Ferguson/Continental Lansing LLC was done in the
hope of beginning the groundbreaking before this coming October 1, 2016. Under rules of the U.S.
Fish and Wildlife service and the Michigan Department of Environmental Quality, Michigan trees
that may be home to Indiana or Long-Eared Bat species cannot be cut between April 1 and October
1 for fear of hurting young or nursing bats. If the Red Cedar Golf Course trees were cut before
April 1, 2016, then groundbreaking of the Red Cedar Renaissance Project can occur before October
1, 2016. This tree cutting constitutes a trespass upon land still owned by the City of Lansing.
173.
Having received the commitment of up to $38 million public dollars from the City
of Lansing, the Ferguson Enterprise Joel Ferguson, Christopher Stralkowski, Ferguson

Development is now working with Mayor Bernero, LEAP CEO Trezise, Chuck Clark, Frank
Kass, and Drain Commissioner Lindeman to convince the Ingham County Board of
Commissioners (which includes representatives from communities other than Lansing) to agree to
bond an additional $35 million in public dollars (beyond Lindemanns January commitment) to
fully raise over $70 million public dollars to assist in financing this private development.
174.
Once this last grab of public dollars is accomplished, the Ferguson Enterprise and
its co-conspirators will have fully accomplished their goal of appropriating the Jeromes project
and the use public dollars to maximize the Ferguson Enterprises and its co-conspirators profits
from the Red Cedar Renaissance Project.
Frank Kasss and Continentals Tortious Interference with the Jeromes Business Relationship
and Expectancy with Ferguson and Business Expectancy in keeping the RFQP
175.
In 2011, Kass and Continental met with Chris Jerome to discuss a joint venture or
partnership to work as a general developer on the Project and to develop inter alia student housing.
Page 46 of 62
176.
As part of the initial joint venture agreement with Kasss companies, Chris Jerome
insisted on a Confidentiality & Non-Compete Agreement to protect the intellectual property of

the Project with Hallmark Campus Communities (Hallmark), one of Continentals family of
related companies that is Continentals student housing development arm and was housed in the
Continental offices in Columbus, Ohio.
177.
Hallmark Continental executed the Agreement on or about January 17, 2012. Kass
subsequently characterized their agreement as one large joint venture between a Continental
Hallmark entity and the Jerome Family. (Ex. 3.)
178. The Agreement provided inter alia that all Confidential Information would be kept
confidential by Hallmark and its Representatives. Representatives were defined in the
Agreement as Hallmarks directors, officers, employees, agents or advisers (legal, financial or
otherwise), potential financiers or any other representative.
179. The Agreement further provided that the Confidential Information disclosed to
Hallmark would remain the property of Jerome and could not be copied, reproduced, or disclosed
in any manner with anyone other than Hallmark Representatives without the express written
permission Jerome.
180.
In reliance on the Agreement, Chris Jerome shared Confidential Information with
Kass and Continental (and Hallmark)information that cost Chris Jerome hundreds of thousands
of dollars to develop.
181.
According to Ferguson testimony in Cook County, Ferguson and Kass began
talking to each other without the knowledge of the Jeromes shortly after the Jeromes met
Ferguson in June of 2012.
Page 47 of 62
182.
On or around June 29, 2012, Kass told Chris Jerome by telephone that Kass and
Continental Hallmark were ending their joint venture with the Jeromes.
183.
Unknown to the Jeromes, upon information and belief, that same month, Kass and
his professionals engaged in secret discussions with Ferguson, using in part, the Confidential
Information obtained from Chris Jerome.
184.
These secret discussions severed the joint venture between Kass, Continental,
Continental-Hallmark, and the Jeromes and thus destroyed the business expectancies of the
Jeromes regarding the Project and the RFQP.
185.
According to Fergusons Cook County testimony, Ferguson and Kass had reached
their own agreement regarding the Red Cedar Renaissance Project by October of 2012. This
agreement was memorialized with the operating agreement signed on June 28, 2013.
186.
From June of 2012 to the fall of 2013, Ferguson feigned cooperation with Jerome
on the Capital Gateway Project, yet over the next year, Ferguson and Kass hammered out details
of their own operating agreement for the Ferguson/Continental Lansing, LLC, which was finally
executed on June 28, 2013.
187.
The plans that were submitted to the City of Lansing by Ferguson/Continental
Lansing, LLCs which led to their illegal no-bid award of the Red Cedar Renaissance Project award
in December of 2013 largely appropriate in form and substance the proprietary plans and
specifications originally developed by the Jeromes and shared with Kass, Continental, and
Hallmark in reliance on the Confidentiality Agreement.
Page 48 of 62
COUNT I VIOLATION OF THE RACKETEERING INFLUENCED AND CORRUPT

ORGANIZATION ACT, 18 U.S.C. 1962(c), (DEFENDANTS FERGUSON,
STRALKOWSKI, AND FERGUSON DEVELOPMENT.)
188.
Plaintiffs re-allege and incorporate the above allegations in this Complaint, as if
fully set forth in this paragraph.

189.
This Count is against Ferguson, Stralkowski, and Ferguson Development, (the
Count I Defendants).
190.
The Count I Defendants are a group of individuals and a limited liability company
associated in fact, constituting an enterprise (Ferguson Enterprise.) The Ferguson Enterprise is

an ongoing organization whose members continue to function to achieve the objectives of the
Ferguson Enterprise. The members of the Ferguson Enterprise at a minimum include defendants
Joel Ferguson, Christopher Stralkowski, and Ferguson Development.
191.
The Count I Defendants are all associated with the Ferguson Enterprise.
192.
The Ferguson Enterprise was and continues to be engaged in interstate commerce.
The Ferguson Enterprises activities also affect interstate commerce.

193.
The Count I Defendants agreed to and did conduct and participate in the conduct of
the Ferguson Enterprises affairs through a pattern of racketeering to accomplish the objectives of
the Ferguson Enterprise.
194.
Pursuant to and in furtherance of their racketeering scheme, the Count I Defendants
committed multiple related acts of fraud and fraudulent misrepresentations involving multiple
violations of 18 U.S.C. 1341 mail fraud and 18 U.S.C. 1343 wire fraud between June of 2012
and September 13, 2013 to hide and keep concealed Count I Defendants plans with defendants
Kass, Continental, Red Cedar Investor LLC, and Ferguson/Continental Lansing, LLC, to
Page 49 of 62
appropriate and steal Plaintiffs property including inter alia, the Project RFQP award to the
Plaintiffs, architectural renderings and other proprietary intellectual property costing hundreds of
thousands of dollars, and tens of millions of dollars in value and expected profits related to
developing the Project.
195.
Additionally and in the alternative, pursuant to and in furtherance of their
extortionate and bribe-infused racketeering scheme, the Count I Defendants also committed
multiple related acts of extortion and other illegal acts in violation of the Hobbs Act, 18 U.S.C.
1951 and Michigan Compiled Laws 750.213 and 750.118 between October of 2012 and September
13, 2013. In committing these racketeering acts, the Count I Defendants worked with their coconspirators to appropriate and steal Plaintiffs property including inter alia, the Project RFQP
award, architectural renderings and other proprietary intellectual property costing hundreds of
thousands of dollars, and tens of millions of dollars in value related to developing the Red Cedar
Renaissance Project.
196.
The Count 1 Defendants were successful in obtaining these properties and property
interests from the Plaintiffs.

197.
The alternate acts of racketeering described above either through fraudulent
means and/or extortionate meansconstitute a pattern of racketeering activity pursuant to 18

U.S.C. 1961(5).
198.
Additionally and in the alternative, through their conduct described above in the
Common Allegations section of this Complaint, the Count I Defendants agreed to and did conduct
and participate in the conduct of the Enterprises affairs through a pattern of racketeering activity
and for the unlawful purpose of intentionally defrauding Plaintiffs and the Lansing taxpayers and
Page 50 of 62
the Michigan State University. In other words, the Count I Defendants have inter alia orchestrated
and facilitated pay-to-play government contract awards, misconduct in public office, bribery of
public officials, fraudulent and extortionate conduct used to steal the Project, and extortion of at
least $147,000 from Developer A.
199.
The Count I Defendants pattern of racketeering shows no signs of abatement
Ferguson Development has been used as a vehicle for Fergusons and his family enrichment for
over two decades, and was involved in, inter alia, the controversial Triangle Project development
that cost the Michigan taxpayers at least $45 million. Moreover, the Count I Defendants
racketeering activities did not stop with their acquisition of Plaintiffs RFQP award and interest in
the Projectindeed, the Count I Defendants continued to interfere with Plaintiffs business
interests by using their extortionate tactics to tortuously interfere with the Plaintiffs new
development partner, Developer A. The Count I Defendants are currently seeking to cajole or
force Ingham County and the Drain Commissioner to approve $30 million in public dollars to build
foundations for this private development.
200.
As a direct and proximate result of the Count I Defendants racketeering activities
and violations of 18 U.S.C. 1962(c), Plaintiffs have been injured in their business and property
in that they lost the award of the Project and all expected attendant profits as well as hundreds of
thousands of dollars in costs and the loss of intellectual property. While not parties, the City of
Lansing, its taxpayers, and the Michigan State University have additionally suffered damages from
this racketeering enterprise. Additionally, the Count I Defendants racketeering activities and
violations of 18 U.S.C. 1962(c) have interfered with Plaintiffs business dealings with Developer
Page 51 of 62
A and directly and proximately caused damage to Plaintiffs business expectancies with Developer
A related to the sale and development of Plaintiffs property.
WHEREFORE, Plaintiffs respectfully request that this Honorable Court enter judgment in
their favor and against the Count I Defendants, as follows:
(i)
For compensatory damages in an amount to be proven at trial in excess of

$75,000.00;
(ii)
Treble damages;
(iii)
Attorneys fees; and
(iv)
For such other relief as the Court deems just and proper.
COUNT II CONSPIRACY TO VIOLATE THE RACKETEERING INFLUENCED AND

CORRUPT ORGANIZATION ACT, 18 U.S.C. 1962(d), (DEFENDANTS BERNERO,
TRESIZE, LEAP, FERGUSON, STRALKOWSKI, FERGUSON DEVELOPMENT,
CHUCK CLARK, CLARK CONSTRUCTION, RED CEDAR INVESTOR LLC, AND
FERGUSON/CONTINENTAL LANSING LLC.)
201.

202.
This Count is against Defendants Bernero, Trezise, LEAP, Ferguson, Stralkowski,
Ferguson Development, Chuck Clark, Clark Construction, Red Cedar Investor LLC, and
Ferguson/Continental Lansing, LLC (the Count II Defendants.)
203.
As set forth above, the Count II Defendants intentionally agreed and conspired to
violate 18 U.S.C. 1962(c). Specifically, the Count II Defendants have intentionally conspired to
conduct and participate in the conduct of the affairs of the enterprise through a pattern of
racketeering activity 1962(c). The Count II Defendants worked together to make fraudulent
representations to the Plaintiffs regarding their rights and status as the selected Developer on the
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Project. These fraudulent representations, designed to induce Plaintiffs to surrender valuable

confidential development information, were made through the use of interstate mails and wires
(email, telephone, postal service).
204.
Additionally and alternatively, the Count II Defendants also intentionally agreed
and conspired to engage in bribery and extortion, in violation of both federal and state law, to
create a political system in Lansing where Plaintiffs were forced to surrender equity and use
preferred contractors in exchange for political approvals. For example, and as detailed further in
the Common Allegations, the Count II Defendants agreed to pressure the Plaintiffs into
surrendering equity in the Project and using certain specified contractors, under the threat of using
their political power and connections to take the Project away from the Plaintiffs. The Count II
Defendants benefitted from their conspiracy financially and politically.
205.
The Count II Defendants knew that their predicate acts were part of a pattern of
racketeering activity and agreed to the commission of those acts to further the schemes described
above. That conduct constitutes a conspiracy to violate 18 U.S.C 1962(c), in violation of 18
U.S.C. 1962(d).
206.
As direct and proximate result of the Count II Defendants conspiracy, the overt
acts taken in furtherance of that conspiracy, and violations of 18 U.S.C. 1962(c), Plaintiffs have
been injured in their business and property in that they lost their award of the Project and all
expected attendant profits as well as hundreds of thousands of dollars in costs and the loss of
intellectual property. Additionally, the Count II Defendants racketeering activities and conspiracy
to violate 18 U.S.C. 1962(c) have interfered with Plaintiffs business dealings with Developer A
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and directly and proximately caused damage to Plaintiffs business expectancies with Developer
A related to the sale and development of Plaintiffs property.
their favor and against the Count II Defendants, as follows:
(i)

$75,000.00;
(ii)
Treble damages;
(iii)
Attorneys fees; and
(iv)
COUNT III VIOLATION OF PLAINTIFFS FOURTEENTH AMENDMENT RIGHT

TO NOT BE DEPRIVED OF PROPERTY PURSUANT TO 42 U.S.C. 1983
(DEFENDANTS BERNERO, TRESIZE, AND LEAP)
207.

208.
This Count is pled against Defendants Bernero, Trezise, and LEAP, (Count III
Defendants) who at all pertinent times were acting under the color of state law to deprive Plaintiffs
of their rights under the Fourteenth Amendment of the United States Constitution, specifically of
Plaintiffs right to not be deprived of property without due process of the law.
209.
Bernero acted in his capacity and role as Mayor of Lansing under the color of state
210.
Trezise and LEAP acted as agents of the City of Lansing and under color of state
law.
law.
Page 54 of 62
211.
Plaintiffs submitted a bid in response to the RFQP issued by the City of Lansing
and LEAP.
212.
Plaintiffs were selected as the selected Developer and authorized agent (for
Chris Jerome) in response to Plaintiffs submission and bid for the RFQP.
213.
As the selected Developer, Plaintiffs are entitled to, inter alia, the following
property rights pursuant to the RFQP:

a.
The selected developer will enter into a planning and negotiation process with the
LEDC [LEAP] and City [of Lansing] that should ultimately result in a Comprehensive
Development Agreement. (Ex. 4, at 1.)
b.
The developer selected to purchase the Property (the Developer) will work with
the Public Entities to develop the Property. (Id., at 7.)

c.
The proposed Developer is to be the sole representative and point of contact with
regard to development, site purchase, construction, condominium and lease related matters
and any cost or expense charges. (Id., at 10.)
214.
Plaintiffs reasonably relied on their selection in response to the RFQP, and their
property rights as the selected Developer that Plaintiffs as [t]he selected developer will enter into
a planning and negotiation process with the LEDC and City that should ultimately result in a
Comprehensive Development Agreement. (emphasis added). Included in the award of the RFQP,
the City guaranteed that Plaintiff Chris Jerome would be the sole authorized agent who has
unqualified authority to negotiate with the City of Lansing and its agent LEAP.
215.
Plaintiffs had a property interest in these rights and promises related to their
selection as the selected Developerfor example, Plaintiffs selection had a direct effect on
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Plaintiffs ability to obtain financing for the Project, to borrow money, to issue debt, and to
otherwise do business.
216.
However, after Plaintiffs rejected Joel Fergusons repeated and escalating demands
for equity in and control of the Project, the Count III Defendants agreed and conspired to rescind
the Plaintiffs selected Developer status and to award the Project instead to Joel Ferguson and his
companies.
217.
Without a hearing or rebid, Bernero, Trezise, and LEAP worked together to rescind
Plaintiffs selection as selected Developer, and to instead award the Project, on a no-bid basis to
Joel Fergusons company, Ferguson/Continental Lansing, LLC.
218.
Additionally, in re-awarding the Project on a no-bid basis, the Count III Defendants
violated Chapter 206 of the Lansing City Ordinances, Purchasing, Contracts, and Sales.
219.
Specifically, the Count III Defendants acted under the color of law to rescind the
Project award from Plaintiffs, and to deprive Plaintiffs of their selected Developer status and
attendant property rights without any notice, let alone any due process of the law.
220.
On December 2, 2013, Chris Jerome received an email from Karl Dorshimer of
LEAP, informing him that Plaintiffs have been relieved of their award of the project by LEAP and
the City of Lansing.
221.
On December 12, 2013, instead of rebidding the Red Cedar Golf Course
development project as Mayor Bernero had promised Chris Jerome and the Lansing taxpayers,
Mayor Bernero and Trezise held a surprise press conference and awarded the Red Cedar Golf
Course development project to the Ferguson/Continental Lansing, LLC. Thus, Defendant Joel
Ferguson obtained Plaintiffs property interest as the new selected Developer.
Page 56 of 62
222.
Earlier in 2013, Trezise informed Chris Jerome of Joel Fergusons threats, for
example to derail the Mayor Berneros reelection campaign by accusing him of being a racist if
the Mayor did not meet Fergusons demands with regard to the Capital Gateway Project. Trezise
also told Chris Jerome that the racism claim would cripple Bernero politically even if it did not
remove him from office.
223.
Trezise then told Chris Jerome that Joel Ferguson had had control over Lansing
politics for years and told Chris Jerome a story about a time Joel Ferguson had boasted that
taxpayer money was flowing from Michigan State University into the pockets of Lansing City
Council members.
224.
On January 10, 2013, Stralkowski emailed Chris Jerome and threatened to take Joel
Fergusons latest set of demands (styled as a compromise) off the table and indicated that
Defendant Mayor Bernero will terminate the Project if Joel Fergusons demands were not met.
225.
During meetings in March of 2013, Trezise and Mayor Bernero continued to
represent that Joel Ferguson was putting political pressure on Mayor Bernero through Joel
Fergusons control of the Lansing City Council, and that Joel Ferguson was prepared to terminate
the Project through his control of the Lansing City Council if Plaintiffs did not agree to Joel
Fergusons demands for equity and control.
226.
Plaintiffs have a right under the Fourteenth Amendment to the United States
Constitution to not be deprived of property without the due process of the law.
227.
Defendants Bernero, Trezise, and LEAP by their unlawful acts and acting under the
color of law, deprived Plaintiffs of their property right as the selected Developer under the RFQP
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and related property rights in violation of Plaintiffs rights not to be deprived of property without
due process under the United States Constitution.
their favor and against the Count III Defendants for the following:
a.

$75,000.00;
b.
For reasonable costs and attorneys fees pursuant to 42 U.S.C. 1988;
c.
COUNT IV TORTIOUS INTERFERENCE WITH BUSINESS EXPECTANCY THE

PROJECT (DEFENDANTS KASS, CONTINENTIAL, HALLMARK, AND TRESIZE)
228.

229.
This Count is pled against Defendants Kass, Continental, Hallmark, and Trezise
(the Count IV Defendants.)

230.
Plaintiffs had a business relationship and expectancy with Joel Ferguson for the
Project. This relationship and expectancy manifested itself thorough the various offers and
operating agreements circulated to Plaintiffs by Joel Ferguson, demanding increased equity and
increased control over the project. Bernero, Trezise, and Ferguson represented to Plaintiffs that
Plaintiffs needed Fergusons involvement and support to obtain the necessary political approvals
for the Project. Additionally, Plaintiffs attended numerous meetings regarding the Project with
both Ferguson and officials like Bernero and Trezise in the same room.
231.
Following their win of the RFQP and their selection as the selected Developer,
Plaintiffs also had a business expectation and property rights associated with their selection, such
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as right be the sole project representative and negotiate with the City of Lansing for a
Comprehensive Development Agreement.
232.
The Count IV Defendants had knowledge of the Project and Plaintiffs rights and
expectancy related to the Plaintiffs initial negotiations with Ferguson, as well as the Plaintiffs
rights and expectancy related to Plaintiffs selection as the selected Developer pursuant to the
RFQP. Indeed, Plaintiffs had previously engaged Kass and Continental as potential partners for
the Project, but Kass told Chris Jerome he was no longer interested in the project due to Fergusons
involvement.
233.
As part of the potential partnership, Plaintiff Story Companies and Hallmark
executed a Confidentiality and Non-Compete Agreement on or about January 17, 2012.

234.
However, Defendants Kass, Continental, and Hallmark intentionally, willfully, and
without justification interfered with Plaintiffs rights and business expectancies by inter alia: (1)
meeting and talking with Joel Ferguson after Ferguson and Plaintiffs had already met and agreed
to work together on the Project, with the intent to divert Fergusons efforts for Kasss and
Continentals own gain; (2) misappropriating and stealing the plans and depictions of the Capital
Gateway Project for their own use; and (3) otherwise misrepresenting to the Plaintiffs that Kass
and Continental were no longer interested in the Project because of Ferguson, where in reality,
Kass and Continental were actively working to divert Fergusons influence for their own financial
benefit, and to the detriment of the Plaintiffs.
235.
Separately, Defendant Trezise intentionally, willfully, and without justification
interfered with Plaintiffs rights and business expectancies in the Project by inter alia by calling
representatives of Carpenter & Company in Massachusetts, on or around September 13, 2013.
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Carpenter & Company was one of the developers who Chris Jerome had brought to Lansing to
meet City of Lansing and LEAP officials many times to share Carpenter & Companys ideas on
the financing and design of a $100 million piece of the Project to include amenities like Whole
Foods, boutique luxury hotels, and an outside concert pavilion/ice rink. At the time, in September
2013, Plaintiffs were the selected Developer awarded the RFQP and had valuable property rights
associated with that status, such as for example, to be the sole representative and point of contact
with regard to development, site purchase, construction, condominium and lease related matters.
236.
Trezise however intentionally violated that expectancy and right. Trezise told the
Carpenter representative that that Jeromes status in the Project was uncertain and that
Carpenters participation was no longer desired.
237.
As a result of the Count IV Defendants actions, Plaintiffs have lost not only their
business relationship and expectancy with Ferguson, but also their business expectancy related to
being named selected Developer and winning bidder for the Project. Plaintiffs have suffered, as
a consequence, damages in excess of $75,000.00.
their favor and against the Count IV Defendants for the following:
a.

$75,000.00;
b.
COUNT V TORTIOUS INTERFERENCE WITH BUSINESS EXPECTANCY

DEVELOPER A (DEFENDANTS TRESIZE, LEAP, AND FERGUSON)
238.

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239.
This Count is pled against Defendants Trezise, LEAP, and Ferguson (the Count V
Defendants.)
240.
Plaintiffs had a business relationship and expectancy with Developer A for the sale
and development of property owned by the Jeromes, specifically a $70 plus million development,
independent of the Project. The Jeromes obtained this business relationship and expectancy
following the Defendants actions to deprive Plaintiffs of their rights as selected Developer for
the Project and to otherwise interfere with Plaintiffs business interests, as described throughout
this Complaint.
241.
The Count V Defendants had knowledge of the business expectancy and
relationship with Developer A because, at a minimum, Developer A representatives met with

Trezise in 2014.
242.
The Count V Defendants intentionally, willfully, and without justification
interfered with Plaintiffs rights and business expectancies by inter alia: (1) telling Developer A
that the Jeromes should not be involved in the project, or otherwise the project would not receive
the necessary governmental approvals; (2) directing Developer A representatives to meet with Joel
Ferguson, and then solicit confidential information and intimidate Developer A to give up its status
as a potential competitor; (3) using Fergusons position and influence at MSU to threaten
Developer A and making extortionate demands from Developer A, including to make a cash
payment to Ferguson, and to force Chris Jerome to drop a related lawsuit in Cook County, Illinois.
243.
As a result of the Count V Defendants actions, Plaintiffs have lost their business
relationship and expectancy to develop their parcels with Developer A and have thereby lost their
expected profits from the business relationship and expectancy.
Page 61 of 62
their favor and against the Count V Defendants for the following:
a.

$75,000.00;
b.
****PLAINTIFFS DEMAND A TRIAL BY JURY****
Dated: September 9, 2016
Respectfully submitted,
THE MIKE COX LAW FIRM PLLC
s/ Michael A. Cox (P43039)

Michael A. Cox (P43039)
Danila V. Artaev (P74495)
Attorneys for Plaintiffs
17430 Laurel Park Drive North, Suite
120E, Livonia, MI 48152
(734) 591-4002
mc@mikecoxlaw.com
dartaev@mikecoxlaw.com
Page 62 of 62
Case 1:16-cv-01116 ECF No. 1-1 filed 09/09/16 PageID.63 Page 1 of 31
UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
CHRISTOPHER JEROME, an individual,
LEO JEROME, an individual, and
STORY COMPANIES, LLC,
a Michigan limited liability company,
Plaintiffs,
v.
Case No.:
Hon.
JOEL FERGUSON, an individual,

VIRGIL BERNERO,
the Mayor of the City of Lansing, in his individual capacity,
LANSING ECONOMIC AREA PARTNERSHIP, INC.,
a Michigan non-profit corporation,
ROBERT L. TREZISE, JR., an individual,
CLARK CONSTRUCTION SERVICES, LLC,
CHARLES CLARK, an individual,
FRANK KASS, an individual,
CONTINENTAL DEVELOPMENT, INC., an Ohio corporation,
HALLMARK CAMPUS COMMUNITIES,
an Ohio partnership,
FERGUSON DEVELOPMENT, LLC,
CHRISTOPHER STRALKOWSKI, an individual,
FERGUSON/CONTINENTAL LANSING, LLC,
A Delaware limited liability company, and
RED CEDAR INVESTOR, LLC, a Michigan limited liability company,
Defendants.
EXHIBIT LIST
Ferguson Development Website ................................................................................................1
December 11, 2012 Ferguson Letter to Bernero ........................................................................2
March 3, 2012 Email from Kass about Joint Venture ...............................................................3
RFQP Excerpt ...........................................................................................................................4
October 25, 2012 Letter and Summary ......................................................................................5

January 10, 2013 Email from Stralkowski to Jerome ................................................................6
January 15, 2013 Email from Stralkowki to Jerome..................................................................7
EXHIBIT
1
EXHIBIT
2
0228
0229
EXHIBIT
3
EXHIBIT
4
A.
PURPOSE AND OBJECTIVE OF THIS RFQP
The Lansing Economic Development Corporation (LEDC) and City of Lansing are releasing this
RFQP to make potential developers and other interested parties aware of a great development
opportunity. The objective of this RFQP effort is to identify one developer who has the vision,
experience, capacity and financial wherewithal to purchase and develop this site to its maximum
potential. The selected developer will enter into a planning and negotiation process with the
LEDC and City that should ultimately result in a Comprehensive Development Agreement.
Any questions regarding this RFQP should be sent via email to Karl Dorshimer, President and
CEO, Lansing Economic Development Corporation: kdorshim@lansingmi.gov
B.
DESCRIPTION OF PROPERTY AND OPPORTUNITY
The Lansing Economic Development Corporation (LEDC) and City of Lansing (City)
(hereinafter described together as the Public Entities) are pleased to offer a premiere
development opportunity in
Michigans Capital City.
The
development
opportunity consists of a
12.5 acre +/- parcel
on the border between the
Cities of Lansing and East
Lansing
and
directly
adjacent to Michigan State
University.
Located in
Lansing, Michigan, the site
is within a two-hour drive
of 90% of Michigans
population, and within a
days drive of a substantial
portion of the U.S. population. The subject property has easy highway access and is fronted by
East Michigan Avenue, the main travel corridor between the Cities and University.
Traffic
counts on Michigan Avenue average 24,000 per day and counts on nearby U.S. 127 are 80,000
per day.
The Michigan Avenue corridor contains the highest ridership route (Route 1) within the Capital
Area Transportation Authority (CATA) system, prompting CATA to conduct studies to
expand transit services along Route 1. Furthermore, the site also has readily available access to
US-127, with further connections to I-96 and I-69.
In addition to ease of access to the CATA bus system and the interstate highway system, the site
provides convenient access to Lansings nationally renowned River Trail System, connecting
several communities throughout northwest Ingham County.
A condominium survey and development of legal descriptions for individual condominium units
prepared by the Developer if this approach is selected.
K.
CONCEPTUAL DEVELOPMENT PLAN
The proposed use of the Property is anticipated to include residential, commercial office, retail
and/or destination entertainment uses.
It is intended that the development of the Property, which may include a proposed master plan
for the Additional Property, be a vibrant mixed use development space which will attract other
corridor improvement, investment and commercial activity to the area. State of Michigan and/or
other governmental leases or uses are discouraged. Preferred uses will be those that generate
new economic activity along the Michigan Avenue corridor and that provide an increased tax
base unless there is a public or private use development with a significant public benefit.
The Property may be divided into two or more ownership units or into two or more
condominium descriptions as shall be determined during the negotiation phase and agreed upon
in the CDA.
A stand-alone parking facility of any type will not be considered for the Property. Parking in
conjunction with other uses as described above is acceptable.
L.
PROPOSAL CONTENT
The LEDC seeks proposals from qualified developers for the Property. The developer selected
to purchase the Property (the Developer) will work with the Public Entities to develop the
Property.
The proposal should not exceed 20 pages in total and include:
1.
BASIC INFORMATION & QUALIFICATIONS

a.
Full name and address of firm. Each responding developers proposal

must identify its authorized agent who has unqualified authority to bind
the developer with regard to all matters arising from or related to this
process.
b.
Contact Person with: email, phone and FAX numbers.
c.
Project experience during the last five years with special emphasis on
projects similar in design and scope.
d.
References, including a contact for above referenced projects.
e.
Business Organization Chart.

7
O.
SELECTED DEVELOPER RESPONSIBILITIES
The intended outcome of this process is the Review Teams focus on a development proposal for
further negotiations of a CDA. The proposed Developer is to be the sole representative and point
of contact with regard to development, site purchase, construction, condominium and lease
related matters and any cost or expense charges. The proposed Developer shall be responsible
for the adherence by its team members to the provisions of the contracts that result from the
award. The CDA to be executed between the Public Entities and the proposed Developer will
contain provisions granting the City the right to disqualify any development team member(s)
found to be unacceptable during development of the project.
P.
SEALED PROPOSAL RECEIPT
Sealed proposals must be received and time-stamped at the LEDC on or before 4 p.m. EST on
July 9, 2012. Proposals received after the specified due date and time will not be considered.
Each respondent is responsible for timely delivery of their proposal.
Each respondent is responsible for assuring that the following identifying information appears on
the outside of the envelope:
SEALED Red Cedar Redevelopment Site notation on the cover.
Name of company, individual, or organization making the proposal,
Date due, and time due before 4:00 PM, July 9, 2012 at the LEDC.
If a delivery service is used which prohibits such markings on their envelope or package, this
information must be placed on the outside of an interior envelope or package.
The address for proposals submitted by contract carrier, courier delivery, personal delivery or
U.S. Postal Service is:
Lansing Economic Development Corporation
Attn: Karl Dorshimer
President & CEO
401 S. Washington Avenue
Suite 100
Lansing, MI 48933
Q.
SUBMISSION REQUIREMENTS
Submit one (1) electronic version and six (6) paper copies of the full proposal including all
RFQP exhibits. The proposal should include a table of contents and be tabbed to identify each
document.
Proposals must be signed by the proposing entitys authorized officer.
10
EXHIBIT
5
October 25, 2012

Leo Jerome and Chris Jerome
Story Properties, LLC
1919 Creyts Road
Lansing, Michigan 48917
Re:
Capital Gateway Project, LLC
Dear Leo and Chris:

Attached is a project summary that was prepared for the purpose of finalizing the terms
for the Operating Agreement for Capital Gateway Project, LLC.
In order to satisfy various concerns that have been brought up regarding the project,
please note the following:
1.
The proposal provides that the Story-owned parcels, the former Story Oldsmobile
and former Sawyers Pontiac sites, would be purchased by Capital Gateway, LLC at fair market
value.
2.
Chris Jerome would be paid for development services he provided for the past
three (3) years.
3.
The ownership interest would be divided equally between two families and each
family can decide how their interest is to be divided.
I would like to meet with you both next week regarding this matter so that we may
finalize our agreement. If you are available on Tuesday, then please let me know.
Very truly yours,
Joel I. Ferguson
Ferguson Development, LLC
Lansing, Michigan

CAPITAL GATEWAY PROJECT, LLC
Red Cedar Project Summary
I.
City of Lansing RFP. LEAP on behalf of the City of Lansing was authorized to issue an
RFP to select a developer for a 12 acre portion of the Red Cedar Golf Course property.
This was only a portion of the 60 acre Red Cedar Property available because it was the
only 12 acres of the property that had been approved for sale by the voters of Lansing.
II.
Joint Development. Chris and Leo Jerome approached Joel Ferguson regarding his
participation in the development of the Red Cedar proposal. Both Chris and Leo were
interested in the Joels political expertise along with his previous development experience
that he could deliver to the partnership. It was recognized that Joels role would be
beneficial moving the entire RFP process forward. In fact, Joels role was and is critical
in obtaining the necessary governmental approvals throughout the development process.
Joel felt that the best way to immediately proceed was to put together a team for the
conceptual development of the site and proposed bringing in Hobbs & Black as the
architect to fine tune the site plan and consulting potential construction costs and issues
using Clark Construction. Representatives from Hobbs & Black and Clark Construction
were contacted and consulted for the RFP submission. This resulted in presenting a
complete conceptual development for the full 60 acre parcel. Joel then approached the
Mayor along with the Lansing City Council regarding the development of an expanded
project. In order for the City of Lansing to be able to authorize and expand the project to
the remaining 48 acres of the Red Cedar property, the proposal would require Councils
approval along with ballot language for the November 6, 2012 election in which the
voters could approve the sale of the remaining 48 acres of park property.
III.
LEAP and City of Lansing Approval. The evaluation of the RFP proposals was made by
the LEAP board. Initially, LEAP decided that the Capital Gateway proposal would be
combined with the proposal by DTN for the 12 acre development. Joel Ferguson
immediately met with the Mayor to discuss the decision of the LEAP Board. Joel
Ferguson communicated to the Mayor that a joint venture with DTN was unacceptable
and that the Capital Gateway proposal should be accepted as the exclusive RFP proposal
for this development whether the project included either 60 acres or 12 acres. Joel
Ferguson promised that he could deliver four (4) votes from the City Council if the
Mayor could deliver three (3) votes.
Following Joels meeting with the Mayor, the LEAP Board was instructed by the Mayor
to accept the Capital Gateway RFP proposal, whether it was 60 acres or 12 acres,
because it was by far, the most comprehensive plan for development of the Red Cedar
property. As a result of the Mayors directive, LEAP announced that Capital Gateway
RFP proposal had been selected. Joel Ferguson then met with representatives of the
Lansing City Council to obtain their commitment to support the Capital Gateway RFP
Proposal. On August 27, 2012 the Lansing City Council approved the selection of
Capital Gateway RFP. The Council permitted the issue to be placed on the November 6
ballot for voter approval. Council voted 7 to 1 to approve this motion. The initial 12 acre
RFP proposal now evolved into a full 60 acre development using Chris vision and Joels
ability to move key people in sync successfully at a crucial stage of the development
process. Between Chris vision and Joels success, a great team of developers had been
created.
1

IV.
State Journal Endorsement. On October 13, 2012 the Lansing State Journal endorsed the
Jerome/Ferguson RFP Development proposal. Bob Trezise, President of LEAP and
Patrick Lindemann, the Ingham County Drain Commissioner provided strong
endorsements for the Jerome/ Ferguson development proposal. The Lansing State
Journal pointed out that much of the major development proposal comes before
construction begins, such as lining up the financing, finding tenants for commercial space
and working through details of site plans and enormous engineering challenges. The
Lansing State Journal recognized that developers are not going to invest their time and
resources into all these efforts until they know the site is truly available. The Lansing
State Journals endorsement then went on the say that the voters should vote yes on
November 6 ballot proposal.
V.
Prior Development. Joel Ferguson recognizes that Chris Jerome has been working on a
development project for approximately 3 years. Chris Jerome has obtained a deep
working knowledge of mixed use developments and best practices of student housing
developments around the country. In addition, Chris Jerome should be paid $300,000.00
out of the project funding for these prior development services. Payment to be made in
three equal amounts from revenue generated from the profits of the project.
VI.
Capital Gateway Project, LLC. The Operating Agreement for Capital Gateway Project,
LLC would provide for a 50% membership interest for the Jerome Family and a 50%
membership interest for the Ferguson Family. Any capital contributions will be made
equally between each of the Members. All decisions relating to the management of
Capital Gateway will be made by the Members.
VII.
Story Properties Real Estate. Capital Gateway would agree to purchase the 4.16 acre
former Story dealership property and the 5.09 acre former Sawyer dealership property
from Story Properties, LLC at an amount equal to fair market value. Fair market value
will be determined by an appraisal performed by an appraiser mutually agreed upon
between Capital Gateway and Story Properties. The purchase price will be paid by
Capital Gateway issuing a promissory note in the amount of the purchase price. The note
will be secured by an assignment of membership interests by all of the Members.
Payment will be made on the note in the amount of 50% of future distributions to the
Members from the Capital Gateway to the Members until the note is paid. Interest will
be paid on the note at the rate of 5% per annum from the date of issue until the date paid.
Closing on the purchase will occur upon 30 days notice from Capital Gateway to Story
Properties. The Purchase agreement will contain terms that are normal and customary for
the sale of real estate in the Lansing, Michigan area.
EXHIBIT
6
EXHIBIT
7

Brent Lockwood
From:
Sent:
To:
Subject:
Chris Jerome <jerome.chris@gmail.com>

Thursday, July 07, 2016 12:59 PM
Michael Cox; Dan Artaev
Fwd: Updates from a day in the life of...
Categories:
Blue Category
---------- Forwarded message ---------From: Christopher S <cstralkowski@hotmail.com>

Date: Tue, Jan 15, 2013 at 4:48 PM
Subject: Updates from a day in the life of...
To: "jerome.chris@gmail.com" <jerome.chris@gmail.com>
Cc: Christopher S <cstralkowski@hotmail.com>
Chris-
Hope this finds you feeling better.
I wanted to get these few things in front of you so you can consider
the following prior to our next conversation
Joel spoke with Bob Tresize yesterday, 1/14, and Bob has assured Joel
that Sparrow has no agreement in place with the City regarding an
8 -12 acre parcel on the Red Cedar site. As well, Sparrow would not
be eligible for any type of Brownfield credits or incentives. Carpenter
and other potential investors (2nd hotel) would have access to any and all available Brownfield
credit/incentives for the purpose of development.
1
Following our first meeting in November regarding the Drain Commissioners plan with Pat
Lindemann, Chuck Clark, Joel, Leo(on phone) and Ed McKenzie, a second meeting was held
with just Pat, Joel, Chuck along with Randy and Chad from the City where it was agreed to that
the City would grant the Drain Commissioners office the authority to move forward with the
plan that would potentially save millions in construction costs relating to the expense of
constructing building foundations within the flood plain. A percentage of the savings would
then be paid back to the City by the development. As well, the recent City Pulse article, in
which the Drain Commissioner complained about Randy and the Mayors office, really pissed
off both Randy and the Mayor. The Mayor called Joel today to discuss the status of the
development along with some other issues, Joel was able to negotiated away this problem and
the City is moving forward with an agreement between the City and the Drain Commissioner to
provide approval of Lindemanns project. However, during his discussion with the Mayor, Joel
assured the Mayor that if the project becomes too expensive, the City could step in and modify
the design.
Most importantly, the Mayor told Joel that he needs an agreement from us in place by February
1st or he will act to modify the RFQP that would trigger the clauses and stipulations contained
within the Red Cedar RFQP. These stipulations and clauses legally grant the City and LEAP an
enormous amount of latitude in amending the original agreement. Not an ideal outcome to say
the least.
Let me know when you are back in town. We can have lunch and get a chance to catch up on all
that is going on with you, me, our families and of course the Red Cedar
I hope the information I shared was helpful.
Christopher
Thank you.
Christopher Stralkowski
Ferguson Development
2

1223 Turner Street
Suite 300
Lansing, Michigan 48906
517.371.2515 Office
219.898.6667 Cell

Chris Jerome Federal Lawsuit

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Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.

UNITED STATES DISTRICT COURT

JOEL FERGUSON, an individual,

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.2 Page 2 of 62

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.3 Page 3 of 62

Such is the measure of Fergusons power that he routinely dispatched Mayor

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.4 Page 4 of 62

This illegal racketeering, violations of 42 U.S.C. 1983, and tortious interference

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.5 Page 5 of 62

has jurisdiction under 42 U.S.C. 1983 and 1988.

This Court has personal jurisdiction over all Defendants.

Plaintiff, Christopher Chris Jerome resides in Chicago, Illinois and is a citizen of

the State of Illinois.

Defendant, Joel Ferguson, is a principal and member of Ferguson Development

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.6 Page 6 of 62

Defendant, Lansing Economic Area Partnership, LEAP, is an Internal Revenue

Service 501(c)(6), Michigan not-for-profit corporation with an address of 500 E. Michigan

Defendant, Robert (Bob) L. Trezise (Trezise), is the Chief Executive Officer

of LEAP. Trezise is a citizen of the State of Michigan.

Defendant, Clark Construction Services, LLC, (Clark Construction), is a

Defendant, Charles (Chuck) Clark (Clark), is a principal of Clark Construction.

Clark is a citizen of the State of Michigan.

Defendant, Frank Kass (Kass), is a principal of Continental Development, Inc.

Kass is a citizen of the State of Ohio.

Defendant, Continental Development, Inc., (Continental), is an Ohio

corporation, with its principal place of business in Ohio.

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.7 Page 7 of 62

Defendant, Hallmark Campus Communities (Hallmark), is an Ohio partnership,

with its principal place of business in Ohio.

Defendant, Ferguson Development, LLC (Ferguson Development), is a

Defendant Christopher Stralkowski (Stralkowski) is an executive project

Defendant, Ferguson/Continental Lansing, LLC is a Delaware limited liability

None of the Defendants are entitled to governmental immunity.

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.8 Page 8 of 62

The Ferguson Enterprise consists of Joel Ferguson, Christopher Stralkowski, and

As detailed in this Complaint, Defendants Ferguson, Stralkowski, and Ferguson

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.9 Page 9 of 62

Chair of the Bobby Kennedy campaign for President in Michigan in 1968.

Chair of the Michigan delegation to the Democratic National Convention in

Chair of the Jesse Jackson campaign for President in Michigan in 1988.

In 1988, Ferguson began his 20-year plus membership on the Democratic

National Committee (DNC) where he served on and chaired many powerful

Becoming a personal friend to former President Bill Clinton and former

Secretary of State and Democratic nominee for President Hillary Clinton.

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.10 Page 10 of 62

As a sign of Fergusons close relationship with Bill and Hillary Clinton, in

In 1986, Ferguson was elected to the Michigan State University Board of

Fergusons influence does not stop at the partisan shoreline. In February of

2016, Governor Rick Snyder appointed Ferguson to the Flint Receivership

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.11 Page 11 of 62

Governor Snyder frequently calls on Ferguson to get involved in state MSHDA

Because Section 8 provides for guaranteed payment by cash or voucher, it is highly

In Michigan, the Michigan State Housing Development Authority (MSHDA)

The MSHDA board consists of political appointees of the Governor.

To further facilitate the availability of low-income housing, such as Section 8,

The intersection of Section 8 housing, a Freddie Mac board governed by

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.12 Page 12 of 62

According to 2015 testimony by Ferguson in a case before the Cook County

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.13 Page 13 of 62

Ferguson and Ferguson Development have subsequently developed a number of

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.14 Page 14 of 62

At an August 27, 2012 meeting at the restaurant Troppo in Lansing, while

Case 1:16-cv-01116 ECF No. 1 filed 09/09/16 PageID.15 Page 15 of 62

The Ferguson Enterprise and Influence Peddling in Higher Education: Conflicts of