Mary Waters

Federal Bribery Conviction

In July 2009, Waters and political consultant Sam Riddle were indicted by a federal grand jury in a corruption probe that revealed multiple alleged pay-to-play schemes. The investigation was part of a broader federal probe into corruption in Detroit politics that would eventually lead to dozens of convictions.

The indictment detailed a scheme involving a Detroit jewelry store's relocation to Southfield. According to federal prosecutors, Waters and Riddle conspired to give approximately $12,500 to Southfield Councilman William Lattimore to help secure approval for the relocation. As part of this scheme:

• Riddle allegedly received about $45,000 from the store's owner
• Riddle was given a Breitling watch valued at $5,500
• Waters received a Rolex watch worth $6,000
• Lattimore was charged with accepting the $12,500 bribe

The federal investigation included extensive wiretap evidence. Among the recorded conversations were discussions about various deals and payoffs. These recordings became crucial evidence in the broader federal investigation that also involved other prominent Detroit political figures, including Monica Conyers, who pleaded guilty to accepting bribes in a separate but related case.

Waters' relationship with Riddle complicated the case, as they were both romantic partners and political associates during the period of the crimes. Riddle eventually pleaded guilty to bribery and tax charges in November 2010, in what he described as a deal to keep Waters out of prison.

In 2010, Waters pleaded guilty to one count of Filing a Fraudulent Tax Return, a misdemeanor carrying a maximum sentence of one year in prison. In her guilty plea, she admitted to:

• Accepting a $6,000 Rolex watch from Riddle, which he had obtained from businessman Thomas LaBret
• Understanding the watch was compensation for her work in helping secure Southfield Councilman Lattimore's support for relocating LaBret's business
• Failing to report the watch as compensation on her 2008 tax returns
• Agreeing to forfeit the Ladies' Rolex watch to the United States

The case's resolution was notably different from initial charges, as Waters pleaded guilty to a tax-related misdemeanor rather than facing trial on more serious corruption charges. Despite attempting to later retract her guilty plea, the conviction would later impact her ability to run for certain political offices due to Michigan's laws banning public officials convicted of using their position to commit crimes from holding local or state office for 20 years.

After being charged in the bribery scheme, Waters initially hired high-profile attorney Richard Convertino, known for his work on the "Detroit Sleeper Cell" terrorism case. Convertino filed a motion requesting the court appoint him as Waters' attorney at public expense rather than having her pay for his services. The court filing stated she had "lost her job, is broke and can't afford to pay" the expensive lawyer she had chosen.

Support for Far-Right AxMITax Tax Plan

In 2023, Waters endorsed a radical proposal to eliminate all property taxes in Michigan, despite warnings it would severely impact the public services her Detroit constituents rely upon. As a sitting City Council member, Waters partnered with the AxMITax ballot initiative, led by Karla Wagner, who formed AxMITax in February 2023 with an explicitly anti-public institution agenda. Wagner's vision for eliminating public services was made clear at the Michigan GOP's Mackinac Republican Leadership Conference, where she declared:

"Let them fail. We're getting poor education, and we're getting libraries with sick books in them."

When questioned about the loss of public services, Wagner argued that institutions like libraries and museums should charge admission fees instead of receiving public funding, stating "My mom and dad don't go to the zoo, they don't go to the museum, they don't go to the library, and yet they have to pay for those services."

The initiative's leaders were explicit about their intention to defund education. When confronted about the $2.5 billion annual loss to Michigan schools, Wagner stated "I don't think we need to replace that $2.5 billion," suggesting vaguely that "eliminating property taxes would stimulate the economy and boost other tax revenues."

Waters hosted Wagner at a September 2023 town hall, where Wagner presented these anti-public institution views to Detroit residents. Despite Detroit's heavy reliance on public services, Waters defended the partnership, saying "That's what politics is all about – we can work together on common interests."

The proposal Waters supported would have severe consequences for Detroit:

• Eliminate the $138 million in annual property tax revenue making up 11% of Detroit's budget
• Remove funding for Detroit public schools, which receive over $2.5 billion from property taxes
• Defund Detroit public libraries, museums, and cultural institutions
• Require a 2/3 supermajority vote to raise alternative revenue sources
• Restrict local funding to only "essential government and infrastructure services"

Waters' support drew strong criticism from Detroit community organizations and advocates:

• Detroit People's Platform warned it would harm vital public institutions serving city residents
• Detroiters for Tax Justice called it a "horrendous reactionary solution" that would devastate community services
• Critics noted that eliminating property taxes would disproportionately impact low-income residents who rely on public services and primarily benefit wealthy property owners and real estate investors rather than average Detroiters

Waters defended her position by arguing it would help prevent foreclosures, stating "There are too many people who lost their homes to property taxes and it would take a tremendous amount of stress off so many families." However, critics like Theo Pride of Detroit People's Platform noted that while reducing property taxes was appealing, "on the other side of that is the diminishment of public services, libraries and schools" that Detroit residents depend on.

Downtown Development Tax Breaks: Theatrical Opposition, Quiet Compliance

The contrast between Waters' public rhetoric of protecting taxpayers and her actual voting record reveals a concerning disconnect between performative opposition and real governance choices that impact Detroit residents.

Waters built her political image around protecting taxpayer dollars and demanding accountability for downtown development. In July 2022, she penned a forceful op-ed declaring she would "not entertain any additional public assistance" for the billionaire Dan Gilbert's Hudson's site project "without concrete guarantees of investments to help improve our entire community, not just downtown." She positioned herself as a watchdog of public funds, writing that she "ran for city council to protect the people's money."

However, when it came time for the actual vote, Waters joined a narrow 5-4 majority to approve $60 million in new tax breaks without the community benefits she had publicly demanded. Waters reversed her earlier position on community benefits, stating that the money "could not be used outside of the downtown area" - a direct contradiction to her previous demands for citywide benefits. This justification failed to address why she supported diverting additional tax revenue to downtown development rather than maintaining it for essential city services.

This pattern continued with the procedural aspects - while publicly calling for transparency and accountability, Waters participated in pushing through the vote as a last-minute addition to the agenda. The approval process raised significant transparency concerns. The tax break was pushed through without proper public notice, leading Council Member James Tate to note: "People should know what we're going to vote on before we come into the committee of the whole, especially an item this large." The vote occurred despite the item being scheduled only for referral to committee, not final approval. Council Member Whitfield-Calloway noted during the session: "These are the people's tax dollars and I think we are disrespecting our taxpayers, the residents of the city of Detroit. We say we support them but our actions speak differently."

The tax incentive package had several concerning elements for Detroit residents:

• Diverted $60 million in potential tax revenue while the city faced urgent neighborhood needs
• Relied on disputed job creation numbers to justify the public investment
• Came after the project had already received hundreds of millions in previous tax incentives
• Occurred amid record office vacancies downtown, raising questions about the project's viability