While retirees are at risk of losing their pensions and services are cut, the former law firm of EM Kevyn Orr already raked in $3.3 million in their first three months of work, records show.
Jones Day is collecting more than $1 million a month, with some attorneys getting as much as $1,000 an hour.
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The firm was supposed to make the money last six months.
So who’s checking the bills for excessive fees? A professional fee examiner, who’s making $600 an hour, paid for by taxpayers.
Although Orr said he has severed ties with Jones Day, one of the premier bankruptcy firms in the U.S., e-mails obtained by the Motor City Muckraker show a much more complicated relationship. Before hiring Orr in March, Gov. Rick Snyder and his executive team were consulting with Jones Day attorneys as early as January. On Jan. 31, a Jones Day attorney advised Snyder that bankruptcy clearly was the top choice – a position that Snyder adamantly denied in public.
So far, the firm has focused on 13 areas, including general restructuring advice, labor and pension analysis, debt restructuring, Chapter 9 contingency planning and water and sewer analysis.
Since Orr took office in March, some of his spending decisions have come under question. For example, the bankruptcy attorney hired a new police chief with a $225,000 salary. He also hired then-Council President Pro Tem Gary Brown for $225,000 a year.
The mayor’s salary, by contrast, is $158,000.
Orr defended the costs, saying the best lawyers and experts are needed because billions of tax dollars are at stake.
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Detroit taxpayers pick up $3.3 million tab for EM’s former firm added by Steve Neavling on
View all posts by Steve Neavling →
Steve Neavling
Steve Neavling lives and works in Detroit as an investigative journalist. His stories have uncovered corruption, led to arrests and reforms and prompted FBI investigations.
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