Keith 'K.B.' Stallworth — Federal Money Laundering
On this page
Position
| Field | Value |
|---|---|
| Name | Keith Stallworth (also known as K.B. Stallworth) |
| Former Office | Michigan State Representative |
| Former Office | Wayne County Commissioner |
| Business | Owner/operator, adult entertainment establishment (strip club), Detroit |
| Nonprofit | Managing Director, Black Caucus Foundation of Michigan |
Federal Conviction — Money Laundering Verified
Case: United States v. Keith Stallworth, Eastern District of Michigan Date of Plea: March 6, 2003 Judge: Hon. John Corbett O’Meara, U.S. District Court
| Field | Detail | Source |
|---|---|---|
| Charge | Structuring financial transaction to evade federal currency reporting requirements | DOJ Press Release, Mar 6, 2003 |
| Plea | GUILTY — one-count federal Information | DOJ |
| Original charges | Charged with 13 other individuals on charges of Conspiracy | DOJ |
| Plea deal | Pled to structuring charge; government dismissed more serious conspiracy charges | DOJ |
| The transaction | On March 16, 1998, caused Michigan National Bank to file a false Currency Transaction Report with the IRS | DOJ |
| Amount | $20,000 in U.S. currency used to purchase four cashier’s checks | DOJ |
| False report | CTR “failed to disclose the true source” of the money and “falsely identified another individual as the owner of the currency” | DOJ |
| Source of money | DOJ: money was “obtained through illegal activities” | DOJ |
What the DOJ Actually Said
“Mr. Stallworth knowingly, willfully, and for the purposes of evading the reporting requirements of Michigan National Bank caused a Currency Transaction Report, which contained misrepresentations on who actually owned the currency, to be filed with the Internal Revenue Service.”
“This is not a technical violation, but an intentional criminal violation of federal law, meant to hide the identity of the owner, who obtained the money through illegal activities, from the Internal Revenue Service.”
The Strip Club Connection
The Detroit Free Press (April 27, 2018) reported:
“K.B. is also the Keith Stallworth who pleaded guilty to a felony in federal court in 2003. He was accused of helping a gang launder money through a Detroit strip club he owned.”
A former state representative and county commissioner used an adult entertainment business — an industry built on the exploitation of women — to wash money obtained through illegal activities for a gang. The $20,000 he structured through Michigan National Bank was the proceeds of crimes committed against his own community.
The Stallworth Dynasty
| Family Member | Role | Connection |
|---|---|---|
| Alma Stallworth | Mother — former State Rep (21 years) | Founded Black Caucus Foundation of Michigan |
| Thomas Stallworth III | Brother — former State Rep (2011-2015) | Director, BCF; husband of Nicole Wells-Stallworth |
| Nicole Wells-Stallworth | Sister-in-law | Board President, MacDowell Prep; hired Brian Banks |
| Misha Stallworth West | Niece (Tommy’s daughter) | DPSCD Board Member — authorizes MacDowell’s charter |
| Nicole Stallworth | Wife (different Nicole) | Executive Director, BCF |
Black Caucus Foundation — The Incubator Verified
Keith served as Managing Director of the Black Caucus Foundation of Michigan. The Free Press reported on the BCF board roster:
“The Black Caucus website lists state Sen. Virgil Smith and state Reps. Brian Banks and Bert Johnson as board members. None is still in the Legislature and all have felony convictions.”
The BCF board was where Brian Banks and the Stallworth family intersected. A foundation nominally dedicated to “decrease usage of drugs and alcohol among youth” — run by a man who pled guilty to laundering drug money.
See Black Caucus Foundation of Michigan for the full entity profile.
Connection to Banks Network
| Layer | Connection |
|---|---|
| BCF board | Banks served on the BCF board alongside Keith as Managing Director — this is where they met |
| Family | Brother Thomas married Nicole Wells, who hired Banks at MacDowell |
| Financial | Nicole and Tommy donated $1,250+ to Banks’ campaigns |
| Pattern | Federal money laundering conviction → family inherits political infrastructure → infrastructure used to install convicted felon as school superintendent |
The Community Cost
Keith Stallworth’s $20,000 was not an abstraction. The DOJ confirmed the money came from “illegal activities” — laundered through a strip club for a gang operating in Detroit neighborhoods.
The same neighborhoods where MacDowell Preparatory Academy sits at 4201 West Outer Drive. The same community where Nicole Wells-Stallworth’s MacDowell now produces 3% math proficiency while extracting $4.9 million in state aid.
The exploitation didn’t end. It professionalized.
Verify
- DOJ press release: justice.gov/archive/tax/usaopress/2003/kstallworth.html
- Detroit Free Press (Apr 27, 2018): “Charity failing to turn Detroit squatters into homeowners”
- PACER: Eastern District of Michigan — USA v. Keith Stallworth
- BCF board composition: Free Press reporting
All sources are federal court records and published news reports.