Thursday, February 08, 2007

Irregularities in Lobbying Disclosures for Barstow Casinos bankrolled by Ilitch Detroit-based Syndicate

“Intermediaries” are bankrolling lobbying and political contributions for two Indian casinos in Barstow, Calif. but failing to disclose the truth about who’s really behind the unorthodox proposals for two off-reservation casinos. Attempts to hide behind their adopted tribal partners have likely contributed to major discrepancies in a series of lobbying disclosure reports required to be filed with the California Secretary of State.

Records available from the California Secretary of State at (cal-access) document that The Big Lagoon Rancheria tribe has reported paying $99,000 to Sacramento GOP politico turned lobbyist Keith Olberg (Capitol Ventures, Roseville) through September 2006.

Lobbying disclosure documents filed by Olberg with the California Secretary of State, under penalty of perjury, only report he received $62,036 from The Big Lagoon Rancheria.

Olberg also reported receiving $62,036 from Los Coyotes Band of Cahuilla & Cupeno Indians, but in disclosure reports filed for the Los Coyotes tribe there is never a reference to Olberg or payments to Olberg’s firm. Further, there are no official documents to indicate Los Coyotes tribe has ever authorized Olberg’s activity.

The Los Coyotes tribe has reported it is represented by Governmental Advocates, and that firm was paid $102,012 to represent the Los Coyotes tribe. Although not disclosed by Los Coyotes, documents filed by Governmental Advocates suggest in a footnote that the Los Coyotes bills are being paid by a benefactor:


Governmental Advocates also represents the Big Lagoon Rancheria. There are no apparent discrepancies between reports filed by the Big Lagoon Rancheria and Governmental Advocates but those reports do indicate the same benefactor footing the Los Coyotes tribe’s bills is paying the bills for the Big Lagoon tribe. The Big Lagoon tribe has never disclosed a third party may be paying its bills.

A third California lobbying firm headed by Nick Medeiros is acknowledged as representing the interests of the Big Lagoon Rancheria since August 2005 but reports filed by Medeiros and the tribe do not indicate he has ever been paid for its services.

The apparent attempts to conceal payments for lobbying and political activity seem contrary to the intent of California’s political reforms. This activity suggests there is something worth hiding.

Driving the tribes’ quest to relocate casinos to Barstow is a Michigan casino syndicate headed by gambling maven Marian Ilitch owner of Detroit’s MotorCity Casino. She and her husband Mike Ilitch are co-founders of Little Caesar’s Pizza and owners of the Detroit Tigers and Detroit Red Wings. Ilitch controls at least 110 acres in Barstow and after approaching the City about a possible casino in 2001-2002, Ilitch and her partner Michael J. Malik, Sr. were introduced to leaders of the Los Coyotes tribe. After failing to get a stand alone casino approved by Governor Schwarzenegger in 2004, the Ilitch syndicate was introduced to the family that makes up the Big Lagoon Rancheria.

In September 2005, Governor Arnold Schwarzenegger signed agreements with both tribes that could allow them to open casinos in Barstow, Calif., since then the tribe’s and their lobbyist have failed to develop support for their plans in the state legislature. Last summer a state Assembly committee rejected the agreements. The agreements must be ratified by both California’s Assembly and Senate in order for them to be valid. Absent concurrence in the state legislature, the agreements are set to expire in 2007.

Ilitch tapped Olberg to head her casino syndicate’s lobbying effort in Sacramento during 2006. Ilitch’s team racked up more than $400,000 in fees to Sacramento Lobbyists in 2006 trying to build support among lawmakers. Since 2002, Ilitch, her partners and affiliates have paid Capitol Hill Lobbyists almost $3 million for similar support.

Olberg is a former GOP Assemblyman and candidate for Secretary of State and Congress. He is also president of the 527-political organization, Economic Freedom Fund; a group TPM Muckraker referred to as a “GOP Attack Group.” Olberg’s wife, Delette Olberg, was employed as Governor Schwarzenegger’s director of scheduling during 2006.


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