8.14.07EDITORIAL: Lawsuit seeks end to DeFeo's con games
Checkered past of would-be developer gets court exposure
If some see Clinton Township businessman Tony DeFeo's $600 million development as the savior of Kimball Township, a range of factors suggest the opposite.
For starters, there isn't any solid evidence DeFeo even could pull off the 505-room hotel, 7,800-seat arena, 8,000-seat stadium and 400,000-square-foot convention center he plans to build near Kimball's Horizon Outlet Center. Dirt has been moved, and trees cut down, but that's no indication the project actually is under way.
There is no official mention of a gambling facility at the site, the key feature of his failed development proposal for downtown Port Huron. DeFeo is the defendant of a lawsuit, however, that contends he's hawking the project as the home of a new casino to potential investors.
Mike Malik, a leader of the campaign for an Indian-owned casino at Port Huron's Thomas Edison Inn, is the plaintiff. The suit, filed Friday in St. Clair County Circuit Court, seeks an injunction on DeFeo's Kimball Township project.
Among its allegations:
DeFeo is using the name "Blue Water Casino," strikingly similar to Malik's company, Blue Water Resorts, L.L.C.
DeFeo is deliberately using the name "to confuse investors, the public and public officials."
DeFeo's legal problems speak to his intention to deceive investors. He was convicted in 2002 for conspiracy to sell marijuana. He filed for personal bankruptcy in June 2001, two months before several partners agreed to settle a fraud lawsuit for $1 million. Barry Switzer, former coach of the Dallas Cowboys and the University of Oklahoma, Dave McCurdy a former Democratic congressman of Oklahoma and former Oklahoma attorney general Larry Derryberry, were among those who paid the settlement. TransNav Properties LLC and three individuals - Konstantine Kpordelis, Ilja Vreeken and Steven Vreeken - sued DeFeo and three companies three months ago in Oakland County Circuit Court. They said they paid $200,000 for two shares in a Port Huron casino. They are suing for fraud.
Malik's suit details more examples of DeFeo's questionable practices, enough to warn potential investors that giving him money for a casino or any other scheme is a sure way to make their investments disappear.
It further confirms growing suspicions of our community that the self-styled developer has all the unmistakable marks of a confidence man. His schemes - a casino in Port Huron, an automobile factory in Port Huron Township and managing the St. Clair County International Airport - share one thing in common: big talk with no substance.
Kimball Township officials hope DeFeo isn't just blowing smoke about his plans. The township is stuck with a half-built arena that attracts trespassers who pose safety concerns. A commercial development there would be a relief.
Like any good confidence man, though, DeFeo knows how to spin a good yarn. Malik's suit hopes to prevent another unhappy ending.
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