Casino syndicator Michael J. Malik, Sr. is facing $2.1 million fraudulent transfer charges in Florida Federal Court (Golderg v. Malik). That complaint is related to an investigation and charges by the Securities and Exchange Commission (SEC) against entertainment promoters Worldwide Entertainment, Entertainment Group Fund, Inc., American Enterprises, Inc., Entertainment Funds, Inc., Jack Utsick Presents, et al.
Michael I. Goldberg (Akerman Senterfitt) is the appointed Receiver in the matter. Goldberg is represented by Jeffrey R. Sonn (Sonn & Erez).
Circumstances surrounding the Royal Oak Music Theatre in Michigan have been of interest to Receiver Goldberg.
Curiously in 1993, Michigan National Bank, a creditor, originally placed a UCC lien (Filing No. C731010) against the six related debtors listed below; and has twice since renewed that filing: 1998 (Filing No. D339142) and 2003 (Filing No. 2003042961-4).
Those six debtors facing lien by Michigan National Bank include:
- Fourth Street Asylum
- Paragon Investment Company
- Paragon Investment Company
- Paragon Investment Company dba Paragon Theatres dba Royal Oak Music Theatre dba Fourth Street Asylum
- Paragon Theatres
- Royal Oak Music Theatre
Curiously, the ongoing UCC lien indicates five of the six debtors are located at:
2211 Woodward Ave.
Detroit, MI 48201
That’s the address of Detroit's Fox Theater building which is the headquarters of Ilitch Holdings, Inc. and its affiliates as well as the address of record for numerous other Malik affiliates. (See: Compiled List of Affiliates)
Until now, there have been few details directly linking Ilitch or Malik affiliates to the Royal Oak Theatre circumstances or circumstances that would explain how it is that Malik is tied into the SEC complaint against Worldwide Entertainment, Utsick Presents et al.
So why does the Michigan National Bank filing identify those five entities at that Woodward Ave. address? After all, that's not the address of record those entities have on file with Michigan's Department of Labor & Economic Growth.
Filings to date in Goldberg v. Malik have yet to disclose the true nature of Malik’s involvement/relationship with Worldwide Entertainment, Jack Utsick Presents, etc. Currently counsel for Malik is arguing the case on procedural and adminisrative grounds. Malik has yet to deny the charges.
Could the UCC lien provide a hint of what that relationship might be?
It's noted that Ilitch affiliates, namely Olympia Entertainment, own or manage many of the concert halls, theaters and sporting venues in the greater Detroit area (Comerica Park, Joe Louis Arena, Fox Theater, Cobo Arena, Detroit’s historic Masonic Temple Theatre, etc.). The Royal Oak Music Theatre has never publicly been acknowledged in the Ilitch portfolio.
While Malik is reportedly not an employee of Ilitch Holdings, Inc. or any of its subsidiaries, his office is among the executive suite of offices at Ilitch Holdings, Inc. and many ways he acts in a capacity as senior employee or affiliate -- often in the capacity of "bad cop" or "tough guy." And despites such denials by Malik and Ilitch spokespersons, according to OpenSecrets.org, Malik has made contributions totaling $24,100 to 16 different political committees which recorded his employer as Ilitch Holdings.
Defendant Malik is represented in Detroit by Abraham Singer and James D. VandeWyngearde (Pepper Hamilton, LLP) and in Miami by Gary T. Stiphany (Garbett, Stiphany, Allen & Roza, P.A.).