Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans

For more than a decade, campaign contributions and lobbying fees doled out by Michael J. Malik, Sr. and his partners in the Ilitch Family are often attached to controversy, scandal, alleged corruption and illegal activities.  Consider that in 2010, Mrs. Michael Malik was forced to tell a Detroit-area Court that he had a consistent “pattern of bullying, intimidation and influence peddling.”

1^st Campaign Contribution Controversy Verified in the Media: 

Governor under Fire for Accepting Malik’s Money

In 1998, an investigation by the Augusta Chronicle revealed then-South Carolina Governor David Beasley had accepted campaign contributions from Detroit casino interests, namely Michael Malik and Tom Celani, an earlier Malik gaming partner.  They had played significant roles in a fundraiser organized for the South Carolina Governor in Detroit. 

At the time, South Carolina had no legalized gambling and the Governor had taken a public pledge not to accept or be influenced by gambling money.  While Malik and Celani helped bankroll a 1996 campaign to approve gambling in Detroit and were by 1998 affiliated with gambling interests some of which they controlled, no casinos had yet been approved or built in Detroit.  It was not common consideration that Detroit money might be gambling money.

Clearly, the hope was that people in South Carolina would not realize that contributions raised in Detroit were directly from those heavily invested in or affiliated with gambling. (Beasley Donors Disputed; Augusta Chronicle; 8.03.98)

Reporters & Watchdogs Make Case for All-Star Congressional Influence Peddling

On the eve of Major League Baseball’s 2005 All-Star Game (Detroit), an AP reporter broke a story about a $5,000 per head fundraiser being held in Detroit during the All-Star events to benefit then-Congressman Richard Pombo.  He was chair of the congressional committee overseeing Indian matters.  (Pombo no All-Star in watchdog group’s eyes; Associated Press; 7.13.2005)

Hosts of the All-Star Game fundraiser for Pombo were Malik and Christopher Ilitch, CEO of Ilitch Holdings.  His parents are Detroit Tiger’s owner Michael Ilitch and Marian Ilitch, Malik’s partner who reportedly has bankrolled the Shinnecock Indian Nation’s efforts to win approvals needed to establish gaming on Long Island. Perhaps most controversial was the timing of events.  Less than 48 hours after the Malik/Ilitch All-Star fundraiser, Pombo had scheduled a congressional hearing with an agenda item that read “Status of Settling Recognized Tribes’ Land Claims in the state of New York.”

For several congressional election cycles, the Ilitch Family and Malik had collectively been among Pombo’s top tier of donors. They had hosted or participated (bundling) in fundraisers on his behalf and also were flying him around the U.S. in a private jet. All they had invested in Rep. Pombo had remained under the radar until the All-Star Game story broke.  The watchdog groups Common Cause and Citizens for Responsibility and Ethics in Washington (CREW) helped break the story and kept the controversy alive for the remainder of the 2006 elections. Congressman Pombo failed to win re-election.

Failed to Disclose $26,600 Campaign Contribution; Fined $6,500 in CA

In 2004, the year before the All-Star Game controversy, Barwest, a Malik/Ilitch casino affiliate bankrolling attempts to secure approvals of various Indian gaming proposals in Barstow, CA, had quietly contributed $26,600 to Pombo’s local GOP Central Committee.  Malik failed to report the Barwest contribution to California election officials.  California’s Fair Political Practices Commission (FPPC) became aware of the possible violations of that state’s political reform laws and an investigation got underway.  In 2006, the FPPC found Malik’s Barwest violated state election law on two counts and fined Malik $6,500. (Press Release; California Fair Political Practices Commission; 10.24.2006)

Career Ending All-Star Scandals; Congressional Investigations

In 2003, Barbara Bonfiglio, the controversial Washington D.C. attorney/lobbyist/PAC treasurer, signed casino syndicator Michael Malik‘s MJM Enterprises & Development as a lobbying client of her firm Williams & Jensen. Malik paid Bonfiglio $220,000 between 2003 & 2005. Malik had matters before committees chaired by Reps. Richard Pombo, Don Young and Jerry Lewis -- Bonfiglio served as PAC treasurer/advisor to these members' leadership committees. In the midst of various GOP scandals including that involving House Speaker Tom DeLay, TPM Muckracker reported that Bonfiglio abruptly left Williams & Jensen in March 2006 and resigned as treasurer/advisor to various PACs and fundraising committees for Sen. Rick Santorum and Reps. Tom DeLay, Richard Pombo, Jerry Lewis, Don Young and others. She was subpoenaed at least once, in 2004, in connection with the DeLay corruption scandals. Malik distanced himself and affiliates from Bonfiglio but continued to invest heavily in her friends Pombo (Natural Resources/Native America Affairs), Young (Transportation) & Lewis (Appropriation).

Continued Affiliation with Controversial D.C. Lobbyists

When Malik left the Williams & Jensen lobbying firm, he took his business to Potomac Partners and lobbyist Richard Alcalde.  Alcalde particularly had a close relationship with Congressman Jerry Lewis, whose congressional district included the California desert community of Barstow, one of the communities where Malik/Ilitch have tried to build a casino.  At that time, Lewis was also the chair of the House Appropriations Committee.  Malik/Ilitch were hoping to get federal funds to support casino-related projects in Port Huron, Michigan, and other funds to support business ventures Malik pursues with the Bay Mills Indian Community.  Again, controversy ensued when the Washington Post reported that D.C. based Potomac Partners (Alcalde) was paying Lewis’ Las Vegas-based step-daughter to be a "strategic partner." 

Further, nearly all of Malik’s other affiliates and Indian partners had contracts with Wheat Government Relations, the lobbying firm of former Congressman Alan Wheat.  But in truth Wheat was funneling the funds to the Kessler & Associates (lobbyists Richard S. Kessler, Billy Lee Evans).  With the funds to Kessler funneled through Wheat, Kessler could avoid publicly disclosing the firm was a lobbying for Malik, Malik’s affiliates and partners, and “Gaming” or “Native American” interests.  In 2004 alone, Malik/Wheat paid Kessler almost $300,000 using that scheme. In all Kessler was paid nearly $600,000. The following circumstances unfolded after the scheme filtering payments to Kessler & Associates was exposed: the Kessler firm submit revised disclosure documents recategorizing the Wheat client work as involving issues of Indian/Native American Affairs or Gaming, Gambling & Casinos; Billy Lee Evans ceased his lobbying career in 2007; and in 2008, Kessler & Associates was disbanded.  Richard Kessler formed Hamilton Advisors in 2008 and has lobbied on behalf of one or two clients each year since.  The Wheat firm has continued to lobby on behalf of various Malik/Ilitch affiliates and partners.

Failed To Disclose Another 17 CA Contributions Totaling $26,500; Fined Again!

In 2006, Malik/Ilitch believed they were close to getting a gaming Compact approved in California. Governor Schwarzenegger had negotiated an amended Compact with the Los Coyotes Band of Indians, the tribe Malik/Ilitch bankrolled in California. That Compact was pending ratification by the State’s legislature.  Malik/Ilitch and their affiliates contributed heavily to those who would sit on the committees that would make the initial recommendation to ratify.  At the same time, California’s FPPC was wrapping up its investigation into the 2004 failure by Malik/Barwest to disclose the $26,600 to Pombo’s GOP Central Committee.  Malik was spending thousands to influence legislators in 2006 and despite the experience of the previous 2-year FPPC investigation and a significant fine, when he filed his official year-end 2006 major donor campaign disclosure reports, he indicated $0.00 in campaign contributions during the second half of 2006 when, in fact, he had actually given 17 lawmakers a total of $26,500.  Another FPPC investigation ensued and in 2009 the FPPC found Malik had violated California’s campaign reform laws in 2006 and this time fined $4,000. (Press Release; FPPC; 2.19.2009)

Malik’s NY Contributions Bring Controversy; NY Candidates Return Funds

During the 2010 campaign cycle Malik/Ilitch again focused their political contributions toward New York and candidates who might influence decisions that would allow them to expand gaming opportunities with the Shinnecock Indian Nation. Notably efforts to win approval to build a casino and other commercial development near the Belmont Park & Race Track on Long Island. They gave the maximum to New York’s U.S. Senators Charles Schumer and Kirsten Gillibrand. They sought to influence county and state lawmakers and Malik contributed to the campaign of now Governor Andrew Cuomo.  Contributions he made in New York races for the House of Representatives and State Senate became campaign liabilities.  News Day started reporting on the controversy surrounding Malik.  Several candidates including State Senators Jeff Klein and Craig Johnson reported returning Malik’s contributions. (Sens. Johnson, Klein to return Malik contributions; Daily News; 10.13.2010) Congressman Tim Bishop said he would return the funds too.

And now, there are questions surrounding the reporting of $15K Gov. Cuomo accepted from Malik.

Nearly $8 Million to Influence Lawmakers; Bordering on Unethical and Breaking Laws; and for the Purpose of Advancing Gaming Plans Fronted by Native Americans

Throughout the first decade of the 21^st Century, Malik/Ilitch and their affiliates have paid lobbyists more than $6,500,000 dollars and funneled more than $1,200,000 to politicians almost exclusively for the purposes of influencing matters of gambling, Native American affairs and transportation appropriations related to, as of yet unapproved, casino development projects they have pursued in three states (Bay Mills Indian Community – Port Huron, MI; Los Coyotes Band of Indians – Barstow, CA; Shinnecock Indian Nation – Long Island, NY).  Allegations of corruption and influence peddling and findings of illegal activity swirl around these Detroit casino syndicators and those they touch. And consider the possibilities that there are other investors behind the dozens of Malik/Ilitch gaming affiliates.  Who are they? What are their histories? Who are they contributing to or lobbying? What is their influence?

Reference Sources:

Search D.C. Lobbyists, Lobbying Firms, Lobbying Clients at OpenSecrets.org

Search Donors to Federal Campaigns Committees at OpenSecrets.org

Search Michigan Political Donors,  Lobbyists, Registered Casino Interests

Search California Political Donors,  FPPC

Search New York Political Donors

TheVerifiableTruth.com

See also:

• Controversy seems to always follow Detroit Casino Syndicator Michael MalikWhy is Detroiter Mike Malik Michael Malik: The Latest Life & Times of a Detroit Casino SyndicatorDragging former Hawaii Governor Waihee around Long Island, NY?
• Strange Bedfellows: Hawaii's Former Governor & Detroit's Gambling Promoter?
• Disclosure? And their tangled web: Detroiter Michael Malik, the Jack Utsick Ponzi Scheme, Shinnecock & Bay Mills Indians, and Akerman Senterfitt

•  To Bypass Carcieri and Other Off-Reservation Casino Hurdles, Detroiters Plan Introduction of "Mandatory Acquisition Legislation" in Congress
• It's Carcieri not Malik that poses Bigger Problems for the Shinnecock Nation
• What They Won't Tell You: Insights on Gateway Casino Resorts, its Detroit Organizers and Their Plans for Shinnecock Casinos

Detroit's Ilitch Family Could Spend $1 Billion+ on Shinnecock Casinos

Ilitch teams with tribe on N.Y. casinos: Long Island plans could top $1 billion
10.19.2010

by Bill Shea

The Ilitches' high-profile pursuit of the Detroit Pistons and plan to build a downtown arena could be dwarfed financially by the family's quiet effort that could top $1 billion to construct casinos for an American Indian tribe on New York's Long Island.

Marian Ilitch, sole owner of MotorCity Casino and matriarch of the family whose fortune is built from the Little Caesar Enterprises Inc. pizza chain she co-founded in 1959, has a casino development deal with the Southampton, N.Y.-based Shinnecock Indian Nation, which recently said it may build up to three casinos now that it has official federal recognition.

Even if the tribe builds just one hotel-casino, because it will serve New York it's expected to be significantly larger than MotorCity, for which Ilitch financed the purchase and expansion for $600 million. A trio of casinos could each still be as large as or even larger than the Detroit property.

MotorCity reported $446 million in 2009 revenue and had 2010 revenue of $333.5 million through September.

"The location will dictate the size of the casino, but it certainly will be larger than the operation at MotorCity," said Tom Shields, owner and president of Lansing-based Marketing Resource Group Inc. and spokesman for Ilitch and her partner in the casino effort, Birmingham developer Mike Malik.

The U.S. Bureau of Indian Affairs this month rejected final objections to its acknowledgment of the Shinnecock
as a federally recognized American Indian tribe -- one seeking to build a casino, with Ilitch financial backing, to improve the lives of its roughly 1,200 members. They live on about 800 acres, mainly in mobile homes.

Such formal recognition, which the Shinnecock tribe first sought in 1978, is needed to open an Indian-run casino under federal law. It also makes the tribe eligible for federal housing, health and education funding.

Ilitch and Malik have been working with the tribe since 2003 on plans to build and operate a casino in Long Island's upscale Suffolk County -- an area better known as the Hamptons.

Casinos could be built elsewhere on the island to serve a wider population.

Ilitch and Malik are partners in Gateway Casino Resorts LLC and Gateway Funding Associates LLC, the businesses working with the tribe. They are headquartered in Detroit's Fox Theatre, whose offices are home to Ilitch Holdings Inc. and other Ilitch-owned ventures.

Additional state and federal legal, environmental and regulatory approvals are needed before a casino project can start -- something industry insiders have said is a long process with no guarantees and in which longer-recognized New York tribes have been mired for years.

The tribe prefers to negotiate with authorities to build a more lucrative Class III casino, which allows table games in addition to video slot machines under federal law. A Class III casino must share revenue with the state.

Ilitch and Malik will give the tribe financing and guidance on development and operations, Shields said. How much they'll be paid, and how much of a cut of the casino revenue they'll get, isn't yet known.

There is no timeline for the development, Shields added, noting that it's expected to take several years to get approvals and finish construction.

Beverly Jensen, communications officer for the tribe, declined to comment.

Casino spending

Malik and Ilitch have worked on casino efforts in Port Huron and Manistee and in Hawaii and California, but none have reached the stage of the New York project.

Expenditures on the Long Island effort have been significant.

Through Gateway, Ilitch and Malik paid Arlington, Va.-based lobbying firm Wheat Government Relationsmore than $1 million since 2003 to push for federal recognition for the Shinnecock, records show.

The casino project still needs the approval of New York's governor and Legislature.

Gateway hired Washington D.C.-based Mercury Public Affairs to lobby state government on behalf of the casino. The firm reportedly has met with New York Gov. David Paterson and state legislative leaders to discuss the gambling plan.

A comprehensive anonymous website, TheVerifiableTruth.com, for several years has tracked news and public records linked to Ilitch and Malik's casino ventures, and it shows that they have donated money to political candidates in positions to influence the tribal recognition or other casino-related issues.

The tribe's federal recognition suggests it was money well spent and eventually might result in new cash flow for the Ilitch empire.

In the meantime, the Ilitches will be conscious of the dangers of over-leveraging themselves, sports insiders say.

"All sports properties are acutely aware of not burdening themselves with debt," said Maury Brown, president of Portland, Ore.-based Business of Sports Network, which includes websites devoted to the business side of pro sports.

Bill Shea: (313) 446-1626, bshea@crain.com

Quid pro quo? Congressman takes contributions from Casino Syndicator, Lobbyist after carrying their bill

Quid pro quo? Was that the intent or understanding of contributions delivered to Rep. Alcee Hastings (D-FL), a senior member of the Rules Committee in the U.S. House of Representatives?

TVT has previously reported that Detroit-based casino syndicator Michael J. Malik, Sr., made a first-time $2,000 political contribution to Florida Rep. Alcee Hastings on 10.10.08. And we explored the circumstances that might have motivated that Malik contribution.

Now, TVT has discovered that apparently ten days before Malik showed his generosity to Hastings, Malik’s lobbyist, former Rep. Alan Wheat (D-MO) also contributed $2,000 to Rep. Hastings. And there are other circumstances that suggest the contributions from Malik and Wheat were tied together.

It does not appear that either Malik or Wheat had ever contributed to Rep. Hastings’ political committees prior to 9.30.08.

As it turns out, Rep. Hastings, a senior member of the House Rules Committee, had carried a Resolution into the House last summer (H.R. 1298) which was the vehicle by which H.R. 2176 came to the floor and was put to a full vote. Had the later bill been approved, it would have paved the way for Malik to build and manage an Indian casino in Port Huron, MI.

Wheat Government Relations, a D.C. lobbying firm headed by former Rep. Alan Wheat (D-MO) has represented both the Bay Mills Indian Community (1998-2008) and Blue Water Resorts (2004-2008), the syndicated enterprise bankrolling the Port Huron casino scheme. Blue Water Resorts is tied directly to Michael Malik. Additionally, a lobbying disclosure report indicates Blue Water Resorts is “affiliated” with the Bay Mills Indian Community; that is, paying the tribe’s lobbying bills and directing the tribe’s lobbying activity. Blue Water Resorts is also affiliated with MJM Enterprises & Development, another lobbyist employer supporting the Port Huron casino scheme. Malik clearly is directing the entire effort from the wings, hiding behind these various affiliates.

Wheat, Malik and the Bay Mills tribe have been trying to get several bills shaped as land claims settlements approved by Congress since 2002; but their other attempts to get congressional action that could result in the ability to build a casino in Port Huron date back to 1998. The action by Rep. Hastings represents the first time one of their schemes has made its way onto the House floor for a vote.

Disclosure reports filed with the Federal Election Commission (FEC) indicate as follows:

Hastings for Congress reported receiving a $2,000 contribution on 9.30.08 from Alan Wheat, CEO at Wheat Government Realtions,1201 South Ends Street, Arlington, VA 22202.

Hastings for Congress reported receiving a $2,000 contribution on 10.10.08 from Michael J. Malik, Sr., a Developer at Wheat Government Relations, 1201 South Ends Street, Suite Two, Arlington, VA 22202. This record is makes false representations.

Despite what’s represented by Hastings for Congress in its disclosure records, Michael Malik is not employed by Wheat Government Relations nor is his primary address in Arlington, VA.

Did Hastings' treasurer get those details off the check the committee received? How did the treasurer make such an error when reporting contributions that were made at different times? And by different people? Odd.

But then again, maybe not.

Consider that Malik’s affiliates Blue Water Resorts and Gateway Casino Resorts employ the Wheat firm as lobbyists; as do the Bay Mills Indian Community and Shinnecock Indian Nation, two of Malik’s business partners. Malik is paying for and directing the lobbying activity of all four entities.

Malik is a business/real estate developer, casino syndicator and self-identified entrepreneur who is engaged in various partnerships with members of Detroit’s Ilitch family and whose various business enterprises are mainly located at the headquarters of Ilitch Holdings, Inc., 2211 Woodward Ave., Detroit, MI 48201 -- not in Arlington, VA.

And curiously, both Hastings for Congress transaction records reported the addresses at 1202 South Ends Street. However, Wheat Government Relations is actually located at 1202 South Eads Street.

There's little doubt that these contributions weren't actually bundled even though they're reported to be received ten days apart. If the checks had been delivered directly and separately by their makers, the details wouldn't have been confused. Malik would not have been recorded as an employee of Wheat Government Relations nor his address listed in Arlington, VA.

There can be little question about the motivations of Malik and Wheat.

But there should be a lot more questions put to Malik, Wheat and Hastings.

Rep. Hastings FEC disclosures falsely identify Detroit casino syndicator as employee of lobbying firm

Campaign finance disclosures submitted to the Federal Election Commission (FEC) by the re-election committee of Rep. Alcee Hastings (D-FL 23rd) indicates a Michael J. Malik contributed $2,000 to Hastings' committee on 10.10.08. The official report filed with the FEC indicates Malik is employed as a Developer by Wheat Government Relations [a D.C. lobbying firm] and identifies Malik's address at 1201 South Ends [sic] Street, Suite Two, Arlington, Virginia, 22202.

Wheat Government Relations' Web site does not identify an employee named Malik and there is no one named Michael Malik registered as a lobbyist with Wheat Government Relations.

There is a Detroit casino syndicator named Michael J. Malik, Sr. whose gaming affiliates include MJM Enterprises & Development, Blue Water Resorts, Gateway Casino Resorts, and BarWest, LLC. The later three are Wheat Government Relations' clients. Blue Water and Gateway are "affiliated organizations" known to be paying the bills and directing lobbying for two Indian tribes respectively that are also registered as Wheat clients: Bay Mills Indian Community and Shinnecock Indian Nation.

During the 110th Congress, Rep. Hastings was senior member of the House Rules Committee, chairman of the Legislative and Budget Process Subcommittee; chairman of the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission); and co-chairman of the Florida congressional delegation.

Lobbyists pushing casino related bill previously rejected in the House of Representatives

Although H.R. 2176 was overwhelmingly defeated in the U.S. House of Representatives on 6.25.08 (2nd Quarter '08):

• Blue Water Resorts, LLC, paid $40,000 to Wheat Government Relations to lobby in support of H.R. 2176 during the 3rd Quarter '08.



• Blue Water Resorts, LLC, engaged Dykema Gossett in 3rd Quarter '08 to lobby in support of H.R. 2176.



• Patton Boggs LLP, Zell & Cox P.C., and Wheat Government Relations all filed 3rd Quarter '08 lobbying disclosures indicating they were pushing support for the passage of H.R. 2176 on behalf of the Bay Mills Indian Community. Wheat reports being paid $20,000 during the 3rd Quarter but failed to report whether or not an affiliate, Blue Water Resorts, was paying the tribe's bill.



• Franklin Creek Consulting and Potomac Partners DC reported they had lobbied on behalf of MJM Enterprises in support of legislation to support the land claims settlements described in H.R. 2176. Potomac Partners reported being paid $10,000 by MJM Enterprises but failed to disclose whether or not affiliate Blue Water Resorts was paying MJM's lobbying bills.

Sources: OpenSecrets.org; Lobbying Disclosure Act Data Base

Wheat Government Relations continues a complex web of lobbying engagements for Casino Syndicator

Wheat Government Relations has been registered as lobbyists for the Bay Mills Indian Community for a decade, and for the last five years Wheat has also represented the tribe's casino development partner Blue Water Resort, LLC.

Wheat filed two amendments to its 1st Quarter '08 lobbying disclosures for the Bay Mills tribe. In the second amendment (third try), Wheat disclosed that Blue Water Resorts was an affiliate of the Bay Mills Indian Community: paying the tribe's lobbying bills and directing its lobbying efforts.

This past year, Wheat Government Relations hired Alexander J. Beckles, LLC, to lobby on matters related to the Bay Mills Indian Community. Blue Water Resorts is likely paying Beckles' bills.

Beckles was legislative director for Congressman Edolphus "Ed" Towns (D-NY 10th) from 1992-2007.

Alan Wheat was a regular contributor to Edolphus Towns' campaign committee from 2002-2007.

Casino backers have given more than $40k to Rep. Bart Stupak

Rep. Bart Stupak (D-MI 1st) has authored various bill in the U.S. House of Representatives that would ultimately allow the Bay Mills Indian Community and its financial backers to build a casino in Port Huron, Michigan. That tribe already has two casinos on its reservation in Northern Michigan.

During the 110th Congress Stupak authored H.R. 2176 (Related Bills: H.RES.1298, H.R.3048, H.R.4115) which was approved by the House Natural Resources Committee in February 2008 but was defeated overwhelmingly in a vote of the full House in June 2008.

Casino syndicator Michael J. Malik, Sr., and members of Detroit's Ilitch family (they own the Detroit Red Wings, Little Caesars Pizza, Detroit Tigers and MotorCity Casino) are behind the scheme to develop a Port Huron casino.

Several D.C. lobbying firms including Wheat Government Relations (Alan Wheat, Julie Shroyer and others) and Potomac Partners DC (Richard Alcalde & Daniel Feliz) have been retained by their affiliates and partners (Bay Mills Indian Community, MJM Enterprises, Blue Water Resorts).

Collectively they have contributed at least $39,900 to Stupak's political committees. They've raised thousand more for Stupak via business associates, vendors, attorneys, consultants and other friends. (See Contributions Details)

A report available at CampaignMoney.com indicates that Stupak also received another $3,500 directly from the Bay Mills Indian Community. Because generally federal political contributions are restricted to individuals and most data base tracking services are not set up to track contributions from organizations, it is often difficult to track contributions from Indian tribes. Tribes are exempt from the rules that apply to most other organizations and corporations.

Ilitch and partner contributed to Rep. Rangel then hired his aide as a lobbyist

Todd Spangler at the The Detroit Free Press previously reported:

The Ilitches and Malik have contributed more than $30,000 to Charles B. Rangel, a New York Democrat, or his leadership PAC.

Although he doesn't sit on any of the committees tied to Indian gaming, Rangel, chairman of the powerful House Ways and Means Committee, could be critical to getting federal recognition for the Shinnecock tribe, which in turn could help them get the Long Island casino Malik and Ilitch want.

Spangler's references are to Mike and Marian Ilitch (they co-founded Little Ceasars Pizza, he owns the Detroit Tigers and she owns MotorCity Casino); and Michael J. Malik, Sr., their casino syndication and development partner.

Nearly half the $30,000 Spangler references was paid by the Detroit trio to Rangel's campaign on 8.23.07, the same day some of the biggest most influential PACs in Washington D.C. gave tens of thousands to Rangel too; among those, the Major League Baseball Commissioner's Office PAC to which Mr. & Mrs. Ilitch are also contributors.

Then shortly after making those most recent contributions to Rangel, several entities that are Ilitch/Malik casino development affiliates or partners added a new lobbyist to their roster, Annie Minguez who landed at Wheat Government Relations (Wheat GR).

Minguez represented these clients for four consecutive reporting periods when Wheat GR finally disclosed in 3rd Quarter '08 reports that Minguez had a previous "Covered Official Position." Minguez, they reported, was Rep. Rangel's former "Legislative Assistant." In fact, Rangel references Minguez as his "personal assistant" in the 2007 published memoir, "And I haven't had a bad day since."

Annie Minguez is a lobbyist for these clients:

Bay Mills Indian Community
Blue Water Resorts
Gateway Casino Resorts
Shinnecock Indian Nation

A fifth Ilitch/Malik affiliate, Barwest LLC, retains Wheat Government Relations, but Minguez is not a registered Barwest lobbyist.

Web site of D.C. Lobbyists Kessler & Associates disappears

The Web site for D.C. lobbying firm Kessler & Associates (screenshot pictured below) is no longer available "live" on the Web -- but a cache version is available. And in "taking down" the Web site they failed to remove a .pdf file of Kessler & Associates marketing materials which remains accessible on the Web.

click to see a larger screenshot

Following allegations and calls for investigations involving Richard Kessler (Rick Kessler/Ripon Society/Ripon Education Fund), former Rep. Billy Lee Evans (one of Rep. Don Young's nine "A-Team" lobbyists), and others tied to the lobbying firm, the Web site was "taken down."

Among allegations, a group of Detroit gambling interests including Marian Ilitch and Michael Malik (and their partners/affiliates) quietly funneled $665,000 to Kessler & Associates to lobby Rep. Don Young and others on gambling matters from 2003-2005. The payments were funneled via another lobbyist, former Rep. Alan Wheat (Wheat Government Relations).

UPDATED: Lobbyist paid $665,000, secretly representing Ilitch syndication interests

Several influential D.C. lobbyists, one whom the Washington Post reported was a part of former House Speaker Tom DeLay's "kitchen cabinet" and another a former Member of Congress, are part of a firm that was paid $665,000 by a third party trying secretly to advance off-reservation Indian casino proposals backed by Marian Ilitch and Michael Malik (Team Ilitch).

Documents on file with the Secretary of the Senate indicate in 2003 and 2004, Richard S. "Rick" Kessler's firm Kessler & Associates (also dba Century Business Services and Kessler & Associates Business Services) was retained to represent Wheat Government Relations, a lobbying firm.

Among lobbyists at K&A is former Rep. Billy Lee Evans (D-GA). Evans has been identified recently as one of Rep. Don Young's "A-Team" lobbyists.

Wheat Government Relations' clients include various Team Ilitch casino syndication interests (Barwest, Bay Mills Indian Community, Blue Water Resorts, Gateway Casino Resorts, Shinnecock Indian Nation). It appears now that Wheat was funneling payments it received from various Team Ilich casino partners to Kessler & Associates (K&A) to handle most --if not all -- of the lobbying work required of Wheat's gaming and Indian affairs clients.

Former Rep. Alan Wheat (D-MO) is the principal of Wheat Goverment Relations (http://www.wheatgr.com/).

Based on several analysis available from the Center for Responsive Politics, in 2003-04 Wheat Government Relations (as client) paid K&A, a sister lobbying firm, $515,000 for representation on gaming and Indian matters; yet, Wheat Government Relations (as lobbying firm) was paid only $400,000 by its collective gaming and Indian matters clients during that 2003-04 period.

That suggests Wheat paid K&A $115,000 more than it got paid by it's collective gaming and Indian affairs clients. So who made up the difference?

Neither Rick Kessler’s list of lobbying clients (Richard S. Kessler) nor his firm’s client list (Kessler & Associates, aka Century Business Services, Inc., Kessler & Associates Business Services; CBIZ Kessler Government Affairs, LLC) reveal any obvious representation of Native American's or gaming companies – they simply lists “Wheat Government Relations,” the lobbying firm. So we dug a little deeper.

The Center for Public Integrity (CPI) reviewed issues lobbied by Kessler’s firm in 2003 and 2004 (and cumulatively 1998-2004) and ranked them by number of companies and organizations the firm represented: at the bottom of the K&A list are “Indian & Native American Affairs” at #28 and “Gaming, Gambling & Casinos” at #30 – Kessler officially had one such client that needed representation on those matters, Wheat Government Relations.

On the other hand, a similar review by CPI of issues represented by Wheat Government Relations ranks ”Indian & Native American Affairs” #1 and “Gaming, Gambling & Casinos” #3 out of 12 issue areas represented – Wheat representing it had 19 Indian clients and 14 gaming clients from 1998-2004. By funneling money through Wheat, K&A avoided being included in lists or analysis that revealed firms doing significant work lobbying on behalf of Native American or gambling interests.

In truth, “Indian & Native American Affairs” and “Gaming, Gambling & Casinos” were extremely significant parts of Kessler & Associates’ success. The Center for Responsive Politics tracks annual lobbying fees by firm. An analysis of K&A annual fees indicates Wheat Government Relations was K&A’s #2 client in 2003 with fees of $295,000 (10% of the firm’s ’03 total fee revenue) and also #2 in 2004 with fees of $220,000 (13% of the firm’s total fee revenue). But K&A's affiliation with ”Indian & Native American Affairs” and “Gaming, Gambling & Casinos” stayed under the radar.

From 2002-2005, Kessler & Associates (Richard S. “Rick” Kessler, Billy Lee Evans, Franklin G Polk and Scott A. Spear) lobbied on behalf of Team Ilitch’s interests in Washington, D.C. virtually “under the radar” because Team Ilitch affiliates and partners had officially hired Wheat Government Relations not K&A. But as is revealed here, Wheat, in turn, passed through $665,000 in fees to Kessler & Associates over the four year period.

From 2003-2006 Rep. Richard Pombo (R-CA) followed Rep. Don Young as chair of the House Natural Resources Committee. For a period, Young served as the Committee's vice chair.

During the period from 2003-2005, it has been reported that Rep. Don Young, then chair of the House Transportation and Infrastructure Committee attempted multiple times to slip various earmarks into what would become the 2005 National Highway Spending Bill -- earmarks that would have effectively given Team Ilitch the go-ahead to build an off-reservation casino in Port Huron, Michigan, in partnership with the Bay Mills Indian Community.

In fact, The Hill reports one such attempt was uncovered and then actively opposed by Sen. John McCain and former Rep. Richard Pombo. Funds were earmarked for a transportation study in Port Huron. Hidden in the language of the earmark was a requirement ordering the Secretary of Interior to take actions that would have given Team Ilitch the approvals needed to build the off-reservation casino; and bypass all of the normal processes and approvals for such a project.

Rick Kessler (Richard S. Kessler) & Billy Evans, Kessler & Associates (K&A), contributed $3,000 to RICH PAC (Rep. Richard Pombo’s leadership PAC) during 2004/05. Team Ilitch and affiliates contributed a total of $40,000 to RICH Political Action Committee in ‘04/’06.

Kessler & Evans contributed $10,000 to Young and Young's Midnight Sun leadership PAC during the '04 & '06 election cycles. Malik and members of the Ilitch family have contributed more than $20,000 to Young and his Midnight Sun PAC. In addition, since 2003, they've given nearly $97,000 to the National Republican Congressional Committee and National Republican Senatorial Committee; and at least $50,000 to the Republican National Committee.

Kessler's role as head of the Rippon Society has come under scrutiny and investigation in recent years. Among other things, Rippon, who's leadership is made up of some of the most influential D.C. lobbyists (including Kessler's associate Billy Evans), is said to provide extravagant travel and trips to Members of Congress using educational loopholes that often include corporate lobbyists as fellow travelers.

Since 2002, various affiliates of Team Ilitch (Marian Ilitch and Michael J. Malik), paid D.C. lobbyists more than $4 million trying to influence proposals the Detroit casino syndicators are baking for Indian casinos in Michigan, New York and California -- chiefly a casino proposed in Port Huron, Michigan.

Another Team Ilitch affiliate, MJM Enterprises, has also hired two other lobbying firms with ties to Rep. Don Young: Potomac Partners D.C., a firm founded by Richard "Rick" Alcalde, another of Young's "A-Team" lobbyists; and Williams & Jensen, a firm with ties to past scandals involving former Speaker Tom DeLay and former Sen. Rick Santorum, that has provided services to and advised Young's Midnight Sun leadership PAC over the years.

links to: Documentation available via the Senate Office of Public Records

Official Website: Kessler & Associates (aka CBIZ Kessler Government Affairs LLC)

Previously updated 6.21.07

These D.C. lobbyists behind the Malik/Ilitch backed Port Huron Casino

According to the U.S. Senate Office of Public Records the following Washington D.C. lobbying firms have been retained by the Bay Mills Indian Community and its partners. Most of these firms were retained to push H.R. 2176 and plans for the Bay Mills Indian Community (backed by casino syndicator Michael J. Malik, Sr. and members of Detroit's Ilitch family) to build an off-reservation casino in Port Huron, Michigan:

@ Akerman Senterfitt
Joe Findaro

@ Alexander J. Beckles, LLC
Alexander J. Beckles

@ Cornerstone Government Affairs, LLC
John Crumbliss
Daniel Fleming
Geoff Gonella
Campbell Kaufman
John Keast
Louie Perry
James Richards
Mark Rokala
Amy Ford Souders
Timothy Sanders

@ Drinker Biddle & Reath
Virginia Boylan

@ Franklin Creek Consulting
Tom Brierton

@ Ghazal & Associates, LLC
Jay C. Ghazal

@ Patton Boggs LLP
Lawrence Roberts
Thomas McReynolds
Heather Sibbison

@ Potomac Partners DC
Rick Alcalde
Dan Feliz (Daniel Feliz)

@ Wheat Government Relations
Alan Wheat
Amanda Fein
Annie Minguez
Julie Shroyer

@ Zell & Cox Law, P.C.
Patricia M. Zell

Casino syndicator Michael Malik and Mrs. Marian Ilitch (she owns Detroit’s MotorCity Casino; her husband Mike Ilitch owns the Detroit Tigers; they own the Detroit Red Wings and Little Caesars Pizza) have been behind efforts to develop a casino with the Bay Mills tribe for more than a decade.

Known lobbying “clients” include: Bay Mills Indian Community, MJM Enterprises or MJM Enterprises & Development (Malik), Blue Water Resorts (Malik) and Wheat Government Relations.

Originally posted 6.10.08 and revised on 6.21.08.

4.28.08

Wheat Government Relations, on behalf of the Bay Mills Indian Community, hired Alexander Beckles to lobby on the Farm Bill. Beckles is a former legislation aide to three congressmen, including Rep. Edolphus Towns (D-N.Y.).

A Case of Abramoff-Lite: Pombo was doing favors for his Motor City Casino friends

a case of Abramoff-Lite: Rep. Richard Pombo was doing favors for his friends the Detroit casino syndicators on the same track he was advancing Northern Mariana Islands matters.

Rep. Richard Pombo was doing favors for his friends the Detroit casino syndicators; in turn they were funneling tens of thousands of dollars to Pombo’s committees, causes and friends. Although Pombo is no longer in office, these students of Abramoff and their Indian partners are still at play inside the D.C. Beltway.

While the Ilitch Family and Michael Malik, along with their lawyers and lobbyists, were contributing to Rep. Richard Pombo’s political committees and favorite causes, Pombo took advantage of his role as Chairman of the House Resources Committee and attempted in both the 108^th and 109^th Congresses to quietly slip through bills that would give favor and advantage to the Shinnecock Indian Nation, a tribe whose legal and public relations pursuits are being bankrolled by Ilitch & Malik.

Both bills had minimal exposure and then late in their respective sessions of Congress were reported in the House and placed on the Union Calendar for future vote of the whole House: H.R. 5134 (on Nov. 19, 2004); H.R. 512 (on Sept. 28, 2006). That’s as far as they got.

Both bills would have demanded the Secretary of Interior immediately review the Shinnecock Indian Nation’s petition for Federal Recognition and give a determination. If the Secretary failed to meet the Pombo deadline or didn’t rule favorably toward Pombo’s friends, both bills gave the Shinnecock the ability to appeal the in-action or negative decision in Federal court – a path that the Shinnecock have previously taken, which had outcomes favorable to the tribe.

The Shinnecock seek federal recognition as a tribe in order to build a Las-Vegas style casino and resort in the Hampton Bays area of Long Island, NY. Ilitch & Malik, under the veil of Gateway Casino Resorts (or Gateway Funding Associates), have been bankrolling legal, lobbying and public relations efforts to support the tribe in exchange for up to 30% of the future casino profits and development rights.

Ilitch & Malik want the matter expedited because each day that goes by without approvals that could lead to a groundbreaking or ribbon cutting for an anticipated Shinnecock casino in the Hampton Bays area of Long Island costs the pair of “investors” more money.

An Associated Press story written by Erica Werner in July 2005 raised questions about the timing of Ilitch/Malik hosted fundraising events to benefit Pombo in Detroit during the MLB 2005 All-Star Game and a hearing scheduled two days later in Washington D.C. that could possibly have had an impact on the Shinnecock pursuits. There are no noted press reports suggestig there was any awareness of Pombos attempts to assist his friends with H.R. 5134 or H.R. 512.

Gratuities to Pombo from the Detroit casino syndicators include:

• $16,000 from Mike & Marian Ilitch, and Michael Malik to RICH PAC (earning them #9 and #5 spots respectively on RICH PAC’s “Top Ten” individual donors list for ’04 and ’06; Jack Abramoff was #10);

• Total of more than $40,000+ for RICH PAC including contributions from various Ilitch lobbying firms (from $11,500 bundled on May 18, 2004 – $15,500 bundled on December 7, 2005);

• $26,600 to the San Joaquin County GOP Committee (Pombo’s home party organization) on October 18, 2004 from Detroit-based Barwest (Ilitch/Malik entity doing business in Barstow, Calif.);

• A $5,000 per head fundraiser at the 2005 MLB All-Star Game in Detroit (total proceeds unknown as there are no related contributions noted in Pombo’s campaign committee or RICH PAC disclosures despite aides to Pombo indicating he was the beneficiary of the event);

• Various travel arrangements;

• $50,000 to the RNC recorded the day after (7/13/05)the All-Star Game fundraiser ($25,000 each from Michae l J. Malik and Christopher Ilitch);

• $220,000 lobbying contract signed by Barbara Bonfiglio on behalf of Williams & Jensen to represent Malik’s MJM Enterprises and Development during the period Bonfiglio was also RICH PAC treasurer.

H.R. 5134 - Congressional Actions

• 9/23/2004: Referred to the House Committee on Resources.

• 9/29/2004: Ordered to be Reported (Amended) by Voice Vote.

• 11/19/2004 7:51pm: Reported (Amended) by the Committee on Resources. H. Rept. 108-788.

• 11/19/2004 7:51pm: Placed on the Union Calendar, Calendar No. 482.

H.R. 512 - Congressional Actions

• 2/2/2005: Referred to the House Committee on Resources.

• 2/10/2005: Committee Hearings Held. (1st published hearing of the session; Shinnecock only testimony outside government; 14 of 46 Members noted as present)

• 6/21/2006: Committee Consideration and Mark-up Session Held.

• 6/21/2006: Ordered to be Reported by Voice Vote.

• 9/28/2006 4:28pm: Reported by the Committee on Resources. H. Rept. 109-694.

• 9/28/2006 4:33pm: Placed on the Union Calendar, Calendar No. 419

Pombo introduced H.R. 5134 in the House the same day he introduced H.R. 5135, “To provide for a nonvoting delegate to the House of Representatives to represent the Commonwealth of the Northern Mariana Islands.” Six days later both bills were put before a vote of the Resource Committee, without either having been the subject of a previous hearing. Pombo introduced amendments to the bill he had introduced less than a week earlier in the form of a substitute bill. The committee voted and ordered the matters be reported to the full House. Pombo’s troubles in the Abramoff scandal have been tied to matters of the Northern Mariana Islands.

Although Rep. Pombo was clearly attempting to railroad approval of H.R. 5134 (and H.R. 5135); H.R. 5134 failed to win approval from the whole House in the 108^th Congress.

Pombo was not deterred. He reintroduced the bill as H.R. 512 one month into the 109^th Congress and his committee promptly “heard” the matter a week later.

The controversy surrounding the Ilitch/Malik hosted All-Star Game fundraising benefit for Pombo broke during Summer 2005 and the activities of Pombo and associates like his PAC Treasurer and former lobbyist Barbara Bonfiglio were increasingly being questioned.

Pombo severed his ties with Bonfiglio in March 2006 approximately six months after disclosure reports indicate her ties with Ilitch/Malik (for which she had been paid $220,000) were severed.

It had been 16-17 months since any formal action on H.R. 512.

Shortly after the June 2006 primary election, the Resources Committee held a routine mark-up session on what the Daily Digest indicated were “miscellaneous matters.” On June 21, 2006 the House Resources Committee reviewed more than two dozen bills including H.R. 512. The committee ordered by voice vote that reports be printed and advanced on certain of the various bills reviewed. H.R. 512 was reported to the Whole House three months later.

On September 28, at a time when the press and most others were focused on the many political campaign stories underway in the Fall elections, the report was presented and slipped into the hopper for a future vote of the whole House. All or part of the report prepared for the full House was part of the report he had ordered printed in 2004 because it appears that on the GPO printed version of Report 109-694, page six, third to the last paragraph of the section "COMPLIANCE WITH HOUSE RULE XIII" the report's author failed to replace "H.R. 5134" with "H.R. 512."

Pombo faced defeat at the polls on election day 2006 and there appears to have been no further action on H.R. 512.

Marian Ilitch and her family along with Michael J. Malik, Sr. have not been deterred by the loss of their political steward Richard Pombo. They still aggressively pursue plans to expand their Michigan casino empire through ventures with:

• the Shinnecock Indian Nation, seeking federal recognition and the opportunity to develop a casino complex in the posh Hamptons resort area of Long Island in New York;

• the Bay Mills Indian Community, using questionable land claims as leverage to get approvals to develop a third tribal casino off reservation in Port Huron, Mich.; and

• the Los Coyotes and Big Lagoon Rancheria Bands of Indians in California, two tribes Ilitch & company have adopted for the purposes of relocating planned tribal casinos across state to the Mohave Desert community of Barstow, where Ilitch owns more than 100 acres alongside I-15, half-way between the southern California basin and Las Vegas.

politics

originally posted 5.10.07

Former DOI Official Rossetti also was lobbyist for Detroit casino syndicators lead by Marian Ilitch

as posted 11.16.04 at the BerkleyDailyPlanet.com:

"Other lobbyists hired by [Marian] Ilitch to boost the Southern California casino proposal include Michael Rossetti, former senior legal counsel and chief tribal gaming expert to Secretary of the Interior Gale Norton (whose agency has the final say on authorizing the tribe to claim the site as a reservation), and former Missouri Congressional Rep. Alan Wheat.

"Rossetti left his federal job in February to join a law firm representing, among other clients, the Seneca Nation, whose casino plans he had steered through the Department of the Interior. Two months later he was representing the Los Coyotes Band in their Barstow effort along with [Willie]Brown."

originally posted 7.02.07