Despite A Hiatus, TheVerifiableTruth.com has welcomed 187,000 Visitors

Although administrators at TheVerifiableTruth.com have been on hiatus, the blog has still managed to welcome nearly 20,000 visits a year for a total of more than 187,000 visitors since the blog started in 2006.

Given that things are reportedly heating up for a possible BIA determination on the application by the Los Coyotes Band of Cahuilla and Cupeno Indians and their Detroit gambling partners, perhaps we should delve back into things?  Let us know what you think.

Also, if you've got news and details you want us to consider sharing regarding Marian Ilitch, Michael Ilitch, Michael Malik or their various affiliates and endeavors, forward those to allverifiable@gmail.com.

Candidate for San Bernardino County Supervisor comments on Barstow Casinos

From the Mojave Free Press...

James Ramos, candidate for San Bernardino County 3rd District Supervisor, on proposals for casinos in Barstow, CA. He is the former chairman of the San Manuel Band of Serrano Mission Indians

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Marketing Resource Group: the Tom Shields-owned Political/PR Firm is a Slave to Ilitch/Malik Affiliates

Tom Shields founded Marketing Resource Group (MRG), a Lansing, Michigan-based political marketing and public relations firm, in 1979. The firm is closely identified with Republican interests but overriding that are the interests of Detroit’s Ilitch Family and their associate Michael J. Malik, Sr.

Mike & Marian Ilitch appear annually on Forbe’s list of 400 Richest Americans. Currently Forbes estimate’s their net worth at $2 billion. The Ilitches are co-founders of Little Caesars pizza. He owns the Detroit Tigers MLB franchise and she owns MotorCity Casino. Together they own the Detroit Red Wings NHL franchise and numerous other affiliates under the Ilitch Holdings, Inc., umbrella. With Malik, they’ve pursued gaming opportunities in Michigan as well as New York, California & Hawaii.

Shields/MRG were among a stable of consultants who planned and executed a secretly funded last minute advertising blitz in 1996 credited with winning voter approvals for Detroit's three Las Vegas-style gambling halls.  Currently Shields is spokesperson and attack dog for a so-called "coalition" of undisclosed interests bankrolling plans for the proposed New International Trade Crossing (NITC), a second international bridge that would link Detroit with Windsor, Canada. Ilitch,. Malik and the portfolio of Ilitch brands are conspicuously absent from that battle; nevertheless, Shields is front and center.

The following is a list of clients posted on Marketing Resource Groups website. Those in bold are believed to be Ilitch/Malik affiliates and related. For at least a decade, Malik/Ilitch affiliates likely represent the overwhelming majority of MRG’s revenues. Shields is certainly obligated to get their blessing for any client that is not affiliated.

MARKETING RESOURCE GROUP CLIENT LIST

Clients	Website links
BarWest Gaming, L.L.C.
Bay Mills Community College	www.bmcc.edu
Bay Mills Indian Community	www.4baymills.com/index.html
Border Crossing Labs	bordercrossinglabs.com
Coca- Cola Operations North America	Coca-Cola Website
Continental Aluminum	www.continentalaluminum.com
Detroit Red Wings	www.hockeytown.com
Detroit Tigers	http://tigers.mlb.com
Gateway Casino Resorts, L.L.C.
Hawaii Entertainment L.L.C.
Ilitch Holdings	www.ilitchholdings.com
Insurance Institute of Michigan	www.iiminfo.org
John Moolenaar for State Senate
Kennecott Minerals Company	www.kennecottminerals.com
Lauren Hager for State Senate
Little River Band of Ottawa Indians
Michigan Association of Public School Academies	www.charterschools.org
Michigan Deer and Elk Farmers Association
Michigan Legislative Consultants
Michigan Township Association
Minerals Processing Corporation	www.backfortympc.com
MotorCity Casino	www.motorcitycasino.com
Nottawaseppi Huron Band of Potawatomi Indians	http://www.nhbpi.com/
Nestle Waters North America	www.perriergroup.com
Packaging Corporation of America	www.packagingcorp.com
Pokagon Band of Potawatomi Indians	www.pokagon.com
Renegade Charters L.L.C.	www.renegadechartersmanistee.com
Republic Services
Safe-Travel L.L.C.	www.safe-travel.com
Shinnecock Indian Nation	www.shinnecocknation.com
Thomas More Law Center	www.thomasmore.org
Wolverine Pipe Line Company -	www.wolverinepipeline.net

Blogger's Note:  In Hawaii, several lobbyists and lobbying organizations have been retained by Tom Shields' Marketing Resource Group.  It is understood that MRG has retained John Radcliffe, Radcliffe & Associates, Capitol Consultants of Hawaii and George A. "Red" Morris to represent the interests of Shields' client, a Detroit casino syndicate organized by Michael Malik and Marian Ilitch.  That syndicate has pursued various schemes that would allow them to develop and operate a Waikiki casino.  TVT and others believe it's likely that MRG is also the source of funding for a pro-gambling front group that suddenly appeared in Honolulu earlier this year, the so-called "Citizens" for a Better Way, LLC.

Liar, Liar: Ilitch using MotorCity Casino Jackpots to Fund Gambling Habits Outside Michigan; Pay-Off Las Vegas Casino Lords and Wall Street Fat Cats

Promises, Promises: Failed!
Both Marian Ilitch (she owns Detroit's MotorCity Casino) and Michael Malik (he was a MotorCity partner until he failed to get a Michigan gaming license in 1999) were behind the campaigns in the 1990s that asked Detroit voters to approve three Las Vegas-style commercial gambling halls. They promised Detroiters that approving gambling in Detroit would result in an economic windfall and help turn Detroit around. They said that casinos in Detroit would mean Detroit would capture gaming revenue instead of loosing it to Windsor or Las Vegas or elsewere.

Ilitch/Malik and the Detroit-based founders of MotorCity Casino told Detroiters that giving their enterprise the right to develop and operate one of three commercial casinos in Detroit meant keeping gambling revenue in Detroit.

And when Marian Ilitch took control of MotorCity Casino from Las Vegas-based Mirage Resorts in 2005, Ilitch spokespersons and MotorCity ad campaigns implied that Detroit-owned meant MotorCity Casino would uniquely be inclined to keep casino money in Detroit; that somehow Marian Ilitch would see the money stayed in Detroit.

Rich Got Richer, Not Detroit
Really? Casino doors have been open for ten years and yet Forbes just ranked Detroit as the #1 Most Dangerous City in America. Last month MotorCity Casino workers were told to start paying their own health care costs or face job loses. And since opening MotorCity Casino, Ilitch and Malik have made a habit out of chasing failed casino schemes in New York, California and Hawaii funded by Detroit casino money.

So yeah, Detroit money stayed in Detroit. Some small part of it... in the bank accounts of people named Ilitch and Malik.  Forbes says Mike & Marian Ilitch are now worth $2 billion; and last year Mike Malik dropped $300,000 on a Las Vegas wedding that lasted one month and bought a $5.4 million New York City (Central Park West) Penthouse.  But last month they told MotorCity Casino workers to start paying their own health care costs.

Truth is, the millions people are leaving on the gaming table and in the bellies of slot machines at MotorCity Casino aren't even staying in Michigan.

Truth is MotorCity Casino Making Las Vegas, Foreign Banks & Walls Street Fat Cats Richer
First, Marian Ilitch's 2005 acquisition of MotorCity Casino's controlling shares and the subsequent casino renovation/expansion that followed, came at a big price; hundreds of millions in fact that Marian Ilitch borrowed from out of state banks and Wall Street. And right now it's costing Detroit.  She's financing MotorCity Casino on the backs of Detroit's taxpayers.

If MotorCity Casino wasn't so highly leveraged or had stayed true to its original financial projections and the economic studies they used to sell voters on gambling halls in the 1990s, maybe MotorCity Casino workers wouldn't have been told this last month to start paying their own health care costs or face losing their jobs.

Yes, Marian Ilitch did pony up some family cash to fund a small portion of the buyout and expansion, but in truth, she paid for her business decisions, in most part, with hundreds of millions borrowed by leveraging Ilitch assets and future MotorCity Casino earnings to attract investments from foreign banks and Wall Street. And because some of the investment "opportunities" were so risky they are rated as "junk bonds," Ilitch is paying higher interest terms.

Today, millions in cash Detroiters are leaving on the gaming tables and in the slot machines at MotorCity Casino flow directly to pay off Las Vegas casino interests, foreign banks and Wall Street fat cats.

If that wasn't bad enough, a big chunk of the millions Ilitch is raking in at MotorCity Casino have been spent attempting to expand the Ilitch gambling empire outside of Michigan -- to fund failed Ilitch/Malik ego projects.

MotorCity Casino Funding Failed Schemes to Expand Ilitch Gambling Empire Outside of Michigan
Yes, since opening the doors of MotorCity Casino, Ilitch and Malik have spent millions chasing prestige casino schemes outside of Detroit -- way outside, in New York, California and Hawaii.

As an example, here's a rough accounting of the millions the Detroiters have spent chasing just their New York City / Belmont Race Track casino dreams:

• $25 million to acquire the exclusive rights to develop, manage and operate a casino
• $5.4 million to purchase a NYC Penthouse
• $2.3 million to D.C. Lobbyists
• $1.5 million to Albany Lobbyists
• $1.5 million to Political Campaign Committees

That's more than $35 million and just what's been disclosed or which they are forced to disclose. Most of what goes on at Ilitch Holdings is kept secret and under wraps. For a decade, they've certainly incurred other expenses. Consider millions spent during the last decade:  flying a private jet back and forth to New York several times a week; paying attorneys and public relations and advertising execs in Lansing, Detroit, D.C., Albany and New York City; keeping the leaders of the Shinnecock Indian Nation in toe; and so on.

Shame, Shame!
Shame on Marian Ilitch and Mike Malik for promising they'd keep the gambling money in Detroit. Shame on them for suggesting to fellow Detroiters that if they were allowed to operate a gambling hall in the Motor City somehow Detroit would be a better place to live. Seems like the moment MotorCity Casino opened its doors, Marian Ilitch and Michael Malik forgot the promises they made to Detroit and they've never regretted their lies and misrepresentations.

The Dykema Law Firm: the legal team behind the Bay Mills, Los Coyotes & Shinnecock Indian casino schemes

Local Law Firm Goes All In

By Randy J. Stine

The gaming law attorneys at Dykema in Downtown Lansing know it’s a bit of a gamble to try and get a casino built these days.The extensive regulatory system established in Michigan, under the Michigan Gaming Control and Revenue Act, makes the casino development process long and tedious.

“To say it is not easy to complete a casino project here in Michigan or anywhere else is an understatement,” says Jason Hanselman, an attorney specializing in gaming law at Dykema. “These projects can take from five to 10 years to complete.”

Dykema, which has just over 20 employees at its Lansing office, has been involved in nearly every aspect of casino gaming in Michigan, including the development of casino gaming on Native American land and the implementation of Proposal E that gained voter approval in 1996 and brought commercial casinos to Detroit.

“We actually helped draft the language in Proposal E in the mid-‘90s. Once it passed we worked to draft the final statute and regulations to implement casino gaming in Detroit,” Hanselman says.

The firm’s gaming law division assists clients on every aspect of casino gaming regulation, from contracts to real estate acquisitions to licensing and finally navigating the state and national regulatory process. “Michigan is known to have the most rigid gaming licensing processes in the country. [Michigan] prides itself on being the most rigorous licensing and regulatory jurisdiction,” Hanselman says.

Dykema attorneys are typically hired by a casino developer who in turn works in partnership with one of the Native American tribes, to get a project rolling. Hanselman explains, “It’s a gamble for the developers from the onset. They’ll pour a lot of money into projects that may never ever happen for whatever reason. There are lots of hurdles. ”

Michigan’s 19 tribal casinos, along with three commercial casinos in Detroit, operate under the authority of the Michigan Gaming Control Board.

Casino development in this state and elsewhere has been a huge area of economic growth over the past decade, Hanselman says. “It’s really a sign of the economic times. A lot of states see casinos as another source of revenue. It’s a chance to create a new tax base. Ohio recently enacted casino gaming and Illinois is moving in that direction.”

Gambling is no longer the big societal taboo, either, since you can now watch poker three nights a week on ESPN, he adds.

While development of tribal casinos in Michigan has slowed a bit recently, partly due to the maturity of the industry, charitable gaming has exploded, Hanselman says. “Michigan law allows nonprofit groups to obtain licenses to run millionaire parties. These groups raise a lot of money through fundraising. It’s been a huge growth area for us the past two years. We help nonprofits secure licenses, which they use as part of their fundraising activities. The demand [for licenses] is high,” he says.

Dykema’s Lansing office, which sits adjacent to Michigan’s Capitol Building in Downtown Lansing, also has Michigan offices in Detroit, Ann Arbor, Bloomfield Hills and Grand Rapids. In addition, Dykema has offices in Chicago, Dallas, Los Angeles and Washington, D.C.

Hanselman, who joined Dykema in 2001, works closely with Lance Boldrey on gaming issues at the firm. Boldrey, former deputy legal counsel to former Michigan Gov. John Engler, focuses on Indian law and is involved in lobbying federal and state decision makers.

Boldrey currently is working closely with a developer in New York on a casino project near New York City involving the Shinnecock Indian Nation.

“[Dykema] is currently working with them on site selection, so it is still in the predevelopment stage, but this could turn out to be one of the largest casinos in the country. We are optimistic we could be within a year or two of breaking ground. We also worked to have the Shinnecock tribe federally recognized, which happened last fall,” Hanselman says. “There are many, many facets to completing such a large project.”

Internet gaming and online poker will be the next big development in the gaming world, Hanselman predicts. In April, federal authorities shut down three of the largest offshore online poker sites and now there is a renewed effort to legalize and regulate Internet gambling in this country, he says.

“In fact, in Washington the group of 12 U.S. senators in charge of finding some $1.5 trillion in debt savings are eyeing Internet poker as a one of the means to doing it, so it’s coming. I think it is inevitable,” Hanselman adds.

Detroiters' Lobbyist Laying Groundwork for Waikiki Gambling

Note: John Radcliffe is a Hawaii-based lobbyist and politico.  He's been affiliated with Detroiters Michael Malik and Marian Ilitch for the last decade through Lansing-based Marketing Resource Group, the public affairs firm owned by Malik/Ilitch mouthpiece Tom Shields.

Radcliffe: The game is up, I told you, and you are not ready
2.16.2011

From the Peter Kay Show (click link for audio)

John Radcliffe’s speech to UHPA officials at closed-door meeting Sat. Feb. 12

"I am here to cheer you up. Happy Valentine’s Day!

"I am tracking 143 bills for you right now. Half of them are “take aways.” I expect we’ll defeat all of them. You also want me to get you more money. I won’t. In fact, we will be damn lucky to keep what we had.

"BUT

"How long have I been telling you that the revenues to pay for government are inadequate to pay the cost of government?

"Ten years?

"It has been at least ten years. Ten years, I think. In that time, the economy has gone down, up, and down—but each down has been deeper and has taken a toll, and each up has not been enough to restore funding levels…as a result government has suffered… It is now a Potemkin Village — a shabby Potemkin Village.

"The carpeting in the Governor’s office has not been replaced in I don’t know — 10-15 years? The lights don’t all work. The air conditioning is stuck at 60. The offices of other departments are often in much worse shape. There are gaping holes in some of the ceilings — By the way, to save money, the air conditioning in all government offices is shut off at 4:30 PM, and of course on all weekends… and on furlough days. But because people need to work, because they are so shorthanded — they work without the air conditioning — And it is pretty clear that the state has not had enough money to buy air conditioning filters for years — so most government buildings are full of mold and virus—and the workers who are left are sick workers.

"In terms of manpower, all 16 departments — not counting DOE and UH, are between 60% and 40% undermanned.

"Dozens of government programs are gone — teen pregnancy, job training, youth programs in general, etc. all gone….Gone. What are left are food stamps, employment training for adults, some programs for the disabled—child and protective services — the youth jail… Those things for which our government is under court order to provide — things like that. We cannot adequately enforce our laws on food safety, occupational safety, and etc. The questions of the public go unanswered for lack of manpower to answer phones.

"The Governor wants to bring our felons back and build new prisons here…not likely. Not soon.

"By the way, some of these social service agencies have been coming to me to hire me — to help them regain their state funding… and I am refusing to work for them. It would be taking money under false pretenses. They are done. Toast. Over with. Get it? People out of jobs. Kids out of programs. It is gone. Gone.

"Government is a business that enforces laws, provides social services, and shuffles paper… and that is not being done adequately any more.

"There is no legislative stomach for increasing taxes either. The soda tax, liquor tax, tobacco tax, pension tax, plastic bag tax, are probably all going to die..." (Complete Story)

See also:

• 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
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator
• Controversy seems to always follow Detroit Casino Syndicator Michael Malik
• Ilitch casino development partner Michael Malik defaults on $1 million bank loan
• Ilitch Partner Delinquent on 2008 Property Taxes
• Michael Malik's multi-million dollar home is on the block; take a virtual tour
• Growing List of NY Politicians Rejecting $$$ from Ilitch Partner Michael Malik
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• Mike Malik's partners also had a history of tax dodging; court ordered real estate negligence claims; and 40+ foreclosures
• Tribal elder calls Malik ‘Devil’ says he has ‘seduced’ younger members of the tribe
• Detroit casino investors have troubled history
• Ilitch partner enters settlement agreement in fraudulent transfers case
• April trial set in $2.1 million fraud case against Detroit casino syndicator
• Ilitch casino partner committed perjury failing to report political contributions
• Port Huron casino promoter fined for breaking California's political reform laws; denied a casino license in Michigan
• NY Governor Cuomo Latest To Reject Campaign Contributions from Ilitch Gambling Partner Michael Malik

Concerns Raised that "Investors" like Ivy Ong, Ilitch Family are Dangerous to Tribes' Long Term Interests

The Shinnecock Casino Campaign: Tribal Identity, Local Politics and Tangled Legalities

By John A. Strong

Professor Emeritus , Long Island University

...Ivy Ong, apparently frustrated that Peebles’ initial legal strategy had been rejected by Judge Platt, was reported to be negotiating the sale of his majority interest in the Shinnecock casino with [Michael Malik and ] Michael and Marian Ilitch, who own Little Caesar’s Pizza, the  Detroit Tigers, the Detroit Red Wings and MotorCity Casino.

 Tribes have had to rely on sources of money and support which have their own agendas.  Signed agreements with tribes stipulating a specific percentage of the anticipated casino profits, for example, can be used as collateral to raise money for another enterprise.  Investors, such as Ivy Ong and the Ilitch family, are willing to spend huge sums of money in the hopes that there will be a profitable payoff in casino profits.
 
If there is no immediate pay-off, they move on, often leaving the tribe in disarray.  There is a danger that a small tribe will find it difficult to protect its own long term interests when dealing with such wealthy, highly sophisticated groups of investors and their teams of lawyers and public relations consultants...

Could This Be Another Ploy by Detroiters Who Want Gambling in Hawaii? Or is it a smokescreen for something else?

Trademark filing spurs speculation about Ko Olina casino

10.25.2011

By Andrew Pereira

apereira@khon2.com

HONOLULU- A recent application with the United States Patent and Trademark Office by Ko Olina developer Jeff Stone includes a description of the resort as ‘providing casino facilities.’

The application was made October 7 as Stone sought to trademark the name Ko Olina for his holding company, Ko Olina Intangibles LLC.

Khon2 brought the trademark application to the attention of Dianne Kay, president of the Hawaii Coalition Against Legalized Gambling.

"That would be the last place I would want to go if I were taking my family to a resort or a hotel in Hawaii or anyplace else,” said Kay, who noted last month Disney opened its Aulani Resort and Spa at Ko Olina, which is billed as a family friendly getaway.

In a statement Mr. Stone’s public relations company said the inclusion of ‘casino facilities’ in the trademark application was done by a mainland filing agency, and was not intentional.

“The inclusion of ‘casino facilities’ was basically an administrative oversight, particularly given Hawaii does not allow gambling,” read the statement by Sheila Donnelly & Associates. “An amendment is being filed to have “casino facilities” removed from the application.”

However another trademark filing approved by the USPTO in October of 2008 also mentions ‘providing casino facilities’ as one of the possible forms of entertainment at Ko Olina, which has been tied to gambling in the past.

In 2001, Ko Olina Resort was mentioned as a possible site for a stand along casino when former Gov. Ben Cayetano contemplated the possibility of legalized gambling. Anti-gaming advocates were successful in pushing back the effort, even as Hawaii’s economy suffered in the aftermath of the terrorist attacks of 9-11.

Flash forward to present day and the Hawaii Coalition Against Legalized Gambling is gearing up for what could be its toughest battle yet. A bevy of gaming bills is expected during the upcoming legislative session in mid-January.

“The situation has changed somewhat,” said Kay, “however we have confidence the legislature will do the right thing and not want to jeopardize the growing tourist industry.”

John Radcliffe, a well connected Honolulu lobbyist, confirmed Tuesday he’s been hired by Marketing Resource Group to try and persuade state lawmakers about the economic benefits of gambling. TheMichigan based company represents MotorCity Casino, Gateway Casino Resorts and Barwest Gambling, L.L.C., according to its website.

“I think a stand along casino is the way to go,” Radcliffe told KHON2. “I would imagine that there will be dozens of interested parties that will want to bid on the potential of a casino in Hawaii.”

During the last legislative session a House bill (HB781 HD1) for a stand alone casino in Waikiki was stalled by members of the Judiciary Committee. The bill would have created the Hawaii Gaming Control Commission, and required a $1 million non-refundable deposit from companies interested in applying for the casino permit.

Although Gov. Neil Abercrombie has not taken an official position on gambling, spokeswoman Donalyn Dela Cruz said he would “consider” any bill that reached his desk.

Kay is worried the governor’s new communications director, Jim Boersema, could influence Abercrombie’s position on gaming. Boersema worked as a pro-gambling lobbyist in 2001 when Ko Olina was floated as a possible location for a stand alone casino.

"I think that Jim Boersema will try to influence him,” said Kay, “but hopefully the governor will also do the right thing.”

House Majority Leader Blake Oshiro believes any gambling measure will be met with tough skepticism by state lawmakers, especially since the Council on Revenues recently predicted 14.5 percent growth to the state’s general fund during the current fiscal year.

“We'll have a debate and discussion (about gambling) but chances of it having success at the end are fairly slim,” said Oshiro. “The ultimate concern is always the social ills and whether the infusion of capital that we do get from gaming actually gets outweighed by the cost that we end up having to pay out.”

Hawaii Lobbyist Confirms He Continues to Rep Detroit Casino Syndicators Malik & Ilitch

Further confirmation that Detroiters are behind renewed debate over gaming, gambling and casinos in Hawaii. And that John Radcliffe is still an agent of Detroit casino syndicators Michael Malik and Marian Ilitch.

Trademark filing spurs speculation about Ko Olina casino

10.25.2011

John Radcliffe, a well connected Honolulu lobbyist, confirmed Tuesday he’s been hired by Marketing Resource Group [Tom Shields] to try and persuade state lawmakers about the economic benefits of gambling. The Michigan based company represents MotorCity Casino, Gateway Casino Resorts and Barwest Gambling, L.L.C., according to its website.

HawaiiFreePress.com: Gaming Industry Lobbyist, Progressive activist screen Abercrombie cabinet picks

Casinos Fail to Produce Phony Revenue Claims They Promised

from Middleboro Remembers: "Casinos" Fail to Produce Phony Revenue Claims They Promised

"In fact, the last time voters trusted gambling interests, they were promised $500 million per year for schools from taxes on slot machines in Miami-Dade and Broward Counties. Promoters even signed a contract, saying that if the Legislature did not tax slot machines, they would cut a check directly to the school boards. So far, they have generated a paltry 20 percent of this figure – and recently they successfully lobbied the Legislature for a 30 percent reduction in their tax rate. Like the lottery, another promise broken."

In this fact-check, we're not going to wade into whether casino gambling generates enough new tax revenue to meet the state's needs. Instead, we'll check what No Casinos calls a fact: that machine proponents promised "$500 million per year" for schools and only delivered about 20 percent of that.

Casino Effects on Business, Charities, Job Seekers & Host Towns

from Middleboro Remembers: Casino Effects on Business, Charities, Job Seekers & Host Towns:

Broken Promises To Local Business & Host Communities

Take it from Kenneth Ivins, Finance Commissioner for casino host city Saratoga Springs, New York. The casino has driven up the city's costs for police, water, sewer, roads, and schools. But, facing a budget crunch, the state just zeroed out the $3.9 million in state aid the city once received to cover the increased costs.

And there are no economic gains for local merchants. "People who come to the area to gamble rarely shop," said Ivins. "The money is not going to the local merchants or the sales tax base. It's really not supporting our economy."


Run the Numbers: No Net Permanent Jobs

The U.S. Department of Commerce estimates that, for every $1 million diverted from household spending in New Hampshire, the state loses nine existing jobs. The New Hampshire Gaming Study Commission (page 19) projects that a $500 million Salem or Hudson casino would produce 2,215 permanent direct and indirect new jobs. But because up to half of casino revenue will be displaced from current consumer spending, nearly 2,500 existing jobs will be lost. Apart from temporary casino construction jobs, there are no net job gains.

Note that the median pay including tips at US casinos is $11.25 per hour.

Barwest (Malik, Ilitch) Behind Earlier Los Coyotes Dispute; Tribal Elder calls Malik "Devil," says he's "Seduced" Younger Members

Dispute threatens to split Los Coyotes tribe
11.01.2007

By Malcolm Maclachlan

An internal disagreement over whether to continue the relationship with their longtime business partner is threatening to split the Los Coyotes Band of Cahuilla and Cupeño Indians.

The tribe joined with a Detroit-based management company in 2003 as part of their effort to land a casino. After yet another setback in that effort, the tribe's longtime leader wants to sever ties with Barwest LLC and its owner, Michael Malik. Another faction in the tribe may be on the verge of attempting to oust her, Saubel said.

The result has been a barrage of accusations and counter allegations.

Los Coyotes has been in the news in recent months as the tribe sought to work with another tribe, the Big Lagoon Rancheria, to open a casino in Barstow. (Los Coyotes' reservation is located in San Diego County. Big Lagoon is in Humboldt County.) Saubel claimed that Barwest and Malik "have done nothing" for the tribe except make empty promises.

"Why should we give [Malik] another chance when there are other people who want to help us?" Saubel said. "He's standing in our way."

Saubel said the 300-member tribe is now divided into two approximately equal halves. Her group includes most of the older tribal members, she said. They also remain allied with the investment firm Barronhaus and its principals, Barron Maisel and Gretchen Belli.

The other side is led by a pair of younger tribal leaders, Shane Chapparosa and Tina Johnson. Saubel said this group includes the rest of the Chapparosa family and many of the tribe's younger members. They remain allied with Barwest.

"We are planning on moving forward with Barwest," said Chapparosa, who is listed as the tribe's vice spokesperson. He said he continues to work under Saubel.

When told that Saubel had made conflicting statements, he indicated that the dispute could be settled by next week. "We have some internal tribal matters that we need to take care of," Chapparosa said.

Capitol Weekly has acquired numerous and contradictory documents detailing the relationship between Barwest and Los Coyotes. A spokesman for Barwest, Tom Shields, characterized the leaking of these documents as "part of a long line of efforts by people who want to derail this project." One of these documents was a September 28 letter from Saubel to Malik and Barwest, written on tribal letterhead.

"The tribe is in the process of starting over," Saubel wrote. "As part of this new beginning, and at least for the time being, the Tribe will disengage from LCB Barwest LLC."

Shields characterized this as part of an ongoing discussion, and said the tribe never entertained serious offers from any other outside management company. He denied that there was any "dispute" within the tribe.

"There are confidential letters that have gone back and forth between the tribe," Shields said. "It's unfortunate that there are folks out there who feel they need to distribute confidential information."

In another complication, Barwest owns the Barstow land on which the tribe hopes to build their casino. In her letter, Saubel wrote "regardless of whether Barwest comes to work with us again as a developer and casino manager, the tribe hopes to negotiate the purchase of the Barstow real property owned by LCB Barwest."

Shields said that Barwest "provided the financing part of that is purchasing the land," and the parties still intend to build there. In a Wednesday story in a local Barstow paper, the Desert Dispatch, Malik was quoted as saying he would not sell the land to the tribe if they were no longer working together.

In the meantime, Shields said, the tribe had cut ties with the Barronhaus. This was indicated in an October 17 letter from the tribe’s official counsel, Joel Bernstein of the firm McDermott Will & Emery. "The tribe voted on October 14, 2007, to sever all business relationships with you. You are not to represent to any third party that you represent the tribe."

"We had some deep concerns about some of the people who were involved with the tribe," Shields said. "They have severed that relationship."

Not so, said Saubel. She said Barronhaus has "done a good job" and continues to work with the tribe. She said the letter in question was drafted by Bernstein but never sent. When asked how the letter got out, Saubel said she didn't know. However, the tribal offices were broken into over the weekend and numerous internal documents were stolen, she said.

Maisel also said that his company continues to work with Los Coyotes. Barronhaus started working with Los Coyotes in 2002, and actually brought Barwest in the next year, a decision he said was a mistake. He also said a lawsuit filed against them by Barwest in June was a "frivolous" attempt to force them out and that papers were never served. Maisel went on to allege the Barwest was the source of the letters leaked to the media.

"The source is Tom Shields trying to split the tribe in two," Maisel said.

Big Lagoon chairman Virgil Moorehead said that his tribe is no longer involved with the Barstow Casino effort and are going ahead with a solo attempt to build a casino on their own lands, 750 miles to the north. The two tribes had a deal with the state to pursue a shared casino in Barstow, but that expired six weeks ago.

"Since September 17, we're focused on Big Lagoon and our negotiations with the state," Moorehead said.

Senator Patricia Wiggins, D-Santa Rosa, proposed a gaming compact for the tribes this year in SB 157. The bill never moved out of committee and was amended in September to become a measure on licensing wine growers. The Michael Malik Sr. Trust contributed $2,000 to Wiggins' Senate campaign last year.

Saubel said there is a council-only meeting today to discuss the casino efforts--a meeting she was not invited to be but plans to attend anyway. A full tribal council meeting is set for mid-November. Saubel claimed the Malik has "seduced" the younger member of the tribe and called him "the devil himself."

"I was 83 when we started this. I'm 87 now," Saubel said. "I think he's just waiting for me to keel over."

NOTE: This wouldn't be the first time Mike Malik "seduced" younger members of a tribe. In the early 2000s, a married Malik had an affair with the Heather Lufkins, the young daughter of then Bay Mills Indian Community chair John Lufkins. She has alleged in court that Malik coerced her into lying during his subsequent divorce proceedings to shield real estate assets for his advantage.

Barstow Beware: Under Shane Chapparosa's Leadership, Los Coyotes' Approach to Dispute Resolution?

REGION: Military training firm sues Los Coyotes tribe over lease

10.09.2011

By EDWARD SIFUENTES

esifuentes@nctimes.com

A bitter dispute between the Los Coyotes Band of Mission Indians in Warner Springs and a company that operates a military training facility on the North County reservation has spilled into court.

The Eagle Rock Training Center, which leased land on the reservation for the training facility that also serves as a set for Hollywood film crews, filed a lawsuit Sept. 15 after the tribe attempted to evict the business, according to documents filed in federal court.

The training center operators claim the tribe is trying to renege on their 25-year lease agreement.

Officials with the training center also allege that the dispute contributed to a hostile environment that led to the burning of a guard shack on July 21. The fire burned about 22 square miles of wildland before firefighters were able to stop it. [Eagle Fire]

Two tribal members, Jeremy Ortiz, 23, and Jesse Durbin, 23, were charged in August with setting the fire. Both men pleaded not guilty.

After the tribe gave the training center an eviction notice June 16, Eagle Rock officials said in court documents that they attempted to negotiate with the tribe to clarify the lease agreement. But tribal officials "failed to negotiate in good faith," according to the lawsuit.

"Members of Los Coyotes even threatened to take matters into their own hands if ERTC did not vacate the property -- tragically, such threats came to fruition when the tribe allowed certain tribal members to take matters into their own hands by pouring gasoline on ERTC's security booth and lighting it on fire, and destroying new surveillance cameras that were installed after the fire," according to court documents... (Complete Story)

For nearly a decade, Detroit casino syndicators (Michael Malik & Marian Ilitch) have been using the Los Coyotes tribe, and others, to front an opportunity that could allow the Detroiters to build and manage a $160 million casino in Barstow (CA).  In part, approvals for such a venture hinge on the ability of the tribe to prove the Los Coyotes Reservation in Warner Springs (CA) is unsuitable for business purposes.

When the Detroiters woke up to realize Francine Kupsch had signed the deal with Eagle Rock which agreed to pay the tribe 10 percent of its profits, plus build a new tribal hall and a children's playground, among other things, they could not have been too happy. After all, they claim to have spent millions already attempting to protect their exclusive rights to a Barstow casino franchise.

According to court documents, Eagle Rock had spent about $450,000 paying Los Coyotes rent payments and improvements to the children's park and training facilities, according to court documents. Adding value to the deal between Los Coyotes and Eagle Rock was the fact that  ERTC was also being used as a set for Hollywood film crews.

The last time these tribal leaders had a major dispute and were attempting to evict people from their Reservation (2000), they took up firearms and the San Diego County Sheriff had to get involved. (Indians aim to drive family from tribe in vicious dispute; San Diego Union-Tribune; April 9, 2000)

And did we mention that once again, Detroit was named the #1 Most Dangerous City in America?

You might also want to see: Los Coyotes tribal leader calls Barwest's Mike Malik "devil;" says he has "seduced" younger tribal leaders.

Another Detroit Sanctioned Los Coyotes Leadership Coup; plus Lawsuits, Arson, Blackwater and "Bonfiglio?"

The Eagle Fire started when a Los Coyotes member torched an
Eagle Rock guard shack. - Photo courtesy of Cal Fire San Diego

Clearly the Detroiters using the Los Coyotes Tribe as a tool to achieve their dreams of developing and running  a casino in Barstow (CA) are catalysts, if not wholly responsible for, this upheaval  (updated in the excerpts below from SDCityBeat.com) at the Los Coyotes Reservation.

As you read this, consider that the character mentioned in the article as Shane Chapparosa is a tool of the Detroit casino interests.  Whenever they fear trouble, they trot him out, prop him up – and reward him – to act as the new Chair of the tribe.  At least twice before the Detroiters have had to “arrange” for his leadership of the tribe when the then-true-leader attempts to take the tribe in a direction that might not be in the Detroiters’ best interest.

SDCityBeat.com

But since June, Los Coyotes—a tribe of about 300 members—has been trying to boot the company off its land, claiming the lease was never valid. The conflict has since escalated to a series of showdowns, which ERTC alleges led to the arson [allegedly STARTED BY TWO TRIBAL MEMBERS] that caused the 14,000-acre Eagle fire in July...

An eviction deadline was extended until July 29 as the parties continued to negotiate. The tribe asked to review upcoming training plans, which it would evaluate before allowing them to proceed. Meanwhile, ERTC began to threaten legal action if the Notice to Vacate was not rescinded. It was against this backdrop that tribal member and former ERTC employee Jeremy Ortiz and Jesse Durbin allegedly stole ERTC surveillance cameras, then poured gasoline on an ERTC guard shack and set it alight, kicking off the Eagle fire. Ortiz admitted to the crime, according to an arrest warrant in the criminal case file.

...During the last two weeks, the dispute has come to a head, with tribal police informing ERTC that its employees, customers and equipment would be ejected from the reservation. In response, ERTC filed a federal lawsuit on Sept. 16, asking for a temporary restraining order. The request was withdrawn when the tribe temporarily agreed to allow a military training event scheduled for Sept. 21 to go ahead. The overall dispute has not been resolved.

In filing the suit, ERTC released dozens of pages of records, including contracts, plans and correspondence that shine a light on how the military contractor attempted to bypass state and county regulations by building on Indian land.

As early as 2006, former Blackwater Vice President Brian Bonfiglio wanted to build a training facility in San Diego County. The initial plans were abandoned in 2008, following significant community outcry (though Bonfiglio asserted the activism had no impact on the decision). Around the same time, he approached the Los Coyotes tribe, an impoverished community that had long struggled to find a way to capitalize on land that was otherwise unsuitable for commercial development...

Brian “Bonfiglio?”  Interesting, because the Detroiters (Michael Malik/MJM Enterprises) at one time employed Barbara Bonfiglio, a rather connected GOP lobbyist in Washington, D.C.  Ms. Bonfiglio was so well connected that she got caught up in the political scandals that brought down House Speaker Tom DeLay, Senator Rick Santorum, and Reps. Richard Pombo and Don Young.  Then one day, without notice, she packed up her desk at Williams & Jensen, and went under the radar.  The firm was tight-lipped about her departure.  She’s since surfaced as an executive at Pfizer.

...In March 2010, Bonfiglio struck a six-year deal with the tribe’s chairperson, Francine Kupsch, under which the facility would be built on the reservation and the tribe would receive a 10-percent slice of the profits. In November 2010, Kupsch authorized an extension of the lease until 2035, with the added requirement that ERTC build a children’s playground and a 1,250-square-foot tribal office and hall. Two tribal members who owned part of the land that would become an asphalt driving track would receive $500 in monthly rent. The agreement also included a waiver of the tribe’s right to sovereign immunity from the U.S. court system.

What the document does not contain was the tribe’s official seal of approval, even though there’s a place for it on the agreement.

Kupsch was replaced as chairperson on Jan. 1 by Shane Chapparosa, under whose watch the tribe developed concerns with the 25-year agreement.... (Complete Story at SDCityBeat.com)

Poor Francine Kupsch, when she was of use to the Malik & his Detroiters, they trotted her out in Sacramento, exploited her personal circumstances with photos and stories they sent out over PR wires and had her stage a hunger-strike/sit-in on the grounds of the State Capitol.  Now, they’ve had her tossed out as Chair!  [Note to Tribal Chairs:  whenever the Detroiters, aka the bully Mike Malik, fear they’re losing their grip on your Tribe, they arrange a coup and toss out the Chair.  Take a look at the case of Los Coyotes respected elder Katherine Siva Saubel; or one-time Bay Mills Indian Community leader John Lufkins.]

Worth Consideration:  Los Coyotes, Barwest, Michael Malik ↔ Barbara Bonfiglio ↔ DeLay, Santorum, etc. ↔ GOP  ↔ Bush ↔ Texas ↔ Blackwater ↔ ERTC ↔ Brian Bonfiglio ↔ Los Coyotes

Detroit #1 on Forbes' List of America's Most Dangerous Cities!

The Benefits of Casino Gaming?

Click to see Dangerous Cities List

For 15 years Detroiters like Michael Malik and Marian Ilitch have told people there that opening up gambling halls would bring the kind of positive economic change that Detroit needs to turn itself around.  The same thing they tell people in Port Huron or Flint (MI), or Elmont (NY), or Barstow (CA). 

Really?  Because Detroit’s three gambling halls have been open and even expanded during this past decade and yet...

From Forbes this past week:
Detroit is America’s #1 Most Dangerous City!

From Huffington Post in March:
New census data indicates Detroit's population dropped by a startling 25 percent in the last decade, from 951,270 in 2000 to 713,777 last year. That's a 60 percent decline from its 1950 peak population -- 1.85 million -- and the lowest count since the 1910 Census put the then-promising Motor City's population at 285,704.

From forecastchart.com last January:During the 10 years ended in the 1st Quarter of 2011, Detroit Home Prices had the worst performance in the country, with appreciation during the decade of -26%. 

From the U.S. Dept of Labor, Bureau of Labor Statistics:

Who Really Benefits from Casino Gaming?
The Ilitch Family (owners of Detroit’s Motor Casino, Red Wings Hockey and Tigers Baseball teams, and Little Caesars’ pizza), Michael Malik and their other PR agents have used those same economic benefit arguments every time they want something from Detroit’s hard working taxpayers – when they want to condemn property or get the Deed City controlled property for "free" (without consideration);  when they ask taxpayers to fund demolition of buildings they’ve let fall into disrepair;  when they secure ticket tax breaks; or worse yet, want the taxpayers to subsidize their parking, sports and entertainment venues.

In truth, the only Detroiters better off today than they were 10 years ago have the last name “Ilitch.”

Last month, in its annual ranking of the 400 Richest Americans, Forbes reported that during the last year, the Ilitch family’s net worth went from $1.7 Billion to $2.0 Billion!  They are #212 on the list of 400 Richest Americans.   In 2004, Forbes estimated the Ilitch Family’s worth at $750 million.

Beware Detroiters who roll into your town and extol the economics of casino development!  They only people who will be enriched are the Detroiters.  They’ll even prey on their own.

Is there any doubt that Detroiters Marian Ilitch and Mike Malik are behind this latest courtroom drama?

REGION: Military training firm sues Los Coyotes tribe over lease

10.09.2011

By EDWARD SIFUENTES

esifuentes@nctimes.com

...The lawsuit comes amid renewed efforts by the tribe to build a $160 million casino in Barstow, halfway between Los Angeles and Las Vegas. The project, which has been in the works for nearly a decade, appeared to be dead three years ago. That is when the federal government denied an application to take a plot of land in Barstow into trust, which would make it part of the tribe's reservation, in order to build the casino.

Last year, the project got a second wind when the U.S. Department of Interior allowed an appeal to proceed.

To get the land transfer, Los Coyotes must prove, in part, that its reservation is unsuitable for business purposes. Critics of the casino project say the Eagle Rock lease agreement makes that argument less believable.

According to the lawsuit, Eagle Rock agreed to pay the tribe 10 percent of its profits, and build a new tribal hall and a children's playground, among other things.

Overall, the company has spent about $450,000 on rent payments and improvements to the children's park and training facilities, according to court documents.

Eagle Rock is asking the court to declare the lease agreement valid and to award the company compensatory damages, but does not give a specific amount.

In January, the tribe's leadership changed. Kupsch was replaced by Chairman Shane Chapparosa.

Radoff said there may have been a change in the tribe's plans when the new chairman came into office, but he declined to discuss "internal tribal deliberations."

Eagle Rock officials say they believed the tribe had approved the lease because the company had not been told otherwise, according to the lawsuit. Representatives of the company attended a tribal council meeting in January to discuss the children's park and gave members of the tribal council tours of the leased property in March... (Complete Story)

In August, two members of the Los Coyotes Tribe, Jeremy Ortiz and Jesse Durbin, were arrested on arson charges alleging they started what California authorities call the "Eagle Fire." That incident ended up burning 14,100 acres (22 square miles) in northern San Diego County this past July. Eighteen injuries occurred during the fire which cost California taxpayers  $15.5 million to battle.

It is alleged the Los Coyotes pair, Ortiz and Durbin, broke into the Eagle Rock Training Center (ERTC), disassembled surveillance cameras and then torched the guard shack at ERTC.

Torching 22 square miles... that's one way to validate claims that your reservation is uninhabitable or otherwise offers no natural resources of any value.  On the other hand, Barstow officials ought to be concerned about Los Coyotes' approach to dispute resolution!

Attorney Dennis Whittlesey up to his Old Tricks

Firm's Biography:
Dennis J. Whittlesey

We've had several inquiries recently about the whereabouts and activities of attorney Dennis Whittlesey. Apparently he remains with Dickinson Wright attached to that firm's Washington, D.C. office.

Whittlesey is still acting in the capacity of third-party pimp for the interests of his Detroit casino syndicator pals.  And that includes posting articles to an out dated little trafficked old blog supporting the Detroiter's agendas.

Take a look at some of the posts he's added recently to that tired blog:

• Newly Recognized And Searching For A Casino Location On Long Island
• Detroit Casinos’ July Revenues Increase From Same Month Last Year: Michigan Gaming Control Board Releases July 2011 Revenue Data
• Barstow Bounces Back
• Detroit Casinos' June Revenues Increase From Same Month Last Year: Michigan Gaming Control Board Releases June 2011
• The Catskills Tribal Casino Scam 

Proof that Ilitch Casinos Partner was in bed with Ponzi Scheme Fugitive Jack Utsick

If there was ever any doubt that Detroit casino wheeler dealer Michael J. Malik, Sr., was in business with fugitive Jack P. Utsick, the notorious entertainment promoter wanted for bilking "investors" out of millions, TVT has just discovered this:

Click Graphic to Enlarge or Click Here to See Original Document

On March 10, 2000 Malik and Utsick organized AB Funding Company, L.L.C., with the help of attorney William D. Serwer.  The Articles of Organization, Section V, as filed with the State of Michigan indicate:

The business of the limited liability company shall be manged by or under the authority of one or more managers. The initial number of managers shall be two (2).  This number may be modified from time to time by the provisions of the limited liability company's Operating Agreement that specify or otherwise fix the number of managers.

Directly under Section V, the Articles of Organization were signed by Michael J. Malik, Trustee of the Michael J. Malik Revocable Living Trust, and Jack P. Utsick, President of The Entertainment Group Fund, Inc.

For each and every year through 2007, Michael Malik, as manager of AB Funding Company, L.L.C., filed annual statements with the State ofMichigan.  While there have been no annual statements filed since, there have also been no other documents filed terminating the entity or removing Jack Utsick. 

The State of Michigan records AB Funding Company, L.L.C., as “Active, but not in Good Standing as of 2-16-2010.”

Utsick is now a fugitive reportedly living in Brazil.

Forbes says Ilitch worth $2 Billion; Ranking #212 among Richest Americans, #5 Richest in Michigan

Forbes 400 | #212 M/M Ilitch

Forbes' 2011 List of 400 Richest Americans is out. The net worth of Detroit's Michael and Marian Ilitch is valued at $2 billion.  That's up from $1.7 billion in September 2010.  They are ranked #212 on the 2011 List of Richest Americans -- climbing 26 spots from 2010 (#238).

According to Forbes:

A stagnant economy continues to benefit Michael and Marian Ilitch's Little Caesar's chain, which sells $5 pizzas to penny-pinching consumers. Revenues are picking up at Marian's MotorCity Casino after a flat 2010. The Ilitch clan passed on the chance to buy the Detroit Pistons, but Mike's Detroit Tigers are in first place in the AL Central. Next up: a new downtown hockey arena for the Red Wings.

They share the #212 ranking with Neil Bluhm, John Catsimatidis, Edward DeBartolo Jr., Doris Fisher, Gordon Getty, Mark Pincus, Stewart & Lynda Resnick, J. Christopher Reyes, Jude Reyes, Eduardo Saverin, Richard Schulze, Ted Turner, Romesh T. Wadhwami and Kelcy Warren.

Forbes ranks Mr. & Mrs. Ilitch as the 5th richest in Michigan behind Richard DeVos, Frederik G.H. Meijer, Al Taubman and Ronda Stryker.

2011 Forbes 400 List - #212 Michael & Marian Ilitch

See also:

• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Ilitch Family Amasses Debt for Sports, Entertainment & Gambling Affiliates
• UPDATED: 165+ Affiliates of Detroit Casino Syndicators Michael Malik & Mrs. Marian Ilitch
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• Who Really Paid D.C. Lobbyists $5.6 Million? Poor Impoverished Tribes? "Investors" With Their Own Financial Woes?