The Verifiable Truth: Bay Mills

Showing posts with label Bay Mills. Show all posts

Thursday, December 15, 2011

How Lance Boldrey Turned a Stint in the Governor's Office Into a 10+ Year Multi-Million Dollar Engagement with Detroit Casino Syndicators

Blogger's Note: We've received several inquiries about Michigan gaming attorney R. Lance Boldrey and note an increase in the number of people visiting TheVerifiableTruth.com as part of browser searches of Boldrey's name so we're republishing this 1.08.2007 post originally titled "Aide negotiated '11th Hour' Port Huron casino deal for Gov. Engler; then joined private practice, retained by those who got the deal"

On Sunday, January 7th, the Port Huron Times Herald published an editorial, "Feds must come to aid of Port Huron," suggesting that a Bay Mills Indian Casino planned for that community might still be alive. At the very least, the following raises ethical questions and creates curious circumstances surrounding the proposed casino, deserving of investigation and disclosure.

R. Lance Boldrey joined the staff of Michigan Governor John Engler sometime in 1999 as Deputy Legal Counsel and chief negotiator for Indian Affairs matters in the Governor's third and final term.

Throughout most of Engler’s 12 years as Governor, Engler steadfastly opposed the expansion of Indian gaming... BUT in the final months, with Boldrey helming negotiations, something changed.

In September 2002, roughly three months before Engler's term would expire, the Governor was compelled to sign a land claims settlement agreement Boldrey and others had negotiated the month before with the Bay Mills Indian Community. The agreement would pave the way for a third Bay Mills Indian Community casino to be developed in the urban border town of Port Huron, 350 miles away from its Brimley, MI reservation.

On December 20, 2002, with less than two weeks remaining on his term, Gov. Engler also signed a new Tax Agreement with the Bay Mills Indian Community covering (or protecting) the Tribe, its proposed Port Huron casino and other commercial and trust properties. Presumably Boldrey played a lead role in those negtotiations as well.

Oddly enough, the so-called "land claims" made by the Bay Mills Tribe in 1996 (the threat driving any need for a Settlement Agreement at all) were never verified. Both state and federal courts tossed out the claims, at that time, on administrative grounds. This raises question about the rushed 11th hour change of policy by Engler and the need for any Settlement Agreement at all. Did the state trade a casino for land claims that weren't legitimate afterall? Were the circumstances surrounding the Settlement Agreement just a theatrical smokescreen to rationalize approval for a third Bay Mills Tribal casino in Port Huron?

But Engler knew the land claims weren't valid and that they were being used to leverage a casino because in a 1999 opinion letter published by the Record Eagle intended to set the record straight, Engler wrote:

"... I find it remarkable that Congressman Stupak would step in at this late date and join with the Bay Mills Tribe in using the Charlotte Beach homeowners as political pawns. Make no mistake about it - Congressman Stupak's proposal is solely about trying to give the Bay Mills Tribe an otherwise illegal casino..."

"... the state of Michigan has stood by these properly owners since day one, defended them in court, and won the dismissal of the Bay Mills lawsuit against the Charlotte Beach owners. I have no doubt that this dismissal will hold up on appeal ..."

R. Lance Boldrey parlayed stint in Governor's
Office into 10+ year million dollar engagement

Within weeks of Engler approving the the Settlement Agreement, Boldrey flew to Washington D.C. and eagerly represented Governor Engler before a U.S. Senate Indian Affairs Committee hearing on Capitol Hill. Backers of the Bay Mills casino were attempting to railroad congressional approvals in the closing days of the 107th Congress needed to affect terms of the Engler negotiated Agreements.

Boldrey's eagerness might partially be explained in part by the fact that in July 2002 the White House announced the President’s intention to nominate Boldrey to serve as a trustee of the Udall Foundation. The nomination wasn't sent to the Senate until January 2003 and Boldrey was confirmed in April 2003. During that 6-9 month period it was certainly in Boldrey’s interest to increase his profile in Washington D.C and exploit the credentials he’d developed during the short time he worked as Gov. Engler’s Indian Affairs agent.

With the help of people like Boldrey, first term Senator Debbie Stabenow (D-MI) had drafted and introduced S. 2986 as a companion to the Settlement Agreement on September 20, 2002. Less than two weeks after its introduction (usually this takes months, sometimes even more than a year), the bill was scheduled to be heard before the full Senate Indian Affairs Committee. At the October 10, 2002 hearing, as the Governor's representative, Boldrey sat beside the Bay Mills Community's elected Council President John Lufkins and together they urged the committee’s swift endorsement. It wasn't to be; Senator Harry Reid (D-NV), a leading Democrat and member of the Committee stood in their way.

Time was ticking on the Engler Administration and on the friday before the 2002 Christmas holiday, with less than 5-6 full business days left on the calendar, Governor Engler also signed a new Tax Agreement with the Bay Mills Tribe. Among other protections for the Tribe and its members, the Agreement exempted (page 9) hotel rooms, restaurant food and beverages sold as part of any casino and its adjoining resort properties from lodging taxes, sales taxes and use taxes.

Engler’s 12 year administraton came to an end on January 1, 2003 leaving Boldrey unemployed. But within weeks, Boldrey announced he was returning to private practice. He had decided to join the Lansing office of the Dykema Gossett law firm and was tasked with starting up an Indian Law Practice for the firm. A longtime Engler friend, confidant and political agent Richard D. McLellan was a senior partner in the Dykema office. The Dykema law firm had already been handling legal business matters for the MotorCity commercial casino partnership in Detroit. Ilitch, Malik and others who were founders of MotorCity Casino have been the driving force behind the third Bay Mills casino project for a decade or more.

So, Boldrey joined Dykema and before long, the Bay Mills Indian Community, its casino backers like Marian Ilitch and Michael Malik, and others whom previously had to negotiate across the table from Boldrey in his role as the Governor’s point man had retained Dykema Gossett (Boldrey & McLellan) to work on Indian law and gaming matters at prime corporate law firm rates. Boldrey's role now was to protect and advocate for their interests going forward.

What or who compelled the Governor's dramatic change of direction in the last months and days of his administration? Why this proposal instead of some other? Five years ago, those questions were swept under the carpet.

When had Boldrey decided to return to private practice? When did he open talks with Dykema? What role did Richard McLellan play in recruiting Boldrey? What involvement had McLellan had with the 11th hour negotiations with various tribes including Bay Mills? When did Boldrey's future clients learn of his career move? When did they first discuss a future working together? What relationships did he have with "Charlotte Beach" area land owners then or now? Who did he negotiate against as the Governor's representatives that paid him or Dykema after he joined Dykema?

Certainly an attorney whose credits included pulling-off a deal like this would be in high demand and command the highest of fees.

What relationships if any did Boldrey/McLellan have with attorneys Anthony Andary, Robert Golden?

With all of the other matters deserving greater urgency, why was there such a last minute push five years ago for a Settlement Agreement with Bay Mills Indians when they've yet to prove their land claims valid?

What's really at play in the "Charlotte Beach" (also referred to as "Hay Lake" by Bay Mills Tribal Council President) area referenced in the unverified land claims? The Hay Lake/Charlotte Beach locations are near impossible to find on maps in Chippewa County -- Atlas, Google, USGS, etc. or via governmental agency resources. It's only in old plat maps that one will find a reference to the "Charlotte Beach subdivision" east of the Barbeau community on Michigan's Upper Peninsula.
"Charlotte Beach" is a rather obscure place, not among those included in the USGS master place names data base nor referenced in resources available via the Department of Natural Resources at Michigan.gov; it is not noted as a town or community or any other place of significance in Michigan; other respective state and federal sources simply don't designate the 110- acre place. There are no obvious references noted by non-profit environmental or natural resource protection groups either. In fact, the only modern public documentation that references a place called "Charlotte Beach" in Michigan are documents related to the Bay Mills land claims. It is doubtful Governor Engler or anyone else for that matter had visited Charlotte Beach, Michigan to see for themselves what was going on there. One must wonder what sort of investigation was done to see who really owns land there or who has bought land since.

It just doesn't add up: a complete and documented reversal of a Governor's long held public policy stance opposing the expansion of gaming; no validated land claims, yet a signed Land Claims Settlement Agreement; two existing casinos already, just not in prime urban locations; an 11th hour Tax Agrement too; 110 acres of land in "Charlotte Beach," an area not designated on maps or by any public agencies or non-profit groups as significant or sensitive; and a lead negotiator who was later engaged by the very parties he once negotiated against. Before Congress or any other elected officials or public agencies take any further action, a complete investigation and full disclosures are warranted.

And what role or connections has political consultant Tom Shields (also an Engler insider, political advisor to Rep. Candice Miller, and longtime spin doctor to Mike & Marian Ilitch) played in these schemes?

See also:

Friday, November 18, 2011

New BMIC Chair Signals Tribe Won't Abandon Litigation that Shut-Down Vanderbilt Casino

New BMIC Chairman Kurt Perron

Kurt Perron, the new Chairman of the Bay Mills Indian Community signals to the Tribe and others that under his leadership, BMIC will not abandon litigation that has resulted in the tribe's Vanderbilt casino being locked up indefinitely and blocks any future casino development schemes the Tribe and its partner, controversial Detroit casino syndicator Michael J. Malik, Sr., had dreamed of for Port Huron & Flint Township.

No doubt, former BMIC Chair Jeff Parker had previously entered into Development Agreements with Malik or his affiliates protecting Malik's interests. Malik has indicated that his Blue Water Resorts syndicate and others have invested $15-25 million during the last two decades attempting to win approvals for his Bay Mills casino in Port Horn. Given that, it's not likely Malik will walk away from or be pushed away from BMIC. He is known to be tenacious and a bully.

Those who've followed TVT regularly will recall several instances where leaders of the Los Coyotes Band of Indians attempted to part company with Malik or undertake business development strategies potentially in conflict with Malik's objectives; and in such instances, the Detroiter saw to it that those leaders were replaced and individuals loyal to him were installed in their place.

BayMillsNews.com

Tribe continues work on gaming issues
11.16.2011

BAY MILLS — Bay Mills Indian Community elected new tribal leaders on Nov. 2, but the commitment to the current litigation regarding the Vanderbilt Casino remains the same.

“Our first day in office, Nov. 7, we formally agreed as a council to continue working together on our gaming issues, including our properties in Vanderbilt, Flint, and Port Huron,” said newly elected Tribal Chairman Kurt Perron. He is joined by another new face on the council, Joe LeBlanc, serving as vice-chairman. The rest of the council remains the same, as incumbents John Paul Lufkins, Richard LeBlanc and Bucko Teeple held onto their seats in the election.

The council’s actions come on the heels of an Oct. 19 General Tribal Council meeting of the Bay Mills Indian Community membership. At that meeting, Perron made a motion before the prior council to continue moving forward with the litigation. The tribal membership unanimously approved Perron’s motion.

"I am committed to working aggressively and diligently with the entire council to advance this litigation and related pursuits,” said Perron.

The tribe has a July 2012 court date scheduled.

Thursday, November 03, 2011

Naive Ignorance: Genesee County Officials Made Agreements with the now-Former Bay Mills Leader, Reportedly the Same Day he was Voted From Office

Naive Ignorance: One must wonder if the Genesee County officials mentioned in the article referenced in this post had even a clue that the Bay Mills Indians were holding an election this week and that now-former Tribal Chair Jeff Parker was facing a re-election challenge. That Genesee officials report making an agreement with Parker on the very day he was voted out of office hardly seems prudent.

Three words to remember for the future: Homework & Due Diligence.

For a generation, Parker had tightly ruled the Bay Bills Indian Community. Now there will be a new regime at the helm. Did Genesse County officials even anticipate that? Did they anticipate that any agreements with Parker might well be moot, simply unacceptable or even non-binding under the new regime?

It's understandable that local officials have little to no experience dealing with Indian tribes and Indian issues, but before they leap into discussions with or consider agreements with new leaders, they would be best served to survey their experienced counterparts representing communities in and out of Michigan and to also consult with lawyers and others with such expertise. Although they'll try -- their track record suggests so -- the tribal leaders and those behind the tribe's schemes are likely to refer expert lawyers and consultants for consideration by Township and County officials who would be wise to avoid any such referrals and instead seek out such expertise independently. Historically, the people behind the Bay Mills schemes have referred counsel and consultants sympathetic to their interests and those of their Indian partner.

Presently the Bay Mills owned land in Flint Township does not qualify as "Indian Lands." That is the opinion rendered by the State of Michigan, U.S. Department of Interior, National Indian Gaming Commission and District Court. The only one who suggested otherwise is now the former Chair of the Bay Mills Indian Community. The Flint Township property is not sovereign, nor held in trust, nor tax exempt; rather, it is subject to the same codes, regulations, laws, fees and taxes expected of others who own local property. There is no need for special emergency services agreements or other arrangements at this time for negotiated fees in lieu of taxes. And given the tribe's track record in Port Huron, it could be 20 years or more before anything like that is required or otherwise needed, so why agree to anything now?

Genesee County Road Commission agrees to road pact with Bay Mills Indian Community

11.03.2011

By Ron Fonger

FLINT TWP., Michigan -- No one is certain what will happen to undeveloped land owned by the Bay Mills Indian Community here, but the Genesee County Road Commission has agreed to partner with the tribe on future road improvements in the area.

The Road Commission on Tuesday approved an agreement with Bay Mills than could lead to special funding for roads in the area immediately surrounding the tribe's land at Dutcher and Lennon roads.

Road Commission Manager-Director John Daly said a representative of Bay Mills talked to county road officials last month, suggesting the "acknowledgement of public authority responsibility" agreement.

Tribal leaders had no new information about how the property will be developed and made no requests tied to future road needs... (Complete Story)

Wednesday, November 02, 2011

New Bay Mills Chairman Plans to Wrestle Charlotte Beach Land Claims from Soo Tribe; Evict Current Residents

A Letter To Bay Mills Tribal Members

2.12.2011

As posted on Facebook at Kurt Perron For Tribal Chairman

* I will resolve our Charlotte Beach Land Claim which has been handed over to the Soo Tribe to use to obtain casinoes with. I will file a lawsuit against the Soo Tribe in federal court to have them kicked off our Charlotte Beach land claim using the Supreme Courts recent Carcieri decison as precedent. Once Soo Tribe is kicked off our claim, I will then issue an eviction notice to the current residents of Charlotte Beach. We can then use our claim ourselves to obtain several more casinoes in key areas, including Vanderbilt, without spending our Elders Fund in the process. We should have never given our Charlotte Beach Claim to the Soo Tribe to use for a casino in Romulus and now Lansing, this was our land and it was taken from us, not the Soo Tribe. If a casino ever opens in these areas it will be owned by Bay Mills, not Soo Tribe.

See also:

President/Chairman Parker, Longtime Crony of Detroit Gambling Promoter Michael Malik, Tossed Out by Bay Mills Indian Community Voters

Jeff Parker held the Presidency of the Bay Mills Executive Committee for a total of 20 years coinciding with Detroit gambling promoter Michael Malik's influence over the Bay Mills Indian Community (Brimley, MI). In an election held today among Bay Mills voters, Parker was tossed out of office losing his re-election bid to newcomer Kurt Perron, 54% to 46%.

Parker and Malik had pursued failed schemes to develop an off-reservation casino in Port Huron (MI) for a generation. Malik's various syndicated affiliates (Blue Water Resorts, etc.) have spent millions lobbying in Lansing and Washington, D.C. and attempting to buy influence with key politicians. Recently they opened a small slots casino in Vanderbilt (MI) which was subsequently ordered closed by court order.

They had announced an intent, albeit hollow, to similarly open a casino in Flint Township. Attempting to shore up credibility with Bay Mills voters, Parker had made several high-profile PR appearances in Flint Township suggesting he was on the verge of opening the casino there and as such, bringing increased economic prosperity to both Flint and the Bay Mills Indian Community.

Perron defeats Parker for chairman's seat

11.02.2011

BAY MILLS — A new face will head up Bay Mills Executive Council as a result of the Nov. 2 General Election. Kurt Perron defeated incumbent Jeff Parker 321 [54%] - 273 [46%]. Perron will be joined by another fresh face on the council, as Joe LeBlanc defeated Allyn Cameron 313-280 for the vice chairman's seat. Incumbents Richard LeBlanc, John Paul Lufkins, and Dwight "Bucko" Teeple will remain on the council.

Another upset this election was the seat of chief judge. Incumbent Shelly Deuman lost to Levi Carrick, Sr.

Taking seats as appellate judges will be Shannon (Lufkins) Belk and Justin Teeple.

See also:

Another Sign Port Huron is no longer Betting on Mike Malik's Bay Mills Casino

Aquarium goes belly-up

11.02.2011

By Liz Sheperd

...In May 2010, the city approved paying New Zealand-based Marinescape Ecoaquariums $100,000 to study the feasibility of opening an aquarium at the site of the former YMCA building at Beers and Fort streets...

But the city council approved purchasing the old YMCA for $200,000 in December and razing the facility for more than $230,000 in March. Officials said if the aquarium didn't come to fruition, some other development could go into the property...

Mayor Pauline Repp, however, said the money the city paid for the YMCA site was not tied to the aquarium development. She said the city's only cost in the project is the $100,000 for the aquarium study. The acquisition and demolition costs will be recovered when the land is sold to a developer, she said.

"I never wanted the city taxpayers to pay for it, and it doesn't look like there's anyone else coming forward," she said.

In November, after the Bay Mills Indian Community bought the old post office property and said it was bringing a casino to the city, officials said the aquarium could be moved to Desmond Landing and tied into the casino.

Brown said that aquarium plan ultimately proved unworkable as well. Meanwhile, Bay Mills is locked in a federal court battle about the legality of having casinos on property not recognized as Indian land by the government. That case won't be heard until next year... (Complete Story)

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.

Tuesday, November 01, 2011

After Waiting 20 Years for a Bay Mills Casino, Port Huron Moving On with Plans for Convention Center

EDITORIAL: New project is the boost city needs

Oct. 28, 2011

For years, Port Huron has longed for a major economic development. The city's time has come.

A new convention center and a revamped Thomas Edison Inn aren't the answers to Port Huron's economic needs, but they do constitute a significant boost.

Tourism leaders always tout Port Huron's potential as a destination. This $27.8 million project will give tourists a new reason to visit and a new place to stay.

Before the project was formally unveiled Thursday, Port Huron City Manager Bruce Brown called it "a game changer for our community." It's difficult to disagree.

The hotel will be remade into a Hilton Garden Inn and a new 40,000-square-foot convention center will be attached to it. The hotel also will feature a new Twisted Rooster restaurant.

A Baker College of Port Huron facility will be home to a new culinary arts program and student housing will be built near the culinary institute.

Port Huron and St. Clair County officials have reason to brag about the project. It will take up 15.5 acres of land next to the Thomas Edison Parkway, a location that should make the most of its view of the St. Clair River.

The partnership of public and private interests might be an admission that government must play a role in economic development, but it also shows what that kind of cooperation can achieve.

The public stake in the project starts with the county. To finance the convention center, $9 million in 30-year bonds will be issued. In addition to building the facility, the money will cover the cost of buying its land and 11,000 square feet of meeting space at the hotel.

The bonds will be repaid from convention center revenue, tax money from the city's tax increment finance district and the Blue Water Area Convention and Visitors Bureau.

First on the list of returns are the jobs the project will create. The project will be done in two phases. The hotel and restaurant renovations should start Jan. 1 and be finished by July -- just in time for Boat Week.

The convention center is scheduled to be finished in May 2013. The Baker College facility will be finished by November 2012.

It is fitting that the Edison Inn is the focus of this new development. The hotel once was the focus of Port Huron's hopes for a casino gaming facility.

The hotel and convention center project is a kind of confirmation. A casino undoubtedly would change Port Huron's fortunes, but this development is proof the city and county are making their own luck -- and it's about time.

Monday, October 31, 2011

Similarities Between Strategy to Approve Bay Mills Land Claim and Native Hawaiians' Attempt to Restore Sovereignty

The Common Interest in Both Schemes is

Detroit Gambling Promoter Michael Malik

Detroit Gambling Promoter
Michael J. Malik, Sr.

Blogger’s Note: Does this cram-it-into-an-appropriations-bill strategy not in the Hawaii Free Press story highlighted below sound familiar? Recall when lobbyists and operatives for Detroit gambling promoter Michael Malik attempted to get approvals of the Bay Mills Indian Community Land Claims Settlement crammed into an Appropriations Bill? or the Transportation Omnibus? Those attempts were ultimately intended to get approvals needed to pave the way for Malik’s Bay Mills Indian casino in Port Huron (MI).

Consider this... Malik has attempted to establish gambling (a casino) in Hawaii for the better part of a decade. He’s not been able to get legislative or voter approval despite major efforts in 2001 and 2010-11. But recently he’s been spotted palling around on Long Island (NY) with former Hawaii Governor John Waihee.

Waihee was the first Governor of Hawaii to be of Hawaiian ancestry and he was the person who appointed then-Rep. Akaka to fill the U.S. Senate seat that had been held by Spark Matsunaga, making Akaka the first person of Native Hawaiian ancestry to serve in the Senate.

While Waihee has been an opponent of gaming in Hawaii, for the better part of his life, he’s been a ring leader in the movement to restore Hawaiian Sovereignty. Should Native Hawaiians be Federally Recognized, Malik might be able to get his Waikiki casino – in the same way he hopes to build, manage and operate a Long Island casino using a bargain he struck with the Shinnecock Indian Nation. And should Waihee, who’s had personal financial challenges in recent years and who was embroiled in the Bishop Trust scandals detailed in “Broken Trusts, ” be personally enriched through a Native casino in Hawaii, it would be a grand slam for the former Governor.

Another Akaka Bill sneak attack? GOP Senators tell Inouye to back off

News Release from US Senate Republican Caucus

12.03.2010

WASHINGTON – Senators Jon Kyl (R-Ariz.), Lamar Alexander (R-Tenn.), John Cornyn (R-Texas), and Tom Coburn (R-Okla.) today released the following statements in response to reports that the Native Hawaiian Government Reorganization Act – legislation that would establish a new governing entity for individuals of native Hawaiian descent – may be added to an Omnibus Appropriations Bill or a Continuing Resolution, one of which must pass Congress and be signed by the president this month, or the federal government will not have the funding to operate.

“Legislation as highly complex and divisive as the native Hawaiian bill requires vigorous discussion, debate, and amendments,” Kyl said. “An attempt to include it in unrelated legislation to keep the government operating is a breach of process and is an example of what the American people are tired of – back room deals that are inserted in secret packages written behind closed doors.”

“I’m concerned by reports that a special Native Hawaiian bill, or any other controversial measure, might be quietly inserted into must-pass legislation that’s needed to keep the government open,” Alexander said. “If the Democratic majority wishes to pass legislation that would create a new, sovereign government within our borders based solely upon race, it should be brought up separately and debated openly on the Senate floor with the opportunity for amendment.”

“This November, Americans spoke and we listened,” said Cornyn. “Unfortunately, some of my Senate colleagues did not hear the resounding message that rejected secret backroom deals and controversial legislative distractions like this... (Complete Story)

Friday, October 28, 2011

Disclosure? And their tangled web: Detroiter Michael Malik, the Jack Utsick Ponzi Scheme, Shinnecock & Bay Mills Indians, and Akerman Senterfitt

Michael J. Malik, Sr.

According to official lobbying records, during 2008 & 2009 the D.C. office of Akerman Senterfitt (Akerman) a legal/lobbying firm, registered as a lobbyist for the Bay Mills Indian Community but did not report any related income. At the same time Akerman also represented the Shinnecock Indians and was paid $230,000 for that work. Detroiter Michael J. Malik, Sr., or his affiliates pay all or part of the lobbying bills and manage the lobbying contracts for both Native American groups who are also his intended gambling partners. Should either tribe receive the necessary approvals, Malik affiliates have the exclusive rights to develop, manage and operate their respective gambling halls.

Simultaneously, Michael I. Goldberg, an Akerman attorney and "shareholder" in Florida, had been retained as the Receiver in a $300 million federal ponzi scheme case (SEC v. Utsick) against entertainment promoter John P. "Jack" Utsick, his Worldwide Entertainment Group and other parties. Utsick has reportedly taken asylum in Brazil and failed to appear during final court proceedings.

Michael I. Golderg

In the matter of the ponzi scheme, Receiver Goldberg had brought a fraudulent transfer case in Florida federal court against Malik (Goldberg v. Malik , Jun 9, 2008) alleging Malik was involved in a $2.1 million fraudulent transfer.

After the usual legal maneuvering, the Court received a Settlement Agreement (April 29, 2009) in which the Receiver, an attorney with and "shareholder" of Akerman whose associates had simultaneously represented the gambling interests of Malik and/or his affiliates, had revised down the amount of money alleged in the fraudulent transfer from $2.1 million to $620,000 and the parties agreed Malik would repay the Receivership $170,000 in-full within twelve months or be responsible for repaying the entire $620,000 minus any payments. It's not clear if Malik made good on the terms of the Settlement Agreement.

By the terms of the negotiated Settlement Agreement, Goldberg agreed Malik, a guy who reportedly spent $300,000 on a Las Vegas wedding and paid $5.4 million for a Manhattan Penthouse both in early in 2010, would repay just 8% of the funds Goldberg had originally alleged were fraudulently transferred.

It unclear whether Receiver Goldberg or the Court were aware of the following circumstances prior to entering into the Settlement Agreement:

Michael J. Malik, Sr. (as Trustee under the Michael J. Malik Revocable Living Trust dated 5/13/98) and Jack Utsick (as President, The Entertainment Group Fund, Inc.) organized AB Funding Company, L.L.C., a Detroit-based enterprise, on March 10, 2000. In court documents it was revealed the pair were introduced by Bruce Glatman.

It is also unclear whether or not Malik ever disclosed his relationships with Akerman associates in D.C.; Goldberg ever checked for conflicts; and/or if those details were ever disclosed to the Court:

From 2007-2011 Akerman has represented the Shinnecock Indians and the Shinnecock paid $510,000 to Akerman. Akerman represented the Bay Mills Indians during 2008 & 2009 but there are no records that Akerman was compensated directly for that work. Malik or his affiliates either pay directly or funnel funds to other parties responsible for paying the lobbying bills for these Native American entities. Should these parties get approvals to build casinos in the future, Malik affiliates have the exclusive rights to develop, manager and operate the gambling halls.

It is noted that since Malik and Goldberg entered into the Settlement Agreement, the Shinnecock have paid Akerman approximately $250,000 or nearly half of all the payments Akerman has received from Malik affiliates/partners; and Akerman terminated representation of the Bay Mills Indian Community. Since the Shinnecock achieved Federal Recognition, Akerman has continued to be paid, at least $70,000.

Monday, October 24, 2011

Property Bay Mills Indians Acquired in 2010 not 'Indian Lands;' Not Sovereign or Tax Exempt

Because property is Indian “owned” does not automatically mean those lands are “Indian Lands,” a special and unique designation. Only Indian Lands are considered sovereign and as such exempt from the usual local taxes, fees, codes, regulations and laws. Property that is simply Indian owned is not considered sovereign and not exempt.

In shutting down the Bay Mills Indian Community’s (BMIC) rogue off-reservation casino in Vanderbilt (MI) last March, the U.S. Federal Court (Judge Paul L. Maloney) ruled that the property the tribe acquired in Vanderbilt during 2010, located 100 miles away from the tribe’s Upper Peninsula reservation, are not Indian Lands. Specifically (from Judge Maloney’s ruling (pgs 10-11):

Section 107(a)(3) authorizes the earnings of the Land Trust to be used for two specific purposes: (1) improvements on tribal land and (2) the consolidation and enhancement of tribal landholdings. Bay Mills does not suggest or argue that the Vanderbilt Tract constitutes an “improvement on tribal land.” Bay Mills defends the purchase as authorized by the second purpose. In the context of this provision, the statutory language has a plain and obvious meaning. The word “consolidate” means “to bring together or unify.”9 The word “enhance” means “to improve or make greater” or “to augment.”10 Obviously, the purchase of the Vanderbilt Tract is an enhancement of tribal landholdings, as the additional land augmented, or made greater, the total land possessed by Bay Mills. However, the statute does not authorize every enhancement. The statute uses the conjunction “and” between the word “consolidation” and the word “enhancement.” The use of the word “and” cannot be ignored. See Williams v. Taylor, 529 U.S. 362, 404 (2000) (“It is, however, a cardinal principle of statutory construction that we must ‘give effect, if possible, to every clause and word of a statute.’”) (citations omitted). In order for the purchase of land to be an “enhancement” authorized by the § 107(a)(3), the purchase must also be a “consolidation.” The statute requires any land purchase to be both a consolidation and an enhancement. Under §107(a)(3), Bay Mills may use the earnings from the land trust to acquire additional land next to, or at least near, its existing tribal landholdings. The statute does not allow Bay Mills to create a patchwork of tribal landholdings across Michigan.

Prior to Judge Maloney’s ruling, both the National Indian Gaming Commission (NIGC) and the U.S. Department of Interior had issued similar opinions. From a memorandum provided to the NIGC Chairwoman, December 2010:

On Wednesday, November 3, the Bay Mills Indian Community opened an off-reservation gaming facility in Vanderbilt, Michigan. The considered opinion of the Department of the Interior Solicitor is that the land is not within a reservation, not held in trust, and not held in restricted fee. Accordingly, the Community’s new casino is not on Indian lands within the meaning of the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. §§ 2701- 2721, and the National Indian Gaming Commission lacks jurisdiction over it. We are obligated, therefore, to refer the matter to the appropriate law enforcement agencies.

Specifically by rulings and opinions issued by U.S. District Court, U.S. Department of Interior Solicitor and National Indian Gaming Commission, the Bay Mills Indian Community’s property in Vanderbilt are not Indian Lands. And by implication, two other similarly acquired parcels BMIC controls in Flint Township (280 miles from its reservation) and Port Huron (350 miles away) are not Indian Lands.

Absent Indian Lands designation, those parcels are not presently sovereign lands, are not eligible for casinos under IGRA, and are not exempt from the usual taxes, fees, codes, regulations and laws. Or to put it another way, those properties should be taxed and fees collected timely as they would for any other such property owner.

Despite representations, there is currently no need for any special agreements to provide for emergency services or to accept some negotiated fees in lieu of taxes over the Flint Township, Port Huron or Vanderbilt properties. Such would only serve to advantage the tribe's interests going forward not the interests of local taxpayers and citizens or the people of Michigan.

Saturday, October 22, 2011

Bay Mills President Parker in Nov 2 General Election Run-Off; He's Controlled the Tribe for 20 Years

A Primary Election at the Bay Mills Indian Community was held Oct. 19. The following results have been announced and those in bold are headed to the General Election run-off Nov. 2:

Executive Council President: Jeff Parker* (208), Kurt Perron (189), Terry Carrick (94)

Vice President: Joseph LeBlanc (181), Allyn Cameron (189), Corrine Cameron (119)

Secretary: Richard LeBlanc* (225), Sherri Schofield (118), Greg Parker (147)

Treasurer: John P. Lufkins* (252), Diane Teeple (126), Paula Carrick (110)

Councilperson: Dwight "Bucko" Teeple* (196), Jason A. LeBlanc, Sr. (70), Alexander Easton (144), Brenda Bjork (82)

Chief Judge: Shelly Deuman* (114), Leah M. Parish (84), Arthur J. LeBlanc (26), Levi D. Carrick, Sr. (226), Robert Passage (46)

Appellate Judge: Lynda Parrish-Pesola (172), Tim Kinney II (90), Randy Touchtone (116), Shannon Belk (281), Justin Teeple (214)

* incumbent

Terry Carrick,current Vice President, had challenged incumbent President Jeff Parker in the primary.

Further General Election details (early balloting requests, etc.) are available via Bay Mills News.

Jeffrey Parker: 20 year Grip on Bay Mills Council

Jeff Parker was first elected President of the Bay Mills Executive Council in 1989. In 2001 he was defeated by L. John Lufkins but Parker won back the seat and has held onto the President’s office since 2003. Parker and Malik had their grip on the Bay Mills Indian Community for 20 of the last 22 years! Having Parker as president of the Council and Tribal Chair is critical to the business schemes of controversial Detroit Wheeler-Dealer Michael Malik.

For nearly two decades Mike Malik has been in cahoots with Parker, using Parker to front for his taxpayer funded schemes.

It’s really Malik and his non-Native American cronies who have been spearheading and financing the decades long quest to establish a Bay Mills casino off-reservation – namely schemes for Port Huron (MI). The Michigan Gaming Commission rejected Malik's involvement in Detroit's MotorCity Casino in 1999. He can't get a license allowing any affiliation with a commercial casino which is his primary motivation behind the Bay Mills Indian schemes. Malik and his financial syndicates have spent millions on lawyers, capitol hill lobbying and political contributions trying to get special treatment that would lead to a casino but their numerous schemes have failed. It’s predictable that each election season they resurrect their casino schemes and suggest to reporters and constituents that approvals are right around the corner. NOT!

During the past decade Malik has used Parker’s Native American status to qualify for thousands, and perhaps millions, in federal grants and assistance. Those schemes have funneled hundreds of thousands to questionable business ventures that Malik is secretly behind. Most recently a supposed “plastics venture.” Malik and his pals have given thousands to Michigan Senator Debbie Stabenow; in 2006 she announced nearly $1 million in federal taxpayer funds would go to the plastics venture in which Malik owns at least 49%.

After TVT and others began raising questions about the plastics venture and Malik’s involvement in the scheme, any references to Malik, his casino entity Blue Water Resorts, International Composite Institute of Michigan, Polycomp, Inc., Integrated Composites, L.L.C. and other related entities were purged from the archives of the Bay Mills News. Before that we had learned that at a 2005 Bay Mills Council meeting, members raised questions about this venture and Malik’s involvement at the meeting, those questions and comments went ignored and unacknowledged by Parker.

It has been rumored the FBI is investigating the Parker/Malik ventures.

See these related posts:

Thursday, October 20, 2011

Bay Mills' Property in Flint Township not 'Indian Lands,' not Sovereign; Not Exempt from Taxes, Codes & Regulations

Flint Township shouldn’t fall under the spell of the The Bay Mills Indian Community (BMIC) – and certainly not yet.

So why have BMIC officials launched a whirlwind public Romance with Flint Township? Beware, it doesn't benefit Flint Township.

BMIC Tribal Chair Jeffrey Parker | Not being honest with
Flint Township voters so he can get re-elected at Bay Mills.

Could the motivations be (1) political? You bet! If BMIC Tribal Chair Jeff Parker could get an agreement or the suggestion of an imminent agreement with Flint Township, that might help him win re-election on Nov. 2. Parker has had a firm grip on the tribe for a generation and now many are displeased with his schemes and promises. He was challenged in the tribe’s primary where he got just 42% of the vote. He eeked out another candidate by just 19 more votes and now he’s got to run against that candidate in the General Election next month.

But more importantly, could the motivations be (2) intended to give the tribe and its secret backers special and unnecessary financial advantages? Most likely. Could it be designed to (3) cheat the town out of rightful property taxes that fund not only emergency services but also local schools and other public services? Most certainly!

There is no need to rush into an emergency services agreement that gives the tribe special treatment and accepts something less than the usual property taxes everyone else pay. Despite representations by BMIC, Parker and other mouthpieces for the tribe’s developer, the property in Flint Township controlled by BMIC is not exempt from the usual property taxes today.

The property in Flint Township acquired by BMIC last year isn’t sovereign “Indian Lands” despite representations and therefore that property is not exempt from the usual taxes. Indian “owned” does not necessarily mean “Indian Lands.”

In shutting down the Bay Mills rogue casino in Vanderbilt last Spring, the Court (Judge Maloney) ruled that the property in Vanderbilt, 100 miles away from the tribe’s Upper Penninsula reservation, does not qualify as “Indian Lands.” If that's the case in Vanderbilt, it's the case in Flint Township. Specifically from that ruling (pgs 10-11):

Section 107(a)(3) authorizes the earnings of the Land Trust to be used for two specific purposes: (1) improvements on tribal land and (2) the consolidation and enhancement of tribal landholdings. Bay Mills does not suggest or argue that the Vanderbilt Tract constitutes an “improvement on tribal land.” Bay Mills defends the purchase as authorized by the second purpose. In the context of this provision, the statutory language has a plain and obvious meaning. The word “consolidate” means “to bring together or unify.”9 The word “enhance” means “to improve or make greater” or “to augment.”10 Obviously, the purchase of the Vanderbilt Tract is an enhancement of tribal landholdings, as the additional land augmented, or made greater, the total land possessed by Bay Mills. However, the statute does not authorize every enhancement. The statute uses the conjunction “and” between the word “consolidation” and the word “enhancement.” The use of the word “and” cannot be ignored. See Williams v. Taylor, 529 U.S. 362, 404 (2000) (“It is, however, a cardinal principle of statutory construction that we must ‘give effect, if possible, to every clause and word of a statute.’”) (citations omitted). In order for the purchase of land to be an “enhancement” authorized by the § 107(a)(3), the purchase must also be a “consolidation.” The statute requires any land purchase to be both a consolidation and an enhancement. Under §107(a)(3), Bay Mills may use the earnings from the land trust to acquire additional land next to, or at least near, its existing tribal landholdings. The statute does not allow Bay Mills to create a patchwork of tribal landholdings across Michigan.

BMIC is cheating Flint Township if it doesn't pay the usual taxes. And this is no way to start a relationship. Lying and cheating from the beginning. Misrepresenting yourself. If this is their way of business today, imagine what you can expect a year or two down the line when things get rocky.

Given Judge Maloney’s ruling, it is reasonable that property taxes should be levied and collected on the BMIC property just like any other taxpayer. Why give BMIC special treatment or defer payments today when there are too many unknowns? But even more, why get locked into an agreement on property that might not be developed for ten years or more. Circumstances could change during that time. Consider that the people in Port Huron have been promised a BMIC casino time and time again, over the course of two decades, and still there’s nothing.

Why even spend time and money negotiating an agreement with BMIC right now? Flint Township leaders should wait until the tribe resolves its related legal issues. And since Parker is on record saying he wants to be the town’s good faith partner, then BMIC should start paying timely property taxes now and stay current with payments just like every other taxpayer is expected to do without seeking special treatment. And Parker should immediately stop misrepresenting his Flint Township property as sovereign land. Represent the truth.

Flint Township residents, civic and business leaders shouldn’t get their hopes up for a BMIC windfall. If history is any gauge you’ll only get your heartbroken time and time again. Ask the people of Vanderbilt now that payments have stopped. Ask the people of Port Huron. And worse yet, expect you/ll get left standing alone at the alter and having to pay all the costs of a wedding and reception anyway.

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.

It's an Election Year and Bay Mills Chairman Jeff Parker Wants Constituents to See Him as Good for the Economy both on and off Reservation

Bay Mills Indian Community official speaks to West Flint Business Association, fills in details about proposed development

10.19.2011

By Kayla Habermehl

FLINT TOWNSHIP, Michigan — Although still fighting a legal battle about whether a northern Michigan gaming facility is on "Indian land," the Bay Mills Indian Community chairman told a gathering of area businesses he believes a Flint Township casino will be a reality.

Jeff Parker, chairman of the executive committee for Bay Mills, spoke during the West Flint Business Association's monthly luncheon today in Flint Township. The potential facility is expected to be about 200,000 square feet, half of which would be gaming space, and could bring about 700 jobs to the area, Parker said.

Although the casino would be the "hub," Parker said Bay Mills planned to have the surrounding businesses by owned by area residents.

Many of the jobs would be minimum wage and the majority would be filled by area residents, he said.

Parker also said the tribe's attorneys were filing a motion today and three more Friday to dismiss a lawsuit that shut down Bay Mills' Vanderbilt facility earlier this year.

“We believe we’ve covered all the bases and we can go forward,” Parker said of the legality of the Vanderbilt facility.

Bay Mills purchased 28 acres in December at the northeast corner of Lennon and Dutcher roads in Flint Township.

Earlier this year, Bay Mills appealed a federal judge's ruling that forced the tribe to close a small casino in Vanderbilt, a slots-only gaming operation north of Gaylord, Mich. that opened without traditional approvals in place.

The lawsuit was filled by the state attorney general and the Little Traverse Bay Bands of Odawa Indians. They claimed the casino was illegal and running without necessary approvals.

Parker also planned to meet with township officials today to begin discussions about contracting for services such as police and fire. Called a payment in lieu of taxes, it would provide 2 percent of Bay Mills gross profits from the Flint Township facility to the township, Parker said.

He estimated it could result in between $2 million and $4 million for the township.

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