The Verifiable Truth: Legal

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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:

Monday, December 12, 2011

Hawaii Attorney General Alleges Former Governor John D. Waihee Looted $39 Million from Funeral Funds

State Sues to Get Back $39M Looted from Graves by John Waihee
12.08.2011

by Purna Nemani, Court House News

Hawaii claims that a law firm that DLA Piper acquired through merger drained $39 million from state-regulated prepaid funeral and cemetery contracts.

The State of Hawaii and The Huntington National Bank, as trustees for 18 Hawaii funeral and cemetery trust funds, sued DLA Piper, "successor in liability through merger to the now-dissolved law firm of Verner Li pfert Bernhard MacPherson and Hand." (REMEMBER THEM FROM BROKEN TRUST???)

The complaint is related to an intervenor complaint filed in February, by former successor trustee Comerica Bank and Trust, consolidated as In re RightStar Related Cases.

Hawaii and the bank "seek damages from Piper arising out of the wrongful acts of a former Verner Li pfert partner and employee, former Governor John D. Waihee III, as alleged in the intervenor complaint and set forth below."

The intervenor complaint is against four former trustees, including Waihee, of 14 preneed trusts and four perpetual care trusts. It seeks an accounting and damages for "inter alia, the trustees' breaches of fiduciary duty by permitting improper withdrawals from, and imprudent investments by, the trusts, and other wrongful conduct"... (Complete Story)

Original Court Document

Also see:

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.

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.

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.

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.

Monday, October 10, 2011

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!

Monday, August 22, 2011

Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator

Carrying on a 7-Year affair. Another illegitimate child. A $300k Las Vegas wedding. A 6-week marriage. Dirty divorce. Extravagant living. Drugs, alcohol & abhorrent sexual behavior. Bullying, intimidation & influence peddling.

No, that's not a teaser for a new reality-TV "Housewives" series but rather a glimpse into the private life and character of Detroit casino syndicator Michael J. Malik, Sr. He is a confidante and business partner of Detroit's Ilitch Family -- namely Mrs. Marian Ilitch -- founders of Little Caesars pizza, and owners of the Detroit Tigers (MLB), Detroit Red Wings (NHL) and several dozen other affiliates under the Illitch Holdings, Inc., umbrella.

Michael & Brooke Malik. Temple Bet El, Passover Event

March 3, 2010 (six weeks after their Las Vegas wedding and
six days before he would move out and file for divorce)

On the heels of his 2003 divorce from Michele M. Malik and a reported affair with Heather Lufkins Robinson, Michael J. Malik, Sr., (age 50) began having a romantic relationship with stylist Brooke Anne Garwood (age 28). Described by some as a kept woman, Malik provided Brooke with financial support for the next seven years -- support that increased upon the November 2006 birth of their son Cameron Anthony Malik.

Seven years after beginning their affair, and three years after the birth of their son, Malik and Brooke Garwood were married in a Las Vegas, Nevada ceremony (January 21, 2010). Malik says he spent more than $300,000 on wedding related expenses.

Six weeks later (March 9, 2010) Malik had moved out of their new 5,000 square foot Birmingham home and filed for divorce in a Detroit area court.

DETROIT
From the time of Cameron’s birth until his parents were wed, Brooke and Cameron Malik resided at 1063 Bird Ave., Birmingham, Michigan. The 3 bedroom home was approximately 2,000 square foot and recorded a sale price of $350,000.

During this same period Mr. Malik resided at various locations. Several luxury residences in Grosse Pointe owned by Malik were forced into sale and Malik was the roommate/tenant of Detroit area restaurateur/grocer Victor Ventimiglia. Malik defaulted on a $1 million personal line of credit with Fifth Third Bank; was delinquent on property taxes and had real estate in foreclosure.

Malik Family Residence
350 Aspen Rd., Birmingham, MI 48009

For about a month after the Las Vegas wedding (February 10, 2010 to March 9, 2010) Michael, Brooke and Cameron all lived as a family at 350 Aspen Rd., Birmingham, Michigan. They reportedly paid cash for the three bedroom / five bath home which was purchased February 1, 2010. Prior to the sale it had been listed at $2.3 million.

Then by March 9, 2010, Malik reports he had moved to The Townsend Hotel, 100 Townsend, Birmingham, Michigan. Both parties had accused the other of outrageous amd abusive behavior, infidelities and indiscretions. A bitter divorce ensued.

The Rushmore Penthouse
80 Riverside Bvd.
New York, NY 10069

NEW YORK
Malik, a business syndicator who along with Marian Ilitch has bankrolled long-shot Indian gaming proposals in Michigan, California and New York with little success. Over the last decade, he has advanced various failed gaming proposals with the Shinnecock Indian Nation of Long Island, New York. Their latest scheme centers on plans to develop an entertainment complex (casino, hotel, new train station) at the Belmont Park and Race Track on Long Island. He's investing thousands to influence Governor Andrew Cuomo and other New York officials who will make the decisions.

During the first trimester of 2010, Michael Malik bought a penthouse residence at The Rushmore in New York City (80 Riverside Blvd., #PH4A, New York, NY 10069). Prior to filing for divorce, Malik and Brooke made several trips to New York City looking for a residence to purchase and shopping for items to furnish the penthouse. However, a shrewd Mr. Malik did not enter into a contract to purchase the penthouse until March 19, 2010, ten days after filing for divorce. Penthouse 4A at The Rushmore sold to Mr. Malik on April 15, 2010, for nearly $5.4 million, reportedly paid in cash and closing only after he had separated from Brooke.

MIAMI BEACH

Michael Malik's Vacation Estate
4411 Pine Tree Dr.,
Miami Beach, FL 33140

While the Maliks were married, they also kept a lavish vacation property at 4411 Pine Tree Drive on the Miami Beach Peninsula. That vulgar $7.9 million Mediterranean estate with a nearly 12,000 square foot mansion was available for $45,000 per month. See More Estate Details: Video Tour; Slideshow; For Sale Listing.

According to court documents and police reports, Miami Police were called to a scene at the Malik vacation home on March 13, 2010. Cocaine and other drugs were reportedly in plain site (MBPD Crime Scene Report - Case No 10-24620). Various investigations suggest more than a dozen people had engaged in drug use and sexual debauchery during five days of continuous partying. Court documents indicate they “participated in the use and distribution of cocaine and other illegal substances and engaged in abhorrent sexual behaviors.”

Knowing these and other details, the Judge hearing the divorce ordered both Michael and Brooke Malik to participate in drug and alcohol testing and evaluations.

Malik asked that the Judge restrict public access to information revealed in divorce proceedings and the judge granted the protective order going forward.

In December 2010, the Court granted consent for a divorce.

Brooke Malik is now an associate with Cicchini Custom Clothier.

It's unclear where Mr. Malik is calling "home" and who, if anyone, he might be cavorting with at this time.

@ Scribd.com: Malik vs. Malik – Various Divorce Documents

Also see:

Monday, August 15, 2011

Controversy seems to always follow Detroit Casino Syndicator Michael Malik

Michael J. Malik, Sr.
Detroit Casino Syndicator

A glimpse at some of the controversies surrounding Detroit casino syndicator Michael J. Malik, Sr.:

Malik was arrested for beating 12-year-old son of his then girlfriend. (1997) Detroit News
Michigan Gaming (MGCB) investigators found questionable histories for Malik and several of his original gaming partners. Those histories included tax dodging, court ordered real estate negligence claims and 40+ foreclosures. (1999) Las Vegas Review-Journal
Malik was denied a gaming license by the MGCB. (1999)
Malik failed to report a $26,500 political contribution and was fined on two counts of violating California election law. (2004)
In the footsteps of Jack Abramoff, Malik’s use of influence peddling, using political contributions to leverage influence with Members of Congress including former Reps. Richard Pombo and Don Young, has been scrutinized by the national media. Corruption roll call: the most corrupt Members of Congress. (Since 2005)
Following multiple investigations by California's Fair Political Practices Commission (FPPC), Malik has twice (2006 & 2009) been fined a total of $10,500 and found to have violated California's political reform laws on a total of three counts. Over the course of several election cycles, he's simply failed to report more than $52,000 in political contributions. The majority of those contributions he failed to report even after he had previously been found to be in violation and fined on two similar counts. No excuses.
Malik's former mistress, Heather Lufkins Robinson (she subsequently married NBA player Clifford Robinson) filed a property claim suit against Malik alleging he had purchased a home for her while he was still married and they were carrying on an affair. A judge tossed out the claim when it became clear that the former mistress had previously perjured herself to help Malik hide assets from his former wife during their divorce proceedings. (2006 Complaint)
A son, Cameron Anthony Malik, is born to unwed parents Michael J. Malik (age 52) and Brooke Garwood (age 28) in November 2006.
Malik’s partnership with the Los Coyotes Band of Indians was terminated by the tribe’s well-respected chairwoman who called Malik “the Devil” and indicated he was “seducing” younger members of her tribe. (2007)
Malik continued to ignore California political finance disclosure laws and failed to report a $5,000 contribution to the Democratic Party. (2007)
Malik faces charges in a Florida Federal District Court brought by a court appointed Receiver alleging Malik’s involvement in a ponzi scheme and $2.1 million fraudulent transfer. (2008)
Malik was found guilty by an Arizona court of illegally discharging a firearm. He was ordered to do community service and fined almost $15,000. His hunting licenses in Arizona and Michigan were revoked. (2008)
Malik defaulted on a $1 million personal line of credit with Fifth Third Bank; was delinquent on property taxes and had real estate in foreclosure. (2008 & 2009)
Miami Beach Police were called to break up a party at a lavish $7.9 million estate being rented by Michael J. Malik, Sr., as a vacation home. Police reports and subsequent investigations (Case #10-24620) indicate police found substances onsite and that cocaine and other drugs were present and being used during a five-day party marathon. (2010)
On January 21, 2010, Michael Malik marries Brooke Garwood, the mother of his 3-year-old son Cameron, in a Las Vegas wedding ceremony costing upward of $300,000. Six weeks later, Malik files for annulment/divorce. She counter-sues. In documents filed early in the divorce proceedings both parties allege drug and alcohol abuse; fast-living and sexual debauchery; emotional abuse; questionable parenting skills; numerous infidelities prior to and during the short-lived marriage; influence peddling; buying witnesses and more. As the divorce proceeds, Malik asks the Court to restrict further public access to the Court documents and divorce details.
Wayne County Treasurer issues a Certificate of Forfeiture over a $4.25 million lake front residential property owned by Malik because he has failed to pay thousands in back property taxes. (2010)
New York political candidates for State Senate and U.S. House of Representatives come under attack for accepting campaign contributions from tainted casino syndicator Michael J. Malik, Sr., and decide to return his contributions in order to quiet the controversy. (2010)
Questions arise over more than $15,000 in campaign contributions Malik gave to New York Governor Andrew Cuomo who is expected to make decisions that will impact Malik's ability to develop a casino and entertainment complex at the Belmont Park & Race Track on Long Island. Cuomo Rejects Campaign Contributions from Michael Malik.
After Malik & Gateway Casino Resorts investors dumped perhaps as much as $40 million into process that gained Shinnecock Indian Nation Federal Recognition and put them on the path toward casino development, tribe still votes down go-forward contract with Malik because, as was reported, majority don't trust and are suspcicious of Malik.

Mike Malik is Mrs. Marian Ilitch's casino gaming partner. Malik, however, has failed to ever obtain a license to operate, be employed by or be affiliated with a licensed gambling facility. Ilitch owns Detroit's MotorCity Casino and is involved in other gaming development activities. Along with her husband, Michael Ilitch, they control Ilitch Holdings, Inc., parent of such brands as Little Caesars Pizza, Detroit Tigers MLB franchise, Detroit Red Wings NHL franchise and dozens more.

Wikipedia: Michael J. Malik, Sr.

originally posted 8.07.08
updated and reposted 08.13.08

Tuesday, November 03, 2009

Ilitch casino development partner Michael Malik defaults on $1 million bank loan

Fifth Third Bank v. Michael J. Malik, Sr.

A complaint filed by Fifth Third Bank, a Michigan Banking Corporation, on 4.03.09 in the Oakland County (MI) Circuit Court, alleges that Detroit casino syndicator Michael J. Malik, Sr. is in default on a $1 million line of credit which was granted on 4.05.07 and had matured 9.01.08.

In total, Fifth Third Bank alleges Malik failed to repay total indebtedness of $992,499.48.

Malik is the casino development partner of Mrs. Marian Ilitch. Ilitch and her husband Mike Ilitch are co-owners of the Detroit Red Wings NHL franchise and founders of Little Caesars Pizza. Mike Ilitch owns the Detroit Tigers and Marian Ilitch is sole proprietor of Detroit's MotorCity Casino. Malik was once a partner in MotorCity Casino but was forced to sell his shares in the commercial gaming hall when he failed to receive a gaming license from the Michigan Gaming Control Board (MGCB). Over the last decade, Malik and Marian Ilitch been behind various controversial Native American casino proposals in CA, MI and NY.

In the last several years Malik has been charged in various legal matters including a fraudulent transfer case in Florida related to a $300 million SEC alleged Ponzi Scheme (Goldberg v. Malik); multiple counts of illegal political campaign finance activities in California (2006 & 2009) ; and illegal discharge of firearms in Arizona.

Fifth Third Bank v. Malik: Complaint (including promissory note)

Wednesday, May 20, 2009

Ilitch partner enters settlement agreement in fraudulent transfers case

Michael J. Malik, Sr., has entered into a Settlement Agreement filed in Florida Federal Court in which a court appointed Receiver (Michael I. Goldberg) contends Malik received $620,000 in fraudulent transfers. Under terms of the Agreement, Malik has twelve months to repay the Receivership or face further penalty.

The case against Malik (Goldberg v. Malik) stems from a $300 million ponzi scheme case the SEC brought against one-time concert promoter John P. Utisck (Jack Utsick) and his affiliates including Worldwide Entertainment.

Court records indicate Bruce Glatman, believed to be a California resident, was the matchmaker who brought Malik together with then Florida-based Utsick. Utsick has since taken asylum in Brazil. It's not clear how Glatman came to know Malik or the scope of other dealings between Glatman and Malik.

Malik's primary business attorney William Serwer was also involved in the transactions that resulted in the fraudulent transfers.

Malik has been the gambling and casino development partner of Detroit's Marian Ilitch for more than a decade. They bankrolled efforts during the 1990s to legalize gambling in Detroit. She is now sole owner of Detroit's MotorCity Casino.

Mrs. Ilitch and her husband Mike Ilitch are co-founders of Little Caesar's Pizza and owners of the Detroit Red Wings hockey franchise. Mike Ilitch owns the Detroit Tigers baseball team.

Monday, April 20, 2009

Detroit-based Michael Malik wants AZ Commission to reconsider five-year hunting license revocation and $14,995 fine

An official Notice & Agenda for a 4.17.09 meeting of the Arizona Game and Fish Commission indicates a tenacious Detroit-based Michael J. Malik, Sr., seeks a rehearing on a decision the Commission made in December 2008.

At that meeting, the Commission fined Malik $14,995 for shooting a trophy elk too close to residences without the permission of the homeowners; and revoked his right to hunt, fish and trap in Arizona and 32 other states for the next five years. Item 11 on the Notice & Agenda for the 4.17.09 meeting read:

Item 11

Gene Elms

Michael Malik

Arizona Game and Fish Commission

Malik was found guilty in Arizona's Pinetop Justice Court on 8.29.08 of discharging a firearm within the quarter-mile limit of occupied residences while taking elk. (See: Michigan man found guilty on charge stemming from elk hunt).

The criminal conviction authorized the Commission to take civil action against Malik which it did at its 12.05.08 meeting. (See: Michigan man assessed $14,995 for killing trophy elk near homes).

Sunday, February 08, 2009

Ilitch Assault & Battery arrest tied to latest lawsuit alleging Ilitch Conspiracy

from the archives of the

8.12.04

ILITCH SON PLEADS NOT GUILTY TO ABUSE

Frank Witsil
Free Press Staff Writer

Ron Ilitch, one of Detroit Red Wings and Tigers owner Mike Ilitch's sons, was arraigned Wednesday and charged with two counts of domestic violence for allegedly twice beating his former girlfriend, Lisa Wood, at his Troy home.

Wood of West Bloomfield told police Ron Ilitch also assaulted her in Aurora, Colo., on July 10.

Police said the Michigan incidents occurred on June 24 and Aug. 1. Ron Ilitch was released Wednesday on bond of $10,000 after pleading not guilty in 52-4 District Court in Troy. Bond conditions included counseling for substance abuse and no contact with Wood.

"There is a lot I don't know yet," said Ilitch's attorney Harold Fried.

However, he said, in domestic violence allegations, there often is more than one version of events.

Each charge is a misdemeanor, punishable by up to 93 days in jail, police said.

According to the Oakland County Prosecutor's Office, Ilitch and Wood argued at Ilitch's Troy home on Caitlin Court on June 24. He allegedly hit her, causing bruising and a swollen eye and hand. She initially did not report the incident, said Charles Claus, warrants division chief with the prosecutor's office.

Later, they went on vacation to Colorado, Claus said. On the way, they stopped at Valley Community Hospital in Peru, Ill., where Wood was treated for her injuries, Claus said.

On July 10, Wood reported she was assaulted again, Aurora Police Detective Larry Martinez said.

On Aug. 1, after the couple returned, Wood told police she was assaulted a third time.

She said Ilitch hit her in both arms. She ran from the house to a neighbor's home, called Troy police and went to a local hospital for treatment, Claus said.

Wood could not be reached for comment. Ilitch is due back in court Sept. 16.

Mike Ilitch founded Little Caesars pizza restaurant in suburban Detroit in 1959. The family's business holdings now include the Detroit Red Wings, the Tigers, the Fox Theatre and Hockeytown Cafe.

NOTE: Ron Ilitch would ultimately plea "No Contest" to these charges.

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