WampaLeaks: Citizens for a Stronger Massachusetts shows troubl...: Citizens for a Stronger Massachusetts released several documents containing detailed analysis of the proposed gambling bill. These documents...
Showing posts with label Massachusetts. Show all posts
Showing posts with label Massachusetts. Show all posts
Tuesday, November 29, 2011
Sunday, October 02, 2011
Detroit Casino Syndicator in default on property linked to future casino development
 |
| Herb Strather |
Strather, who has been a controversial character in Detroit for decades, says he bankrolled the tribe’s federal recognition effort. Now he wants a payout from any gaming facility the tribe opens. After all, that is why he organized a syndicate to bankroll the federal recognition campaign.
Among other things, Strather claims that the tribe has reneged on a handshake deal to make mortgage payments for Maushop Farm, a horse stable in Mashpee (MA). Strather affiliate Maushop LLC purchased the property in 2001 with a $682,500 Bank of America mortgage. Strather says he planned to donate Maushop Farms to the Wampanoag once a casino was built. Now, Strather tells the Cap Cod Times he is in default on the mortgage.
Maushop Farms is located at 218 Sampsons Mill Road, Mashpee, MA 02649.
NOTE: To see the deed and recorded mortgage document signed by Maushop Manager Frederick C. Grosser visit https://72.8.52.132/ALIS/WW400R.PGM. In Public Access (box pg left) click “Free Access.” Then “Click here to Search Public Records.” Then click “Recorded Land by Name.” In the Last/Corp name box type Maushop LLC. Scroll down and click “Search.” Your search results should include the Deed, Mortgage Instrument and several liens.
See CapeCodToday.com:
See also:
- Not so favorable report of casino syndicators Strather, Varner, Malik, Slavik et al
- Three-fourths of AtMashpee LLC investors were behind entity that morphed into MotorCity Casino
- Detroiters Strather, Deitch provided $4 million fund that enabled wrongdoing by ex-tribal chairman
- UPDATED: Formerly rejected MotorCity Casino backers Malik & Strather have taken similar paths to Long Island & Cape Cod
- Mike Malik's partners also had a history of tax dodging; court ordered real estate negligence claims; and 40+ foreclosures
- Detroit-based casino developer convicted of bribing a police officer among Gov. Deval Patrick's donors
Saturday, October 01, 2011
Former Ilitch Casino Partner wants Gov. Deval Patrick to help him collect debt from Mashpee Tribe
Investor calls Wampanoag on debt
9.29.2011
By George Brennan
Herb Strather, the Detriot developer who first invested in the Mashpee Wampanoag tribe's casino efforts in 1999, is calling on the governor to help him recoup the millions he says he spent on the tribe.
In a letter to Gov. Deval Patrick, Strather says he raised in excess of $25 million from a wide variety of investors to help the tribe gain federal recognition and pursue a casino.
He also claims that the tribe has reneged on a handshake deal to make mortgage payments for Maushop Farm, a horse stable in Mashpee he purchased for $675,000 and planned to donate to the Wampanoag once a casino was built. He produced an email from a Bank of America employee stating the mortgage is in default because of slow payments. That bank employee declined to comment Wednesday.
"We are seeking a fairness inclusion in the gaming bill that will make the tribe pay their debts before they can get a compact," Strather wrote to the governor.
A compact is a deal between a tribe and a state that sets the ground rules for how an Indian casino will operate and what payments the state would receive in lieu of taxes.
Strather's letter asks the governor to...
Much of Strather's negotiations, both for the casino and the farm, were with former tribal council Chairman Glenn Marshall. Marshall is serving a federal prison sentence after he pleaded guilty to taking some of Strather's cash and using it to make illegal campaign contributions and keeping it as a personal slush fund.
Marshall was forced to resign in 2007 after the Times reported he was a convicted rapist and that he had lied about his military record.
Still, Strather is harsher in his criticism of current tribal council Chairman Cedric Cromwell than he is of Marshall...
Most of Strather's comments about Cromwell can't be printed... (Read Full Story)
Also see:
- Attorney Dennis Whittlesey up to his Old Tricks
- D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
- Herb Strather Defaults on Detroit's St. Regis Hotel Project
- Attorney Dennis Whittlesey up to his Old Tricks
- UPDATED: Formerly rejected MotorCity Casino backers Malik & Strather have taken similar paths to Long Island & Cape Cod
- Controversy seems to always follow Detroit Casino Syndicator Michael Malik
- Mike Malik's partners also had a history of tax dodging; court ordered real estate negligence claims; and 40+ foreclosures
Wednesday, January 28, 2009
Reporter suggests politico was architect of tribal chairman's illegal campaign contribution scheme
A Cape Cod Times story by reporter George Brennan indicates court documents released in December 2008 as part of a fraud case brought by the U.S. Department of Justice against former Mashpee Wampanoag tribal chairman Glenn Marshall, indicate that political consultant Stephen J. Graham, so-called "Political Consultant A," is the person who orchestrated $60,000 in illegal federal campaign contributions that are the center of the federal case against Marshall.
Marshall, who has plead guilty to all charges, funneled $4 million he got from his development partner Herb Strather into the Mashpee Fisherman's Association Inc. which Marshall used as a slush fund to hire Jack Abramoff, make the illegal campaign contributions and pay some of his own personal expenses.
Initially, Marshall attempted to use tribal council money to fund the political contributions suggested by Graham, but Marshall was told that was illegal. When Marshall told Graham he didn't know anyone with the kind of money needed to make political donations, Graham allegedly told him how to make them using so-called straw contributors — making donations in their names and then paying those individuals back. Donations were made to Members of Congress and others in the name of Marshall, his family members, and other tribal council officers.
Marshall's attorney Larry Craven has said he thinks even the government doesn't believe the campaign contribution scheme was Marshall's idea. Craven says Marshall's not the architect of the scheme but rather was instructed by reference.
Graham has not been charged in the matter and is still being paid by the Mashpee Wampanoag tribe as a consultant. In 2008, he earned $182,000, according to tribe records.
The federal case against Marshall is one of the several branches of a far-reaching Washington D.C. scandal centered around disgraced former lobbyist Jack Abramoff.
Document: Charges against Glenn Marshall
Document: Glenn Marshall's plea agreement
Marshall, who has plead guilty to all charges, funneled $4 million he got from his development partner Herb Strather into the Mashpee Fisherman's Association Inc. which Marshall used as a slush fund to hire Jack Abramoff, make the illegal campaign contributions and pay some of his own personal expenses.
Initially, Marshall attempted to use tribal council money to fund the political contributions suggested by Graham, but Marshall was told that was illegal. When Marshall told Graham he didn't know anyone with the kind of money needed to make political donations, Graham allegedly told him how to make them using so-called straw contributors — making donations in their names and then paying those individuals back. Donations were made to Members of Congress and others in the name of Marshall, his family members, and other tribal council officers.
Marshall's attorney Larry Craven has said he thinks even the government doesn't believe the campaign contribution scheme was Marshall's idea. Craven says Marshall's not the architect of the scheme but rather was instructed by reference.
Graham has not been charged in the matter and is still being paid by the Mashpee Wampanoag tribe as a consultant. In 2008, he earned $182,000, according to tribe records.
The federal case against Marshall is one of the several branches of a far-reaching Washington D.C. scandal centered around disgraced former lobbyist Jack Abramoff.
Document: Charges against Glenn Marshall
Document: Glenn Marshall's plea agreement
Tuesday, January 27, 2009
Chair of Middleboro Selectmen & leading advocate for Mashpee Wampanoag casino plan resigns
Adam Bond, Chairman of the Middleboro Board of Selectmen resigned this week. He cited the influence of tribal interests on the rest of the Board as a primary reason.
Bond was tied to plans advanced by the Mashpee Wampanoag Tribe and its developers Herb Strather, Sol Kerzner and Len Wolman to develop a large casino resort in Middleboro. Bond was out front as an advocate of the plan and brought in attorney Dennis Whittlesey to help him negotiate a contract between Middleboro and the Tribe and its developers.
The mega-casino project has not been without controversy. At times opponents of the gambling proposal accused Bond of being in the pocket of the tribe and its developers.
Then in December, a former chairman of the Mashpee Wampanoag tribe, Glenn Marshall, was charged by the U.S. Justice Department with various counts of fraud and illegal campaign finance activity. Marshall has indicated he will plead guilty on all charges and will assist the Justice Department in its ongoing investigations. The case is one of the branches of the Jack Abramoff lobbying scandal that has unfolded in Washington D.C. in recent years.
According to the Cape Cod Times:
Click the arrow to watch Bond's resignation speech
Bond was tied to plans advanced by the Mashpee Wampanoag Tribe and its developers Herb Strather, Sol Kerzner and Len Wolman to develop a large casino resort in Middleboro. Bond was out front as an advocate of the plan and brought in attorney Dennis Whittlesey to help him negotiate a contract between Middleboro and the Tribe and its developers.
The mega-casino project has not been without controversy. At times opponents of the gambling proposal accused Bond of being in the pocket of the tribe and its developers.
Then in December, a former chairman of the Mashpee Wampanoag tribe, Glenn Marshall, was charged by the U.S. Justice Department with various counts of fraud and illegal campaign finance activity. Marshall has indicated he will plead guilty on all charges and will assist the Justice Department in its ongoing investigations. The case is one of the branches of the Jack Abramoff lobbying scandal that has unfolded in Washington D.C. in recent years.
According to the Cape Cod Times:
Since mid-December, when former Mashpee Wampanoag Chairman Glenn Marshall admitted to federal corruption and fraud charges, Bond has been pushing fellow board members to seize the opportunity to sweeten the casino deal. Bond has repeatedly said Marshall’s crimes could constitute a breach of contract with the town because Marshall was the person making promises to the town on the tribe’s behalf.
His fellow board members resisted, calling only for a meeting with the tribe’s new leaders who will be elected Feb. 8.
Last Wednesday, Bond lashed out at the board on his blog, specifically citing Selectman Mimi Duphily for contacting the tribe’s political consultant, Stephen Graham, and other tribe members.“I am concerned that the town’s interests and/or strategies are being overlooked (and leaked) for some esoteric and emotional reason relating to how certain individuals feel about the tribal members on a personal level,” Bond wrote.
Wednesday, January 21, 2009
Plea hearing in former Tribal Chair's fraud case postponed for three weeks
1.21.09Hearing delayed for ex-Mashpee Wampanoag leader
BOSTON (AP) - A plea hearing in federal court has been delayed for the former chairman of the Mashpee Wampanoag Tribe who is accused of fraud and embezzlement.
Glenn Marshall appeared before U.S. District Judge Rya Zobel on Wednesday, but his new attorney Paul Markham was given three weeks to review the case. Markham said Marshall asked him to take the case Tuesday night.
A new plea hearing is set for Feb. 11.
Marshall agreed in December to plead guilty to violating campaign finance laws while working with convicted lobbyist Jack Abramoff. He faces 41 to 51 months in prison.
Marshall stepped down as tribal chairman in 2007, after it became public that he was a convicted rapist and had lied about his military past.
Friday, January 16, 2009
DOJ Announces Charges Against former Mashpee Wampanoag Chair
FOR IMMEDIATE RELEASE
Monday, December 15, 2008
WWW.USDOJ.GOV/USAO/MA
CONTACT: CHRISTINA DiIORIO-STERLING
CONTACT: CHRISTINA DiIORIO-STERLING
PHONE: (617)748-3356
FORMER TRIBAL CHAIRMAN CHARGED WITH CAMPAIGN FINANCE VIOLATIONS AND FRAUD
BOSTON, MA - The former chairman of the Mashpee Wampanoag Tribe was charged today in U.S. District Court with violations of campaign finance law, along with tax, wire fraud and Social Security fraud, in connection with efforts to secure federal recognition for the Tribe. (See: Original DOJ Press Release)
Tuesday, January 06, 2009
Waterford Group affiliate placed a lien against AtMashpee LLC
A Secured Party, KSW MASS, LLC c/o Waterford Group Investments LLC, P.O. Box 715 Waterford, CT 06385-0715 filed a Michigan UCC Lien (Filing No. 2008101916-9) against a Debtor, AtMashpee, LLC, on 6.26.08.
The UCC Lien is described as “Security Interest and Proceeds.”
A limited liability company known as KSW MASS, L.L.C. was organized in Delaware on 11.29.06.
Is it possible that "KSW" stands for Kerzner, Slavik, and Wolman? Those parties are reportedly now in control of any future Mashpee Wampanoag casino resort on Cape Cod, MASS. (EnterpriseNews.com: Meet the Money Men).
Those parties were also part of the Trading Cove Partners that financed and developed the Mohegan Sun in Connecticut.
Sol Kerzner is Chairman and CEO of Kerzner International
Slavik Suites, Inc. was formed by Michigan-based brothers Richard Slavik (deceased 3.11.08) and Stephan Slavik (Slavik Builders, Inc.).
LMW Investments, Inc. is a Connecticut-based enterprise formed by brothers Len Wolman and Mark Wolman. The Wolmans are officers and directors of Slavik Suites.
Slavik and LMW are the members of Waterford Group LLC. Len Wolman is Chairman of Waterford. Waterford partnered with Kerzner to form Trading Cove Partners.
Waterford Gaming LLC is a wholly-owned subsidiary of Waterford Group LLC. A 10-K filed with the SEC by Waterford Gaming LLC provides more details into the relationship complexities of the businesses owned by the Wolmans and the Slavik family.
AtMashpee LLC, the "debtor" subject to the KSW MASS UCC Lien was organized by Detroit casino syndicator and real estate developer Herbert Strather.
Kerzner and Wolman (and by some accounts Slavik) took control of the Mashpee Wampanoag casino project from Strather once the tribe received Federal Recognition. Strather is reported to have bankrolled that tribe's efforts up to that point to the tune of $15 million. If what's been represented were true, wouldn't Kerzner, Slavik, Wolman by buying-out AtMashpee rather than placing a lien against the enterprise? Or did those parties also finance AtMashpee? Was Strather fronting for KSW all along?
And further do AtMashpee's investors know about the KSW MASS/Waterford Group UCC lien? In the wake of the wide-reaching Bernard Madoff ponzi scheme should AtMashpee "investors" be looking more closely at their circumstances?
The UCC Lien is described as “Security Interest and Proceeds.”
* * *
A limited liability company known as KSW MASS, L.L.C. was organized in Delaware on 11.29.06.
Is it possible that "KSW" stands for Kerzner, Slavik, and Wolman? Those parties are reportedly now in control of any future Mashpee Wampanoag casino resort on Cape Cod, MASS. (EnterpriseNews.com: Meet the Money Men).
Those parties were also part of the Trading Cove Partners that financed and developed the Mohegan Sun in Connecticut.
Sol Kerzner is Chairman and CEO of Kerzner International
Slavik Suites, Inc. was formed by Michigan-based brothers Richard Slavik (deceased 3.11.08) and Stephan Slavik (Slavik Builders, Inc.).
LMW Investments, Inc. is a Connecticut-based enterprise formed by brothers Len Wolman and Mark Wolman. The Wolmans are officers and directors of Slavik Suites.
Slavik and LMW are the members of Waterford Group LLC. Len Wolman is Chairman of Waterford. Waterford partnered with Kerzner to form Trading Cove Partners.
Waterford Gaming LLC is a wholly-owned subsidiary of Waterford Group LLC. A 10-K filed with the SEC by Waterford Gaming LLC provides more details into the relationship complexities of the businesses owned by the Wolmans and the Slavik family.
AtMashpee LLC, the "debtor" subject to the KSW MASS UCC Lien was organized by Detroit casino syndicator and real estate developer Herbert Strather.
Kerzner and Wolman (and by some accounts Slavik) took control of the Mashpee Wampanoag casino project from Strather once the tribe received Federal Recognition. Strather is reported to have bankrolled that tribe's efforts up to that point to the tune of $15 million. If what's been represented were true, wouldn't Kerzner, Slavik, Wolman by buying-out AtMashpee rather than placing a lien against the enterprise? Or did those parties also finance AtMashpee? Was Strather fronting for KSW all along?
And further do AtMashpee's investors know about the KSW MASS/Waterford Group UCC lien? In the wake of the wide-reaching Bernard Madoff ponzi scheme should AtMashpee "investors" be looking more closely at their circumstances?
Friday, January 02, 2009
Heirs of Chicago-based American Invsco founder helped bankroll casino ... are they at it again?
Three of Chicago-based Nicholas S. Gouletas’ daughters were among the original investors in
Atwater Entertainment Associates LLC (AEA), the entity that pushed to legalize gaming in Detroit during the mid-1990s and then eventually morphed into MotorCity Casino which opened its doors in 1999 with financing from, and under the management control of, Las Vegas-based Mandalay Resort Group (Circus Circus).
A Web site which lists the names of AEA investors includes the names of Andrea Desiree Gouletas (born Oct. 1969); Deanna Eileen Gouletas (born Oct. 1960) and Victoria Michelle Gouletas (born May 1974). They are three of Nicholas Gouletas’ six children.
AEA was formed in 1995 by Detroiter Herb Strather and a partner Nellie Varner to syndicate financial interest and raise capital needed to advance their local casino plans. At that time, the Gouletas sisters’ ages would have ranged from about 21 – 35 years old.
Crain's Detroit indicates that many AEA investors were also investors in AtMashpee, LLC, another casino syndication organized by Strather to raise the money he needed to bankroll the Mashpee Wampanoag Indian tribe's effort win federal recognition and build a casino resort on Cape Cod. That tribe’s former chairman has been under federal investigation and has agreed to plea guilty to federal campaign contribution violations and charges of fraud. AtMashpee enabled his wrong doing by dumping $4 million into a hidden fund.
It’s not clear if the Gouletas family is helping to bankroll that plan for a large scale Massachusetts casino resort.
As owners of American Invsco, the Gouletas family carries one of the most highly recognizable names in Chicago real estate. Siblings Nicholas S. "Nick" Gouletas, Evangeline “Engie” Gouletas and Vincent Goulet (he changed his last name) established American Invsco four decades ago (1969).
Today, the privately held real estate conglomerate is one of the leading developers of condominiums in the U.S. Nicholas is chairman and CEO of American Invsco and his son Steven is president. The Gouletas were pioneers in the business of condo conversions and the development of luxury hi-rise residential buildings. It is reported that American Invsco has developed and marketed over 45,000 condominiums in more than 40 cities across the U.S. with property values in excess of $4 billion.
In 1981, while attending Ronald Reagan’s 1st Inauguration, Engie Gouletas met then-New York Governor Hugh L. Carey, a widower; and they were married less than four months later. In 1998, she left American Invsco and formed Skyline Equities Realty LLC in part because of a long running feud with her brother Nicholas.
As one of the largest condo developers in the U.S., American Invsco and its affiliates haven’t been without controversy throughout the years.
Most recently, the Las Vegas Review Journal has reported on a class-action lawsuit being brought by those who purchased units in an American Invsco project known as The Meridian, located at 250 E. Flamingo Road, just one block from the famed Las Vegas Strip.
Curiously, a 10.17.08 Review Journal article indicates that Meridian Private Residence CH LLC, a so-called “affiliate" of an unrevealed Detroit-based venture capital fund, had been quietly bankrolling the start-up of American Invsco’s Meridian property.
Strather was seeking AtMashpee investors via GoBigNetwork.com
GoBigNetwork.com features a "member profile" for Herb Strather who reports he's looking for investors seeking to fund a Detroit-based start-up called AtMashpee.
Here's how the opportunity was described in Strather's GoBigNetwork.com profile:
According to a 10.31.05 brief written by Robert Ankeny and published in Crain's Detroit Business: AtMashpee LLC included $12 million syndicated through more than 200 investors.Here's how the opportunity was described in Strather's GoBigNetwork.com profile:
- AtMashpee’s purpose has been to assist the Mashpee Wampanoag Indian Tribe by funding its efforts to become federally recognized which was successful last year and to meet federal and state legal requirements to develop and operate a Class III Indian gaming casino in the vicinity of Middleboro, MA. AtMashpee entered into a consulting and development agreement with the Tribe to support it in the development and operation of the Casino. Casino is expected to open within next 36 months.
About 150 of AtMashpee's investors are former Atwater Entertainment Associates (AEA) "investors."
Ankeny suggests that the name "AtMashpee," is a blend of "Mashpee," as in Mashpee Wampanoag Indian tribe, and Herb Strather’s "Atwater" affiliate. AEA, organized in the mid-1990s, helped to organize Detroit Entertainment LLC which does business as Detroit's MotorCity Casino.
Friday, December 19, 2008
Politico paid to gather signatures on petitions may have also invested in AtMashpee LLC
Lee Albright was an investor in Atwater Entertainment Associates LLC (Atwater) according to a web site seeking to alert former Atwater partners to possible class-action claims involving the entity's former manager. Detroiter Herb Strather originally syndicated interest in Atwater as a way to raise capital needed to promote gambling in Detroit and then establish MotorCity Casino.
AtMashpee LLC, another Strather-created Detroit-based casino syndication in which a large majority of Atwater's members are reported to have also been investors, is suddenly at the center of a Jack Abramoff-related scandal making headlines this week.
Glenn Marshall, former chairman of Massachusetts's Mashpee Wampanoag tribe and a Strather (AtMashpee) partner, admits he is guilty of all criminal activity outlined in a Department of Justice (DOJ) complaint filed this week. Marshall has also agreed to cooperate in ongoing DOJ investigations which could include AtMashpee and its investors.
It is not clear yet if Albright is one of the Atwater investors who also put money into AtMashpee LLC.
Albright is the president of National Petition Management (NPM), perhaps the leading U.S. firm paid to collect signatures on political petitions intended to qualify measures (initiatives, referenda, propositions, proposals, etc.) for the ballot. NPM has offices in Michigan and Northern California. At one time NPM's was incorporated in Michigan.
The Daily Kos reports that from 1992-2006, NPM successfully qualifed 75 measures to be on ballots in 15 states. That list included qualifying two Michigan gambling measures: (1) allowed three commercial casinos to be opened in Detroit; and then (2) virtually protects those Detroit casinos from the threat of any future gaming competition in the state. Specifically:
Strather (AtMashpee) funnelled $4 million from investors into a hidden account enabling Marshall's criminal activity.
AtMashpee LLC, another Strather-created Detroit-based casino syndication in which a large majority of Atwater's members are reported to have also been investors, is suddenly at the center of a Jack Abramoff-related scandal making headlines this week.
Glenn Marshall, former chairman of Massachusetts's Mashpee Wampanoag tribe and a Strather (AtMashpee) partner, admits he is guilty of all criminal activity outlined in a Department of Justice (DOJ) complaint filed this week. Marshall has also agreed to cooperate in ongoing DOJ investigations which could include AtMashpee and its investors.
It is not clear yet if Albright is one of the Atwater investors who also put money into AtMashpee LLC.
Albright is the president of National Petition Management (NPM), perhaps the leading U.S. firm paid to collect signatures on political petitions intended to qualify measures (initiatives, referenda, propositions, proposals, etc.) for the ballot. NPM has offices in Michigan and Northern California. At one time NPM's was incorporated in Michigan.
The Daily Kos reports that from 1992-2006, NPM successfully qualifed 75 measures to be on ballots in 15 states. That list included qualifying two Michigan gambling measures: (1) allowed three commercial casinos to be opened in Detroit; and then (2) virtually protects those Detroit casinos from the threat of any future gaming competition in the state. Specifically:
- 1996 - Michigan First! Proposal E - gambling in Detroit (organized by Atwater investors Herb Strather and Mary Ann Dalgleish, and Dimitrios Papas, founder of Monroe Partners LLC - Greektown Casino; Strather and Papas were later disqualified from receiving Michigan gambling licenses and forced to cash-in their respective casino interests before the gambling halls opened; voters statewide narrowly approved Proposal E which provided for three commercial gaming establishments in Detroit).
2004 - Let Voters Decide Yes on Proposal 1 (bankrolled by Detroit's three established commercial casino interests and Michigan Indian tribes with gaming interests which included MGM Grand Detroit, Marian Ilitch owner of MotorCity Casino, Kewadin Greektown Casino, Saginaw Chippewa Indian Tribe, Little River Band of Ottawa Indians; voters approved Proposal 1which now requires a statewide vote to approve any other new/expanded gaming ventures).
Strather (AtMashpee) funnelled $4 million from investors into a hidden account enabling Marshall's criminal activity.
Thursday, December 18, 2008
Did principals at Goddard Clausen political firm help syndicate AtMashpee LLC too?
The Washington D.C.-based chairman of the International Association of Political Consultants (IAPC), Ben Goddard, and his Sacramento-based business partner, Rick Clausen, were among 100+ investors who helped Herb Strather originally syndicate Detroit-based Atwater Entertainment Associates LLC (AEA). It has been reported by Crain's Detroit that AEA investors made up 75% (150 investors) of those who also helped Strather syndicate AtMashpee LLC, another casino investment opportunity. Note that the name "AtMashpee" reflects such a marriage between Atwater and the Mashpee Wampanoag.
A complaint filed by Department of Justice (DOJ) officials in U.S. District Court this week indicates Strather (AtMashpee LLC) dumped $4 million into a hidden account which enabled former Mashpee Wampanoag tribal chairman Glenn A. Marshall to engage in various fraudulent activities including a scheme that used convicted former lobbyist Jack Abramoff and others to funnel political contributions to key Members of Congress; all this was associated with efforts to win Federal Recognition of the tribe so they could build a Cape Cod casino that would reward Strather (AtMashpee) with 6-6.5% of annual gaming revenues over 20 years -- a jackpot valued by some at $1.2 billion.
Marshall agreed to plea guilty of all charges and will cooperate with ongoing DOJ investigations. His attorney, Robert Craven, told the Boston Globe, "Glenn didn't dream up the scheme himself. He was getting bad advice."
A Web site set up to inform AEA investors about possible class action claims lists Benjamin Goddard and Richard C. Clausen as investors. The pair are partners in the well-known political/PR firm Goddard Clausen.
Strather formed AEA originally to raise the capital needed to bankroll a 1996 campaign legalizing gambling in Detroit. Subsquently, AEA joined a partnership that included Las Vegas-based Circus Circus (Mandalay Resort Group) and established Detroit's MotorCity Casino.
How did Goddard and Clausen end up investing in Atwater Entertainment Associates? Did Goddard and Clausen also help Strather syndicate AtMashpee LLC too? And in doing so bankroll the tribal chairman's illegal activity? Were they also among those Marshall's attorney says gave him bad advice and political counsel?
The Goddard Clausen firm rose to prominence during the 1990s after Blue Cross paid the firm $2 million to develop the landmark "Harry & Louise" ad campaign, credited with killing President Bill Clinton's plan for universal health care. Goddard is a founder of the CATO Institute and a regular columnist for The Hill, a Washington D.C. news publication read by Capitol Hill insiders. In recent years, Goddard Clausen was a division of the international PR firm Porter Novelli (See Goddard Profile: Washington Post)
A complaint filed by Department of Justice (DOJ) officials in U.S. District Court this week indicates Strather (AtMashpee LLC) dumped $4 million into a hidden account which enabled former Mashpee Wampanoag tribal chairman Glenn A. Marshall to engage in various fraudulent activities including a scheme that used convicted former lobbyist Jack Abramoff and others to funnel political contributions to key Members of Congress; all this was associated with efforts to win Federal Recognition of the tribe so they could build a Cape Cod casino that would reward Strather (AtMashpee) with 6-6.5% of annual gaming revenues over 20 years -- a jackpot valued by some at $1.2 billion.
Marshall agreed to plea guilty of all charges and will cooperate with ongoing DOJ investigations. His attorney, Robert Craven, told the Boston Globe, "Glenn didn't dream up the scheme himself. He was getting bad advice."
A Web site set up to inform AEA investors about possible class action claims lists Benjamin Goddard and Richard C. Clausen as investors. The pair are partners in the well-known political/PR firm Goddard Clausen.
Strather formed AEA originally to raise the capital needed to bankroll a 1996 campaign legalizing gambling in Detroit. Subsquently, AEA joined a partnership that included Las Vegas-based Circus Circus (Mandalay Resort Group) and established Detroit's MotorCity Casino.
How did Goddard and Clausen end up investing in Atwater Entertainment Associates? Did Goddard and Clausen also help Strather syndicate AtMashpee LLC too? And in doing so bankroll the tribal chairman's illegal activity? Were they also among those Marshall's attorney says gave him bad advice and political counsel?
The Goddard Clausen firm rose to prominence during the 1990s after Blue Cross paid the firm $2 million to develop the landmark "Harry & Louise" ad campaign, credited with killing President Bill Clinton's plan for universal health care. Goddard is a founder of the CATO Institute and a regular columnist for The Hill, a Washington D.C. news publication read by Capitol Hill insiders. In recent years, Goddard Clausen was a division of the international PR firm Porter Novelli (See Goddard Profile: Washington Post)
Wednesday, December 17, 2008
Detroiters Strather, Deitch provided $4 million fund that enabled wrongdoing by ex-tribal chairman
Detroit casino syndicators Herb Strather and Laurence Deitch provided $4 million fund that enabled wrongdoing by former Indian tribe chairman.
According to details released by the U.S. Department of Justice (DOJ), a Michigan-based casino syndicate controlled by Strather and Deitch dumped $4 million into a dormant tribal enterprise enabling their partner, then the chairman of a Massachusetts Indian tribe, to commit wire fraud and carry out schemes that violated federal campaign finance laws.
All this and more is outlined in the DOJ release and in charges filed in U.S. District Court against former Mashpee Wampanoag tribal chairman Glenn A. Marshall who has admitted wrongdoing and plead guilty on all charges in order to realize reduced sentencing. Marshall also agreed to cooperate in other related investigations.
Marshall’s attorney Robert Craven told the Boston Globe, "Glenn didn't dream up the scheme himself. He was getting bad advice."
Strather formed AtMashpee LLC in 2000 to provide funding and direct legal and lobbying activity necessary to earn federal recognition for the Mashpee Tribe; ultimately paving the way to build a large casino resort on Cape Cod that was to rival Connecticut’s Mohegan Sun. In exchange for bankrolling the plans, AtMashpee LLC and Strather would get 6 to 6.5% of casino revenues over a 20 year period – a deal valued by some to have been worth up to $1.2 billion.
According to the Boston Globe, Marshall was elected Mashpee chairman shortly after Strather became involved with the tribe. And in 2005 when Marshall’s leadership was challenged, Strather took measures to ensure Marshall would be re-elected as chairman.
Strather the largest investor in AtMashpee, is noted as “Investor A” in court documents. He syndicated interest in the limited liability company with 200 other investors – perhaps some of the same individuals who invested alongside Strather and Deitch in the venture (Atwater Entertainment Associates) that eventually became Detroit’s MotorCity Casino.
It is worth noting that according to documents filed with the Michigan Department of Labor & Economic Growth, Laurence B. Deitch, an attorney who is also a University of Michigan Regent, has been the Resident Agent for AtMashpee since 2001. While Strather has confirmed he is “Investor A” it is not clear if Deitch is the party noted in court documents as “Investor B,” a resident of Michigan and a fellow investor in AtMashpee LLC.
Another former Atwater investor and resident of Michigan, J. Ronald Slavik, is ties to the Mashpee casino scheme as well. Slavik was one of the original partners including Sol Kerzner and Len Wolman in Trading Cove Associates, which developed and managed the Mohegan Sun casino resort in Connecticut. Kerzner and Wolman have taken over controlling interest in the proposed Mashpee Casino. It's also possible Slavik is "Investor B."
From 2003-2007, AtMashpee pumped $4 million into a secret fund under the dormant Mashpee Fisherman’s Association. Those funds were used in part to pay lobbyists and political consultants. At one point, they retained the now disgraced former D.C. lobbyist Jack Abramoff to represent their interests and engaged him in their political contributions scheme. The tribe did receive federal recognition in early 2007 and has been pursuing controversial plans to develop a large casino resort in Middleborough, MA.
In addition to wire fraud and laundering campaign contributions, Strather gave Marshall $380,000 which he used to pay for personal expenses: groceries, jewelry, tuition payments for his daughter, vacations and his Countrywide mortgage. Strather also made other monthly payments to Marshall who failed to disclose the gifts and payments to the IRS and Social Security Administration.
DOJ Announcement
Complaint filed in U.S. District Court
Plea Agreement
Associated Press: Ex-tribal head in Mass. to plead guilty to fraud
Boston Herald: Ex-Mashpee Wampanoag chairman charged, tied to Abramoff
Cape Cod Times: Mashpee Wampanoag, Investors manipulate Cape tribe, Secretive club holding casino cards
Tuesday, March 18, 2008
Presidential candidates and the future of off-reservation casinos
3.18.08
Casino no done deal for tribal leaders
Wampanoag bid faces US hurdles
Wampanoag bid faces US hurdles
By Matt Viser
Globe Staff
Globe Staff
Governor Deval Patrick has repeatedly argued that the state should license casinos because, with or without state approval, the Mashpee Wampanoag tribe will inevitably build one under federal rules. But, in reality, Wampanoag tribal leaders have embarked on a venture that is fraught with uncertainty, their hopes for gambling riches by no means guaranteed.
Daniel O'Connell, the state secretary of economic development and Patrick's chief gaming adviser, recently expressed confidence.
Casino's chances
Most immediately, the fate of the tribe's casino proposal could hinge on the outcome of the 2008 presidential election. A victory by Senator John McCain, who strongly opposes so-called off-reservation Indian casinos, could derail the Wampanoags' effort because they are seeking to build 25 miles from their headquarters on Cape Cod. Even a victory by Democrats Hillary Clinton or Barack Obama, who have murkier positions on tribal gaming, would not make a tribal casino a foregone conclusion. (Complete Original Story)
Daniel O'Connell, the state secretary of economic development and Patrick's chief gaming adviser, recently expressed confidence.
Casino's chances
Most immediately, the fate of the tribe's casino proposal could hinge on the outcome of the 2008 presidential election. A victory by Senator John McCain, who strongly opposes so-called off-reservation Indian casinos, could derail the Wampanoags' effort because they are seeking to build 25 miles from their headquarters on Cape Cod. Even a victory by Democrats Hillary Clinton or Barack Obama, who have murkier positions on tribal gaming, would not make a tribal casino a foregone conclusion. (Complete Original Story)
Monday, February 11, 2008
EDITORIAL: Gov. Patrick gets tough over casinos
2.11.08
Patrick gets tough over casinos
Efforts by the Mashpee Wampanoag tribe to place its planned casino site in Middleborough in a federal trust are more likely to end in a drawn-out fight than a healthy payoff for either the tribe or the residents of Massachusetts. The Patrick administration is right to resist the Wampanoags' efforts and to encourage the tribe instead to bid for a state-issued casino license.
The tribe, which won federal recognition last year, is now seeking to establish official sovereignty over more than 500 acres, which would place it largely outside the state's jurisdiction. The Patrick administration has sent an 125-page objection to the federal Bureau of Indian Affairs, arguing that the tribe has failed to provide adequate safeguards in such areas as zoning, public safety, labor, consumer protection, and the environment. These are substantive issues, but the real message is that the administration is serious about following its own casino plan.
Patrick proposes sensible legislation that would license three destination casinos across the state. The plan is carefully crafted to generate new jobs and new tax revenues, including an estimated $600 million to $900 million in one-time licensing fees and about $400 million in annual revenue. The proposal even offers special consideration to casino developers who join with federally recognized Indian tribes from Massachusetts. The Wampanoags' gambit could weaken this well-designed plan by diluting the worth of the licenses and reducing the state's take. And it opens the door to the snarled world of the federal Indian Gaming Regulatory Act, which poses risks for the tribe as well as the state.
The 1988 law, known as IGRA, provides the statutory framework for tribal gambling. But what, if anything, gets built on that framework is far from predictable. It often takes years for an Indian casino proposal to wind its way through the Department of Interior. More complicated still is the requirement that the tribe and the state negotiate a compact that can cover oversight, payments in lieu of taxes, and methods to handle civil and criminal matters. Such negotiations often break down when one side accuses the other of failure to negotiate in good faith.
The bramble of IGRA-related court cases should serve as a warning. Some decisions place few restrictions on the kinds of gambling that tribes can offer on their land, including full-fledged casinos in states where slots and table games are prohibited. Other decisions leave the tribe with little recourse if it believes a state has failed to negotiate in good faith. One day, the wind blows toward tribal self-determination. The next day, it shifts in the direction of state sovereign immunity. And the secretary of the Interior, not a state's elected officials, calls the final shot.
The federal law is too big a crap shoot. Massachusetts - and the tribe - can do better.
Efforts by the Mashpee Wampanoag tribe to place its planned casino site in Middleborough in a federal trust are more likely to end in a drawn-out fight than a healthy payoff for either the tribe or the residents of Massachusetts. The Patrick administration is right to resist the Wampanoags' efforts and to encourage the tribe instead to bid for a state-issued casino license.
The tribe, which won federal recognition last year, is now seeking to establish official sovereignty over more than 500 acres, which would place it largely outside the state's jurisdiction. The Patrick administration has sent an 125-page objection to the federal Bureau of Indian Affairs, arguing that the tribe has failed to provide adequate safeguards in such areas as zoning, public safety, labor, consumer protection, and the environment. These are substantive issues, but the real message is that the administration is serious about following its own casino plan.
Patrick proposes sensible legislation that would license three destination casinos across the state. The plan is carefully crafted to generate new jobs and new tax revenues, including an estimated $600 million to $900 million in one-time licensing fees and about $400 million in annual revenue. The proposal even offers special consideration to casino developers who join with federally recognized Indian tribes from Massachusetts. The Wampanoags' gambit could weaken this well-designed plan by diluting the worth of the licenses and reducing the state's take. And it opens the door to the snarled world of the federal Indian Gaming Regulatory Act, which poses risks for the tribe as well as the state.
The 1988 law, known as IGRA, provides the statutory framework for tribal gambling. But what, if anything, gets built on that framework is far from predictable. It often takes years for an Indian casino proposal to wind its way through the Department of Interior. More complicated still is the requirement that the tribe and the state negotiate a compact that can cover oversight, payments in lieu of taxes, and methods to handle civil and criminal matters. Such negotiations often break down when one side accuses the other of failure to negotiate in good faith.
The bramble of IGRA-related court cases should serve as a warning. Some decisions place few restrictions on the kinds of gambling that tribes can offer on their land, including full-fledged casinos in states where slots and table games are prohibited. Other decisions leave the tribe with little recourse if it believes a state has failed to negotiate in good faith. One day, the wind blows toward tribal self-determination. The next day, it shifts in the direction of state sovereign immunity. And the secretary of the Interior, not a state's elected officials, calls the final shot.
The federal law is too big a crap shoot. Massachusetts - and the tribe - can do better.
Thursday, February 07, 2008
Gov. Patrick against Mashpee casino proposal for Middleborough
2.07.08
Governor opposes casino land request
Urges US to deny tribe's petition in effort to maintain state control
By Matt Viser
Globe Staff
Governor Deval Patrick asked the federal government yesterday to reject efforts by the Mashpee Wampanoag tribe to place its planned casino site in Middleborough in a federal trust, an attempt by Patrick to steer the tribe toward a state-issued casino license that would garner far more money for Massachusetts.
With billions of dollars at stake, Patrick's move was part of a brewing dispute over what form expanded gambling could take in Massachusetts and whether it will be controlled by the state or by the tribe and the federal government.
If the tribe is able to win federal trust status for the land, the property effectively becomes sovereign territory, and the state risks being shut out of a share of gambling proceeds. State regulators would not have any sway over details like zoning, traffic, environmental impacts, and public safety. The value of any future state-licensed casinos would also be diluted.
By filing his 125-page objection with the Bureau of Indian Affairs, the governor officially planted his flag in the Middleborough casino debate for the first time. While the subtext was clear - a fight over money - the administration hinged its arguments yesterday on jurisdiction, saying that trust status would deny the state any control over a host of issues.
Patrick supports tribal gambling, but on the state's terms. He has proposed a state licensing system for three resort casinos in the state and would give a bidding preference to Indian tribes in Massachusetts. Administration officials have been meeting with Wampanoag representatives to discuss the possibility of the tribe bidding on a state gambling license.
While Patrick's move could help him gain negotiating leverage, it is unlikely to persuade the federal government to deny the Wampanoag trust application, specialists say. States have little influence over whether Indian tribes are able to place lands in federal trust, even for the purpose of building casinos.
"The governor has no voice in the matter," said Dennis Whittlesey, a Washington-based lawyer specializing in Indian law. Last year, he represented the town of Middleborough in negotiating a deal that requires the tribe to pay the town $7 million a year if a casino is built.
"The governor can complain all he wants, but it does not matter," Whittlesey said. "He has no input."
The governor's filing yesterday questioned the actions of former tribal chairman Glenn Marshall, who resigned in August after news surfaced of a past rape conviction and his misrepresentation of his military record. The state's document states that Marshall, who was involved in negotiating the contract between the tribe and its outside partners, is a subject of a federal investigation by the Internal Revenue Service and the Justice Department.
It also says that the financial deal between the tribe and its outside investors has not been disclosed to the state and that, without details, there is no evidence that the tribe would receive the most benefit from a casino.
"We have significant concerns about the initial proposal," Daniel O'Connell, Patrick's economic development secretary and chief gaming adviser, said in an interview yesterday. "We don't think it has enough information provided. Not enough work has been done to make the case for land [to go] into trust."
Administration officials have met with tribal leaders three times and have another meeting planned later this month, to discuss both the tribe's plans for the land and the administration's concerns.
"The tribe continues to have productive discussions with the Patrick Administration," tribal council chairman Shawn Hendricks Sr. said in a written statement yesterday. "We have clearly stated our reasons for sovereign land, and the governor has clearly stated his questions and concerns for the Commonwealth. We look forward to working through the issues raised with him, and I am confident we can do so."
The tribe won federal recognition last year, which set it on course to build a resort casino with 4,000 slot machines, table games, a 1,500-room hotel, and a host of amenities, including a golf course. The next critical step for the tribe is getting federal approval to place its land in trust, a process that can often take years.
When the tribe won recognition, Patrick telephoned the tribal council to extend his congratulations, and they agreed to further talks about taking land into trust.
Tribal leaders have said they would pursue a casino license under the governor's proposed legislation, which would legalize three casinos in Massachusetts. But given the political uncertainty of the proposal, which has not yet been taken up in the House, the tribe is also pursuing a plan to put the 539 acres in Middleborough into federal trust, which would effectively make it part of the tribe's reservation.
Other states have handled the situation similarly, opposing initial applications on a legal or technical basis with the hope of gaining political leverage and negotiating power.
"Very few governors from the get-go come out in support of those applications," said Steven Light, codirector of the Institute for the Study of Tribal Gaming Law and Policy at the University of North Dakota. "It's a political thicket. It's a sticky issue for them."
What is unusual is that, in Massachusetts, the governor is simultaneously pushing for legalization of casinos under a proposed state law.
Governor Tommy Thompson of Wisconsin opposed applications in the 1990s. In Oregon, Governor Ted Kulongoski in 2005 came out in support for an Indian casino in the Columbia River Gorge. Governor Tim Pawlenty of Minnesota initially opposed casinos, but then embarked on a failed bid to develop a joint partnership between the state and the tribes.
Sean Murphy of the Globe staff and Globe correspondent Christine Wallgren contributed to this report. Matt Viser can be reached at maviser@globe.com.
Urges US to deny tribe's petition in effort to maintain state control
By Matt Viser
Globe Staff
Governor Deval Patrick asked the federal government yesterday to reject efforts by the Mashpee Wampanoag tribe to place its planned casino site in Middleborough in a federal trust, an attempt by Patrick to steer the tribe toward a state-issued casino license that would garner far more money for Massachusetts.
With billions of dollars at stake, Patrick's move was part of a brewing dispute over what form expanded gambling could take in Massachusetts and whether it will be controlled by the state or by the tribe and the federal government.
If the tribe is able to win federal trust status for the land, the property effectively becomes sovereign territory, and the state risks being shut out of a share of gambling proceeds. State regulators would not have any sway over details like zoning, traffic, environmental impacts, and public safety. The value of any future state-licensed casinos would also be diluted.
By filing his 125-page objection with the Bureau of Indian Affairs, the governor officially planted his flag in the Middleborough casino debate for the first time. While the subtext was clear - a fight over money - the administration hinged its arguments yesterday on jurisdiction, saying that trust status would deny the state any control over a host of issues.
Patrick supports tribal gambling, but on the state's terms. He has proposed a state licensing system for three resort casinos in the state and would give a bidding preference to Indian tribes in Massachusetts. Administration officials have been meeting with Wampanoag representatives to discuss the possibility of the tribe bidding on a state gambling license.
While Patrick's move could help him gain negotiating leverage, it is unlikely to persuade the federal government to deny the Wampanoag trust application, specialists say. States have little influence over whether Indian tribes are able to place lands in federal trust, even for the purpose of building casinos.
"The governor has no voice in the matter," said Dennis Whittlesey, a Washington-based lawyer specializing in Indian law. Last year, he represented the town of Middleborough in negotiating a deal that requires the tribe to pay the town $7 million a year if a casino is built.
"The governor can complain all he wants, but it does not matter," Whittlesey said. "He has no input."
The governor's filing yesterday questioned the actions of former tribal chairman Glenn Marshall, who resigned in August after news surfaced of a past rape conviction and his misrepresentation of his military record. The state's document states that Marshall, who was involved in negotiating the contract between the tribe and its outside partners, is a subject of a federal investigation by the Internal Revenue Service and the Justice Department.
It also says that the financial deal between the tribe and its outside investors has not been disclosed to the state and that, without details, there is no evidence that the tribe would receive the most benefit from a casino.
"We have significant concerns about the initial proposal," Daniel O'Connell, Patrick's economic development secretary and chief gaming adviser, said in an interview yesterday. "We don't think it has enough information provided. Not enough work has been done to make the case for land [to go] into trust."
Administration officials have met with tribal leaders three times and have another meeting planned later this month, to discuss both the tribe's plans for the land and the administration's concerns.
"The tribe continues to have productive discussions with the Patrick Administration," tribal council chairman Shawn Hendricks Sr. said in a written statement yesterday. "We have clearly stated our reasons for sovereign land, and the governor has clearly stated his questions and concerns for the Commonwealth. We look forward to working through the issues raised with him, and I am confident we can do so."
The tribe won federal recognition last year, which set it on course to build a resort casino with 4,000 slot machines, table games, a 1,500-room hotel, and a host of amenities, including a golf course. The next critical step for the tribe is getting federal approval to place its land in trust, a process that can often take years.
When the tribe won recognition, Patrick telephoned the tribal council to extend his congratulations, and they agreed to further talks about taking land into trust.
Tribal leaders have said they would pursue a casino license under the governor's proposed legislation, which would legalize three casinos in Massachusetts. But given the political uncertainty of the proposal, which has not yet been taken up in the House, the tribe is also pursuing a plan to put the 539 acres in Middleborough into federal trust, which would effectively make it part of the tribe's reservation.
Other states have handled the situation similarly, opposing initial applications on a legal or technical basis with the hope of gaining political leverage and negotiating power.
"Very few governors from the get-go come out in support of those applications," said Steven Light, codirector of the Institute for the Study of Tribal Gaming Law and Policy at the University of North Dakota. "It's a political thicket. It's a sticky issue for them."
What is unusual is that, in Massachusetts, the governor is simultaneously pushing for legalization of casinos under a proposed state law.
Governor Tommy Thompson of Wisconsin opposed applications in the 1990s. In Oregon, Governor Ted Kulongoski in 2005 came out in support for an Indian casino in the Columbia River Gorge. Governor Tim Pawlenty of Minnesota initially opposed casinos, but then embarked on a failed bid to develop a joint partnership between the state and the tribes.
Sean Murphy of the Globe staff and Globe correspondent Christine Wallgren contributed to this report. Matt Viser can be reached at maviser@globe.com.
Wednesday, January 23, 2008
Boston Herald reports Detroit casinos have fallen short of revenue projections and jobs
1.23.08
Detroit has no luck with casino trio eyed by Deval
By Dave Wedge http://www.bostonherald.com/ Local Coverage
By Dave Wedge http://www.bostonherald.com/ Local Coverage
DETROIT - Three Detroit casinos similar to those proposed by Gov. Deval Patrick have fallen about a half-billion dollars short of initial projections and created thousands fewer jobs than predicted in what could be a stark warning to Massachusetts.
In 1998, developers, politicians and casino proponents promised that three Detroit casinos would rake in up to $1.8 billion but in 2007 the gaming parlors took in $1.335 billion, according to the Michigan Gaming Control Board.
A Michigan state senate report in 2000, meanwhile, estimated the casinos would create 10,500 jobs but so far the gambling venues have just 7,000 permanent workers. The same report predicted the city’s annual gaming haul would reach $1.4 billion by 2004.
The news comes as the Detroit casinos posted slight revenue increases this year yet also showed signs of significantly slower growth. Revenue generated by three Motor City casinos crept up in 2007 - from $1.303 billion to $1.33 billion - but growth was down four percent over the previous year.
The Herald had reported that gambling revenue at the city’s three casinos was down in 2007 but newly posted numbers that included December revenues showed an overall increase of about $30 million.
Still, Detroit City Councilor JoAnn Watson said the casinos have “created social and economic devastation” that has led to 20 percent of the city’s small businesses going “belly up.”
“There were a lot of promises made in terms of how the economy would improve and jobs, jobs, jobs,” Watson said. “But the circumstances in the aftermath of the casinos has been ‘Lord have mercy.’ The ballyhooed promise of prosperity has not occurred.”
Patrick’s controversial plan for two commercially operated casinos and one Indian gaming hall has been a reality in Detroit since voters legalized gambling more than a decade ago.
Revenue in 2007 was down about $450,000 at the Greektown Casino, but up slightly at the MGM Grand Detroit and the MotorCity Casino, according to the state gaming board. All three casinos have either recently completed or are in the midst of massive expansions that will include more gaming space and hotel rooms.
The luke-warm numbers sound a warning for Patrick’s headline-grabbing 2009 budget plan, which calls for $300 million in casino license fees to pay for schools, public safety, transportation and much-needed tax relief.
“What I’ve seen is there’s only a finite pot of gambling money that people have,” said former Michigan Rep. Allen Lowe, who opposed Detroit’s three-casino plan. “I don’t know that economically we’ve seen much of a boon here.”
Michigan state Sen. Alan Cropsey, a vocal casino opponent, said the slowdown in Detroit shows the market is “tapped out.”
“This really is taking money out of the local area and putting it into the casino owners’ pocket,” Cropsey said, adding that it’s “foolish” for a government to rely on gambling revenue.
Kofi Jones, spokeswoman for Patrick’s economic development secretary Dan O’Connell, said the governor’s panel looked at several regions with casinos, but “no one model alone formed the basis of the governor’s legislation.”
“We are confident that our plan will meet its projections,” Jones said.
Revenues aside, the impact of the Detroit casinos has been questionable as the city remains severely blighted, with entire blocks of vacant, boarded-up buildings infesting surrounding neighborhoods.
“They ruin the city,” said Detroit autoworker Mark Hauswirth during a recent visit to the MotorCity Casino. “People blow all their money. It don’t help nobody but the people who own them.”
Howard Berenbom, who runs the online magazine Casino Detroit, said the casinos have been “disappointing,” mainly because a plan to spur local development by locating them all on the Detroit River never materialized. Still, Berenbom believes they’ve given the city a boost.
“It brings in jobs and revenue,” Berenbom said. “The negative is that some poor people go and gamble and a lot of people can lose.”
Michigan politicians pushed through legalization by focusing on how much local money was flowing to casinos across the Detroit River in Windsor, Ontario, much like Massachusetts’ drive has been fueled by concerns about tourism dollars going to Connecticut casinos.
Article URL: http://www.bostonherald.com/news/regional/general/view.bg?articleid=1068406
Saturday, November 03, 2007
MGM Mirage looking to expand in Mass with Indian partners
11.03.07
Conn. tribes explore Mass. for casino sites
Race to maintain hold on N.E. market
By Matt Viser, Globe Staff
The Connecticut Indian tribe that operates the Foxwoods casino and its Las Vegas partner are actively scouring Massachusetts for casino locations, part of a race between two of Connecticut's tribes to protect their share of the New England gambling market.
The Mashantucket Pequot and MGM Mirage, which operates the Bellagio and MGM Grand among other resorts in Las Vegas and other casinos around the country, have so far shopped for a site in the Boston area and in Western Massachusetts. Foxwoods officials spent a good portion of the past two months in talks with operators of Wonderland Greyhound Park in Revere, but the talks fizzled. An executive from MGM Mirage, meanwhile, has looked at a 1,600-acre tract in the Central Massachusetts town of Warren.
Another tribe, the Mohegan, which operates Mohegan Sun, was the first Connecticut tribe to plant a flag in Massachusetts with a proposed site on 150 acres in Palmer.
The competing tribes' interest in bidding for gaming licenses under Governor Deval Patrick's plan to introduce resort-casinos demonstrates how they are seeking to use their riches to expand beyond Connecticut's borders, after enjoying a lock on New England casino gambling for more than a decade.
Under Patrick's proposal, the state would auction off three licenses, one each in metropolitan Boston, Southeastern Massachusetts, and Western Massachusetts.
The Pequot formed a partnership with MGM Mirage last year to seek development possibilities worldwide. Scott Snow, executive vice president of MGM Mirage, recently toured the Warren location, according to the current property owners.
The Warren site, adjacent to the intersection of Interstates 90 and 84, is less than 10 miles from the area in Palmer where the Mohegan tribe wants to build.
"We are interested in Massachusetts," said Alan Feldman, MGM's senior vice president of public affairs, who stressed that any discussions are preliminary and would depend on what the final legislation, which the Legislature is not expected to take up until next year, looks like. "There's interest on the part of everyone in the industry. We'll see where it all leads."
MGM, the largest landowner on Las Vegas Boulevard, is one of the dominant casino developers in the world, operating several resorts in Las Vegas and casinos in Detroit, Atlantic City, and Biloxi, Miss. ... (Full Story)
Race to maintain hold on N.E. market
By Matt Viser, Globe Staff
The Connecticut Indian tribe that operates the Foxwoods casino and its Las Vegas partner are actively scouring Massachusetts for casino locations, part of a race between two of Connecticut's tribes to protect their share of the New England gambling market.
The Mashantucket Pequot and MGM Mirage, which operates the Bellagio and MGM Grand among other resorts in Las Vegas and other casinos around the country, have so far shopped for a site in the Boston area and in Western Massachusetts. Foxwoods officials spent a good portion of the past two months in talks with operators of Wonderland Greyhound Park in Revere, but the talks fizzled. An executive from MGM Mirage, meanwhile, has looked at a 1,600-acre tract in the Central Massachusetts town of Warren.
Another tribe, the Mohegan, which operates Mohegan Sun, was the first Connecticut tribe to plant a flag in Massachusetts with a proposed site on 150 acres in Palmer.
The competing tribes' interest in bidding for gaming licenses under Governor Deval Patrick's plan to introduce resort-casinos demonstrates how they are seeking to use their riches to expand beyond Connecticut's borders, after enjoying a lock on New England casino gambling for more than a decade.
Under Patrick's proposal, the state would auction off three licenses, one each in metropolitan Boston, Southeastern Massachusetts, and Western Massachusetts.
The Pequot formed a partnership with MGM Mirage last year to seek development possibilities worldwide. Scott Snow, executive vice president of MGM Mirage, recently toured the Warren location, according to the current property owners.
The Warren site, adjacent to the intersection of Interstates 90 and 84, is less than 10 miles from the area in Palmer where the Mohegan tribe wants to build.
"We are interested in Massachusetts," said Alan Feldman, MGM's senior vice president of public affairs, who stressed that any discussions are preliminary and would depend on what the final legislation, which the Legislature is not expected to take up until next year, looks like. "There's interest on the part of everyone in the industry. We'll see where it all leads."
MGM, the largest landowner on Las Vegas Boulevard, is one of the dominant casino developers in the world, operating several resorts in Las Vegas and casinos in Detroit, Atlantic City, and Biloxi, Miss. ... (Full Story)
Thursday, October 18, 2007
Mashpee Wampanoag Tribe prefers Indian casino
via Indianz.Com Indian Gaming News on 10/18/07
The Mashpee Wampanoag Tribe of Massachusetts is moving forward with its plans for a casino despite a call from Gov. Deval Patrick (D) to pursue a commercial casino. The tribe wants to open a casino in the town of...
Wednesday, October 17, 2007
UPDATED: Formerly rejected MotorCity Casino backers Malik & Strather have taken similar paths to Long Island & Cape Cod
And now Michael J. Malik and Marian Ilitch (Gateway Casino Resorts) are behind a plan to create half a million square foot casino resort at New York's Aqueduct race track.
Michael Malik and Herb Strather were behind the statewide ballot measure, Proposal E, that got gambling legalized in Detroit – their partners orchestrated contributions of more than $5 million in the last days of the campaign for an advertising blitz.Malik and Strather along with Marian Ilitch, Tom Celani and about 100 other Detroit business and community leaders formed Atwater Casino Group and immediately following the narrow passage of the 1996 ballot measure, announced a partnership with Circus Circus that would be called Detroit Entertainment LLC.
Circus Circus repaid the $5 million Atwater Casino Group members had contributed to the Proposal E campaign. Detroit Entertainment is the parent of MotorCity Casino; owned 100% by Marian Ilitch since April 2005.
Prior to opening MotorCity Casino in 1999, the Michigan Gaming Control Board required the individual owners of the casino to go through rigorous background checks and be granted gaming licenses. Malik and Strather were among a handful of owners from Detroit’s three commercial casinos who were denied licenses following the background checks. Both were forced to sell any share they had in the venture before the Casino could open. So, Strather’s shares in MotorCity Casino were assumed by Circus Circus and Malik’s by Marian Ilitch.
Fast forward a couple of years…
Strather. Bankrolling Federal Recognition. Cape Cod Casino.
Strather had developed a partnership with the Mashpee Wampanoag tribe of Massachusetts and was bankrolling their effort to gain federal recognition. In exchange, Strather has said he would be given a portion of the development rights on a Wampanoag casino – to be built in Middleborough on Cape Cod.
As with the commercial casinos in Detroit, the management of Indian casinos must stand up to the scrutiny of background checks and be licensed by the National Indian Gaming Commission. The Mashpee tribe reports it never intended for Strather to hold the gaming license; his role was to front entitlement and predevelopment phase.
Shortly after the Department of Interior granted federal recognition to the Mashpee this past Spring, it was announced that gambling tycoons Sol Kerzner and Len Wolman (Mohegan Sun) had signed on as lead investors of a Mashpee casino resort and Strather has faded into the background. If approved, the Mashpee casino resort in Middleborough would be the first Indian casino in Massachusetts and the only casino on Cape Cod.
Malik. Bankrolling Federal Recognition. Long Island Casino.
Among other projects, Malik (and Ilitch) have partnered with the Shinnecock Indian Nation of New York and have been bankrolling the tribe’s federal recognition efforts. In exchange, Malik (and Ilitch) would be given development rights on a Shinnecock casino resort to be built in the posh Hamptons resort area on Long Island.
Given Malik’s inability to be licensed in Michigan, much like Strather’s circumstances with the Wampanoag, the Shinnecock must have no intentions on Malik being licensed for their casino. As Kerzner and Wolman were to Strather, it’s most likely that Marian Ilitch would step in and apply for the license and contract approvals to manage any future Shinnecock Indian Nation Hamptons casinos resort on Long Island.
The Malik/Strather MotorCity Casino Model: turn-key or turn-down?
The model followed with the Mashpee and Shinnecock was developed by Malik and Strather first developed when they were rejected for Michigan gaming licenses. They've attempted to turn lemons into lemonaide.
Given that Marian Ilitch is publicly acknowledged as Malik’s partner on a venture in Barstow, California, Malik’s the entitlement and pre-development model that worked for MotorCity Casino circumstances and replicated for the Mashpee and Shinnecock situations would seem to apply for Barstow as well.
Once the entitlement and pre-development efforts are complete for Barstow, an Ilitch back-casino managment company would step in and Malik would appear to fade into the background as to avoid any licensing requirement; or perhaps both Malik and Ilitch would step aside for Vegas interests as they did originally for MotorCity Casino.
And a similar model would appear to hold true for Malik’s 15 year quest to site an off-reservation casino for the Bay Mills Indian Community in Port Huron, Michigan.
Strather’s close to achieving success using the MotorCity Casino turn-key model for fronting the financing and management of entitlement and predevelopment; Malik has yet to prove it’s going to be successful for his casino proposals in New York, Michigan and California. Absent Tom Celani, Malik and Ilitch have yet to win entitlement and develop any casino resort.
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originally posted 9.01.07
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