CA FPPC finds Detroit casino syndicator Michael Malik violated campaign reform laws

As published in the Public Notice & Agenda for a 2.19.09 meeting of California's Fair Political Practices Commission (FPPC):

In the Matter of Michael J. Malik Sr., Michael J. Malik, Sr. Trust, and MJM Manistee, Inc., FPPC No. 07/195. Staff: Commission Counsel Angela Brereton. Respondents Michael J. Malik, Sr., Michael J. Malik Sr., Trust, and MJM Manistee, Inc. (collectively, “Respondent Committee”) jointly qualified as a single “major donor committee” under the Act for calendar year 2006. Respondent Committee filed a required semi-annual campaign statement but failed to disclose on the statement 17 contributions made during the reporting period totaling $26,500, in violation of Government Code sections 84200, subdivision (b), and 84211, subdivision (k)(5) (1 count). Total Proposed Penalty: $4,000. Order / Exhibit

This isn't the first time Malik has broken the law. Considers these incidents:

Malik is currently facing federal fraud charges in Florida (Goldberg v. Malik) relating to a Securities & Exchange Commission ponzi scheme case against one-time entertainment promotor Jack Utsick.

Last year, Malik was found guilty on illegal firearms related charges in Arizona.

In its 2.19.09 findings, the FPPC acknowledges that a casino affiliate of Mrs. Marian Ilitch and Malik, BarWest LLC, was found in 2006 to have violated the same CA campaign reform laws and Malik agreed to pay fines and file the appropriate disclosures in that matter.

Malik was once arrested for beating up the 12-year-old son of a girlfriend.

Ilitch partner violated campaign laws by failing to report casino related campaign contributions

In its first public action resulting from a nearly two year investigation into the campaign finance and lobbying practices of Detroit Casino developer Michael J. Malik, Sr., California’s Fair Political Practices Commission (FPPC) has found Malik violated state political campaign laws by falsely filing a campaign finance report in January 2007 that failed to disclose political contributions Malik made to 17 campaign committees and totaling $26,500 between the period July 1 – December 31, 2006.

Malik is the principal casino and development partner of Mrs. Marian Ilitch. She is the owner of Detroit’s MotorCity Casino. Ilitch and her husband Mike Ilitch are co-founders of Little Caesars Pizza and co-owners of the Detroit Red Wings. Her husband owns the Detroit Tigers. The parent company of their various affiliates is Detroit-based Ilitch Holdings, Inc. Marian Ilitch and Malik have formed various affiliates to pursue gambling opportunities across the U.S. including BarWest LLC, an entity pursuing casino resort development projects in Barstow, CA.

In its 2.19.09 decison, the FPPC notes this isn't the first time Malik has been involved in similar violations. In 2004, BarWest LLC failed to report a $26,600 contribution to a San Joaquin County GOP committee. In the Fall 2006, Malik acknowledged those violations, and paid a fine to the FPPC.

Malik is currently facing federal fraud charges in Florida (Goldberg v. Malik) related to a Securities and Exchange Commission ponzi scheme case against concert promoter Jack Utsick.

Public Notice & Agenda: FPPC Meeting 2.19.09

Press Release: FPPC Enforcement Decisions 2.19.09

Ilitch uses taxpayer subsidies to level more Foxtown buildings

3.19.09

Spaces for Final Four
Buildings razed to open room for new parking lots

Louis Aguilar / The Detroit News

DETROIT -- To create more parking for the throngs anticipated for next month's NCCA Final Four basketball championship, Ilitch Holdings Inc. is using state Super Bowl XL funds to quickly demolish five empty downtown buildings.

In less than two weeks, four buildings have been razed, including the former Chin Tiki, a Polynesian-themed restaurant featured in the Eminem film "8 Mile." The other demolished structures are a former apartment complex on West Grand River; an office building on West Columbia; and the former Egyptian building on Cass.

The last one to go is a parking garage at 145 W. Elizabeth, bought by an Ilitch executive in 2007 through a private company, which listed the Ilitches' Fox Theatre headquarters as its address. That was the period in which the Ilitch family quietly increased control of a rundown patch of downtown long considered a potential site for a new hockey arena for the Ilitch-owned Detroit Red Wings.

Mike Ilitch, co-founder of the Little Caesars Pizza chain that started the family's billion-dollar sports, real estate and business empire, has hinted he prefers building a new hockey arena near the Fox.

No decision has been made about that.

The flurry of demolition is all about "added safety and security," said Ilitch spokeswoman Karen Cullen.

"The structures in question were not suitable for long-term redevelopment," Cullen said. "The ability to move forward and remove non-viable buildings from the area ... greatly enhances the appearance for surrounding property owners and their venues."

In December, the city's Downtown Development Authority approved $2.5 million for the demolitions. The money came from state funding originally intended to level empty buildings in time for Super Bowl XL, three years ago.

The properties will become paved parking lots to accommodate the more than 100,000 people who will converge downtown during the first week of April for the NCAA Final Four.

"Yes, that's still the goal," said Fred Beal, president of J.C. Beal Construction Inc, who lobbied on behalf of the Ilitches to obtain the state money.

You can reach Louis Aguilar at (313) 222-2760 or laguilar@detnews.com

TVT Note: A comprehensive map of properties believed to be owned or controlled by the Ilitch family in Foxtown is available here.

Moody's anticipates default for Ilitch affiliate; adds it to "Bottom Rung"

Moody's Investor Services has launched a quarterly report that currently lists nearly 300 companies in the U.S. most likely to fall into default. The list, known as the "Bottom Rung," includes Ilitch-owned CCM Merger, Inc.

Moody's analysts anticipate that 45% of the companies on the list will go into default within the next year.

The "Bottom Rung" represents about 15% of the companies the respected credit ratings agency tracks.

CCM Merger, Inc. has been described as a subsidiary of Ilitch Holdings, Inc. It is the parent company of Detroit's MotorCity Casino which is owned solely by Mrs. Marian Ilitch.

Ilitch bought controlling interest in MotorCity Casino from MGM Mirage in 2005. It's reported that she owes investors more than $1 billion.

In February investors demanded that Ilitch inject $45 million cash into the struggling gaming and entertainment enterprise.

Other affiliates of Ilitch Holdings include the Detroit Tigers, Detroit Red Wings, Little Caesar Enterprises and Olympia Entertainment.