Reps McCarthy & Bishop: The Company They're Keeping Will Surely Lead to Regret

Reps. McCarthy & Bishop

While New York’s Governor Andrew Cuomo rejected a $10k contribution from crooked Casino Syndicator Michael J. Malik, Sr.; Long Island Reps. Carolyn McCarthy & Tim Bishop banked $$$ from the shady character.

Then after cashing the checks, both elected leaders announced their support for the Detroiter's Long Island Casino schemes.

If they’d only done a little due diligence. Or perhaps they too are persons of questionable character?

But as the saying goes, "You can tell a lot about a person by the company they keep."

Highlight’s of Casino Syndicator Michael J. Malik, Sr.'s Criminal Past:

In Michigan, arrested & served probation for child abuse following the public street beating of his girlfriend's 12-year-old son. Reportedly this is one of the reasons Malik won’t get a gaming license from the Michigan Gaming Control Board. (Detroit News)

In Arizona, found guilty of illegally discharging a fire arm and serving out terms of probation which included nearly $15,000 fine and a suspended license. (Minutes of AZ Hearing)

In California, fined multiple times for repeated violations of political reform laws, failing to report dozens of contributions totaling more than $53,000 and fined $10,000 for those offenses. (Matter 2006: FPPC Press Release. Matter 2009: FPPC Press Release and Exhibit 1.)

In Florida, charged with fraud in federal Ponzi scheme related case and forced to repay $170,000. (Goldberg v. Malik: Settlement Agreement). Despite those circumstances, Malik continues an “active” business partnership with Jack Utsick, the international fugitive at the center of the $300 million Ponzi scheme. (AB Funding, LLC: Organization Statement. Complete Michigan DL&EG File.)

See also:

• Growing List of NY Politicians Rejecting $$$ from Ilitch Partner Michael Malik
• NY Governor Cuomo Latest To Reject Campaign Contributions from Ilitch Gambling Partner Michael Malik
• Proof that Ilitch Casinos Partner was in bed with Ponzi Scheme Fugitive Jack Utsick
• Rep. Tim Bishop (D-NY) Caught Taking More Money from Notorious Law-Breaking Detroit Casino Syndicator

On Twitter:

Rep. Carolyn McCarthy: @RepMcCarthyNY

Rep. Tim Bishop: @TimBishopNY

Ruse: Citizens for a Better Way, LLC

ruse  n. (rūs, rūz)

Definition:  strategem intended to mislead, deceive, or trick; conspiracy,wiley subterfuge.

Synonyms:  artful dodge, trick, deceit, deception, conspiracy, angle, sham, stunt, lie, ploy, maneuver, red herring, coup, dirty deal, gimmick, hoax, scheme, racket.

Example:  Citizens for a Better Way, LLC, is a ruse: bankrolled by secret interests who, for whatever reason, want to operate outside the norms of Hawaii's Ethics Commission; and designed by experienced labor and gambling industry lobbyists desperate for the appearance of "grassroots" support demanding approval of schemes to enable a Las Vegas-style casino in Waikiki.


Citizens for a Better Way, LLC at:
Department of Commerce & Consumer Affairs
Hawaii Ethics Commission

Hawaii Gambling Advocates Make Unsubstantiated Claims, False Representations; Won't Reveal Those Bankrolling Lobbying Campaign

Blogger's Note: John Radcliffe (a lobbyist & career union operative who is a confidante of Hawaii's Gov. Neil Abercrombie) and Elizabeth "Liz" Hata-Watanabe, his latest recruit, have failed to be forthcoming and instead demonstrate a conspiracy to mislead and even deceive Hawaii's journalists, voters, public officials and legislators in order to get approvals for their Detroit/Las Vegas clients to build a casino in Waikiki.

Entrepreneurs get rolling on Waikiki Casino idea

7.24.2011

By Richard Borreca

Liz Hata Watanabe is not one to sit on the sidelines. The former nightclub owner and entrepreneur has a new cause: getting Waikiki a casino.

Watanabe founded Citizens for a Better Way, an organization she says has more than 300 active members lobbying for a casino to provide new jobs and a new business for Hawaii...

That Citizens for a Better Way (CFBW) has “300 active members lobbying for a casino” is curious.  They may have used mainland money to fund an automated robotic telephone poll or canvas of voters, among whom 300 said they would support the idea of a casino in Honolulu, but that hardly represents “300 active members lobbying.”

Further, that Watanabe represents she has 299 other people actively lobbying for their casino schemes and yet the Facebook page for CFBW, activated more than six months ago, only has 14 fans or “Likes,” suggests someone’s exaggerating the truth again.

Not to mention, when Watanabe organized CFBW she did so as a limited liability company and in the paperwork she filed with the Hawaii Department of Commerce & Consumer Affairs she specifically designated that CFBW would only have one member and it was Watanabe.

When Jim Dooley, an investigative reporter for HawaiiReporter.com asked lobbyist John Radcliffe & Watanabe where they were getting the money to support CFBW and how much they’d spent lobbying, they refused to reveal where the funds were coming from and told Dooley they would spend “very little.” Very little? 

But when Watanabe was mandated to file a lobbying campaign disclosures report in May 2011, they had spent nearly $40,000 on “Advertising Media.” Very little? Out of 230 entities that reported they’d spent money lobbying in Hawaii, only four spent more than CFBW; the truth is, the pro-casino group fronting for mainland gambling interests was among the Top Five Lobbying Spenders!

Really? She's Treasurer of the Honolulu County GOP Committee? Has Anybody Checked the Bank Accounts Lately?

The Website for the Honolulu County GOP Committee lists the group’s Treasurer as Elizabeth Hata Watanabe.  Really?  Do they know Liz’s track record?

Liz, as she’s known in party/club circles, was the owner operator of a failed nightclub, the O Lounge.  Yes that enterprise failed as a business.

While Watanabe did a tremendous job promoting herself and her club among reporters, it would appear that the nightclub was not a financial success.  She shuttered the doors to the night club in the wake of escalating scrutiny by the Honolulu Liquor Commission – for additional insights, review the HLC agendas/minutes in 2008 & 2009 . 

Besides being cited and fined multiple times for serving alcohol to minors, Watanabe apparently hid her books from HLC investigators for four years – pretty suspicious don’t you think?  Especially considering her husband was a 20+ year veteran of the Honolulu PD. 

The adjudications against The O Lounge for three violations of 281-78(b)(1)(A), HRS (selling, serving or furnishing liquor to minors), for violation of Rule 3-84-78.52 (stacking) and for violation of Rule 3-81-17.54(d) (failing to make readily available for inspection its books and records for the last four years).  HLC – 7/24/08

The O Lounge pled no contest and was fined a total of $4,000 for two repeat violations of Section 281-78(b)(1)(A), HRS (selling, serving or furnishing liquor to a minor). The Commission also placed the licensee on probation for six months effective Sept. 11, 2008.  HLC - 9/11/08

[While on Probation] Allegations against The O Lounge were proved, and the licensee was fined $2,000 for a repeat violation of Section 281-78(b)(1)(A), HRS (selling, serving or furnishing liquor to a minor). HLC - 1/29/09

[While on Probation] Allegations against The O Lounge were proved, and the licensee was fined $2,000 for a repeat violation of Section 281-78(b)(1)(A), HRS (selling, serving or furnishing liquor to a minor). HLC – 2/5/09

Reviewed the six-month probationary period for The O Lounge and decided to continue the probation, suspension, age restriction (21 and over) and required that special events be approved by HLC enforcement before the event.  HLC – 3/19/09

As things were about to blow up, she closed down the bar and told her reporter friends that she was going to focus on her roles as a mother and wife, do something more family oriented, maybe a children’s TV program – and instead got herself involved in a short lived realty TV show, Hawaii’s Big Deal Poker Tournament.  That show lasted for several months and she lead people to believe there would be a second season of the show.

 Nothing ever materialized and it’s suggested the show didn’t pencil out.  Or perhaps investors said, “No” or “no more,” to a scam that had no ROI.

Then on June 14, 2011, Elizabeth Hata-Watanabe filed Chapter 7 Bankruptcy (Case: 11-01679).

The woman repeatedly allowed alcohol to be served to minors, hid her nightclub’s ledgers from regulators for four years and filed a personal bankruptcy; yet, the good people at the Honolulu GOP Committee think she’s the best person to be their Treasurer?  Somebody better check that organization’s books – if they can find them.  Better yet, somebody better go check the GOP Committee’s bank accounts.

Find related content by clicking on any "labels" located below the social media share buttons at the bottom of this post or consider these selected posts:

• She Said: Here's what Hata-Watanabe had to offer after a recent visit to TheVerifiableTruth.com
• Failed Nightclub Owner is a Shameless Self-Promoter
• Really? She's Treasurer of the Honolulu County GOP Committee?
• Hawaii's 'Citizens for a Better Way' isn't a 'Citizens' Group After-all
• Lobbyists Spent $40,000 Manufacturing So-Called 'Citizens' Group Support for Oahu Casino Scheme
• There Can Be No Doubt Detroiters' Hawaii Lobbyist John Radcliffe Created Pro-Casino So-Called 'Citizens' Group'

D'Amato's Online Gambling Advocacy Group has paid his Lobbying Firm $1.73 Million

Former U.S. Senator Alfonse D'Amato (R-NY) is the chairman of the Poker Players Alliance, an online gambling advocate group, and also founder and managing director of Park Strategies LLC, a lobbying firm with offices in New York, Washington DC, Taipei, Albany, Buffalo and Long Island.

Source: OpenSecrets.org

According to the New York Times, Poker Players Alliance, a U.S. nonprofit interest group, is funded with money from foreign online gambling companies. Federal investigators are looking into allegations that PPA is away for foreign interests to simply funnel campaign money to Members of Congress. PPA has paid D.C. lobbyists more than $15 million during the last decade.

Since 2007, Poker Player's Alliance, the nonprofit organization D'Amato serves as chairman of the Board, has paid $1.73 million to Park Strategies LLC, the lobbying firm founded by D'Amato.

Detroiters Marian Ilitch and Michael Malik have hired D'Amato to represent at least one of their gambling affiliates, Gateway Casino Resorts.

Through Gateway, the Detroiters hope to secure an opportunity to open an Indian casino nearest New York City, in partnership with the newly recognized Shinnecock Indian Nation. Their latest schemes would include developing, managing and operating a casino at the famed Belmont Race Track on Long Island.

Mrs. Ilitch owns Detroit's highly leveraged  MotorCity Casino.  Her husband Mike Ilitch owns the Detroit Tigers (MLB).  They are the co-founders of the Little Caesars pizza enterprise and owners of the Detroit Red Wings (NHL).  Ilitch Holdings, Inc. is the parent company of these affiliates.

When the Michigan Gaming Control Board refused to issue a commercial gaming license to Michael Malik in 1999, he was forced from the original MotorCity Casino partnership.  For more than a dozen years, he and Marian have failed to get commercial gambling approved in Hawaii; and also failed at numerous schemes to open off-reservation Indian casinos in California, Michigan and New York.  Failing to ever obtain a Michigan gaming license, Malik also ventured into the online gambling industry but when the U.S. adopted stricter regulations, he put that on hold.

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

The Common Interest in Both Schemes is 

Detroit Gambling Promoter Michael Malik

Detroit Gambling Promoter
Michael J. Malik, Sr.

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

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

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

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

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

News Release from US Senate Republican Caucus

12.03.2010

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

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

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

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

Detroiters have already Seduced Elmont Chamber of Commerce into supporting their Casino Schemes

The Detroiters pushing for a Shinnecock Indian casino at Belmont Race Track have already infiltrated, the Elmont Chamber of Commerce. Traditionally their first target of opportunity is the local Chamber. Here's how they'll seduce the Chamber:  (1) Embrace the local chamber establishment because they’ll be blinded and overwhelmed by the largess of your big hollow economic arguments; (2) Sell them the miracle drug (often a placebo) that will get their desperate economic circumstances moving in a positive direction again and let them wash it down with the Kool-Aid ; and (3) keep them satisfied by throwing around a couple hundred dollars here and there that they can use to go shopping.

But think about it... if these tired their promises and strategies had any truth to them, why is Detroit the worst city in America by nearly all accounts -- but certainly economically?  And now that Detroit's has had the benefits raking in the casino cash for nearly a decade, why did Forbes just rank Detroit #1 Most Dangerous City in America? And how is it that Detroit taxpayers are across the board worse off than they were ten years ago and yet Forbes reports that in the last year alone, the net worth of Mike and Marian Ilitch, they’re the Detroiters behind Gateway Casino Resorts, jumped from $1.7 billion to $2 billion?  

Here’s how:  target places that are already economically challenged/depressed.  Create economic arguments, pulled together by third party consultants that are simply recycled from the last campaign they ran using models that are untested in the real world or purely theoretical.  Reports and messages suggesting a windfall; talk that suggests public/private partnerships but truly leans on the backs of hardworking taxpayers; and shameless about pushing special exemptions, freebies, condemnations, grants and other taxpayer subsidies.

Put on a few Dog & Pony Shows (but please no cameras)

On October 20, 2011, Detroiter Michael Malik flew in his crew to Elmont and at a regularly scheduled meeting of Chamber members, provided what was billed as a detailed peek at renderings and plans for the proposed project.  Malik forbid, however, any photographs of the renderings and failed to distribute any of his own images for people to take with them.  Either those images were re-cycled architectural images that have rolled out previously elsewhere, or they’re renderings that haven’t been approved by Shinnecock leaders or others who will have input/veto and could change significantly. But pictures get people excited and suggest, often falsely,  that things are moving ahead quickly.  If that was the case, images would have been released or photography allowed – at least by local news outlets.

Buy Some Ads

There are Shinnecock favorable ads and advertorial now in rotation on the Elmont Chamber’s website: Elmont.org.  A video shares a glimpse into the Shinnecock heritage and culture and links to the Shinnecock Indian Nation website.  An ad graphic showing two men in hardhats touts “A Belmont Casino Would Create Up To 5,500 Good Paying Jobs for Elmont” with a “Learn More” button that when clicked lands visitors  on a Facebook page for a group calling itself “Alliance for a Belmont Casino.” 

Create the Appearances of a Grassroots Movement

That Alliance Facebook page appears to have been created sometime before June 23, 2011.  To date there are a little more than 100 Facebook users who “Like” the page. Posts generally visible are added by the administrator of the page and there is very little fan interaction at this time.  The info tab on the Facebook pages suggests it has been set up by the Shinnecock or their agents because the only link/contact details provided lead back to the Shinnecock Indian Nation’s website.

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.

Growing List of NY Politicians Rejecting $$$ from Ilitch Partner Michael Malik

New York Lawmakers chosing to distance themselves 

from Detroit Syndicator with history breaking laws

Some of New York’s politicians have had their hands out and are blindly banking campaign contributions from Detroit casino syndicator Michael Malik; then, publicly supporting his Long Island gambling schemes.  Reps. Carolyn McCarthy and Tim Bishop are two examples.

On the other hand, some elected officials, including New York Governor Andrew Cuomo, are onto his ways and this past year have rejected Malik’s money and association. 

See where they stand:

Said “No” to Malik REJECTED Syndicator’s $$$	Said “Yes” to Malik ACCEPTED Syndicator’s $$$
Braunstein, Assemblyman Edward Cuomo, Governor Andrew Johnson, Senator Craig Klein, Senator Jeffrey	Bishop, Rep. Timothy Gillibrand, US Senator Kirsten Kruger, Senator Carl McCarthy, Rep. Carolyn Rangel, Rep. Charles Schumer, US Senator Charles

SOURCES:  transparencydata.com, fec.com, campaignmoney.com

See data tables used for analysis

For almost a decade Detroit gambling syndicator Mike Malik has financed and orchestrated efforts intended to win him (and Mrs. Marian Ilitch) the right to develop and run gambling halls in the New York City marketplace.  He is using the Shinnecock Indian Nation to front his schemes.  But he and his partners have dumped millions trying to influence politicians and win their favor.  And all along he’s been expanding his resume as a notorious law-breaker.

In recent years, controversial Detroiter Michael J. Malik, Sr., has been:

• Tangled up in a federally prosecuted Ponzi scheme case, in partnership with the ringleader who is now a fugitive hiding out in Brazil, and forced to repay $170,000 obtained fraudulently. 
• Found guilty and on probation for violating Arizona’s firearms laws.
• Found to have violated campaign finance laws repeatedly (2006 & 2009) and fined a total of $10,000+ for his actions.
• Denied a gaming license in Michigan; reportedly because the MGCB had concerns stemming from IRS tax issues and a domestic violence arrest for which Malik served on year’s probation after beating his then-girlfriend’s 12-year-old son. 

Cuomo, Braunstein, Johnson & Klein decided to distance themselves from Malik given his controversial, law-breaking history.


See also:

• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• NY Governor Cuomo Latest To Reject Campaign Contributions from Ilitch Gambling Partner Michael Malik
• Questions Surrounding $15K Gov. Cuomo Accepted From Detroit Casino Syndicator
• NY Senators Return Michael Malik's Campaign Contributions
• Rep. Tim Bishop (D-NY) Caught Taking More Money from Notorious Law-Breaking Detroit Casino Syndicator
• Congressman Bishop Under Fire For Accepting Michael Malik's Contribution
• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Shinnecock Casino Backers have dropped $117,500 on top-ranking NY Politicians
• Ilitch partner funneling thousands to influence Suffolk County Exec

NY Governor Cuomo Latest To Reject Campaign Contributions from Ilitch Gambling Partner Michael Malik

NY Gov. Andrew Cuomo rejects campaign $$$ from
controversial Detroit wheeler-dealer Michael Malik

New information available via Transparency Data a project of the Sunlight Foundation, indicates that New York Governor Andrew Cuomo has joined the ranks of New York politicians refusing to accept campaign gifts from controversial Detroit casino syndicator Michael Malik. 

On October 18, 2010, Governor Cuomo’s campaign committee returned a $10,000 check that Malik had attempted to funnel to the campaign via the Democratic Committee of New York State on September  28, 2010.

Cuomo joins the growing ranks of New York politicians who have returned or otherwise rejected campaign contributions from Malik during the last year.  They included:

•  Assemblyman Edward C. Braunstein
• Senator Craig M. Johnson (ret.)
• Senator Jeffrey D. Klein

During the 2010 election, voters and the media turned up the heat questioning the motivations of US Rep. Tim Bishop and called upon him to also reject Malik’s bankroll.

To quiet things down, Bishop indicated he would consider and then might return Malik’s money.  He didn’t!

In fact, on March 31, 2011, Rep. Bishop banked another $2,500 from his pal Malik.  Bishop has also publicly endorsed Malik’s schemes to use the Shinnecock Indians to establish casinos Malik will run nearest to the New York City/Manhattan marketplace.

Malik a Detroit-area native, can not get a gaming license in Michigan. Since 1999, despite several attempts, Malik has failed to get a license from the Michigan Gaming Control Board (MGCB). His schemes for New York won't require him to get a gaming license from the State.

When you look historically into the campaign finance violations, questionable ethics and circumstances that Malik got tangled up in with pals like former Reps. Don Young and Richard Pombo (fundraising, lobbying, travel & other gifts), one can only consider what else Malik’s up to with “support” for Rep. Bishop or even worse, a character like Rep. Charlie Rangel.  It should be noted that Young and Pombo failed to win re-election after getting in bed with Malik.

U.S. Rep Carolyn McCarthy has also accepted Malik’s money.  This last week, NewsDay reported she too was publicly endorsing Malik’s schemes to use the Shinnecock Indian Nation as a way for him to develop and run a gambling complex at Belmont Park on Long Island.

Malik and fellow Detroiter Marian Ilitch (Mrs. Mike Ilitch: Detroit Tigers, Red Wings, Little Caesars pizza) are business partners. He shares office space alongside hers in the executive suites at Ilitch Holdings, Inc. But, he's not an Ilitch "employee." If he was, his tactics -- sometimes illegal, and often borderline unethical behavior -- would become an issue for the Family's businesses.  Think of Malik as the black hat, bag man, to Marian's white hat.

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

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

Criminal investigators examining ponzi scheme centered around concert promoter Jack Utsick

2.04.09

Fla. rock concert promoter in Ponzi probe

MIAMI, Feb. 4 (UPI) -- Criminal investigators have joined a financial probe of former Miami concert promoter Jack Utsick accused of cheating investors in a Ponzi scheme, sources say.

Utsick, 65, was once of the world's biggest rock concert promoters, staging shows by such music stars as Elton John, the Rolling Stones, Santana, the Pretenders and Aerosmith. But now officials allege Utsick, who is living in Brazil, has refused to obey two court orders to return to the United States in a civil lawsuit, The Miami Herald reported Wednesday.

The newspaper, without naming sources, said Utsick is also part of an FBI criminal investigation for allegedly diverting millions from his concert investors to pay for collector cars, a luxury condo, artwork and other personal expenses. The U.S Securities and Exchange Commission has seized Utsick's company, Worldwide Entertainment of Miami Beach, Fla.

"What we were seeing was a Ponzi scheme," plaintiffs' attorney Michael Goldberg told the Herald.

Court records indicate Utsick is accused paying investors -- many of them former airline pilots -- from revenues of future rock concerts.

Another aide to Alaska's Rep. Don Young implicated in Abramoff Lobbying Scandal

2.02.09

Rep. Don Young aide implicated in lobbying scandal

By ERICA WERNER

WASHINGTON (AP) — A second former staffer to an Alaska congressman has been implicated in the Jack Abramoff influence-peddling investigation as the scandal sweeps up a growing number of ex-Capitol Hill aides and lobbyists.

Fraser Verrusio, who worked under Republican Rep. Don Young when the congressman chaired the House Transportation and Infrastructure Committee, figures in plea deals reached recently by two former Abramoff associates and a one-time congressional aide.

Identified in federal court papers only as "Staffer D," he's described accepting an all-expenses-paid trip to Game One of baseball's 2003 World Series from lobbyists who wanted his help.

Two attorneys familiar with the case said Monday that Staffer D is Verrusio, who was policy director on the transportation committee for about five years. The attorneys spoke on condition of anonymity because of the ongoing investigation.

An attorney for Verrusio, Paul Rauser, didn't immediately return a call. A Justice Department spokeswoman declined comment.

The lavish trip to the series game between the Florida Marlins and the New York Yankees at Yankee Stadium has already helped prosecutors win corruption-related guilty pleas from three people: Trevor Blackann, a former aide to two Missouri Republicans; James Hirni, a former Abramoff lobbying associate; and Todd Boulanger, another former Abramoff deputy.

Boulanger and Hirni helped provide the World Series trip. Blackann and Verrusio were the recipients and were also treated to a chauffeured SUV, dinner at an expensive steakhouse and a visit to a strip club, court papers say.

The purpose was in part to influence Verrusio and Blackann to help an equipment rental company win favorable language in a highway bill, according to a plea deal Boulanger accepted Friday.

Abramoff is in prison and has cooperated with the Justice Department to help convict more than a dozen people, including former Rep. Bob Ney, R-Ohio.

Mark Zachares, also a former Young aide, pleaded guilty to conspiracy in April 2007. Zachares acknowledged accepting gifts and a golf trip to Scotland from Abramoff's team in exchange for official acts on their behalf.

Young's spokeswoman did not immediately return a call for comment Monday. Young has denied wrongdoing but in December he stepped down under pressure as lead Republican on the Natural Resources Committee, saying he wanted to focus on clearing his name in an unrelated corruption investigation in Alaska.

Utsick Receiver recommends initial payouts to creditors

1.08.09

Goldberg Recommends Creditor Payouts In WWE Case

MIAMI (CelebrityAccess MediaWire) -- Creditors waiting for money from the resolution of Jack Utsick's Worldwide Entertainment may be starting to see a glimmer of light at the end of the tunnel after court appointed receiver Michael Goldberg's December 10th court filing.

The filing constituted a request for the court to authorize an initial disbursement to creditors with claims that have been reconciled as undisputed. This category covers 2727 of the 2,924 claims, leaving just 197 claims as disputed. All told, the claims total up to approximately $300 million.

The legal imbroglio surrounding Jack Utsick's Worldwide Entertainment began in 2006 when the Securities and Exchange Commission alleged that Utisck had been improperly traded in unregistered securities, and was in essence, operating a "ponzi" scheme along with several other violations.

At that time, the court appointed Michael Goldberg to act as a receiver as Worldwide Entertainment was unwound and the claims of creditors were evaluated. This latest filing signals that the court proceedings in the matter may be nearing completion, although Utsick and his legal team still dispute several of the allegations leveled by the SEC. - CelebrityAccess Staff Writers

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

Casino Syndicator and Senator failed to make timely, accurate campaign disclosures; investigation ongoing

It took Detroit casino syndicator Michael Malik, Sr., more than 26 months to report he made a $1,000 contribution to California State Senator Roy Ashburn, in the Fall of 2006. And even then, that disclosure doesn’t sync with reports filed by Ashburn’s committee.

Malik reports in amended disclosures filed 12.23.08 that he lives in Detroit, MI 48201; his employer/occupation is MJM Manistee Inc./Developer; and that he contributed $1,000 to “Ashburn for Senate 2006” (ID: 1252371) on 10.18.06.

In a campaign report filed on 1.31.07 for the period from 10.22.06 through 12.31.06, the “Roy Ashburn Senate Committee” reported it received a $1,000 contribution from Michael Malik of Sacramento, CA 95814 on 10.24.06. Ashburn’s report indicates Malik’s employer/occupation is Governmental Advocates, Inc./Owner.

Malik isn't based in Sacramento. He lives and has his businesses in the Detroit area. And he wants to develop casinos in Barstow, CA, among other places.

Governmental Advocates Inc. is a lobbying firm that Malik had hired and was paying under the table to represent two Indian tribes (Big Lagoon Rancheria and Los Coyotes Band of Cahuilla and Cupeno Indians) that were partners with Malik’s affiliate BarWest LLC.

It does not appear that Ashburn disclosed the last minute campaign contribution from Malik as required under California political finance rules in any of the Late Contribution Reports (F497) filed by Ashburn’s Committee during October 2006. And Malik didn’t report making any such contribution until December 2008.

During 2006 & 2007 Ashburn championed failed legislation in Sacramento that would have paved the way for Malik and his partner Marian Ilitch to build two casino resorts in Barstow, CA.

Malik originally failed to report more than $26,000 in contributions to California political committees when he filed a report in 2007 for the period 7.01.06 through 12.01.06. Rather he reported under penalty of perjury that he made $0.00 contributions during that period.

For nearly two years, California’s Fair Political Practices Commission (FPPC) has been investigating Malik’s blatant failure to report these contributions and also irregularities in lobbying payments and practices. The amended 2006 disclosure filed by Malik on 12.23.08 was likely prompted by the ongoing investigation.

Malik failed to report a $26,600 contribution made by BarWest LLC in 2004 and was fined on two counts in 2006.

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.

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.

April trial set in $2.1 million fraud case against Detroit casino syndicator

In Goldberg v. Malik, the $2.1 million fraudulent transfer case brought by Receiver Michael I. Goldberg against Detroit-based Michael J. Malik, Sr., U.S. District Court Judge Paul C. Huck has calendared a two-week trial to begin the week of 4.20.09 in Miami.

An Order setting civil jury and non-jury trial date and pretrial schedule, requiring mediation and referring certain motions to Magistrate Judge John O’Sullivan was filed 1.05.09 by Judge Huck. The motion reads:

Trial is scheduled to commence during the two-week period commencing Monday, April 20, 2009 before the Honorable Paul C. Huck, United States District Judge, 400 North Miami Ave, 13th Floor, Room 13-2, Miami, Florida. Calendar call shall be held on Wednesday, April 15, 2009 at 8:30 a.m. at the same location.

The Malik case is related to a $300 million fraud case brought by the Securities and Exchange Commission (SEC) against one-time entertainment mogul Jack Utsick, other business partners and their affiliates. The SEC alleges that Utisck was running a ponzi scheme to raise the capital he used to produce Broadway shows, concerts and other entertainment festivals and events.

It appears Utsick has taken asylum in Brazil and is battling court orders requiring his return to Miami.

Receiver Goldberg seeks to retrieve $2.1 million from Michael Malik which the Receiver alleges Malik received in the form of so-called "profit payments" funded through Utsick's ponzi scheme. (See: Original Malik Complaint)

As of 1.15.09, the Receiver has entered settlement agreements with 144 persons totaling $5.3 million. The Malik case isn't typical of these other cases as it seems to represent by far the largest sum sought by the Receiver from any individual.

Malik's Partners - Detroit's Ilitch Family

Since the mid-1990s, Malik has partnered with Detroit's Ilitch family (Mike Ilitch, Marian Ilitch and their seven adult children) on various casino development and real estate projects. His business offices are located at the headquarters of Ilitch Holdings, Inc.

The Ilitch family founded Little Caesars Pizza and owns, among other affiliates, the Detroit Tigers (MLB), Detroit Red Wings (NHL), Detroit's Fox Theater, Uptown Entertainment, Blue Line Distributing and MotorCity Casino.

The family owned Olympia Entertainment, a subsidiary of Ilitch Holdings, produces theatrical productions and music events and operates various theaters, concert halls, arenas and stadiums throughout Detroit including: the historic Fox Theatre, Cobo Arena, Joe Louis Arena, Comerica Park, Detroit's Masonic Temple Theatre, and the City Theatre. The Michigan Gaming Control Board (MGCB) recently granted a waiver to the Ilitch organization allowing Olympia Entertainment to manage theatrical and musical events at various venues within MotorCity Casino. (YouTube: Olympia Entertainment Video)

Royal Oak Music Theatre

For a period in the earlier part of this decade, Utsick affiliates had taken over management of the Royal Oak Music Theatre (ROMT) located in the Greater Detroit area. A former Olympia Entertainment executive producer, Greg Young, had joined Utsick's organization and was involved in the acquisition. Young is reportedly the owner/operator of ROMT and has a new partner, AEG Live (a subsidiary of Anschutz Entertainment Group). ROMT owed more than $400,000 to Utsick which Receiver Goldberg has sought to recover. Court documents and other reports suggest that Young brought in AEG as partner, in part, to help him pay off the debt owed to the Utsick affiliates.

Dana Warg, was hired as president of Olympia Entertainment in 2007. He was previously a vice president of AEG.

Oddly, documents of UCC Liens against Royal Oak Music Theatre and various affiliated organizations indicate the address for four of five affiliated debtor entities at 2211 Woodward Ave., Detroit, MI 48201. That's the headquarters of Ilitch Holdings, Inc.