Certificate of Forfeiture Issued Over Michael Malik's Lake Front Property; Casino Syndicator Owes Thousands in Back Property Taxes

On April 1, 2010 the Treasurer of Wayne County, Michigan, issued a Certificate of Forfeiture of Real Property on a residence at 960 Lake Shore Rd., Grosse Pointe Shores, Michigan. This is a mid-century lake front home in one of Detroit’s most fabled neighborhoods owned by casino syndicator Michael J. Malik, Sr.

Typically a Certificate of Forfeiture is issued when a property owner fails to pay his or her property taxes; and, in lieu of payment, the governing authority elects to seize the real property.

(1) 960 Lake Shore Rd., Grosse Pointe Shores, Michigan

In 2001, Michael J. Malik, Sr. (G P Development LLC) purchased the residential property at 960 Lake Shore Rd. from the Louis A. Fisher, Jr. Trust with a $4,250,000 mortgage held by Comerica Bank.  It had been the primary residence of Louis A. Fisher and his wife Virginia Nesbitt Fisher until their deaths respectively in 2000 and 1978. Louis was the son of William A. Fisher who along with his six brothers founded Fisher Body Corporation in 1908.  Fisher Body would later become a division of General Motors Company.

The property located at 960 Lake Shore Rd. and fronting Lake St. Clair is located in one of greater Detroit’s most exclusive neighborhoods.  Living two doors south from the Malik property are Mr. and Mrs. Matty Moroun (956 Lake Shore Rd.) owners of Detroit International Bridge Co. (Ambassador Bridge).  Approximately six doors north is the vast estate of William Clay Ford, Jr. (1000 Lake Shore Rd.) once the home of Edsel and Eleanor Ford. 

It’s not clear who, if anyone, currently inhabits the residence at 960 Lake Shore Rd.; however, between 2000 and 2008, Malik and his wife/ex- wife Michele M. Malik, owned three residential properties on Lake Shore Rd.in Grosse Pointe Shores:   

• 583 Lake Shore Rd., a 6,052 square foot home with seven bathrooms, built in 1961 and purchased in May 2003 for $2,000,000. Township records indicate the property was seized by the Sheriff who granted the deed to La Salle Bank Midwest N.A. in November 2008.  Township Property Records
• 591 Lake Shore Rd., an 8,439 square foot home with five bathrooms, built in 1961 and purchased February 2000 for $2,100,000. Township records indicate this property is still owned by Michael Malik and his ex-wife Michelle.  The tax bill is sent to Malik’s office at 2211 Woodward Ave., Detroit.  Township Property Records
• 960 Lake Shore Rd., a 5,511 square foot home with five bathrooms built in 1955 and purchased in 2001 for $4,250,000 – the property for which the Certificate of Forfeiture was issued.  Township Property Records

Bank Transfers Paradice Hunt Club Property to Michigan Dept. of Treasury

The Michigan Department of Treasury is holding property belonging to yet another affiliate of Detroit casino syndicator Michael J. Malik, Sr.

Fifth Third Bank has transferred property belonging to Malik's Paradice Hunt Club, L.L.C., to the Department of Treasury.

Malik through his Paradice Hunt Club owns 1,000 acres of property in Davison, MI and operates a commerical lodge and hunting grounds on that property. In 2008, Malik was found guilty of illegal firearms discharge in Arizona, was fined nearly $15,000 and stripped of his right to hunt in Arizona, Michigan and a majority of other U.S. states for five years.

Previously TVT has reported that Fifth Third Bank had transferred property to the Department of Treasury belonging to another Malik affiliate, Lucky 7 Development, L.L.C.

Lucky 7 owns property on Harsens Island in St. Clair County, Michigan. Malik's most recent development plans for that property include a marina and 348 clustered housing units. However, Malik has failed throughout the last decade to win approvals for various developments proposed for this property. The St. Clair County Department of Equalization reports that Malik is delinquent paying 2008 property taxes levied on this property which was formerly associated with the Detroit Boys Club.

In April, Fifth Third Bank filed notice with the Oakland County Circuit Court noting Malik was in default on a personal $1 million line of credit.

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

It's not clear how these actions by Fifth Third Bank and involving Malik and his affiliates might be linked, if at all.

Ilitch Partner Delinquent on 2008 Property Taxes

According to the St. Clair County Department of Equalization the 2008 property taxes on all eight parcels on Harsens Island, MI, owned by Lucky 7 Development, LLC, and referenced below, remain delinquent. These parcels collectively are commonly referred to as the former Harsens Island Boys Club property (Camp Drusilla Farwell).

Parcel History
Documents dated February 12, 1997 and filed in St. Clair County, Michigan record that seven parcels of land situated in Clay Township, St. Clair County, were transfered from D. Fred Smith and Stephanie Smith to Lucky 7 Development LLC. These seven parcels are identified as follows:

74-14-649-0007-000
74-14-649-0011-000
74-14-618-0004-000
74-14-618-0007-000
74-14-618-0031-000
74-14-514-0033-000
74-14-514-0034-000

Lucky 7 Development LLC manager Michael J. Malik entered into a $2 million mortgage agreement with Comerica Bank covering these seven parcels on December 26, 2003.

Documents dated December 9, 2005 and filed in St. Clair County, Michigan record that one parcel of land situated in the Township of Clay, St. Clair County, and commonly referred to as 805 North Channel, was transfered from Thomas M. Wiethorn to Lucky 7 Developoment LLC. That parcel is identified as follows:

74-14-618-0008-000

Lucky 7 Development LLC manager Michael J. Malik entered into a $480,000 mortgage agreement with Comerica Bank covering this parcel on June 2, 2006.

Malik and his Lucky 7 Development LLC / Grand Pointe Development LLC have previously proposed several failed development projects for these parcels including a marina and a large-scale clustered housing project that was anticipated to re-route North Channel Road.

Malik partners with members of Detroit's Ilitch family on various casino development projects in Michigan and throughout the U.S. His business numerous affiliates are registered at the same address as Ilitch Holdings, Inc. in Detroit and his personal office is among the suite of executive offices at Ilitch Holdings headquarters.

In April, Fifth Third Bank filed notice with the Oakland County Circuit Court noting Malik was in default on a $1 million line of credit. Property owned by Lucky 7 Development has been transferred to the Michigan Department of Treasury by Fifth Thirds Bank.

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

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

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

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

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

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

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

AZ Game and Fish Commission denies appeal by Michael J. Malik

As TVT previously posted, Detroit-based Michael J. Malik, Sr., requested the Arizona Game and Fish Commission reconsider its December 2008 decision to suspend Malik's right to hunt, trap and fish in Arizona and more than 30 other states including Michigan for a period of five years and assess Malik with a $14,995 fine.

The Commission entertained and denied Malik's request at its 4.17.09 meeting. He apparently has a 30-day window to make an appeal to the Arizona Superior Court.

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

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

Malik reportedly has yet to pay the $14,995 civil fine assessed by the Commission in December 2008.

Malik is the gambling and casino development partner of Detroit's Marian Ilitch. She is sole owner of MotorCity Casino. Mrs. Ilitch and her husband Mike Ilitch are founders of Little Caesar's Pizza and owners of the Detroit Red Wings hockey franchise. Mike Ilitch owns the Detroit Tigers baseball team.


Malik's Growing Record of Illegal Activity

In 1999, the Michigan Gaming Control Board (MGCB) failed to grant Malik a gambling license and he was forced to divest himself of interest in Detroit's MotorCity Casino. Among other things, it was reported that Malik had been arrested in 1997 and accused of beating a girlfriend's 12-year-old son. He served a year of probation in the matter.

Since the MGCB denied Malik a license, he has developed a growing record of illegal activity:

• The criminal and civil actions in Arizona noted above related to Malik's illegal discharge of a firearm. He's been assessed multiple fines and stripped for the next five years of his right to hunt in 32 states.


• Malik has twice (2006 & 2009) been found guilty of, and fined for, violating California's political reform laws. Over the course of several election cycles, he's simply failed to report more than $52,000 in political contributions.


• Fifth Third Bank, a Michigan Banking Corporation filed a complaint in Oakland County Court on 4.03.09 (Fifth Third Bank v. Michael M. Malik, Sr.) alleging Malik was in Default on a $1 million line of credit that had come due on 9.01.08.


• In April, Malik entered into a Settlement Agreement (Goldberg v. Malik) with a court appointed Receiver who contends Malik received more than $620,00 in fraudulent transfers. Malik has twelve months to repay the funds as agreed. That action is related to a $300 million ponzi scheme case brought by the SEC against Worldwide Entertainment and promoter Jack Utsick who has since taken asylum in Brazil.

Is this known record of illegal activity a red flag that there's more?

Herb Strather Defaults on Detroit's St. Regis Hotel Project

3.18.09

Wall Street Journal
Real Estate Deal of the Week

In Motown, a Hotel Project Hits a Sour Note


Few cities have been hit harder by the recession than Detroit, and few property types have suffered more than hotels.


So the odds were stacked against an effort to revive the city's Hotel St. Regis by a group of investors, some with ties to Motown's recording industry. Indeed, that effort has fizzled.


The group, led by Detroit entrepreneur Herb Strather, defaulted on its $8.7 million construction-and-mortgage loan made by Chicago-based ShoreBank, which provides loans in inner cities and underserved communities. The 124-room hotel has received shutoff notices from utilities, has failed to pay taxes and insurance and has missed some ...