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.

Olympia Entertainment partners with new entertainment promoter

According to a press release issued by TIX Corporation (Nasdaq:TIXC), a subsidiary known as Magic Arts & Entertainment announced its partnership and five-year agreement with Detroit-based Olympia Entertainment to present a Broadway series at the fabulous Fox Theatre in Detroit, Michigan.

This five-year agreement between the two companies also encompasses two other Olympia Entertainment-operated venues including: the Masonic Temple Theatre (4,000 seats) and The City Theatre (400 seats).

Magic Arts & Entertainment is headed by longtime-business partners Lee D. Marshall and Joe Marsh. In 2008, Magic Arts & Entertainment became part of Tix Corporation with Marshall and Marsh assuming the roles of Co-CEO of Tix Productions, a newly-formed subsidiary of Tix Corporation. The Magic office is run out of Cleveland, OH and Salt Lake City, UT.

Olympia Entertainment is one of the industry's most diverse sports and entertainment companies, owned by Detroit entrepreneurs Mike and Marian Ilitch. Headquartered in Detroit, Olympia Entertainment owns and operates Detroit's Fox Theatre, the intimate City Theatre, and also books and operates Masonic Temple Theatre, Joe Louis Arena, Comerica Park and "The Legendary" Cobo Arena. Other Ilitch-owned companies include: the Detroit Red Wings, the Detroit Tigers, Little Caesars Pizza, Blue Line Foodservice Distribution, Olympia Development, Little Caesars Pizza Kit Fundraising Program, Champion Foods, Uptown Entertainment, and a variety of venues within these entities. Additionally, Marian Ilitch is the owner of MotorCity Casino in Detroit. 2007 revenues for the Ilitch-owned companies totaled $1.8 billion.

A former executive producer at Olympia Entertainment (Gregory Young) and one of Marian Ilitch’s current casino gaming partner (Michael Malik) are involved in a $300 million federal fraud case brought by the Securities and Exchange Commission against entertainment promoters John P. "Jack" Utsick, Robert Yeager, Donna Yeager, Worldwide Entertainment, Inc., The Entertainment Group Fund, Inc., American Enterprises, Inc., and Entertainment Funds, Inc.

Olympia Entertainment and World Wide Entertainment/Jack Utsick Presents

from a photo gallery of the

10th Annual

Concert Industry Consortium Conference

L-R: Greg Young (Jack Utsick Presents/Entertainment Group Fund), Chris Patterson and Ned Collett (Olympia Entertainment), and Bob Baker (Peloton Creative Group).

Prior to joining Jack Utsick Presents/Entertainment Group Fund/World Wide Entertainment (World Wide Entertainment - Michigan, LLC), Young was executive producer at the Ilitch-owned Olympia Entertainment (Detroit's Fox Theater) from 1998-2003.

According to Daily Variety, Greg Young, formerly an Indianapolis-based independent producer of road revivals, was hired and moved to Detroit in 1998 by Olympia Entertainment partly to develop new Broadway-style productions with an eye toward the national marketplace.

Young is currently a partner at Allterra Capital Partners, LLC and Variety reports Young is involved with a revival of Bob Fosse's "Dancin" which is set to stage at New York's Studio 54 in Spring 2009.

Jack Utsick/Entertainment Group Fund and other related promoters are the targets of a $300 million fraud case filed by the Securities and Exchange Commission (SEC).

Young, who is also reportedly the owner/operator of the Royal Oak Music Theater (ROMT) in the greater Detroit-area is also involved in the case. ROMT owed the World Wide Entertainment Group receivership $475,000.

Another Ilitch partner, Michael Malik, is also involved in the federal $300 million fraud case. Subsequent charges have been filed against Malik seeking his return of more than $2.1 million that a receivership alleges Malik received in a fraudulent transfer.

Two with ties to Ilitch organization involved in $300 million fraud case

Two with strong ties to Detroit’s Ilitch family involved in $300 million fraud case exposed by the Securities and Exchange Commission (SEC).

Michael J. Malik, Sr., the Ilitch family’s often controversial gaming partner and Gregory Young, formerly executive producer for the Ilitch-owned Olympia Entertainment (Detroit's Fox Theater), have been tied to a federal case charging Worldwide Entertainment, Inc. and Entertainment Group Fund, Inc. and their principal John P. (Jack) Utsick, and American Enterprises, Inc. and Entertainment Funds, Inc. and their principals Robert Yeager and Donna Yeager, in connection with a fraudulent offering that raised over $300 million from over 3,300 investors nationwide.

June 2008 charges filed in a Florida Federal District Court allege that Detroit casino syndicator Michael Malik was involved in a $2.1 million fraudulent transfer of funds – a so-called “Profit Payment” – involving the above parties. A receivership seeks to recover the $2.1 million plus related charges from Malik.

Greg Young, who was affiliated with Olympia Entertainment (Detroit’s Fox Theater) from 1998 – 2003, was affiliated with Utsick’s World Wide Entertainment Michigan, LLC. Young would reportedly become owner/operator of the Royal Oak Music Theatre in the greater Detroit-area and owed more than $400,000 to World Wide/Utsick. According to court documents and other reports, Young subsequently has partnered with AEG (Anschutz Entertainment Group); that agreement has reportedly provided Young with the $475,000 that will be returned to the World Wide, Utsick, et. al. receivership.

: Ilitch snares Young to develop commersh shows