Case Dismissed: Barwest LLC v. Barron Mazel, Gretchen Belli, et al

Plaintiffs Barwest LLC and LCB Barwest LLC had filed a lawsuit last year in California's Central District Federal Court, against Barron Mazel, Barronhaus LTD and Gretchen Belli; asserting, among other things, interference with contract and fraud.

According to Court documents, the Court quickly ruled the Complaint was defective because the Plaintiffs had failed to disclose the identity and citizenship of all the members of the two LLCs. Something required to determine jurisdiction of the Court.

The Plaintiffs countered back explaining that there were currently two members of each of the LLCs: (1) a Marian Ilitch Trust Agreement and (2) a Michael J. Malik Living Trust and that both entities were domiciled in Michigan. Plaintiffs failed however to disclose who the Trustees or beneficiaries of those two entities were and so the court again asked for disclosure.

Shortly thereafter, the Plaintiffs opted to file for a dismissal of the case.

Was this just another one of the frivilous lawsuits that Michael Malik and Marian Ilitch bring upon others simply for the purpose of bullying? If not, then why did they abandon a legitimate claim?

Prior to he discovery of this lawsuit, few who were following the plans to bring an Indian casino to Barstow were aware of the defendants or what role they had played or were playing in the pursuit. Some further details came to light and it became clear that there was much strife and turmoil among and between Barwest (Michael Malik) and its partners.

A look at the Barronhaus Ltd. Web site suggests that Barron Mazel, founder and managing director of the firm, has been an investment banker specializing in corporate finance, project financing and mergers and acquisitions and leveraged transactions for the past 40 years; and that he counts among his clients Barwest LLC and the Los Coyotes Band of Indians.

Documents detailing BarWest/Los Coyotes split, related matters

Various articles the last week have indicated that the Los Coyotes Band of Cahuilla and Cupeno Indians has parted ways with its casino developer Detroit-based BarWest, LLC (Marian Ilitch and Michael Malik) after the tribe's unratified Gaming Compact with the state expired.

The articles also indicated a rift among leaders of the Los Coyotes tribe; and involvement of a second partner Barronhaus LTD, and possibly Lee Iacocca or Las Vegas-based Full House Resorts.

The catalyst for these articles was a packet of documents sent to various reporters which memorialize the circumstances. They included:

• Letter from Michael Malik (LCB BarWest, LLC) to tribal spokeswoman Katherine Siva Saubel expressing surprise and dismay at being abandoned by the Los Coyotes Band of Indians - October 11, 2007


• Letter from Los Coyotes tribal spokeswoman Katherine Siva Saubel terminating the tribe's partnership with LCB BarWest, LLC - September 28, 2007


• Letter from Lance Boldrey, Dykema law firm, to Full House Resorts (Lee Iacocca) memorializing telephone conversation and dispelling possible conflict of interest - April 12 2007


• Emails between Boldrey and representatives for Lee Iacocca/Full House Resorts - April 12, 2007


• Letter from Los Coyotes counsel to Barron Maisel and Gretchen Belli (Barronhaus LTD) terminating the tribe's partnership with the Palm Desert-based investor - October 17, 2007


• Agreement establishing a partnership between Barronhaus LTD and the Los Coyotes Band of Indians - May 2003

Los Coyotes Band of Indians signed 2003 contract with casino partner Barronhaus LTD

In May 2003, before proponents of Indian Gaming in Barstow, CA went public with plans to develop an casino resort, the Los Coyotes Band of Cahuilla and Cupeno Indians entered into an agreement to partner on such a casino with Barronhaus LTD, a Palm Desert based investor. Barronhaus LTD is backed by Barron Maisel and Gretchen Belli.

In June 2003, at a meeting of the Barstow City Council, Detroit-based Barwest LLC -- an entity controlled by Mrs. Marian Ilitch and her associate Michael J. Malik, Sr., -- announced plans to build a casino resort in partnership with the Los Coyotes Band of Cahuilla and Cupeno Indians. The City entered into an exclusive negotiating agreement (ENA) with Barwest LLC but had no agreement with the Los Coyotes Indians.

It is unclear if the Los Coyotes Indian tribe had any contract with Barwest LLC at that time. TVT has seen documents suggesting that the existing contract between LCB Barwest LLC and the Los Coyotes Band of Indians wasn't entered into until Spring 2005.

Contract between Barronhaus LTD and the Los Coyotes Band of Indians - May 2003

Letter terminating relationship between Barronhaus LTD and the Los Coyotes Band of Indians - October 2007

Barwest casino project in chaos ... again

10.31.07

Internal documents indicate strife in casino project

By JASON SMITH, staff writer

BARSTOW — Someone wants people to think that a Barstow casino project has fallen apart.

The Desert Dispatch and other media outlets were recently sent internal correspondence from an unknown source showing that the deal between the Los Coyotes Band of Cahullia and Cupeno Indians and developer BarWest, LLC to build an off-reservation casino in Barstow near Lenwood had been called off. Representatives from both BarWest and the Los Coyotes said that although the internal memos are accurate, both parties are in negotiations, and the project is still moving forward.

BarWest spokesman Tom Shields declined to comment about the internal memos between the tribe and BarWest, and said he’s not sure who leaked the documents.

“The leaking of private correspondence between the Tribe and our business associates is just another underhanded attempt by those who are trying to derail this project. ... We look forward to meeting with the Governor to discuss how we can make this project a reality,” Shields said in a statement representing the Los Coyotes and BarWest on Tuesday.

The Los Coyotes tribe had partnered with the Big Lagoon Rancheria Tribe and BarWest to develop a Barstow casino several years ago. The project was approved by Governor Arnold Schwarzenegger, but the agreements necessary for development stalled in the legislature and expired in September.

In a letter dated Sept. 28 to BarWest president Michael J. Malik, Sr., Katherine Siva Saubel, chairwoman of the Los Coyotes tribe, discontinued the tribe’s relationship with BarWest.

“The tribe is in the process of starting over and will attempt to open discussions with the Governor’s office to obtain a new gaming compact. As part of this new beginning and at least for the time being, the tribe will disengage from LCB BarWest LLC,” the letter stated.

The letter also mentioned the tribe’s desire to negotiate the purchase of the proposed casino site, 47 acres near Lenwood, from BarWest. The developer currently owns the land but must transfer it to the tribe as part of the federal land-into-trust process before the project can move forward.

Malik responded to the letter stating that he was “puzzled” by the tribe’s decision and said the land was not for sale.

“Our willingness to transfer that property to the Tribe is part and parcel of having a relationship as the Tribe’s Developer and Manager. The use of that property is also contingent on agreements with the Big Lagoon Rancheria, which still holds the key to Barstow,” he wrote in response.

The letter also stated that BarWest had spent millions on the Barstow project and blamed employees of the investment bank BarronHaus, for trying to “disrupt” BarWest’s relationship with the tribe and “sell the project to other developers.”

Los Coyotes contracted with BarronHaus in May 27, 2003 to perform financing for a gaming facility in California. On Oct. 14, the tribe severed all ties with BarronHaus, according to a representative from the tribe.

On June 21, 2007, BarWest sued BarronHaus in California Central District Court to stop the investment bank’s affiliation with the casino project, said BarWest spokesman Tom Shields. Employees of BarronHaus did not respond to calls seeking comment.

Shane Chapparosa, spokesman for the tribe, said that although BarronHaus employee Gretchen Belli was once an assistant to tribal council member Kevin Siva, the firm is no longer affiliated with the project. Siva, who had served as a spokesman for the tribe and the project and had spoken about the project at Barstow City Council meetings, is no longer a member of the tribal council, Chapparosa said.

Citing “internal matters of the tribe” Chapparosa declined to provide details, but said that the tribe did end its contract with BarWest after the tribe’s compact with the governor expired in early September 2007. He said the tribe plans to continue to work with BarWest to bring a casino to Barstow.

“We are putting everything back into place — the arrangements with the developer BarWest, the City of Barstow and the governor,” Chapparosa said.

He said that the Los Coyotes may continue to collaborate with the Big Lagoon Rancheria tribe on the Barstow project, but this is uncertain as Big Lagoon is proceeding with casino development plans on their Humboldt county reservation.

“That would be up to Virgil (Moorehead, Big Lagoon’s chairman), as he has his own agenda,” Chapparosa said.

Big Lagoon Rancheria Tribal spokesman Jason Barnett said that Big Lagoon recently sent a letter to the governor to begin negotiations to build a casino on their Humboldt County reservation, but may continue with the Barstow project.

“As Chairman Moorehead said, ‘If Barstow is not in play, the tribe will consider it’s options back in Humboldt county’,” Barnett said.

He said that despite the Humboldt development, the tribe has not given up on building in Barstow.

“Barstow is still in play because we think and the state thought that it is the best location for the tribes and the city," he said.

Barnett said that he couldn’t comment about the relationship between BarWest and the Los Coyotes, but said that the Big Lagoon Rancheria tribe is committed to working with both parties on the Barstow project.

Barnett said that all three parties are working with the Bureau of Indian Affairs to put the land for the proposed Barstow casino into federal trust, a neccesary step before the project can move forward.

Contact the writer:
(760) 256-4126 or jason_smith@link.freedom.com

Gretchen Belli, defendant in Barwest lawsuit, did jail time for crimes against the City of Taft, CA

A January 15, 2005 agenda for the Taft (CA) City Council indicates:

"In or about 2000, the City of Taft entered into a consulting agreement with Gretchen Belli to perform various consulting services. The consulting agreement was terminated in early 2001. Sometime thereafter, Mrs. Belli and her son, Jacob Ritchey, were indicted by the Kern County Grand Jury for several crimes against the City of Taft including four felony counts of (1) grand theft, (2) attempted grand theft, (3) filing a false or fraudulent claim for payment with the City of Taft, and (4) conspiracy to defraud to the City of Taft."

A story published July 27, 2005 in the Bakersfield Californian reads:

"The long, sordid tale of a onetime Bay Area socialite accused of embezzling thousands of dollars from Taft for fancy homes and vacations has one more mystery left: What will her punishment be after pleading no contest to two felonies? Gretchen Belli faces time in state prison or county jail -- or no lockup at all -- when she is sentenced in Kern County Superior Court Aug. 16, Deputy District Attorney Craig Smith said Tuesday. It's very likely Judge Jon Stuebbe will order Belli to pay $29,970 restitution to Taft, he said. The Taft City Council paid Belli's company some $760,000 in 2000 and 2001 to consult on economic development projects that eventually were abandoned..."

Subsequently the minutes for the August 30, 2005 meeting of the Taft City Council indicate:

"...that the Gretchen Belli trial is over, and that she received 60 days jail time and deposited $29,750 in an account for the City of Taft.."

Gretchen Belli is the former daughter in law of famed San Francsico attorney Melvin Belli. She is listed as a consultant in the credits of the 2007 film "Zodiac." She is also known as Evelyn Gretchen BELLI, Gretchen Riddell, and Gretchen Riddel Ritchey. Belli is named in a lawsuit filed by Barwest LLC June 21, 2007.

It is likely that Barwest's connection to Willie L. Brown, Jr. involved Gretchen Belli.

2003 NEWS ARCHIVE: Barwest's early involvement in Barstow; the Chemehuevi plan; and Gretchen Belli's connection to Los Coyotes

6.17.03

Tribe pushes casino plans for Barstow

As reported by: San Bernardino County Sun: -- " The Chemehuevi Indian Tribe near Lake Havasu announced Monday that it will move forward with its plan to build a casino in Barstow even though a San Diego County tribe is planning the same thing.

"We feel if the governor is going to give his concurrence to allow a tribe to do a gaming complex in Barstow, we meet the criteria that the governor is looking for,' said Lester Marston, lawyer for the Chemehuevi and husband of a member of the tribe.

"We are not trying to acquire land in another county or outside our aboriginal territory,' Marston said, referring to the Los Coyotes tribe of San Diego County. The Los Coyotes Band of Cahuilla and Cupeno Indians submitted their proposal for a casino two weeks ago.

"We are not trying to leapfrog over other tribes,' Marston said.

He said the tribe will submit its plans to the Barstow City Council at the council's first July meeting.

Marston said he and Chemehuevi chairman Edward D. "Tito' Smith met with city officials Monday to discuss the tribe's plans, which have been in the works for eight years. The proposal includes a hotel, retail shops, RV park, water park, condominiums, golf courses, spa, outdoor amphitheater and possibly a rodeo arena. The project would be located near the Factory Merchants Outlet Mall.

The project would have moved along much more quickly, Marston said, but Gov. Gray Davis has shown an aversion to off-reservation gaming. He said Davis has shown himself to be more open now.

John Rader, spokesman for the city, said the proposal is very similar to the one presented two weeks ago by the Los Coyotes Band of Cahuilla and Cupeno Indians in San Diego County.

However, he said, the city has an exclusive negotiating agreement with Los Coyotes that could last nine months. After that period, the city could take action with the Chemehuevi.

Tribe officials and project representatives from the Los Coyotes tribe could not be reached for comment.

Los Coyotes announced plans June 2 to build a 180-room hotel casino with a theme park near the Factory Merchant Outlet Mall. They partnered with Detroit-based BarWest.

The Los Coyotes still need the governor and the federal government to approve putting the site into a federal trust.

Many gaming insiders feel that because the Los Coyotes don't have aboriginal ties to Barstow, it will be very difficult for them to get Davis' nod.

"You can't just pick a property because it is a lucrative location,' said Richard Milanovich, chairman of the Agua Caliente Band of Cahuilla Indians. "If it goes through, I will be very surprised.'

The announcement two weeks ago caused a stir among the Chemehuevi, who felt they were cheated by the city. But it also upset a Beverly Hills-based public relations firm that said it had been working with Los Coyotes and was squeezed out at the last minute.

Dean Delorean of Harris Delorean Public Relations went to the City Council meeting Monday night to complain about the situation.

Delorean said he and his firm have been planning since 2001 to link a tribe that is not federally recognized the Costanoan Rumsen Carmel Tribe of Chino with the Los Coyotes, who are federally recognized.

Delorean's group wanted to build the Desert Oasis Hotel and Resort with five restaurants and a theme park. There were also plans to build a diabetes center.

Rader said before the meeting that Harris Delorean was one of many groups with casino proposals.

"It is sour grapes,' he said. "They came late to the table, and the city never promised them anything.'

Tom Shields, the Los Coyotes project spokesman, said he never heard of Harris Delorean or their involvement. He said his interaction has mostly been between the BarWest investors and the city before he met Los Coyotes.

"When you first announce these things you have people coming out of the woodwork who say they also wanted to do these things,' Shields said. "But no one ever did it.'

But in November, Kevin Siva of the Los Coyotes met Gretchen Belli, a friend of Harris and Delorean, they said. Belli is the former daughter-in-law of the late lawyer Melvin Belli and was recently indicted on suspicion of stealing and defrauding the city of Taft.

Delorean said shortly after Siva and Belli met, Harris Delorean and the Costanoan were squeezed out.

Belli and Siva could not be reached for comment.

DeLorean said the firm was talking to other tribes over the past six months. But two weeks ago, Siva and BarWest came forward with their proposal.

"It is a bad feeling, but I am used to it,' said Costanoan chairman Tony Cerda, 66, a retired foreman who has also worked with boxers. "I've seen a lot of things look like they are good and turn out bad.' "