Showing posts with label Herb Strather. Show all posts
Showing posts with label Herb Strather. Show all posts

Wednesday, November 09, 2011

Capitol Consulants of Hawaii: Double Dipping Gambling Conflicts, Resume Padding Lies or Harboring Secret Partners?

When it comes to public disclosure of political campaign finance and lobbying activities, the State of Hawaii is akin to something you might find in a small unsophisticated backwoods town controlled by “Good Ol’ Boys.” There is no consistency. Record keeping and access to records are spotty. Electronic filing means emailing documents and databases are misunderstood. What is available for examination is either elementary or unnecessarily cumbersome and sheds little light. The most recent campaign finance disclosure available online date back to 2006 elections. Sunlight is something only found at a beach.  It’s clear that in Hawaii they don’t take public disclosure seriously. Nevertheless...

John Radcliffe
Lobbyist John Radcliffe
John Radcliffe is employed by Capitol Consultants of Hawaii (Capitol Consultants) a Honolulu-based lobbying firm.  The firm’s website identifies Radcliffe as Vice President and Lead Lobbyist.  Among others industries and special interests, he is closely identified as a lobbyist for labor.

By his resume, Radcliffe maintains he was first retained in 2001 to lobby for Detroit casino syndicators Michael Malik and Marian Ilitch, through their mouthpiece and politico Tom Shields; Lansing-based PR firm Marketing Resource Group.  It was reported extensively that the Detroiters launched an expensive 2-year unsuccessful push for the legalization of gambling in Hawaii in 2000 but public records for that period are not readily accessible so we were unable to confirm lobbying registrations or expenditures.

Although Radcliffe and his Detroiter clients have admittedly failed to file timely lobbying disclosures in the past --  at onetime even saying a lobbying report hadn’t been filed because it was “lost in a Michigan snow storm” -- TheVerifiableTruth.com can confirm Radcliffe was registered to represent the Detroiters in 2005, 2006 and 2007-2008.

TVT has been unable to find any records indicating Radcliffe registered to represent the Detroiters during 2009 when Gov. Linda Lingle, a Republican who opposes gambling in Hawaii, was still in office. 

But when the race for Hawaii’s next governor began in 2010, Radcliffe again registered to represent the Detroiters. 

And when Neil Abercrombie, a Democrat, was elected Governor, he asked Radcliffe to help him identify key staff members and make key appointments. Radcliffe again registered as lobbyist for the Detroiters in 2011.

G. A. "Red" Morris
Lobbyist George A. Morris
George A. “Red” Morris is President and also a Lead Lobbyist at Capitol Consultants. He and Radcliffe are associates but Morris also maintains separately G. A. Morris, Inc.  As part of a resume that Morris shares via the G.A. Morris website, he claims  Marketing Resource Group (Detroiters) as a client from “2000-present.” 

TVT was able to confirm that Morris had registered as a lobbyist representing the Detroiters in January 2010 but according to the Hawaii State Ethics Committee Website, Morris was terminated as the Detroiters’ lobbyist a couple months later on April 30, 2010. However, TVT has found no other official lobbying disclosures to suggest Morris had ever reported lobbying for the Detroiters prior to 2010 despite the representations on Morris’ resume.

And given that Morris’ resume claims he was a lobbyist for the Detroiters from 2000-present, TVT was surprised to see that Morris’s resume also indicates Boyd Gaming as a Morris client from “1995-present.” Boyd is a publicly traded (NYSE: BYD) Las Vegas gambling conglomerate with casinos throughout the U.S. 

TVT has confirmed that Morris was registered as a lobbyist for Boyd Gaming in 2005 and from 2006-2008; and again following the 2010 termination as lobbyist for Marketing Resource Group.  As with Radcliffe, TVT found no records that he was registered to lobby for the either Detroiters or Boyd Gaming in 2009.  

Conflicts? Padded Resume Lies? Double Dipping? Secret Partners?
That Morris could have represented the Hawaii interests of Boyd Gaming at the same time he was representing the interests of Detroit casino syndicators is curious; although, clearly that’s what Morris’ resume suggests.  And why would Morris make misrepresentations on his resume?  Or did he?

Likewise, that Morris and Radcliffe, both principal lobbyists with the Capitol Consultants lobbying firm, could represent both the Detroiters and Boyd Gaming at the same time without a conflict is curious.

Typically, either circumstance would be recognized as presenting conflicts that clients wouldn’t tolerate; unless of course, Boyd Gaming and the Detroiters had no conflicts but rather, had shared interests in Hawaii.

Are Detroiters Again Fronting for Las Vegas?
If Morris wasn't misrepresenting circumstances on his resume, it is possible that while he only registered as a lobbyist for Boyd that he considered himself a lobbyist for the Detroiters if, in fact, the two entities had been coordinating efforts to legalize gambling in Hawaii and establish casinos on Oahu.

As a publicly traded company, Boyd might have to disclose its efforts to advance gambling in Hawaii and establish a casino.  If another group was fronting for Boyd's interests, Boyd might avoid the need for disclosures.  If the effort was unsuccessful, Boyd's shareholders wouldn't realize it as a failure by Boyd thereby minimizing any negative impacts to stock values.

In the mid 1990s, when the Detroiters were working to get gambling approved in the Motor City, they fronted for Las Vegas’ Circus Circus.  They secretly funded a last minute multi-million dollar advertising push as part of the campaign to win voter approval for gambling halls in Detroit and a partnership agreement that surfaced after the campaign made it clear the Detroiters had been “reimbursed,” by their Las Vegas partners, for the costs of the campaign.

There’s a stigma among voters and elected officials toward big Las Vegas gambling interests so they prefer to remain silent partners until approvals are in-hand.  The Detroiters are comfortable and able to front for their Las Vegas colleagues who have deep pockets and greater tolerance.  A couple of years ago, it was discovered that one of the Detroiters’ original MotorCity Casino partners, Herb Strather, was fronting a proposed Massachusetts casino, as they had in the mid 1990s, for South African gambling magnates Sol Kerzner and Len Wolman.

Tuesday, October 04, 2011

Detroit Casino Syndicators: Strather, Celani, Malik & Ilitch

Herb StratherTom CelaniMichael Malik & Marian Ilitch were among those who pushed for commercial gambling in Detroit in the mid 1990s.  They were also chief backers of Detroit’s MotorCity Casino.  However, in 1999 Malik and Strather failed to receive gaming licenses from the Michigan Gaming Control Board and were among those forced to divest themselves of any interest in MotorCity Casino before the gambling hall opened its doors to the public.


Herb Strather
Strather
Strather’s original Detroit-based Atwater casino syndication moved on to form AtMashpee LLC and push the Recognition and Cape Cod casino development plans of the Mashpee Wampanoag tribe. Another Strather affiliate Maushop LLC purchased 28 acres of land on Cape Cod. Strather would later reveal that South African casino moguls Sol Kerzner and Len Wolman were the primary investors in the Mashpee venture. And in 2008, further controversy ensued when Mashpee tribal chairman Glenn Marshall admitted to federal investigators that Strather had funneled $4 million to him which was used in an illegal political contributions scheme and to pay personal bills.

In 2005, Ilitch bought out Celani, Mirage Resorts and others who were part of the original MotorCity Casino syndication.

Tom Celani
Celani
Celani, a one-time beer distributor, organized Luna Entertainment.  He had been a founder of Sodak Gaming, Inc. which was acquired by International Game Technology.  He subsequently was licensed for gaming in Nevada and took over management of the famed Cal-Neva Casino previously owned by Frank Sinatra and frequented by Sinatra's "Rat Pack" entertainment pals.

Among other gaming facilities, Celani has since become licensed to own/operate, the Fortune Valley Hotel and Casino (CO), Red Dolly Casino (CO), Rolling Hills Casino (CA), and the Kiowa Red River Casino (OK). Of those Detroiters behind the original MotorCity Casino syndication and relative to the breadth of his gaming involvement, Celani has been the least controversial and most successful opening or acquiring new casinos outside of Michigan. Celani Profile.

Malik/Ilitch
Despite Malik's 1999 failure to obtain a gaming license in Michigan, Malik and Ilitch have continued as business partners. They have been relentless in their pursuits to develop and manage Indian casinos in partnership with the Bay Mills Indian Community (MI), Los Coyotes Band of Indians (CA), Big Lagoon Rancheria (CA), Shinnecock Indian Nation (NY) spending millions on lobbying, political campaign contributions and legal work. 

Similar to Strather’s AtMashpee LLC group, Malik/Ilitch organized Gateway Casino Resorts to bankroll Federal Recognition of the Shinnecock Nation.  And like Strather, they believe that investment bought them the rights to develop and manage any future Shinnecock gaming facility. Currently they are banking on approval of plans to develop a Shinnecock casino and hotel at Belmont Racetrack on Long Island (NY). 

Although Malik/Ilitch gambling pursuits have been many and they have organized dozens of affiliates to bankroll Native American casino development plans in three states, Malik/Ilitch have failed to successfully open any new gambling facilities since Malik failed to earn a gaming license and they parted company with Celani.  

Further, while chasing casino development opportunities with Ilitch, Malik has been involved in numerous controversies including: a federal ponzi scheme case; defaults on both property taxes and a $1 million line of credit; and multiple violations of California political campaign contribution laws.

See also:


Sunday, October 02, 2011

Detroit Casino Syndicator in default on property linked to future casino development

Herb Strather
Detroit Casino syndicator Herb Strather says the Mashpee Wampanoag Tribe of Massachusetts owes him $25 million.

Strather, who has been a controversial character in Detroit for decades, says he bankrolled the tribe’s federal recognition effort.  Now he wants a payout from any gaming facility the tribe opens.  After all, that is why he organized a syndicate to bankroll the federal recognition campaign.

Among other things, Strather claims that the tribe has reneged on a handshake deal to make mortgage payments for Maushop Farm, a horse stable in Mashpee (MA). Strather affiliate Maushop LLC purchased the property in 2001 with a $682,500 Bank of America mortgage. Strather says he planned to donate Maushop Farms to the Wampanoag once a casino was built. Now, Strather tells the Cap Cod Times he is in default on the mortgage. 

Maushop Farms is located at 218 Sampsons Mill Road, Mashpee, MA 02649.



NOTE: To see the deed and recorded mortgage document signed by Maushop Manager Frederick C. Grosser visit https://72.8.52.132/ALIS/WW400R.PGM.  In Public Access (box pg left) click “Free Access.”  Then “Click here to Search Public Records.”  Then click “Recorded Land by Name.” In the Last/Corp name box type Maushop LLC. Scroll down and click “Search.”  Your search results should include the Deed, Mortgage Instrument and several liens.

See also:

Wednesday, September 28, 2011

Attorney Dennis Whittlesey up to his Old Tricks

Firm's Biography:
Dennis J. Whittlesey
We've had several inquiries recently about the whereabouts and activities of attorney Dennis Whittlesey. Apparently he remains with Dickinson Wright attached to that firm's Washington, D.C. office.

Whittlesey is still acting in the capacity of third-party pimp for the interests of his Detroit casino syndicator pals.  And that includes posting articles to an out dated little trafficked old blog supporting the Detroiter's agendas.

Take a look at some of the posts he's added recently to that tired blog:

Friday, September 09, 2011

D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos

D.C. Lobbyists were paid more than $2.33 million in the quest for federal recognition of New York’s Shinnecock Indian Nation.

Somehow the poor impoverished Shinnecock Indian Nation paid $1.25 million to lobbying firms in its quest for Recognition that would lay the groundwork to develop casinos on Long Island.  Amended lobbying disclosures report that Gateway Casino Resorts pays the lobbying bills and controls the lobbying contracts for the Shinnecock Indian Nation.

Additionally, Gateway Casino Resorts, the Detroit-based investment group behind the tribe’s casino plans, paid more than $1.08 million to D.C. lobbyists during the same period of time.

Washington D.C. Lobbying Payments

Partner
(Registered Lobbying Client)
Lobbying Payments
(through 2011)


$1,085,000


$1,250,000


Total
$2,335,000

Originally organized as Empire Ventures, L.L.C. in 2003, and then changed to Empire Associates, L.L.C., when amended Articles of Organizations were filed in 2004; the investors group fronted by Detroiters Michael Malik and Marian Ilitch, began reporting its name as Gateway Casino Resorts, L.L.C., with its 2005 annual corporate filing.  The first lobbying reports were filed in Washington, D.C. that same year.

Ilitch owns among other things, Detroit’s MotorCity Casino.  Malik had been one of the “founders” of MotorCity Casino but failed to win a Michigan gambling license in 1999 and was forced  to drop out of the Atwater Associates syndication (MotorCity's investment group) before the casino could open its doors. 

Another Atwater partner was Herb Strather.  Like Malik, controversy seems to follow Strather.  After both being cut-out of MotorCity Casino before the gambling hall could open its doors, each pursued similar casino development schemes elsewhere. 

Malik has pursued casino development plans for Long Island and Strather pursued similar plans for Cape Cod.  They used financing and influence models similar to those that had worked for them earlier in Detroit. In fact, three quarters of those parties investing in Strather's Cape Cod syndicate had also been investors in one of the earlier entities that morphed into MotorCity Casino.

Strather’s schemes, unlike Malik’s, were scandalously exposed in 2007.  Strather had been fronting for silent partners Len Wolman, Sol Kerzner, international casino moguls. The chairman of the Mashpee Tribe, partners with Strather’s investors group, was arrested for fraud and various schemes they had concocted to fund lobbying and political campaign contributions -- schemes that had earlier/elsewhere gone unnoticed or undetected.

Monday, September 05, 2011

Ilitch Family Amasses Debt for Sports, Entertainment & Gambling Affiliates



Debt Part of Ilitch Equation
10.19.2010
Featured originally as a side-bar to a story entitled Ilitch teams with tribe on N.Y. casinos: Long Island plans could top $1 billion

By Bill Shea

As the Ilitch family assesses how it will pay for the Detroit Pistons, Palace Sports & Entertainment Inc. and possibly a new downtown arena, debt remains on the family's past projects.

In January 2009, Marian Ilitch injected $45 million into her MotorCity Casino after lenders -- including Highland Capital Management LP -- threatened to hike interest rates to 18 percent on the $625 million loan her CCM Merger Inc. got in 2005 to finance purchase of the casino and for the later construction of its 300-room hotel.

The lenders reportedly wanted the additional investment because the casino was in jeopardy of violating its loan terms, a situation created when gambling revenue began to fall with the recession.

Deutsche Bank and Merrill Lynch arranged the loan in 2005.

The total financing for MotorCity is believed to be $950 million through a highly leveraged mix of fixed- and variable-rate bank debt and junk bonds, according to Forbes.

Ilitch paid $525 million to buy the majority ownership of the casino in April 2005 from Las Vegas-based MGM Grand/Mirage Casinos' Mandalay Resort Group, the MGM subsidiary that owned MotorCity.

She also paid Detroit entrepreneur Herb Strather $106 million for his Atwater Entertainment Associates LLC's 11.5 percent stake in MotorCity.

Another $85 million to $100 million went to former Ilitch partner Tom Celani for his 10 percent stake.

The Detroit Tigers, owned separately by Mike Ilitch, borrowed $140 million in August 2005 from a syndicate of 11 financial institutions, led by what is now Sumitomo Mitsui Bank, to refinance what had been $115 million remaining in debt from the original $145 million loan to build Comerica Park, industry magazine Sports Business Journal reported at the time.

The team has declined to comment on its current stadium debt.

Public debt on Comerica Park is through the Detroit-Wayne County Stadium Authority.

Wednesday, March 18, 2009

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 ...

Wednesday, January 28, 2009

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

Tuesday, January 27, 2009

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.

Wednesday, January 21, 2009

Plea hearing in former Tribal Chair's fraud case postponed for three weeks

1.21.09

Hearing delayed for ex-Mashpee Wampanoag leader

BOSTON (AP) - A plea hearing in federal court has been delayed for the former chairman of the Mashpee Wampanoag Tribe who is accused of fraud and embezzlement.

Glenn Marshall appeared before U.S. District Judge Rya Zobel on Wednesday, but his new attorney Paul Markham was given three weeks to review the case. Markham said Marshall asked him to take the case Tuesday night.

A new plea hearing is set for Feb. 11.

Marshall agreed in December to plead guilty to violating campaign finance laws while working with convicted lobbyist Jack Abramoff. He faces 41 to 51 months in prison.

Marshall stepped down as tribal chairman in 2007, after it became public that he was a convicted rapist and had lied about his military past.

Friday, January 16, 2009

DOJ Announces Charges Against former Mashpee Wampanoag Chair


FOR IMMEDIATE RELEASE

Monday, December 15, 2008
WWW.USDOJ.GOV/USAO/MA
CONTACT: CHRISTINA DiIORIO-STERLING
PHONE: (617)748-3356

FORMER TRIBAL CHAIRMAN CHARGED WITH CAMPAIGN FINANCE VIOLATIONS AND FRAUD

BOSTON, MA - The former chairman of the Mashpee Wampanoag Tribe was charged today in U.S. District Court with violations of campaign finance law, along with tax, wire fraud and Social Security fraud, in connection with efforts to secure federal recognition for the Tribe. (See: Original DOJ Press Release)

Sunday, January 11, 2009

Strather identified those who formed nucleus of Atwater Associates in 1994

excerpted from an article published on 2.21.05 in Crain's Detroit:

When MotorCity was being organized in the days before the city's Detroit casinos were authorized, [Herb]Strather said, 112 Detroit area people each bought one or more $25,000 units in the company that eventually founded the casino.

"Many put in $100,000, four units," he said, making their holdings worth about $1.7 million today.

Strather said this investment growth in MotorCity doesn't include the $38.5 million that he and three other initial investors - Nellie Varner, Ron Slavik and James Blain - received when they sold their shares to Ilitch and to Mandalay, operating partner for MotorCity.

These four, along with former New Detroit President Paul Hubbard, funeral director O'Neill Swanson, and Barbara Callaway, who was Strather's grade-school teacher, were the original investors in 1994 when the city of Detroit voted approval for three casinos, Strather said.

That same article reported that Strather raised "about $3.3 million through Atwater to help win approval for three Detroit casinos in a 1996 statewide election campaign."

Strather, not known for consistency, appears to leave out Lawrence P. Doss in his references to AEA's original members although Doss signed the original Articles of Organization for Atwater Entertainment Associates LLC (AEA) in January 1995 along with Strather and Varner. Doss has been noted as Manager/Treasurer of AEA and along with Strather and Verner he was a signatory to the Detroit Entertainment LLC Operating Agreement on behalf of AEA.

Strather had formed another entity, Atwater Entertainment Associates, Inc., in May 2004. He changed the name to AEA, Inc. in January 2005 and the Michigan DL&EG indicates that entity expired in July 2005.

Atwater Entertainment Associates LLC was dissolved by Vivian Carpenter, Strather's wife, in September 2006.

See List: Investors - Atwater Entertainment Associates LLC

When reporter interviewed Herb Strather he failed to do the math

In February 2005, Robert Ankeny wrote in Crain's Detroit:

When MotorCity was being organized in the days before the city's Detroit casinos were authorized, Strather said, 112 Detroit area people each bought one or more $25,000 units in the company that eventually founded the casino.

"Many put in $100,000, four units," he said, making their holdings worth about $1.7 million today.

Strather said this investment growth in MotorCity doesn't include the $38.5 million that he and three other initial investors - Nellie Varner, Ron Slavik and James Blain - received when they sold their shares to Ilitch and to Mandalay, operating partner for MotorCity.

These four, along with former New Detroit President Paul Hubbard, funeral director O'Neill Swanson, and Barbara Callaway, who was Strather's grade-school teacher, were the original investors in 1994 when the city of Detroit voted approval for three casinos, Strather said.

Then, in March 2005, Robert Ankeny of Crain’s Detroit wrote:

Strather, who in the early 1990s organized the group that became Atwater Entertainment Associates L.L.C., said he, Karmanos and about two dozen of the 108 partners who own fractional shares of MotorCity also have offered to buy out and restructure that 11.5 percent of MotorCity for $118 million. Strather withdrew from the casino licensing process in 1999 before MotorCity opened, he said, in part because overdue taxes on some of his past development projects might have hindered approval from the Michigan Gaming Control Board.

But just a few months later, in October 2005, Robert Ankeny wrote:

Detroit-based Atmashpee L.L.C. scored a victory in a decades-old battle to win federal recognition for the Mashpee Wampanoag tribe in Massachusetts, said Herb Strather, Detroit developer and organizer of the company…

Atmashpee (the name is a blend of Mashpee and Strather’s Atwater Associates, organizers of what became MotorCity Casino L.L.C.) includes $12 million invested by more than 200 people. About 150 of them are former Atwater partners, he said

How is it that Ankeny could write in February & March that Strather's Atwater Entertainment Associates was a group of 108 - 112 partners and yet in October he reports 150 former Atwater partners represented 3/4s of the 200 investors in Strather’s AtMashpee casino syndication?

Was Ankeny enabling Strather to spread falsehoods and mistruths to some benefit?

Were Strather's inconsistencies meant to attract new investors or give some comfort to existing investors?

Were these representations designed to make others like Len Wolman, Sol Kerzner and brothers Richard & Stephan Slavik think there was more to AtMashpee LLC than there really was? Or were there some never-revealed "silent" partners behind Atwater Entertainment Associates that perhaps included Wolman, Kerzner and/or the Slavik brothers?

As noted in the first Ankeny reference above, the Slaviks' cousin, J. Ronald Slavik, was known as an "investor" in Atwater Associates.

See "Investors" List: Atwater Entertainment Associates LLC

Saturday, January 10, 2009

Strather partnered with Slaviks on affordable housing development in 2001

A Crain's Detroit Business story published 10.21.01 about the development by Scripps Park LLC of a new affordable housing project reported:

Scripps Park is turning the Jeffries West housing project into 347 privately-owned houses and rental units. The group is made up of of businessman Herb Strather; The Slavik Co., based in Farmington Hills; Rosenberg Housing Group, based in New York City; Premier Property Management, based in Fenton; and local nonprofit Core City Non-Profit Housing Corp.

Scripps Park was supported by attorneys at Honigman Miller Schwartz and Cohn L.L.P.

Brothers Richard (now deceased) and Stephan Slavik, along with Len Wolman, chair of Connecticut-based Waterford Group, and South African Sol Kerzner, chair of Kerzner International, were members in Trading Cove Associates which bankrolled development of the Mohegan Sun casino resort in Connecticut. Then in 2006, Strather announced he'd handed over controlling interest in a proposed Mashpee Wampanoag casino on Cape Cod to the same group of investors.

J. Ronald Slavik, cousin of Richard and Stephan Slavik, was one of the so-called "investors" in Atwater Entertainment Associates LLC, another casino-related syndication that Strather organized in the mid 1990s to jump-start MotorCity Casino.

Using borrowed money, Ilitch made overnight millionaires out of her Atwater partners

4.12.05

Atwater investors due MotorCity sale windfall

By R.J. King / The Detroit News

DETROIT -- Original investors in Atwater Entertainment Associates LLC, a local group with a stake in MotorCity Casino, are poised to net sizable profits this week as Marian Ilitch positions herself to become sole owner of the gaming operation.

A $25,000 investment in Atwater Entertainment in 1994 has increased 22 times and is now worth $550,000, said Herb Strather, shareholder and founding member of the investment group.

Strather and more than 100 investors who own 266 units of Atwater Entertainment had previously received $150,000 per unit in profits, and will soon collect an additional $400,000 per unit once the sale is completed, he said.

At that rate, Atwater Entertainment, which owns 11.5 percent of the casino, would be selling its interest to Ilitch for around $106 million.

Atwater Entertainment Associates, LLC: List of Investors

NOTE: Atwater "investors" including Michigan State Senator Samuel "Buzz" Thomas received large windfalls from Marian Ilitch during 2005. What votes might Sen. Thomas have taken part in during 2005 that benefited Marian Ilitch or her family's affiliates including Ilitch Holdings, Inc., Detroit Red Wings, Olympia Entertainment, Olympia Development, MotorCity Casino, Blue Line FoodService Distributing, etc.? Did Sen. Thomas abstain from voting in such matters? OR what votes might Sen. Thomas have made that negatively impacted any competitors of those Ilitch affiliates?

Where there other Atwater "investors" benefiting from Marian Ilitch's buyout in 2005 who were in a position to help her family's businesses as a result?

Wednesday, January 07, 2009

Reporter: Kerzner & Wolman have money troubles, Strather seeks new investors for Cape Cod Casino scheme

Taken from a story by Stephanie Vosk published on 1.05.09 in the Cape Cod Times:


    Tribe's longtime investor seeks new blood

    ...For years, Herb Strather and his investors bankrolled the tribe's quest for federal recognition from the U.S. Bureau of Indian Affairs, upping the ante to $40,000 a month, and later $100,000, according to court documents.

    But the process, officially ongoing since the 1970s, still took a lot longer than anticipated. In December 2006, about 10 months after the tribe received a preliminary thumbs up on its federal recognition application, the man from Detroit officially handed over the vast majority of his stake in a proposed casino to a company called Trading Cove, headed up by South African casino developers Sol Kerzner and Len Wolman.

    Five years ago, Strather said, he may have been able to maintain about 20 percent of the project. Today, he controls a little more than 5 percent.

    MONEY TROUBLES
    The financial problems of Kerzner and Wolman, who are the "operators and the funders" of the project, have been well publicized. The credit rating for their Rhode Island "racino," Twin River, has been downgraded by at least two companies, and Moody's Investor Service cited a high probability the company will seek bankruptcy protection.

    Strather's not in trouble as far as the Mashpee project is concerned — he doesn't have those kind of debt obligations for the casino, he said.

    It's his other various projects that are suffering from the current economic recession. "We have other businesses, real estate businesses, and yes that business is tough," he said.

    But many of his original investors — including O.J. Simpson's attorney Johnnie Cochran and his kindergarten teacher — have died since his business with the tribe began, and new blood — and money — are welcome, he said.

    "Many of these people who came in are gone. I've had at least a dozen investors die," he said. "They helped make a dream come true, and their legacy will live on, although they are not alive now to reap the benefits of it."

    BUYING IN
    Strather is likely looking for investors who can not only help financially, but have political influence at the local level, experts say... (See Original Story)

Tuesday, January 06, 2009

Waterford Group affiliate placed a lien against AtMashpee LLC

A Secured Party, KSW MASS, LLC c/o Waterford Group Investments LLC, P.O. Box 715 Waterford, CT 06385-0715 filed a Michigan UCC Lien (Filing No. 2008101916-9) against a Debtor, AtMashpee, LLC, on 6.26.08.

The UCC Lien is described as “Security Interest and Proceeds.”


* * *

A limited liability company known as KSW MASS, L.L.C. was organized in Delaware on 11.29.06.

Is it possible that "KSW" stands for Kerzner, Slavik, and Wolman? Those parties are reportedly now in control of any future Mashpee Wampanoag casino resort on Cape Cod, MASS. (EnterpriseNews.com: Meet the Money Men).

Those parties were also part of the Trading Cove Partners that financed and developed the Mohegan Sun in Connecticut.

Sol Kerzner is Chairman and CEO of Kerzner International

Slavik Suites, Inc. was formed by Michigan-based brothers Richard Slavik (deceased 3.11.08) and Stephan Slavik (Slavik Builders, Inc.).

LMW Investments, Inc. is a Connecticut-based enterprise formed by brothers Len Wolman and Mark Wolman. The Wolmans are officers and directors of Slavik Suites.

Slavik and LMW are the members of Waterford Group LLC. Len Wolman is Chairman of Waterford. Waterford partnered with Kerzner to form Trading Cove Partners.

Waterford Gaming LLC is a wholly-owned subsidiary of Waterford Group LLC. A 10-K filed with the SEC by Waterford Gaming LLC provides more details into the relationship complexities of the businesses owned by the Wolmans and the Slavik family.

AtMashpee LLC, the "debtor" subject to the KSW MASS UCC Lien was organized by Detroit casino syndicator and real estate developer Herbert Strather.

Kerzner and Wolman (and by some accounts Slavik) took control of the Mashpee Wampanoag casino project from Strather once the tribe received Federal Recognition. Strather is reported to have bankrolled that tribe's efforts up to that point to the tune of $15 million. If what's been represented were true, wouldn't Kerzner, Slavik, Wolman by buying-out AtMashpee rather than placing a lien against the enterprise? Or did those parties also finance AtMashpee? Was Strather fronting for KSW all along?

And further do AtMashpee's investors know about the KSW MASS/Waterford Group UCC lien? In the wake of the wide-reaching Bernard Madoff ponzi scheme should AtMashpee "investors" be looking more closely at their circumstances?

Not so favorable report of casino syndicators Strather, Varner, Malik, Slavik et al

Excerpts from a 4.26.99 article published in the Las Vegas Sun:

    Circus Detroit partners under scrutiny

    DETROIT -- As state investigators probe the suitability of those seeking to run casinos here, a newspaper says some investors in the Atwater/Circus Circus group have troubled histories...

    The Detroit News reported Sunday on its review of public records on the local investors.

    It said companies owned by local investor group leaders Herb Strather and Nellie Varner of Detroit have paid taxes late, and the U.S. Department of Housing and Urban Development cited a real estate company they own for several violations.

    A bad real estate deal in 1986 led to the foreclosure of nearly 40 properties. This month, HUD issued five violations against a Detroit apartment building they own; courts have awarded their tenants about $750,000 in negligence claims...

    Investor Michael Malik of Grosse Pointe was arrested in 1997 and accused of hitting his girlfriend's 12-year-old son, the newspaper said. The child is now Malik's stepson, but the boy's biological father is seeking custody. The charge was dropped after Malik served one year of probation and met conditions set by the judge...

    Strather, Varner, Malik and Thomas Celani, along with minor investors James Blain and J. Ronald Slavik, are accused in lawsuits of fraudulently cutting two other developers out of the Atwater Group, the News said. They deny the allegations, which are pending in courts in Wayne and Oakland counties.

    Also, Varner's adopted daughter, Janniss Scott Varner, is accused of attempted murder in an alleged shooting in Nellie Varner's garage... (See: Original Article)

Monday, January 05, 2009

List of Michigan donors to Alaskan's Midnight Sun PAC is rather Dis-Honorable

The list of donors from Michign who have ever given money to the Midnight Sun PAC, Rep. Don Young's so-called leadership PAC, is rather short as one might expect given Young hails from Alaska. Just five donors. But those five donors, some bordering on infamous, made seven contributions totaling $23,500.

Further, a review of the short-list reveals a rather "Dis-Honorable Roll" of donors.
Ironically, book-ending this list are Detroiters Herbert J. Strather and Michael J. Malk, Sr.; one time partners, who respectively made the first and last contributions Midnight Sun PAC has ever received from Michigan donors. And sandwiched in the middle is Daniel J. Aronoff.

Malik and Strather were behind the legalization of commercial gambling in Detroit and were considered founders of Detroit's MotorCity Casino. However, the pair were among a handful of "investors" who were disqualified from receiving gaming licenses by the Michigan Gambling Control Board (MGCB) and as such had to dump their interests in the casino before it could open its doors. Among various considerations, Malik had recently been arrested for beating the 12-year-old son of a girlfriend and reportedly had IRS issues; and Strather, among other things, had previously been convicted of bribery.

Malik
For nearly a decade, Mike Malik has sought Rep. Young's help advancing unorthodox plans the casino syndicator is bankrolling for an Indian Casino in Port Huron, Michigan; and other earmark matters involving the Bay Mills Indian Community. (Anchorage Daily News: Alaska's Young a leader in Michigan Indian casino fight).

In 2005-06, Malik and his partners, members of Detroit's Ilitch family, were among the top five donors to Young's political committee and they gave Young the highest grossing day of fundraising he had in that entire two year campaign cycle . Only those affiliated with Veco (Bill Allen, Rick Smith), JHT Holdings (Dennis Troha) and Carnival Corp. contributed more than Malik/Ilitch Family. Vecco execs have plead guilty to political corruption charges and Troha has already been indicted on similar charges he "reimbursed" family members who contributed to various candidates.

Mike Malik is developing a pattern of political campaign finance violations. His affiliate Barwest LLC (another of his partnerships with Detroit's Marian Ilitch) was found to have violated California's political reform laws on two counts for failing to disclose a $26,600 contribution it made to former Rep. Richard Pombo's County GOP Victory Committee. Malik used Barwest to front private aircraft travel for Rep. Young.

Malik is the subject of an ongoing investigation by California's Fair Political Practices Commission (FPPC) because he denied making another $26,000+ in contributions to the committees of various California lawmakers in 2006 -- at the same time the previous FPPC investigation was concluding.

Strather & Dalgleish
Similarly, Herb Strather has bankrolled efforts to get approvals needed to build a large casino resort on Cape Cod in partnership with the Mashpee Wampanoag Indian Tribe. Young sat as Chair, Vice Chair and then ranking member of the House Resources Committee which has oversight for Indian matters.

Strather put $4 million into a hidden fund that enabled his partner, former tribal chairman Glenn Marshall, to carry out a scheme of illegal campaign finance activity including reimbursements to other so-called "donors." Marshall and other such "donors" from the tribe contributed to Midnight Sun PAC on the same date Strather and Mary Ann Dalgleish, a Strather & Associates Vice President, contributed to the PAC. We will assume Strather knew better than to reimburse Dalgleish for her contribution.

Dalgleish was apparently one of 100+ "investors" Strather recruited to syndicate Atwater Entertainment Associates LLC in the mid-1990s although Dalgleish had a personal history of financial hardship. AEA is the entity Strather syndicated to bankroll the legalization of gaming in Detroit and start MotorCity Casino. Dalgleish may also have been an investor in AtMashpee LLC, the syndication Strather organized to bankroll the Mashpee Wampanoag casino plans.

Aronoff
Appearing predictably on the PAC list three times -- and of all things, at the center of the list -- is Daniel Aronoff, perhaps so far the most publicly notorious donor on this list. (Note that the entry for Aronoff's most recent contribution has his last name misspelled as Aaronoff -- error or intention?).

Aronoff owns land in Florida and is the Michigan-based real estate developer at the center of the scandal and investigation into a $10 million earmark advanced by Rep. Young that was designated for improvements to the Coconut Road interchange off Florida's I-75. The project would have significant value to Aronoff who was a prodigious fundraiser for Young.

Aronoff, Malik and Strather have similar patterns of interaction with Young and have been significant bundlers/fundraisers for Young's various political committees, GOP causes and closest allies (former Reps Richard Pombo, John Doolittle, etc.). They've flown Young around in private aircraft, organized fundraisers, hired the some of the same notorious lobbyists and in exchange, sought help from Rep. Young above and beyond the norm.

Wend
The fifth Michigan donor on the list is Dennis Wend, who is referred to as a government employee albeit the only government employee from Michigan to contribute to Midnight Sun PAC -- and contribute $3,000.

Wend is executive director of technology transfer at the United States Army Tank Automotive Research, Development and Engineering Center, located at the U.S. Army Tank-Automotive and Armaments Command in Warren. He contributed to Midnight Sun PAC only after he was given the spotlight in 2004 & 2005 at Alaska's Clean Energy Symposium I & II.

Saturday, January 03, 2009

General counsel organized Mashpee affiliates which Strather subsequently liens

In March 2007, Jason Q. Wilson, recognized as general counsel for Detroit casino syndicator and real estate developer Herbert J. Strather, organized both Jayco/Mashpee LLC (filed 3.05.07) and Wilson/Mashpee LLC (filed 3.02.07). Wilson named himself as Resident Agent for both limited liability companies and also listed the same address for both entities: 300 River Place, Suite 6600, Detroit, MI 48207. That’s the same registered address on file for Strather’s various business enterprises including Strather & Associates and AtMashpee, LLC.

Then, a little more than two months later, Herb Strather, acting as a secured party, proceeded to place separate UCC Liens filed 5.15.07 on those same two entities: Wilson/Mashpee LLC (Filing No. 2007077968-7) and Jayco/Mashpee LLC (Filing No. 2007077967-5). On 9.04.08 secured party Strather amended his UCC Lien against debtor Jayco/Mashpee LLC (Filing No. 2008138352-8).

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Ilitch has backed loosing sports teams and pizza, but casinos in Detroit? Forbes.com 10.09.06 ● Marian Ilitch #1 on "25 Most Powerful People" to Watch 2006” global gaming business o1.oo.o5 ● My Kingdom for a Casino Forbes 05.08.06 ● Big Lagoon’s casino dream awakens north coast journal 07.28.05 ● Shinnecocks launch legal claim to Hamptons land newsday.com 06.16.05 ● Ilitch Plans to Expand Casino Empire RGTonline.com 07.05.05 ● Ilitch outbids partners MichiganDaily.com 04.14.05 ● Ilitch enmeshed in NY casino dispute detnews.com 03.20.05 ● Marian Ilitch, high roller freep.com 03.20.05 ● MGM Mirage to Decide on Offer for Casino in Detroit rgtonline.com 04.16.05 ● Secret deal for MotorCity alleged freep.com 02.15.05 ● Los Coyotes get new developer desertdispatch.com 02.08.05 Detroit casino figure to finance Barstow project LasVegasSun.com 07.07.03 ● Indian Band trying to put casino in Barstow signonSanDiego.com 06.04.03 Pizza matriarch takes on casino roles detnews.com 10.23.02 ● Vanderbilt gets short straw in negotiations for a casino Lansing Journal 10.06.02 ● Indians aim to drive family from tribe in vicious dispute san diego union tribune 04.09.00 ●Malik owns 2000 Michigan Quarter Horse of the Year Michigan.gov 01.01.00 ● Detroit Team to run Michigan’s newest Indian casino detnews.com 05.23.99 Tiger ties tangle Marian Ilitch detnews.com 04.29.99 ● Three investors must sell their Detroit casino interests gamblingmagazine.com 04.25.99 ● Partners’ cash revived election; They say money was crucial to Prop-E detnews.com 04.25.99 Investors have troubled histories las vegas review journal 04.27.99 ● Investor served probation for domestic assault on 12 year old boy detnews.com 04.25.99 Can a pair win a jackpot?: local men hope to... crainsdetroit.com 03.17.97

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