Distrust and Suspicion of Detroiter Michael Malik Cause Tribe to Reject Casino Syndicator, New Contract

Shinnecock Reject Casino Partner Contract on Thursday

12.15.2011

By Michael Wright

In a tribal referendum on Thursday, a majority of the members of the Shinnecock Indian Nation voted against authorizing the tribe’s leaders to sign a new contract with the Detroit casino developer who has been bankrolling their years-long push to open a casino in the New York metropolitan area.

Vote totals from balloting are not yet available, but the casino developer, Gateway Casino Resorts, acknowledged the results and said it will respect the decision of the tribe’s membership.

“While we are of course disappointed in the vote to not move forward at this time with revised business agreements, which followed well over a year of negotiations and months of tribal meetings, we do respect the decision of tribal members to have further review and discussions of the new deal points,” a statement issued by an attorney for Gateway Casino Resorts co-owner Michael Malik on Thursday evening read. “We look forward to concluding that process. We have stood by the Shinnecock Indian Nation for the last eight years, and will continue to do so and support its quest for economic justice.”

The vote went forward on Thursday over the objections of the Tribal Council, which said the three Tribal Trustees were forcing the vote on the rest of the tribe members before they had a chance to adequately examine the contract.

The Trustees announced the vote in a letter to the entire tribe on Monday. They also urged their members to approve the contract so that the casino effort could continue.

The partnership with Mr. Malik, who has spent millions on legal battles and salaries for some two dozen tribe members, has been the subject of much suspicion and distrust among some members of the tribe and the catalyst for open discord at recent tribal meetings. The contract the tribe was being asked to approve was drafted by Gateway representatives and the five members of the tribal Gaming Authority.

There are approximately 1,200 members of the tribe, of which approximately 650 live on the tribe’s Shinnecock Neck reservation just outside Southampton Village.

See also:

• What They Won't Tell You: Insights on Gateway Casino Resorts, its Detroit Organizers and Their Plans for Shinnecock Casinos
• Why is Detroiter Mike Malik Dragging former Hawaii Governor Waihee around Long Island, NY?
• Strange Bedfellows: Hawaii's Former Governor & Detroit's Gambling Promoter?
• Disclosure? And their tangled web: Detroiter Michael Malik, the Jack Utsick Ponzi Scheme, Shinnecock & Bay Mills Indians, and Akerman Senterfitt
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator
• Controversy seems to always follow Detroit Casino Syndicator Michael Malik 

Shinnecock Casino Interests Want to Influence Senators Schumer & Gillibrand, Rep. Bishop

Voice of the Nation

A Shinnecock Indian Nation newsletter indicates tribal leaders went to Washington D.C. during this past year to meet with representatives of Senators Charles Schumer (D) & Kirsten Gillibrand (D) and with Rep. Tim Bishop (D) to lobby them on the ability of Indian nations to take land into trust for gaming and non-gaming purposes and on federal appropriations that could be directed to Shinnecock tribal programs. Schumer has been an opponent of Shinnecock federal recognition and the tribe’s casino development plans. Bishop is opposed to a casino in Hampton Bays but believes there are appropriate locations elsewhere in Suffolk County.

Rodney Capel, a lobbyist for the Shinnecock / Gateway Casinos previously worked for Sen. Schumer. Capel’s firm, Mercury Public Affairs, has been paid more than $1.23 million to advance schemes the Shinnecock have in partnership with Detroit casino interests to build off-reservation casinos in New York on Long Island. 

Those same Detroit interests have given nearly $42,000 to campaign committees directly supporting the re-elections of Bishop, Gillibrand and Schumer.  Additionally, they’ve given more than $210,000 to the Democratic Senatorial Campaign Committee; funds that were available to support the re-elections of Gillibrand and Schumer.

Timothy H. Bishop (D)	$   4,900.00
Kirsten Gillibrand (D)	$  12,800.00
Charles E. Schumer (D)	$  24,200.00
Total	$41,900.00

During the 2010 election cycle; several New York legislators and Governor Andrew Cuomo actually rejected campaign contributions from Malik because of Malik’s controversial background.

Rep. Bishop indicated he too would consider rejecting contributions from Malik but in March 2011, after winning re-election, Bishop banked another $2,500 check from Mike Malik.

See also:

• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Shinnecock Casino Backers have dropped $117,500 on top-ranking NY Politicians
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator

Gateway Casinos / Shinnecock Lobbyist tied to Schumer, Rangel, Gillibrand; Campaign Funds Flow Their Direction

From Queens Crap: Shinnecocks plan casino at Belmont
3.04.2010

The partners [Malik / Ilitch / Gateway Casino Resorts] have hired Mercury Public Affairs, whose star lobbyist is Rodney Capel, a former top official in the state Democratic Party. Capel has also worked for Sen. Chuck Schumer, Rep. Charles Rangel, and Assemblyman Herman (Denny) Farrell.

Discussions on the project, some as recent as two weeks ago, have been held with Gov. Paterson, major state leaders, Rangel, Sen. Kirsten Gillibrand and Schumer's chief of staff, Martin Brennan, said Capel, whose firm has been paid more than $200,000.

Sen. Schumer fought Federal Recognition for the Shinnecock Indian Nation and is a staunch opponent of a Shinnecock casino in Suffolk County. TVT is not aware of any public position taken by Sen. Gillibrand on a Shinnecock Casino but she is likely to defer to the will of locals. Rep. Rangel represents a district in Harlem.

So why have members of Detroit's Ilitch Family and Michael J. Malik written checks for more than $260,000 to committees supporting the re-elections of Schumer, Gillibrand and Rangel?  It would appear as though lobbyist Capel's connections have driven decision making.

Charles B. Rangel (D)	$  16,200.00
Kirsten Gillibrand (D)	$  12,800.00
Charles E. Schumer (D)	$  24,200.00
Democratic Senatorial Campaign Cmte	$210,600.00
Total	$263,800.00

Source: opensecrets.org

During the 2010 election cycle; several New York legislators and Governor Andrew Cuomo actually rejected campaign contributions from Malik because of his controversial background.  Ilitch/Malik and their affiliates/partners have paid Mercury Public Affairs $1,234,780

See also:

• Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock
• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Shinnecock Casino Backers have dropped $117,500 on top-ranking NY Politicians
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• Michael Malik: The Latest Life & Times of a Detroit Casino Syndicator

Ilitch affiliate retains former U.S. Senator Alfonse D'Amato's lobbying firm to push New York Casino plans for Shinnecock

Gateway Casino Resorts retains
Park Strategies lobbyists

Detroiter Michael Malik and his Gateway Casino Resorts syndicate have entered into an agreement with former U.S. Senator Alfonse D’Amato to retain his Park Strategies, LLC, lobbying firm in support of plans to build casinos on Long Island in partnership with the Shinnecock Indian Nation. D’Amato’s firm will be paid a monthly retainer of $15,000 ($180,000 annually) plus other expenses.

Gateway has been pursuing approvals for casino development with the Shinnecock tribe for nearly a decade.  This is the first time Gateway has filed New York lobbying disclosures or reported it hired lobbyists.  Gateway currently has designs on a casino site at Belmont Park near the Triple Crown Belmont race track.  That location would be in Nassau County.  The Shinnecock have a reservation in the Hamptons area of Suffolk County. Note that one of D’Amato’s Park Strategies colleagues is Anthony Cancellieri, the former Chief Deputy County Executive of Nassau County.

Since 2005, the Shinnecock Nation Gaming Authority, with financial support from Gateway (Malik, his partner Marian Ilitch and any other investors), has paid other New York state lobbyists more than $1.5 million in pursuit of casino approvals.  On average they've been paying New York lobbying firms $20,000 per month.  That suggests going forward they will be paying $35,000 - $40,000 per month doubling what they have been paying to state lobbyists.

Additionally, Gateway and the Shinnecock have paid Washington, D.C. lobbyists $2.33 million to win federal approvals needed to move forward with casino development.

In recent campaign cycles, Malik and members of Detroit’s Ilitch Family have bundled and dumped more than $117,000 into campaign war chests  benefiting a select handful (5) of New York’s top ranking politicians including Governor Andrew Cuomo, New York’s U.S. Senators Chuck Schumer and Kirsten Gillibrand, and Congressmen Charlie Rangel and Tim Bishop, the latter’s Long Island district includes the Shinnecock Reservation.

NOTE: Al D'Amato is the Chairman of the Poker Players Alliance (theppa.org).  A professional group of lobbyist and public affairs pros who advocate for the expansion of online gambling.  Poker Players Alliance has reported spending $15 million on D.C. lobbying to push online gambling.

See also:

• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Shinnecock Casino Backers have dropped $117,500 on top-ranking NY Politicians
• Detroit Casino Syndicators Organize Additional Gaming Affiliates in Decade Long Pursuit of CA & NY Gambling Halls
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans

Shinnecock Casino Backers have dropped $107,500 on top-ranking NY Politicians

UPDATED: Gov. Cuomo rejected a $10,000 contribution from Malik.

During the last several election cycles, controversial Detroit gambling promoter Michael Malik has given (or bundled along with contributions from his partners Marian and Mike Ilitch) campaign contributions to these top-ranking New York politicians:

Rep. Timothy Bishop	$4,900
Gov. Andrew Cuomo	$15,0005,000
Sen. Kirsten Gillibrand	$12,800
Rep. Charlie Rangel	$20,200
Sen. Chuck Schumer	$24,200

Malik & Ilitch are managers of affiliates said to be bankrolling and pushing plans by the Shinnecock Indian Nation to develop casinos on New York’s Long Island.  Among other gambling hall schemes, they seek to build a casino and related projects at Belmont Park near the famed race track.

During the 2010 election cycle Rep. Bishop came under fire for accepting contributions from Malik.  It was reported that Rep. Bishop would return the funds he received from Malik.  He did not.  Rather, according to records available at OpenSecrets.org, Bishop accepted an additional $2,500 from Malik on March 31, 2011.

Funds from Malik/Ilitch began flowing to Rep. Rangel at a time when other previously loyal donors abandoned Rangel because he was under investigation by the House Ethics Committee.  As the powerful chairman of the House Ways & Means Committee, Rep. Rangel oversees tax matters and policy critical to Malik/Ilitch casino development schemes and has sway with other House leaders and New Yorkers.

Senators Schumer and Gillibrand can be helpful to Malik/Ilitch as powerful members of the Senate.  Among other things, Malik/Ilitch affiliates have previously lobbied U.S. Senate Majority Leader Harry Reid unsuccessfully on matters and approvals needed for their casino schemes.  As TheVerifiableTruth.com has reported in multiple posts, they have previously relied upon, and heavily financed, Michigan Senator Debbie Stabenow who has come up short on their behalf.  Malik also gave $30,400 to the Democratic Senatorial Campaign Committee which was likely directed to the 2010 re-election/election campaigns of Schumer/Gillibrand.

Governor Andrew Cuomo will have decision-making authority impacting Ilitch/Malik (Gateway Casino Resorts, Shinnecock Indian Nation) gaming schemes on Long Island. Questions have been raised surrounding the reporting of Malik’s $15,000 in contributions to Cuomo.  Further, Malik contributed $10,000 to the New York State Democratic Party that could have also been used to benefit Governor Cuomo.

During the Fall 2010 elections, two New York State Senators said they would return campaign contributions from Malik because of various controversies involving the Detroit casino promoter.

See these related posts:

• NY Governor Cuomo Latest To Reject Campaign Contributions from Ilitch Gambling Partner Michael Malik
• Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans
• Congressman Bishop Under Fire For Accepting Michael Malik's Contribution
• Questions Surrounding $15K Gov. Cuomo Accepted From Detroit Casino Syndicator
• Really? Poor Impoverished Indian Tribes have spent $5.6 million Lobbying for Casinos
• D.C. Lobbyists Paid $2.33 Million to Advance Shinnecock Casinos
• Shinnecock and Ilitch affiliate Gateway Casino Resorts paid $1.5 million to New York Lobbyists