Scandal Continues to Plague Political and Lobbying Activities of Detroiters Bankrolling Shinnecock Casino Plans

For more than a decade, campaign contributions and lobbying fees doled out by Michael J. Malik, Sr. and his partners in the Ilitch Family are often attached to controversy, scandal, alleged corruption and illegal activities.  Consider that in 2010, Mrs. Michael Malik was forced to tell a Detroit-area Court that he had a consistent “pattern of bullying, intimidation and influence peddling.”

1^st Campaign Contribution Controversy Verified in the Media: 

Governor under Fire for Accepting Malik’s Money

In 1998, an investigation by the Augusta Chronicle revealed then-South Carolina Governor David Beasley had accepted campaign contributions from Detroit casino interests, namely Michael Malik and Tom Celani, an earlier Malik gaming partner.  They had played significant roles in a fundraiser organized for the South Carolina Governor in Detroit. 

At the time, South Carolina had no legalized gambling and the Governor had taken a public pledge not to accept or be influenced by gambling money.  While Malik and Celani helped bankroll a 1996 campaign to approve gambling in Detroit and were by 1998 affiliated with gambling interests some of which they controlled, no casinos had yet been approved or built in Detroit.  It was not common consideration that Detroit money might be gambling money.

Clearly, the hope was that people in South Carolina would not realize that contributions raised in Detroit were directly from those heavily invested in or affiliated with gambling. (Beasley Donors Disputed; Augusta Chronicle; 8.03.98)

Reporters & Watchdogs Make Case for All-Star Congressional Influence Peddling

On the eve of Major League Baseball’s 2005 All-Star Game (Detroit), an AP reporter broke a story about a $5,000 per head fundraiser being held in Detroit during the All-Star events to benefit then-Congressman Richard Pombo.  He was chair of the congressional committee overseeing Indian matters.  (Pombo no All-Star in watchdog group’s eyes; Associated Press; 7.13.2005)

Hosts of the All-Star Game fundraiser for Pombo were Malik and Christopher Ilitch, CEO of Ilitch Holdings.  His parents are Detroit Tiger’s owner Michael Ilitch and Marian Ilitch, Malik’s partner who reportedly has bankrolled the Shinnecock Indian Nation’s efforts to win approvals needed to establish gaming on Long Island. Perhaps most controversial was the timing of events.  Less than 48 hours after the Malik/Ilitch All-Star fundraiser, Pombo had scheduled a congressional hearing with an agenda item that read “Status of Settling Recognized Tribes’ Land Claims in the state of New York.”

For several congressional election cycles, the Ilitch Family and Malik had collectively been among Pombo’s top tier of donors. They had hosted or participated (bundling) in fundraisers on his behalf and also were flying him around the U.S. in a private jet. All they had invested in Rep. Pombo had remained under the radar until the All-Star Game story broke.  The watchdog groups Common Cause and Citizens for Responsibility and Ethics in Washington (CREW) helped break the story and kept the controversy alive for the remainder of the 2006 elections. Congressman Pombo failed to win re-election.

Failed to Disclose $26,600 Campaign Contribution; Fined $6,500 in CA

In 2004, the year before the All-Star Game controversy, Barwest, a Malik/Ilitch casino affiliate bankrolling attempts to secure approvals of various Indian gaming proposals in Barstow, CA, had quietly contributed $26,600 to Pombo’s local GOP Central Committee.  Malik failed to report the Barwest contribution to California election officials.  California’s Fair Political Practices Commission (FPPC) became aware of the possible violations of that state’s political reform laws and an investigation got underway.  In 2006, the FPPC found Malik’s Barwest violated state election law on two counts and fined Malik $6,500. (Press Release; California Fair Political Practices Commission; 10.24.2006)

Career Ending All-Star Scandals; Congressional Investigations

In 2003, Barbara Bonfiglio, the controversial Washington D.C. attorney/lobbyist/PAC treasurer, signed casino syndicator Michael Malik‘s MJM Enterprises & Development as a lobbying client of her firm Williams & Jensen. Malik paid Bonfiglio $220,000 between 2003 & 2005. Malik had matters before committees chaired by Reps. Richard Pombo, Don Young and Jerry Lewis -- Bonfiglio served as PAC treasurer/advisor to these members' leadership committees. In the midst of various GOP scandals including that involving House Speaker Tom DeLay, TPM Muckracker reported that Bonfiglio abruptly left Williams & Jensen in March 2006 and resigned as treasurer/advisor to various PACs and fundraising committees for Sen. Rick Santorum and Reps. Tom DeLay, Richard Pombo, Jerry Lewis, Don Young and others. She was subpoenaed at least once, in 2004, in connection with the DeLay corruption scandals. Malik distanced himself and affiliates from Bonfiglio but continued to invest heavily in her friends Pombo (Natural Resources/Native America Affairs), Young (Transportation) & Lewis (Appropriation).

Continued Affiliation with Controversial D.C. Lobbyists

When Malik left the Williams & Jensen lobbying firm, he took his business to Potomac Partners and lobbyist Richard Alcalde.  Alcalde particularly had a close relationship with Congressman Jerry Lewis, whose congressional district included the California desert community of Barstow, one of the communities where Malik/Ilitch have tried to build a casino.  At that time, Lewis was also the chair of the House Appropriations Committee.  Malik/Ilitch were hoping to get federal funds to support casino-related projects in Port Huron, Michigan, and other funds to support business ventures Malik pursues with the Bay Mills Indian Community.  Again, controversy ensued when the Washington Post reported that D.C. based Potomac Partners (Alcalde) was paying Lewis’ Las Vegas-based step-daughter to be a "strategic partner." 

Further, nearly all of Malik’s other affiliates and Indian partners had contracts with Wheat Government Relations, the lobbying firm of former Congressman Alan Wheat.  But in truth Wheat was funneling the funds to the Kessler & Associates (lobbyists Richard S. Kessler, Billy Lee Evans).  With the funds to Kessler funneled through Wheat, Kessler could avoid publicly disclosing the firm was a lobbying for Malik, Malik’s affiliates and partners, and “Gaming” or “Native American” interests.  In 2004 alone, Malik/Wheat paid Kessler almost $300,000 using that scheme. In all Kessler was paid nearly $600,000. The following circumstances unfolded after the scheme filtering payments to Kessler & Associates was exposed: the Kessler firm submit revised disclosure documents recategorizing the Wheat client work as involving issues of Indian/Native American Affairs or Gaming, Gambling & Casinos; Billy Lee Evans ceased his lobbying career in 2007; and in 2008, Kessler & Associates was disbanded.  Richard Kessler formed Hamilton Advisors in 2008 and has lobbied on behalf of one or two clients each year since.  The Wheat firm has continued to lobby on behalf of various Malik/Ilitch affiliates and partners.

Failed To Disclose Another 17 CA Contributions Totaling $26,500; Fined Again!

In 2006, Malik/Ilitch believed they were close to getting a gaming Compact approved in California. Governor Schwarzenegger had negotiated an amended Compact with the Los Coyotes Band of Indians, the tribe Malik/Ilitch bankrolled in California. That Compact was pending ratification by the State’s legislature.  Malik/Ilitch and their affiliates contributed heavily to those who would sit on the committees that would make the initial recommendation to ratify.  At the same time, California’s FPPC was wrapping up its investigation into the 2004 failure by Malik/Barwest to disclose the $26,600 to Pombo’s GOP Central Committee.  Malik was spending thousands to influence legislators in 2006 and despite the experience of the previous 2-year FPPC investigation and a significant fine, when he filed his official year-end 2006 major donor campaign disclosure reports, he indicated $0.00 in campaign contributions during the second half of 2006 when, in fact, he had actually given 17 lawmakers a total of $26,500.  Another FPPC investigation ensued and in 2009 the FPPC found Malik had violated California’s campaign reform laws in 2006 and this time fined $4,000. (Press Release; FPPC; 2.19.2009)

Malik’s NY Contributions Bring Controversy; NY Candidates Return Funds

During the 2010 campaign cycle Malik/Ilitch again focused their political contributions toward New York and candidates who might influence decisions that would allow them to expand gaming opportunities with the Shinnecock Indian Nation. Notably efforts to win approval to build a casino and other commercial development near the Belmont Park & Race Track on Long Island. They gave the maximum to New York’s U.S. Senators Charles Schumer and Kirsten Gillibrand. They sought to influence county and state lawmakers and Malik contributed to the campaign of now Governor Andrew Cuomo.  Contributions he made in New York races for the House of Representatives and State Senate became campaign liabilities.  News Day started reporting on the controversy surrounding Malik.  Several candidates including State Senators Jeff Klein and Craig Johnson reported returning Malik’s contributions. (Sens. Johnson, Klein to return Malik contributions; Daily News; 10.13.2010) Congressman Tim Bishop said he would return the funds too.

And now, there are questions surrounding the reporting of $15K Gov. Cuomo accepted from Malik.

Nearly $8 Million to Influence Lawmakers; Bordering on Unethical and Breaking Laws; and for the Purpose of Advancing Gaming Plans Fronted by Native Americans

Throughout the first decade of the 21^st Century, Malik/Ilitch and their affiliates have paid lobbyists more than $6,500,000 dollars and funneled more than $1,200,000 to politicians almost exclusively for the purposes of influencing matters of gambling, Native American affairs and transportation appropriations related to, as of yet unapproved, casino development projects they have pursued in three states (Bay Mills Indian Community – Port Huron, MI; Los Coyotes Band of Indians – Barstow, CA; Shinnecock Indian Nation – Long Island, NY).  Allegations of corruption and influence peddling and findings of illegal activity swirl around these Detroit casino syndicators and those they touch. And consider the possibilities that there are other investors behind the dozens of Malik/Ilitch gaming affiliates.  Who are they? What are their histories? Who are they contributing to or lobbying? What is their influence?

Reference Sources:

Search D.C. Lobbyists, Lobbying Firms, Lobbying Clients at OpenSecrets.org

Search Donors to Federal Campaigns Committees at OpenSecrets.org

Search Michigan Political Donors,  Lobbyists, Registered Casino Interests

Search California Political Donors,  FPPC

Search New York Political Donors

TheVerifiableTruth.com

See also:

• Controversy seems to always follow Detroit Casino Syndicator Michael MalikWhy is Detroiter Mike Malik Michael Malik: The Latest Life & Times of a Detroit Casino SyndicatorDragging 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

•  To Bypass Carcieri and Other Off-Reservation Casino Hurdles, Detroiters Plan Introduction of "Mandatory Acquisition Legislation" in Congress
• It's Carcieri not Malik that poses Bigger Problems for the Shinnecock Nation
• What They Won't Tell You: Insights on Gateway Casino Resorts, its Detroit Organizers and Their Plans for Shinnecock Casinos

Controversy impacts revenues at D.C. lobbying firm Kessler & Associates

Revenues at Kessler & Associates averaged $1,939,100 a year over the past five years. From 2002-2005, partners and affiliates of Detroit gambling promoters Marian Ilitch and Michael Malik discreetly paid Kessler & Associates $665,000 via another lobbyist, former Rep. Alan Wheat.

Affiliates of the Detroit pair have a history of retaining controversial DC lobbyists who end up at the center of corruption investigations (Barbara Bonfiglio/Williams & Jensen; Kessler & Associates; Richard Alcalde/Potomac Partners DC).

Kessler & Associates president Richard Kessler and other associated with the firm (Billy Lee Evans, Shane Young, Frank Polk, Linda Jenckes and Scott A. Spear) have been at the center of various lobbying controversies in recent years -- particularly questionable practices involving the non-profit Ripon Society.

At mid-year 2008, revenues at Kessler & Associates are just $180,000 (less than 10 percent of the previous five year average). And from 2006 – 2007, Wheat’s funneled just $40,000 to Kessler.

At the height of popularity, Kessler boasted 17 clients but now the firm is registered to represent eight clients; two of which have paid the firm nothing in 2008. Among those that have dropped Kessler & Associates: Burlington Northern Santa Fe.

link: Kessler & Associates Marketing Materials

You may also want to review the following post:

• Web site of D.C. Lobbyists Kessler & Associates disappears
• UPDATED: Lobbyist paid $665,000, secretly representing Ilitch syndication interests
• Casino syndicator tied to Ripon Society promoted Homeland Security project during boondoggle to Ireland
• Public Citizen exposes Kessler, Ripon and the free junkets for Members of Congress
• Bio: D.C. Lobbyist Richard Kessler
• Bio: Former Rep. Billy Lee Evans
• Rep. Don Young's "A-Team"

Bio: D.C. Lobbyist Richard Kessler

excerpted from Kessler & Associates marketing materials, page 11

Mr. Richard S. Kessler
President, Kessler & Associates

Richard S. Kessler is the founding president of Kessler & Associates, Inc. With more than 20 years of government relations and political experience, Mr. Kessler brings an in-depth knowledge of several issue areas to the firm including foreign and Federal tax legislation, international trade, financial services, telecommunications, transportation, patent and intellectual property legislation, food, alcohol, healthcare and campaign finance.

Since Mr. Kessler founded the firm in 1987, Kessler & Associates has grown to become one of the leading government relations firms in Washington. Mr. Kessler currently represents or has previously represented many multinational and national corporations based around the globe as well as various foreign governments. Mr. Kessler has negotiated international tariff and trade agreements on behalf of Kessler & Associates’ clients involving China, Canada, NAFTA (International Tariff Harmonized Code), and the USTR.

Mr. Kessler began his career in politics in 1978 working for the Senate Labor Committee. In 1979, Mr. Kessler joined the John Anderson for President campaign. Mr. Kessler was quickly promoted to the position of National Finance Director where he designed and managed the campaign finance strategy of the campaign in addition to managing the statewide efforts of the Anderson campaign in Massachusetts, Rhode Island and Vermont where Mr. Anderson enjoyed his largest margins.

In late 1980, Mr. Kessler became instrumental in coordinating the finances and attendance for the official events surrounding the presidential inauguration of Ronald Reagan. Following his brief time with the Reagan Inaugural Committee, Mr. Kessler accepted the position of Executive Director of the Ripon Society – a national Republican public policy group – where he revitalized and rejuvenated the organization. In this position, Mr. Kessler oversaw the development of the Congressional Advisory Board, the non-partisan Ripon Educational Fund TransAtlantic Conference (which has turned into a prominent annual policy forum between European and U. S. government officials), the Congressional Liaison Board, the annual Rough Rider Awards Dinner and publication of the Ripon Forum (the Society’s quarterly policy magazine) all of which have made the Ripon Society a “player” in the international public policy arena. In early 2004, Mr. Kessler was invited to follow the Honorable Bill Frenzel and serve as the President of the Ripon Society.

From 1982 until 1984, Mr. Kessler lobbied for Jack McDonald Associates specializing in trade and tax issues. In his capacity here, Mr. Kessler joined in successfully defeating the “domestic content” legislation – an ill-advised effort to legislate the manufacturing origin of makeup of automobiles.

After briefly serving as a senior staffer on the Senate Education and Labor Committee in 1985, Mr. Kessler joined the Odell Roper firm as Director of Special Projects. Mr. Kessler was a fundraiser here, assisting the Vice President and the Republican National Committee in various capacities on the campaign finance team.

Under the leadership of the late Senator John Tower, Mr. Kessler managed one of the most financially successful campaigns of the time in raising financial support for the American Air Museum in Great Britain.

Mr. Kessler has served as a congressional liaison or senior donor program coordinator for four national political conventions and was instrumental in the development of The Jimmy Huega Center’s program, among others, which specialized in matching professional athletes with charitable concerns to raise funds. Mr. Kessler has volunteered his skills as a senior financial advisor to multiple disadvantaged or handicapped children’s organizations. In addition, he has served on dozens of steering or fundraising committees for local, state and federal Republican candidates across the country.

Married to the former Daphne Cochran of Kentucky, Mr. Kessler and his wife are the parents of two children, Samantha and Ryan. The Kessler Family resides in Great Falls, Virginia.

You may also want to review the following post:

• Web site of D.C. Lobbyists Kessler & Associates disappears
• UPDATED: Lobbyist paid $665,000, secretly representing Ilitch syndication interests
• Casino syndicator tied to Ripon Society promoted Homeland Security project during boondoggle to Ireland
• Public Citizen exposes Kessler, Ripon and the free junkets for Members of Congress

Bio: Former Rep. Billy Lee Evans

excerpted from Kessler & Associates marketing materials, page 12

The Honorable Billy Lee Evans
Partner, Kessler & Associates

The Honorable Billy Lee Evans serves in an Of Counsel position for Kessler & Associates concentrating most of his efforts on banking, trade and tax issues. A native of Georgia, Mr. Evans served six years in the U.S. House of Representatives representing Georgia’s Eighth District. He had previously represented Macon for eight years in the Georgia House of Representatives both as a Republican and as a Democrat.

Prior to his service in Congress, Evans headed his own law firm and was highly successful as a trial attorney. The skills and values that he acquired helped him to appreciate the problems of small businesses faced with governmental red tape and made him a skillful advocator for the private sector.

In Congress, Evans served on the Judiciary, Public Works and Transportation, Small Business, and Narcotics Abuse and Control Committees. Evans was a leader in bankruptcy reform, improved tools for law enforcement, and stiffened penalties for criminals. He was recognized for his efforts on behalf of farmers and businessmen, and received numerous awards for his efforts to curtail wasteful government spending.

While in Congress, Evans was a co-founder of the conservative Democratic Forum, which was instrumental in the successes of the Reagan Legislative Agenda in 1981 and 1982. A fiscal conservative, Evans served on the executive committee of the Democrats for the Re-election of Reagan-Bush in 1984.

Since leaving Congress in 1983, Evans has maintained his association with a majority of the Representatives and Senators on both sides of the aisle and now enjoys having some of his closest friends chairing major committees. Because of his concern for the best interest of the Member, Evans is trusted and respected by the Members and is always able to secure a fair consideration of his clients’ point of view.

Although concentrating on the Banking, Ways and Means, and Energy and Commerce Committees; Evans, nevertheless, is equally adroit at handling matters before all other House and Senate committees. An astute legislative tactician, Evans believes that his clients are usually best served by a well-reasoned, low-key approach in disseminating his clients’ message to the appropriate Members and their staff.

You may also want to review these posts:

• Web site of D.C. Lobbyists Kessler & Associates disappears
• Tribe hoped language slipped into Transportation Bill would grant approvals for Port Huron casino
• Tribal leader admits lobbyists were trying to sneak casino plans through Congress without alerting opposition
• A-Team lobbyist's firm was quietly paid $665k to lobby Young on behalf of Michigan casino scheme
• Rep. Don Young's "A-Team"

Web site of D.C. Lobbyists Kessler & Associates disappears

The Web site for D.C. lobbying firm Kessler & Associates (screenshot pictured below) is no longer available "live" on the Web -- but a cache version is available. And in "taking down" the Web site they failed to remove a .pdf file of Kessler & Associates marketing materials which remains accessible on the Web.

click to see a larger screenshot

Following allegations and calls for investigations involving Richard Kessler (Rick Kessler/Ripon Society/Ripon Education Fund), former Rep. Billy Lee Evans (one of Rep. Don Young's nine "A-Team" lobbyists), and others tied to the lobbying firm, the Web site was "taken down."

Among allegations, a group of Detroit gambling interests including Marian Ilitch and Michael Malik (and their partners/affiliates) quietly funneled $665,000 to Kessler & Associates to lobby Rep. Don Young and others on gambling matters from 2003-2005. The payments were funneled via another lobbyist, former Rep. Alan Wheat (Wheat Government Relations).

A-Team lobbyist's firm was quietly paid $665k to lobby Young on behalf of Michigan casino scheme

Here's what a biography included on the "About Us" page of a Web site identifed as the Ireland Chamber of Commerce, Washington, D.C., has to say about Billy Lee Evans, the former Georgia Congressman turned lobbyist at Kessler & Associates who's recently been identified as one of Rep. Don Young's "A-Team" lobbyists.

The Honorable Billy Lee Evans – Chairman Congressional Advisory Board
Member of Congress (Retired)

... Since leaving Congress, Evans has maintained his association with a majority of the Representatives and Senators on both sides of the aisle and now enjoys having some of his closest friends chairing major committees. Because of his concern for the best interest of the Member, Evans is trusted and respected by the Members and is always able to secure a fair consideration of his clients’ point of view... (Full Bio)

Interesting way to frame a lobbyist's influence. But consider this ...

Before the Democrats resumed control of the Congress in 2006, Billy Evan's pal Rep. Don Young (R-AK) had been chair and then vice chair of the House Natural Resources Committee. But more importantly, Young was chair of the House Transportation and Infrastructure Committee.

From 2002-2005, Evan's firm, Kessler & Associates was quietly paid $665,000 to lobby Young and others to support various measures -- namely several bills and sneaky transportation earmarks -- intended to approve an off-reservation Indian casino in Port Huron, Michigan; often bypassing the normal channels. Michael Malik and Marian Ilitch, Detroit-based casino syndicators, backed the effort in partnership with the Bay Mills Indian Community.

Further Details: Lobbyist paid $665,000, secretly representing Ilitch syndication interests

UPDATED: Lobbyist paid $665,000, secretly representing Ilitch syndication interests

Several influential D.C. lobbyists, one whom the Washington Post reported was a part of former House Speaker Tom DeLay's "kitchen cabinet" and another a former Member of Congress, are part of a firm that was paid $665,000 by a third party trying secretly to advance off-reservation Indian casino proposals backed by Marian Ilitch and Michael Malik (Team Ilitch).

Documents on file with the Secretary of the Senate indicate in 2003 and 2004, Richard S. "Rick" Kessler's firm Kessler & Associates (also dba Century Business Services and Kessler & Associates Business Services) was retained to represent Wheat Government Relations, a lobbying firm.

Among lobbyists at K&A is former Rep. Billy Lee Evans (D-GA). Evans has been identified recently as one of Rep. Don Young's "A-Team" lobbyists.

Wheat Government Relations' clients include various Team Ilitch casino syndication interests (Barwest, Bay Mills Indian Community, Blue Water Resorts, Gateway Casino Resorts, Shinnecock Indian Nation). It appears now that Wheat was funneling payments it received from various Team Ilich casino partners to Kessler & Associates (K&A) to handle most --if not all -- of the lobbying work required of Wheat's gaming and Indian affairs clients.

Former Rep. Alan Wheat (D-MO) is the principal of Wheat Goverment Relations (http://www.wheatgr.com/).

Based on several analysis available from the Center for Responsive Politics, in 2003-04 Wheat Government Relations (as client) paid K&A, a sister lobbying firm, $515,000 for representation on gaming and Indian matters; yet, Wheat Government Relations (as lobbying firm) was paid only $400,000 by its collective gaming and Indian matters clients during that 2003-04 period.

That suggests Wheat paid K&A $115,000 more than it got paid by it's collective gaming and Indian affairs clients. So who made up the difference?

Neither Rick Kessler’s list of lobbying clients (Richard S. Kessler) nor his firm’s client list (Kessler & Associates, aka Century Business Services, Inc., Kessler & Associates Business Services; CBIZ Kessler Government Affairs, LLC) reveal any obvious representation of Native American's or gaming companies – they simply lists “Wheat Government Relations,” the lobbying firm. So we dug a little deeper.

The Center for Public Integrity (CPI) reviewed issues lobbied by Kessler’s firm in 2003 and 2004 (and cumulatively 1998-2004) and ranked them by number of companies and organizations the firm represented: at the bottom of the K&A list are “Indian & Native American Affairs” at #28 and “Gaming, Gambling & Casinos” at #30 – Kessler officially had one such client that needed representation on those matters, Wheat Government Relations.

On the other hand, a similar review by CPI of issues represented by Wheat Government Relations ranks ”Indian & Native American Affairs” #1 and “Gaming, Gambling & Casinos” #3 out of 12 issue areas represented – Wheat representing it had 19 Indian clients and 14 gaming clients from 1998-2004. By funneling money through Wheat, K&A avoided being included in lists or analysis that revealed firms doing significant work lobbying on behalf of Native American or gambling interests.

In truth, “Indian & Native American Affairs” and “Gaming, Gambling & Casinos” were extremely significant parts of Kessler & Associates’ success. The Center for Responsive Politics tracks annual lobbying fees by firm. An analysis of K&A annual fees indicates Wheat Government Relations was K&A’s #2 client in 2003 with fees of $295,000 (10% of the firm’s ’03 total fee revenue) and also #2 in 2004 with fees of $220,000 (13% of the firm’s total fee revenue). But K&A's affiliation with ”Indian & Native American Affairs” and “Gaming, Gambling & Casinos” stayed under the radar.

From 2002-2005, Kessler & Associates (Richard S. “Rick” Kessler, Billy Lee Evans, Franklin G Polk and Scott A. Spear) lobbied on behalf of Team Ilitch’s interests in Washington, D.C. virtually “under the radar” because Team Ilitch affiliates and partners had officially hired Wheat Government Relations not K&A. But as is revealed here, Wheat, in turn, passed through $665,000 in fees to Kessler & Associates over the four year period.

From 2003-2006 Rep. Richard Pombo (R-CA) followed Rep. Don Young as chair of the House Natural Resources Committee. For a period, Young served as the Committee's vice chair.

During the period from 2003-2005, it has been reported that Rep. Don Young, then chair of the House Transportation and Infrastructure Committee attempted multiple times to slip various earmarks into what would become the 2005 National Highway Spending Bill -- earmarks that would have effectively given Team Ilitch the go-ahead to build an off-reservation casino in Port Huron, Michigan, in partnership with the Bay Mills Indian Community.

In fact, The Hill reports one such attempt was uncovered and then actively opposed by Sen. John McCain and former Rep. Richard Pombo. Funds were earmarked for a transportation study in Port Huron. Hidden in the language of the earmark was a requirement ordering the Secretary of Interior to take actions that would have given Team Ilitch the approvals needed to build the off-reservation casino; and bypass all of the normal processes and approvals for such a project.

Rick Kessler (Richard S. Kessler) & Billy Evans, Kessler & Associates (K&A), contributed $3,000 to RICH PAC (Rep. Richard Pombo’s leadership PAC) during 2004/05. Team Ilitch and affiliates contributed a total of $40,000 to RICH Political Action Committee in ‘04/’06.

Kessler & Evans contributed $10,000 to Young and Young's Midnight Sun leadership PAC during the '04 & '06 election cycles. Malik and members of the Ilitch family have contributed more than $20,000 to Young and his Midnight Sun PAC. In addition, since 2003, they've given nearly $97,000 to the National Republican Congressional Committee and National Republican Senatorial Committee; and at least $50,000 to the Republican National Committee.

Kessler's role as head of the Rippon Society has come under scrutiny and investigation in recent years. Among other things, Rippon, who's leadership is made up of some of the most influential D.C. lobbyists (including Kessler's associate Billy Evans), is said to provide extravagant travel and trips to Members of Congress using educational loopholes that often include corporate lobbyists as fellow travelers.

Since 2002, various affiliates of Team Ilitch (Marian Ilitch and Michael J. Malik), paid D.C. lobbyists more than $4 million trying to influence proposals the Detroit casino syndicators are baking for Indian casinos in Michigan, New York and California -- chiefly a casino proposed in Port Huron, Michigan.

Another Team Ilitch affiliate, MJM Enterprises, has also hired two other lobbying firms with ties to Rep. Don Young: Potomac Partners D.C., a firm founded by Richard "Rick" Alcalde, another of Young's "A-Team" lobbyists; and Williams & Jensen, a firm with ties to past scandals involving former Speaker Tom DeLay and former Sen. Rick Santorum, that has provided services to and advised Young's Midnight Sun leadership PAC over the years.

links to: Documentation available via the Senate Office of Public Records

Official Website: Kessler & Associates (aka CBIZ Kessler Government Affairs LLC)

Previously updated 6.21.07

A Case of Abramoff-Lite: Pombo was doing favors for his Motor City Casino friends

a case of Abramoff-Lite: Rep. Richard Pombo was doing favors for his friends the Detroit casino syndicators on the same track he was advancing Northern Mariana Islands matters.

Rep. Richard Pombo was doing favors for his friends the Detroit casino syndicators; in turn they were funneling tens of thousands of dollars to Pombo’s committees, causes and friends. Although Pombo is no longer in office, these students of Abramoff and their Indian partners are still at play inside the D.C. Beltway.

While the Ilitch Family and Michael Malik, along with their lawyers and lobbyists, were contributing to Rep. Richard Pombo’s political committees and favorite causes, Pombo took advantage of his role as Chairman of the House Resources Committee and attempted in both the 108^th and 109^th Congresses to quietly slip through bills that would give favor and advantage to the Shinnecock Indian Nation, a tribe whose legal and public relations pursuits are being bankrolled by Ilitch & Malik.

Both bills had minimal exposure and then late in their respective sessions of Congress were reported in the House and placed on the Union Calendar for future vote of the whole House: H.R. 5134 (on Nov. 19, 2004); H.R. 512 (on Sept. 28, 2006). That’s as far as they got.

Both bills would have demanded the Secretary of Interior immediately review the Shinnecock Indian Nation’s petition for Federal Recognition and give a determination. If the Secretary failed to meet the Pombo deadline or didn’t rule favorably toward Pombo’s friends, both bills gave the Shinnecock the ability to appeal the in-action or negative decision in Federal court – a path that the Shinnecock have previously taken, which had outcomes favorable to the tribe.

The Shinnecock seek federal recognition as a tribe in order to build a Las-Vegas style casino and resort in the Hampton Bays area of Long Island, NY. Ilitch & Malik, under the veil of Gateway Casino Resorts (or Gateway Funding Associates), have been bankrolling legal, lobbying and public relations efforts to support the tribe in exchange for up to 30% of the future casino profits and development rights.

Ilitch & Malik want the matter expedited because each day that goes by without approvals that could lead to a groundbreaking or ribbon cutting for an anticipated Shinnecock casino in the Hampton Bays area of Long Island costs the pair of “investors” more money.

An Associated Press story written by Erica Werner in July 2005 raised questions about the timing of Ilitch/Malik hosted fundraising events to benefit Pombo in Detroit during the MLB 2005 All-Star Game and a hearing scheduled two days later in Washington D.C. that could possibly have had an impact on the Shinnecock pursuits. There are no noted press reports suggestig there was any awareness of Pombos attempts to assist his friends with H.R. 5134 or H.R. 512.

Gratuities to Pombo from the Detroit casino syndicators include:

• $16,000 from Mike & Marian Ilitch, and Michael Malik to RICH PAC (earning them #9 and #5 spots respectively on RICH PAC’s “Top Ten” individual donors list for ’04 and ’06; Jack Abramoff was #10);

• Total of more than $40,000+ for RICH PAC including contributions from various Ilitch lobbying firms (from $11,500 bundled on May 18, 2004 – $15,500 bundled on December 7, 2005);

• $26,600 to the San Joaquin County GOP Committee (Pombo’s home party organization) on October 18, 2004 from Detroit-based Barwest (Ilitch/Malik entity doing business in Barstow, Calif.);

• A $5,000 per head fundraiser at the 2005 MLB All-Star Game in Detroit (total proceeds unknown as there are no related contributions noted in Pombo’s campaign committee or RICH PAC disclosures despite aides to Pombo indicating he was the beneficiary of the event);

• Various travel arrangements;

• $50,000 to the RNC recorded the day after (7/13/05)the All-Star Game fundraiser ($25,000 each from Michae l J. Malik and Christopher Ilitch);

• $220,000 lobbying contract signed by Barbara Bonfiglio on behalf of Williams & Jensen to represent Malik’s MJM Enterprises and Development during the period Bonfiglio was also RICH PAC treasurer.

H.R. 5134 - Congressional Actions

• 9/23/2004: Referred to the House Committee on Resources.

• 9/29/2004: Ordered to be Reported (Amended) by Voice Vote.

• 11/19/2004 7:51pm: Reported (Amended) by the Committee on Resources. H. Rept. 108-788.

• 11/19/2004 7:51pm: Placed on the Union Calendar, Calendar No. 482.

H.R. 512 - Congressional Actions

• 2/2/2005: Referred to the House Committee on Resources.

• 2/10/2005: Committee Hearings Held. (1st published hearing of the session; Shinnecock only testimony outside government; 14 of 46 Members noted as present)

• 6/21/2006: Committee Consideration and Mark-up Session Held.

• 6/21/2006: Ordered to be Reported by Voice Vote.

• 9/28/2006 4:28pm: Reported by the Committee on Resources. H. Rept. 109-694.

• 9/28/2006 4:33pm: Placed on the Union Calendar, Calendar No. 419

Pombo introduced H.R. 5134 in the House the same day he introduced H.R. 5135, “To provide for a nonvoting delegate to the House of Representatives to represent the Commonwealth of the Northern Mariana Islands.” Six days later both bills were put before a vote of the Resource Committee, without either having been the subject of a previous hearing. Pombo introduced amendments to the bill he had introduced less than a week earlier in the form of a substitute bill. The committee voted and ordered the matters be reported to the full House. Pombo’s troubles in the Abramoff scandal have been tied to matters of the Northern Mariana Islands.

Although Rep. Pombo was clearly attempting to railroad approval of H.R. 5134 (and H.R. 5135); H.R. 5134 failed to win approval from the whole House in the 108^th Congress.

Pombo was not deterred. He reintroduced the bill as H.R. 512 one month into the 109^th Congress and his committee promptly “heard” the matter a week later.

The controversy surrounding the Ilitch/Malik hosted All-Star Game fundraising benefit for Pombo broke during Summer 2005 and the activities of Pombo and associates like his PAC Treasurer and former lobbyist Barbara Bonfiglio were increasingly being questioned.

Pombo severed his ties with Bonfiglio in March 2006 approximately six months after disclosure reports indicate her ties with Ilitch/Malik (for which she had been paid $220,000) were severed.

It had been 16-17 months since any formal action on H.R. 512.

Shortly after the June 2006 primary election, the Resources Committee held a routine mark-up session on what the Daily Digest indicated were “miscellaneous matters.” On June 21, 2006 the House Resources Committee reviewed more than two dozen bills including H.R. 512. The committee ordered by voice vote that reports be printed and advanced on certain of the various bills reviewed. H.R. 512 was reported to the Whole House three months later.

On September 28, at a time when the press and most others were focused on the many political campaign stories underway in the Fall elections, the report was presented and slipped into the hopper for a future vote of the whole House. All or part of the report prepared for the full House was part of the report he had ordered printed in 2004 because it appears that on the GPO printed version of Report 109-694, page six, third to the last paragraph of the section "COMPLIANCE WITH HOUSE RULE XIII" the report's author failed to replace "H.R. 5134" with "H.R. 512."

Pombo faced defeat at the polls on election day 2006 and there appears to have been no further action on H.R. 512.

Marian Ilitch and her family along with Michael J. Malik, Sr. have not been deterred by the loss of their political steward Richard Pombo. They still aggressively pursue plans to expand their Michigan casino empire through ventures with:

• the Shinnecock Indian Nation, seeking federal recognition and the opportunity to develop a casino complex in the posh Hamptons resort area of Long Island in New York;

• the Bay Mills Indian Community, using questionable land claims as leverage to get approvals to develop a third tribal casino off reservation in Port Huron, Mich.; and

• the Los Coyotes and Big Lagoon Rancheria Bands of Indians in California, two tribes Ilitch & company have adopted for the purposes of relocating planned tribal casinos across state to the Mohave Desert community of Barstow, where Ilitch owns more than 100 acres alongside I-15, half-way between the southern California basin and Las Vegas.

politics

originally posted 5.10.07

WheatGR has re-assigned nearly a decade of financial disclosure records filed for the Bay Mills Indians to the Shinnecock Indians

UPDATE: Within 48 hours of this original blog post, corrections were made to filings with the U.S. Senate Office of Public Records by Wheat Government Relations regarding its longtime client the Bay Mills Indian Community.

Wheat Government Relations (WheatGR), a D.C. lobbying firm headed by former Rep. Alan Wheat, has apparently either confused its two clients The Shinnecock Indian Nation (New York) and Bay Mills Indian Community (Michigan) or in fact, has intentionally masked (or merged) all the records regarding Wheat GR's nearly 10-year engagement with the Bay Mills Indian Community available on the Secretary of the Senate's Office of Public Records lobbying disclosure Web site (select "Registrant Name" and holding down the control key select "Client Name," then click "Go;" in Registrant type "Wheat Government Relations" and in Client type "Shinnecock")

Records for the Bay Mills Indian Community, a significant client of Wheat Government Relations from 1998 through 2006 are now found under the client name "Shinnecock Indian Nation" for those years 1998 - 2006.

Records for the Shinnecock Indian Nation, also a Wheat client, are now found under the client name "Shinnecock Indian Nation of New York" for the years 2004 - 2006.

It's unclear why this has happened, but the staff in the Secretary of the Senate's office has indicated they plan to look into the matter and follow up with Wheat GR.

Disclosure records filed August 2004 by Kessler & Associates Business Services regarding its client Wheat Government Relations indicate oddly that Kessler was representing WheatGR on the following specific lobbying issues: "Bay Mills/Shinnecock Land Swap." The two tribes are located in Michigan and New York respectively and there is nothing to suggest the tribes share common history or ancestral territories.

Both the Shinnecock and Bay Mills Indians have pursued schemes for off-reservation Indian casinos backed by Mrs. Marian Ilitch and Michael J. Malik, Sr., Detroit casino syndicators.

UPDATED: Detroit casino syndicators had previously masked their $665,000 relationship with controversial D.C. Lobbyist

TVT has received copies of documents originally produced by Detroit casino syndicators (Marian Ilitch, Michael J. Malik, Sr.; their affiliated interests and partners) to market their tream to a limited audience. The materials represent that Richard S. Kessler is (was) one of their federal lobbyists. Previously the Detroit casino syndicators and Kessler have been tight-lipped about any relationship.

Kessler is president of Kessler & Associates as well as the non-profit Ripon Society. A review of Federal lobbying disclosures failed to find any public documents on file that would be required by law to indicate Kessler (Kessler & Associates) was a lobbyist for the Detroit interests and their partners.

However, records available through the U.S. Senate Office of Public Records indicate the Detroit casino interests and several of their various Native American partners have been (are) represented by lobbyists at Wheat Government Relations (WheatGR) and several other D.C. lobbying firms; but never by Richard S. Kessler or Kessler & Associates.

A deeper review of federal lobbying records reveals Wheat Government Relations, the lobbying firm, was also registered as a lobbying “client” and was represented by lobbyists at Kessler & Associates; and further, that although WheatGR isn’t labeled as, or listed with other clients under the “Casinos/Gambling” industry, Kessler did represent WheatGR on “Indian gaming/casino” issues.

And from 2002-2005 Wheat funneled $665,000 quietly from Marian Ilitch, Michael Malik and their affiliated interests and partners to Kessler & Associates.

Official website: Kessler & Associates (aka CBIZ Kessler Government Affairs, LLC; Century Business Services, Inc., Kessler & Associates Business Services)

Click on one of the "labels" below to see other related posts.

Casino syndicator tied to Ripon Society promoted Homeland Security project during boondoggle to Ireland

TVT has obtained background material distributed by Detroit-based casino interests that includes a biography for one of its principals, Michael J. Malik, Sr.

The Malik biography boasts the following:

“Mike is currently working on a homeland security project and recently served as the moderator of a homeland security panel in Ireland with member of U.S. Congress, Senate and Foreign Embassy staff.”

This sure sounds like one of those questionable Congressional boondoggles organized and funded by lobbying firms and their clients; trips to Ireland specifically that have come under greater scrutiny which were organized by Jack Abramoff and his associates, or Richard Kessler and his Ripon Society.

While TVT has not uncovered any direct relationship between Malik and Abramoff; in documents sent to TVT, Malik’s affiliates represent that Kessler is their lobbyist. Kessler has not filed any report with appropriate congressional offices to disclose he or his firm is (was) a lobbyist for Malik, Malik’s gaming partner Mrs. Marian Ilitch nor their affiliated businesses or partners.

TVT has discovered that the primary lobbying firm (Wheat Government Relations) representing Malik’s various casino/gambling interests apparently funneled $665,000 (most likely from Malik’s affiliates and partners) to Kessler’s lobbying firm Kessler & Associates between 2002 and 2005.

Information about the date of the trip and the names of those Members of Congress who attended the gathering would shed even more light on the appropriateness of Malik’s activity and those with whom he associates.

Among others, Malik is a patron, travel partner and political pal of Rep. Don Young (R-AK) and Rep. Jerry Lewis (R-CA) as well as former Rep. Richard Pombo (R-CA); individuals with key roles on committees overseeing matters of national security and appropriations and whose fundraising practices and relationships with various lobbying firms and their clients have prompted calls for investigations.

You may also want to review these posts:

• Lobbyist paid $515,000, secretly representing Ilitch syndication interests
• A Case of Abramoff-Lite: Pombo was doing favors for his Motor City Casino friends
• Public Citizen exposes Kessler, Ripon and the free junkets for Members of Congress
• Team Ilitch directed $40,000 to RICH Political Action Committee
• Rep. Don Young's Top 10 donor list includes prominent Great Lakes area families bankrolling 'off-reservation' casino projects
• Rep. Young (R-AK) flying around in Detroit Casino Developers' private jet
• Casino Developer who fronted travel & entertainment costs for Rep. Don Young (R-AK) did the same for former Rep. Richard Pombo (R-CA)

Former Miss California lands job as lobbyist for D.C. health care association

We've been informed that MaryAnne Sapio, previously a lobbyist for Wheat Government Relations, has joined the American Health Care Association (AHCA) as Director of Government Relations and primary AHCA lobbyist in Washington, D.C..

AHCA, according to its website, is a non-profit federation of affiliated state health organizations, together representing more than 10,000 non-profit and for-profit assisted living, nursing facility, developmentally-disabled, and subacute care providers.

TVT had previously reported that Sapio, a former Miss California 1999, had left Wheat Government Relations (WheatGR) where she had been a lobbyist for the Bay Mills Indian Community, Blue Water Resorts, Gateway Casino Resorts, Barwest, and the Shinnecock Indian Nation, (each of these clients are casino venture affiliates of Michael J. Malik and Marian Ilitch). When TVT orignially reported on Sapio's departure, the circumstances and her new employer were unknown.

It is interesting to note that Sapio, while at Wheat, was registered as a lobbyist for other clients including lobbying firms U.S. Strategies and Kessler & Associates (Century Business Services Inc.) -- Richard Kessler is the president of the non-profit Ripon Society and the fous of congressional travel controversies). These lobbying firms curiously retained WheatGR as lobbyist.

During this same time, WheatGR had retained Kessler & Associates to represent Wheat on Indian Affairs and Indian Gaming matters and paid Kessler $515,000 -- slightly more than the total WheatGR was paid by its own clients for represenation on the same matters, during the same period. It appears that fees paid by the Ilitch/Malik affiliates to WheatGR were passed through to Kessler & Associates.

Sapio also represented Koch Equipment.

Cape Cod Today speculated in 2006 that it was coal and oil billionaire Bill Koch who used a tangled web of lobbying firms (including Kessler & U.S. Strategies) to get Rep. Don Young to insert an amendment in a Coast Guard Bill that was anticipated to kill the Cape's offshore wind power industry. If true, Sapio might know something about it.

sources: center for responsive politics, opensecrets.org; and center for public integrity, lobbywatch.

Public Citizen exposes Kessler, Ripon and the free junkets for Members of Congress

posted at Public Citizen | Congress Watch

Richard Kessler and the Ripon Groups:
How a Washington Lobbyist Gives Lawmakers Free Trips
Despite the Ban on Lobbyist-Funded Travel

Elaborate schemes concocted by prominent Washington lobbyist Richard Kessler, head of Kessler Business Services [aka Kessler & Associates], have allowed registered lobbyists to spend millions of dollars taking members of Congress on luxurious trips to Europe and U.S. resorts without technically violating congressional ethics rules that forbid registered lobbyists from paying for congressional travel.

• Read the full report [PDF]
• Read the press release
• Lobbyist paid $515,000, secretly representing Ilitch...
• washingtonpost.com: Lobbyists Help Fund Ripon Travel

King of Congressional Boondoggles - Ripon Society & Richard "Rick" Kessler

Since 1964, the Ripon Society has tried to create a more inclusive GOP through 'moderate, progressive policy formation,' according to its official mission statement. Currently headed by Lobbyist Richard Kessler. Among Kessler's clients Burlington Northern Santa Fe and Wheat Government Relations (another lobbying firm that passes through clients)

Wheat is on the books representing various affiliates and partners of Marian Ilitch and Mike Malik. Wheat turns around and has passed through more than $515,000.000 from those entities to Kessler. Kessler keeps an arms distance from Ilitch/Malik entities by using Wheat as the middleman.



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