Hawaii's newest lobbyist spent big, catapulting her into the company of 'Big Boys;' Won't reveal identities of those who bankrolled schemes

Blogger's Note: John Radcliffe (a lobbyist & career union operative who is a confidante of Hawaii's Gov. Neil Abercrombie) and Elizabeth "Liz" Hata-Watanabe, his latest recruit, have failed to be forthcoming and instead demonstrate a conspiracy to mislead and even deceive Hawaii's journalists, voters, public officials and legislators.

citizensforabetterway.com

Hawaii lobbying disclosures reveal that Citizens for a Better Way, LLC, (CFBWllc) a for profit enterprise organized on April Fool’s Day 2011 and purported to be a grassroots citizens’ committee, actually spent nearly $40,000 on a lobbying & advertising activity during March and April 2011.  The group was formed by gambling industry lobbyist John Radcliffe and associates at the Capitol Consultants of Hawaii lobbying firm.  Then they hooked up with Liz Hata-Watanabe, to help advance the lobbyists’ schemes intended to secure approval for a gambling syndicate from Detroit to develop and operate a Las Vegas-style commercial casino in Waikiki.

But when Jim Dooley (HawaiiReporter.com) queried them in April about their sneaky last minute efforts, Radcliffe and Watanabe danced around, played coy and Radcliffe told him they were spending “very little.” That's not the only lie he told in this conspiracy -- but more on that in the coming days.

In its infancy, CFBWllc spent very aggressively, and that catapulted the newbie to a place on the list of Hawaii's Top Five Biggest Spenders – 5^th out of approximately 230 entities that spent money lobbying. Only four others spent more: trial lawyers, soft-drink beverage producers, Philip Morris and the teachers association -- notoriously big spenders across the country!

Hawaii's Top 5 Biggest Spenders	Lobbying Expenses
1.       Hawaii Association for Justice (trial lawyers)	$119,424.04
2.       American Beverage Association (soft-drink beverage producers)	$90,585.95
3.       Altria Clients Services Inc. and its affiliates (Philip Morris)	$51,925.61
4.       Hawaii State Teachers Association (HSTA)	$41,210.18
5.       Citizens for a Better Way, LLC	$39,093.10

TheVerifiableTruth.com (TVT) has uncovered details, some which have already been shared, suggesting gambling lobbyist John Radcliffe -- a confidante of Gov. Neil Abercrombie -- and Radcliffe’s associates at Capitol Consultants of Hawaii, are the driving forces behind CFBWllc, their so-called "grassroots" "citizens" group; and Watanabe is their tool. 

Lobbyists at Capitol Consultants count among their clients a Detroit Casino syndicate (Michael Malik, Marian Ilitch/MotorCity Casino, Marketing Resource Group) and the publicly traded Boyd Gaming Company which has casinos in Las Vegas and across the U.S. and currently shuttles patrons back-and-forth from Hawaii to its California gambling halls. Both entities have significant investments and interests in Hawaii's gambling market.

Despite proof to the contrary, Radcliffe and Liz Hata-Watanabe, a person identified as the group’s founder, deny involvement by their gambling industry friend from Detroit and Las Vegas.  Then again, they have yet to disclose who is behind the group, truly.  After all, $40,000 isn’t a drop in the bucket -- especially since Watanabe has since filed bankruptcy.

CFBWllc was organized in a way to specifically avoid disclosing where the funding is coming from – at least for now. As structured, CFBWllc is only required to disclose expenses and even then, not detailed expenses, but buckets of spending as allocated into pre-established spending categories. Then again, that current simplified standard of reporting may be what contributes to their eventual downfall because they are amateurs with delusions of Jack Abramoff!

The next round of disclosures won’t be required until after the New Year.

Radcliffe and Watanabe have failed to be forthcoming and instead have, possibly with the participation of others, conspired to mislead and even deceive Hawaii's journalists, voters, public officials and legislators.  Examples like theirs contribute to the public's general mistrust of government and a belief, by many in our democracy, that corruption is the prevailing standard.

To review related content, click on the "Labels" found under social media share buttons at the bottom of this post or review these select posts:

• Failed Nightclub Owner is a Shameless Self-Promoter
• She Said: Here's what Hata-Watanabe had to offer after a recent visit to TheVerifiableTruth.com
• Failed Nightclub Owner is a Shameless Self-Promoter
• Really? She's Treasurer of the Honolulu County GOP Committee?
• Hawaii's 'Citizens for a Better Way' isn't a 'Citizens' Group After-all
• Lobbyists Spent $40,000 Manufacturing So-Called 'Citizens' Group Support for Oahu Casino Scheme
• There Can Be No Doubt Detroiters' Hawaii Lobbyist John Radcliffe Created Pro-Casino So-Called 'Citizens' Group'
• Citizens for a Better Way, a Group Fronting for Detroit Casino Syndicators in Hawaii, Establishes Digital Media Channels With Poor Result
• Capitol Consultants of Hawaii: Double Dipping Gambling Conflicts, Resume Padding Lies or Harboring Secret Partners?
• Strange Bedfellows: Hawaii's Former Governor & Detroit's Gambling Promoter?
• Founder of tax-exempt nonprofit produced 'Hawaii's Big Deal: Poker Tournament'  the 'closest thing to legalized gambling in The Islands'

She Said: Here's what Hata-Watanabe had to offer after a recent visit to TheVerifiableTruth.com

One of the numerous photos available via Google images

In response to our post, "Really? She's Treasurer of the Honolulu County GOP Committee?" TheVerifiableTruth.com (TVT) received the following via email from Liz Hata Watanabe. As you'll see, her response is that of a professional "victim" designed to engender guilt and sympathy but absent anything to refute the "facts" as we've outlined them previously, nor does she display any regret or acknowledge wrongdoing or failures. If what we've previously represented was hogwash, why even acknowledge it with this reply? Socio-path; Borderline Narcissistic Personality Disorder.


She Said...
Allow me to confirm some of your information. [Nothing that follows serves to confirm anything we've reported]

I started the O Lounge, successful business for many years. [Then why hide your books from HLC inspection?] During the course of its lifespan I had a child and took a step back and allowed a GM to run the operation. After some of these "claims", and per my attorney listed above, Micheal J. Green [The damsel in distress turned bully who copied four men in her message to us, including her attorney] I was targeted and in fact documents were falsified, and not by our organization. That is still an on going situation within the Honolulu Liquor Commission. [TVT has found nothing via HLC nor has Watanabe produced anything concrete, that suggests there were falsified documents or that there's any real activity continuing. She backed down and withdrew herself  to avoid any further risk that might  possibly result in a revoked license.]

I'm surprised you would jeopardize my husband's safety, or even my children's safety by publicizing what he does for a living as my husband has worked "plain clothes" for many years and could potentially be targeted by the convicted criminals he has rid our streets of. [TVT did not "Out" her husband. She has exploited and exposed her own family pimping herself out to reporters who will write fluff pieces without investigation. Here's one example where she exposes her husband's career in a MidWeek.com cover story from 2008.]

Allow me to mention that my grandmother suffered from terminal liver cancer and I preferred not to disclose that to the public and made the choice to care for her during her last very painful year of life. 

At that time in for her and the memory of my late grandfather I started a foundation to assist children in shelters and transitional homes. [Sounds good but what has been accomplished? The tax-exempt nonprofit hasn't reported much if any income; and how many people faced losses as a result of the $387k bankruptcy?]

The "Hawaii's Big Deal" was to introduce these ideas... It was never intended to go further than that, and the "board" decided to take a different approach. I do not make the decisions alone. And not that it matters, but I was the investor of this show. [The Board = a couple family members and Matt Matsunaga; plus Hawaii's Big Deal had her party promotion fingerprints all over it]

It is belittling to have to give an explanation to you or anyone else about my life or my doings. [Then why are you? This is what happens when you thrust yourself into the spotlight repeatedly.] What you have done is made me out to look like a horrible person who conducts illegal activity. I have worked to do tremendous good for the community and the young children of our islands. [Again, nothing concrete or substantial to offset the facts that she was repeatedly fined for serving alcohol to minors -- including several instances that flew in the face of regulars at the same time her license was suspended and on probation; nothing that explains why she was hiding her books from investigators; and then there's the matter of the $387k bankruptcy as necessary and blessed by her attorney. As long as she could keep the dirty little secrets hidden it was all good, now that TVT has exposed some, she's angry.]

Perhaps if you had asked I could have informed you that the bankruptcy filed under advisement of legal counsel, Philip Miyoshi, also cc'd was 100% business debt. Not one cent was personal, I invested close to a million dollars cash and unfortunately for the "little fish" like myself could not fight for what's right with the "corporate big fish". Of course I'm sure you'll selectively use this information to portray something else. [Again nothing substantial; and worse yet, the notion that because an attorney advised it as a strategy or gave it his "blessing" she's been absolved of any sin.  My goodness, he's just an attorney!]

Maybe you should "pick" on those really ruining the party, or are you and have you been part of that regime and for that reason attack the new members?! Are you hoping to perpetuate what has shamefully taken place for years! [Huh?]

This is outrageous you would attack me being that I have not touched a single cent from the county funds. Until now all moneys have been appropriated by the party's treasurer. I am the county treasurer under advisement from the county chair. [That one has broken the law and had serious failed financial doings and would be serving as "Treasurer" of a nonprofit or other organization doing public good is worthy of disclosure or, if need be, exposure. You'd have demonstrated character if you'd stepped down or otherwise not assumed the role.]

Your accusations are hurtful and politically charged. These comments are also very misleading and obviously intended to tarnish my reputation. [It's regretful you've had your feelings hurt. But accusations?  We've posted truth that's verified through multiple sources/resources and provided the back up documentation for examination or otherwise directed readers to discover such independently. We couldn't make this stuff up.]

Regardless, I doubt you will correct any of your misinformation, I thank you for your time and hope that on subsequent stories that God lead you to do the right thing and cover both sides of the story, as all good reporters do. [Wow! She's invoked motherhood, the good name of her grandfather and God without ever acknowledging the mistakes, demonstrating regret or being completely truthful.  And yet in addition to the other details we've exposed, there's also the matter of a personal injury suit against Costco!  I know right... It just keeps getting better and better.  Again, we couldn't make this stuff up if we tried!]

Feel free to contact me at anytime. I'm always available.

Liz

[Liz, here'a bit of advise... you may want to let the bankruptcy court know you formed a limited liability company in April in which you're the only member and its manager; and that you're the founder and steward of the Hata Foundation. Just 'cause it's tax-exempt nonprofit doesn't mean you or others can't be paid or otherwise pay expenses and you certainly wouldn't want to risk losing your tax-exempt status 'cause you failed to disclose.]


________________________

Blogger's Note: During our process of discovery we came across an article that had been posted on topix.com when HLC revoked the liquor license at Harbor Court Bistro.  We were surprised to see that 79 comments had been left attached to that article. This same shallow rhetoric, failure to demonstrate regret or understanding of others and that she is a controversial and polarizing character are ever present in those 79 comments.

Hawaii's 'Citizens for a Better Way' isn't a 'Citizens' Group After-all

Elizabeth "Liz" Hata-Watanabe:
She's not what she claims...

Citizens for a Better Way (CFBW)  isn't a grassroots "citizens" group at all.  Rather, it was organized in April 2011 as a for-profit limited liability company with involvement of a self-identified "entrepreneur" and "philanthropist" whose success and ethics are questionable at best.

Citizens for a Better Way, L.L.C.
CFBW showed up on the Hawaiian political scene during 2011, established with support from the Capitol Consultants of Hawaii lobbying firm, as the so-called 'citizens' champion for proposed legislation that would legalize gambling in Hawaii and approve development and operation of a Waikiki casino.  However, records on file with the Hawaii Department of Commerce & Consumer Affairs indicate the group is actually  Citizens for a Better Way, L.L.C., a for profit, Limited Liability Company, incorporated in Hawaii and registered with the state on April Fool's Day (4.01.11)!

Elizabeth Hata Watanabe, a self identified entrepreneur and philanthropist who subsequently filed bankruptcy, is designated in official documents as the only member of the LLC but not liable for the debts, obligations, and liabilities of the company. She is also reportedly also LLC's manager and agent of record.

Note: it would appear that the mailing address and organizer's (Watanabe) address as reported on the Articles of Organization are both P.O. Boxes. A Google search of the third address included on the Articles of Organization and reportedly that of the Agent of Record (98 751 Kuahao Pl., Pearl City, Hawaii, 96782) suggests the address is also shared with Buzz's Original Steak House (a dba for Bosh Ltd.), Transouth Financial, Associates Financial, CitiFinancial and Grace Bible Church Pearlside.  Perhaps Watanabe failed to provide a Suite number, or another P.O. Box or some space belonging to someone else.

Scam to Avoid Disclosing Funders? 
By organizing as a for-profit company, CFBW can avoid disclosing its funding sources -- at least temporarily. Political or grassroots committee have to disclose contributors. However, if CFBW was really organized for purposes that are primarily political or advocacy in nature or if it turns out the nature of its activities are primarily such, then Watanabe, Radcliffe and any others involved in this scam are certain to become the focus of investigations by Hawaii's Attorney General, the IRS and/or the FBI.

Watanabe Bankruptcy
If CFBW is in fact a for-profit entity of which Watanabe is the manager and only member, some mention of Citizen's for a Better Way, L.L.C., would likely be included in the disclosures Watanabe has made to the federal court in the matter of a Chapter 7 Bankruptcy (Case: 11-01679)  filed 6.14.11 as Elizabeth C. Watanabe (aka Elizabeth Hata Watanabe) 91-209 Kupiapia Place, Ewa Beach, Oahu, 96706, with counsel from attorney Philip W. Miyoshi.  Watanabe established CFBW about ten weeks before filing bankruptcy.

March-April 2011 Lobbying Expenses: $40,000
CFBW, the limited liability company, is required to disclose funds spent on political and lobbying activity. It did report on 5.31.11 that it had spent nearly $40,000 on "Advertising Media" activities during March & April 2011. Clearly that didn't come from Watanabe's personal bank account. Last Spring, CFBW established a website, Facebook page and YouTube presence.  It has produced and distributed three videos, at least two of which have or will air on cable TV in Honolulu before the end of the year.  News stories last Spring reported CFBW was behind robocalls (pre-recorded, automated telephone messages) to Hawaii voters encouraging them to call their legislators to urge legislators to cast pro-gambling, pro-casino votes.

Citizens for a Better Way, L.L.C. - 2011 Organization Statement

Lobbyists Spent $40,000 Manufacturing So-Called 'Citizens' Group Support for Oahu Casino Scheme

Citizens for a Better Way | Hawaii
April 30, 2011 Disclosure

In Hawaii, the so-called "Citizens for a Better Way" group (CFBW) was set-up last Spring by pro-gambling lobbyist John Radcliffe and his associates at the Capitol Consultants of Hawaii lobbying firm to create the appearances of a "grassroots" movement supporting their client's pro-casino objectives.  There is no organic grassroots activity; rather it's all been manufactured by Radcliffe.

CFBW filed a lobbying expense disclosure form on May 31, 2011 for the period from March 1 through April 30, 2011 and reported spending $39,093.10 on "Media Advertising" during that two month period.  During that period, Radcliffe and company created a website, Facebook page and YouTube channel for CFBW and produced at least three videos created using a familiar public affairs round-table format (think local version of Meet the Press).  According to CFBW's website, two of those videos will air four times each during November 2011.

That they spent nearly $40,000 is significant given CFBW has not disclosed where that money came from and others have reported CFBW President Liz Watanabe filed personal bankruptcy the month after she filed the lobbying disclosure.  Certainly it didn't come out of her checking account.

Radcliffe and George A. "Red" Morris are lead lobbyists at Capitol Consultants of Hawaii.  While neither were registered as lobbyists for gambling interests in 2009, both Radcliffe and Morris were registered in 2010 as lobbyists for Detroit casino syndicators, via the Detroiters' PR firm Lansing-based Marketing Resource Group.  The Detroiters represent the same Mainlaind casino syndicate that pushed legalization of gambling halls back in 2000.

While Radcliffe continued to be register as a lobbyist for the Detroiters in 2011.  Morris reports his arrangement with the Detroiters was terminated in April 2010.   But in November 2010, Morris was retained by Boyd Gaming Corporation and continued that representation through 2011.

At the time Capitol  Consultants of Hawaii was manufacturing the pro-casino websites, videos, etc. for the CFBW "grassroots" lobbying effort that Liz Watanabe was recruited to manage; Capitol Consultants' two lead lobbyists were registered to lobby on behalf of established gambling interests: (1) the Detroit casino syndicate that includes Marian Ilitch, owner of MotorCity Casino; and (2) Boyd Gaming Corporation which operates casinos in Las Vegas and elsewhere throughout the U.S.

Radcliffe was registered as a lobbyist for the Detroiters from 2005-2008. Morris was registered as a lobbyist for Boyd Gaming Corporation from 2005-2008.  While Morris wasn't registered as a lobbyist for the Detroiters from 2005-2008 his resume indicates the Detroiters were his clients from "2000-present."

It's not curious that the Detroiters and/or Boyd would have written a check for $40,000 to launch CFBW but rather that those two sophisticated gambling enterprises, one of which is publicly traded, could be represented by lobbyists under the same roof without concern about potential conflicts makes one wonder.  Especially because the legislation that Radcliffe et. al. have surfaced during the last two legislative sessions allows for just one casino on Oahu and not two.  If the Detroiters and Boyd were planning to partner on a single Oahu casino then any concern about a conflicts at Capitol Consultants would disappear.

Finally, as a reminder, during the two year push for gambling in Hawaii that culminated in 2002, they also manufactured a so-called "grassroots" group to backstop traditional lobbying efforts. The Coalition for Economic Diversity spent more than $200,000.  That campaign was managed by James Boersema who is now Governor Abercrombie's Communications Director.

Disclosure? And their tangled web: Detroiter Michael Malik, the Jack Utsick Ponzi Scheme, Shinnecock & Bay Mills Indians, and Akerman Senterfitt

Michael J. Malik, Sr.

According to official lobbying records, during 2008 & 2009 the D.C. office of Akerman Senterfitt (Akerman) a legal/lobbying firm, registered as a lobbyist for the Bay Mills Indian Community but did not report any related income. At the same time Akerman also represented the Shinnecock Indians and was paid $230,000 for that work. Detroiter Michael J. Malik, Sr., or his affiliates pay all or part of the lobbying bills and manage the lobbying contracts for both Native American groups who are also his intended gambling partners. Should either tribe receive the necessary approvals, Malik affiliates have the exclusive rights to develop, manage and operate their respective gambling halls.

Simultaneously, Michael I. Goldberg, an Akerman attorney and "shareholder" in Florida, had been retained as the Receiver in a $300 million federal ponzi scheme case (SEC v. Utsick) against entertainment promoter John P. "Jack" Utsick, his Worldwide Entertainment Group and other parties. Utsick has reportedly taken asylum in Brazil and failed to appear during final court proceedings. 

Michael I. Golderg

In the matter of the ponzi scheme, Receiver Goldberg had brought a fraudulent transfer case in Florida federal court against Malik (Goldberg v. Malik , Jun 9, 2008) alleging Malik was involved in a $2.1 million fraudulent transfer.   

After the usual legal maneuvering, the Court received a Settlement Agreement (April 29, 2009) in which the Receiver, an attorney with and "shareholder" of Akerman whose associates had simultaneously represented the gambling interests of Malik and/or his affiliates, had revised down the amount of money alleged in the fraudulent transfer from $2.1 million to $620,000 and the parties agreed Malik would repay the Receivership $170,000 in-full within twelve months or be responsible for repaying the entire $620,000 minus any payments. It's not clear if Malik made good on the terms of the Settlement Agreement. 

By the terms of the negotiated Settlement Agreement, Goldberg agreed Malik, a guy who reportedly spent $300,000 on a Las Vegas wedding and paid $5.4 million for a Manhattan Penthouse both in early in 2010,  would repay just 8% of the funds Goldberg had originally alleged were fraudulently transferred.

It unclear whether Receiver Goldberg or the Court were aware of the following circumstances prior to entering into the Settlement Agreement: 

• Michael J. Malik, Sr. (as Trustee under the Michael J. Malik Revocable Living Trust dated 5/13/98) and Jack Utsick (as President, The Entertainment Group Fund, Inc.) organized AB Funding Company, L.L.C., a Detroit-based enterprise, on March 10, 2000.  In court documents it was revealed the pair were introduced by Bruce Glatman.

It is also unclear whether or not Malik ever disclosed his relationships with Akerman associates in D.C.; Goldberg ever checked for conflicts; and/or if those details were ever disclosed to the Court:

• From 2007-2011 Akerman has represented the Shinnecock Indians and the Shinnecock paid $510,000 to Akerman.  Akerman represented the Bay Mills Indians during 2008 & 2009 but there are no records that Akerman was compensated directly for that work. Malik or his affiliates either pay directly or funnel funds to other parties responsible for paying the lobbying bills for these Native American entities.  Should these parties get approvals to build casinos in the future, Malik affiliates have the exclusive rights to develop, manager and operate the gambling halls.

It is noted that since Malik and Goldberg entered into the Settlement Agreement, the Shinnecock have paid Akerman approximately $250,000 or nearly half of all the payments Akerman has received from Malik affiliates/partners; and Akerman terminated representation of the Bay Mills Indian Community.  Since the Shinnecock achieved Federal Recognition, Akerman has continued to be paid, at least $70,000.

A collection of Ilitch affiliates with revenues reported at $1.6 billion only spends $14,000 lobbying in Lansing?

Who are they kidding?

Michigan’s Secretary of State maintains a free, online searchable data base with access to information required to be reported routinely under Michigan’s Lobby Registration Act.

That makes it easy for organizations like the Michigan Campaign Finance Network (mcfn.org) to publish, among other things, an annual list of Michigan’s Top 200 Lobbyists. In 2007, those 200 lobbyists each reported spending between $33,700 and $1.4 million on advocacy. In all, Michigan lobbyists reported spending $32.1 million in 2007.

But take a look at that list. You won’t find Ilitch Holdings, Inc., ranked 300th on Forbes' List of America's Largest Private Companies, on that list of Michigan's Top 200 Lobbyists -- nor will you find any of a dozen plus other major Ilitch affiliates including Blue Line Foodservice Distribution, Detroit Red Wings, Detroit Tigers, Little Caesars Pizza, MotorCity Casino, Olympia Development, Olympia Entertainment, Uptown Entertainment, etc..

In fact, while Ilitch Holdings, Inc. reports its collection of Michigan-based companies has annual combined revenues totaling $1.6 billion or more; the same collection of companies reported spending just $27,650 on State lobbying activity over almost two years. And then consider that, based on information available at OpenSecrets.org, these same people and their partner contributed more than $234,000 to federal political candidates and committees during the same two years – and many of those contributions are capped at $2,300 each.

Considering the mountain of tax and regulatory policy, alone, that is under consideration in Lansing at any given time -- matters which could have very positive or very negative impacts on any number of Ilitch affiliates that span the range from sports, gaming and entertainment ventures to hospitality and food service enterprises to major real estate management contracts and development projects -- it’s curious that only two of the Ilitch affiliates have registered their lobbying activity; and even more curious that, in total, they report having spent less than $14,000 per year on lobbying expenses. Now ... take a moment to recognize that such an amount represents less than 1.5 weeks worth of work by a $250 an hour attorney/lobbyist.

Who are they trying to fool?

MotorCity Casino Lobbying Activity reported to be a fraction of Competitors' Spending

Of the various affiliates under the Ilitch Holdings, Inc. umbrella, we can find just two that are registered to lobby in Lansing: Detroit Entertainment, LLC and Detroit Tigers, Inc.

Detroit Entertainment LLC (DE LLC), the company that owns MotorCity Casino (MCC), is registered as a Lobbyist in the State Capitol. Rhonda Cohen, MotorCity’s COO, is recorded as the lobbyist’s signatory.

Cohen reported lobbying expenses of $20,900 in 2007; and just $6,750.00 so far for 2008. That's less than 10% of the lobbying expenses reported by MotorCity Casino's two competitors.

Cohen also records that DE LLC employs three firms as its lobbyist agents. Two of the three are among the top 100 lobbyists/agents in Lansing:

-Muchmore Harrington Smalley & Assoc. (ranked #5)
-Dykema Gossett PLLC (ranked #65)
-Honigman Miller Schwartz and Cohn

By contrast MotorCity Casino’s competitors have far out-paced the Ilitch gaming hall in lobbying expenses.

MGM Grand Detroit reported spending $124,946.50 in 2007 and $94,325.00 already in 2008. Las Vegas-based MGM Mirage is also registered as a Lansing Lobbyist but reported no expenses in 2007 or 2008. Both entities report employing two lobbying/law firms to represent their additional lobbyist agent needs: Dickinson Wright PLLC and Public Affairs Associates, Inc. (ranked #4).

Greektown reported lobbying expenses of $61,400.00 in 2007 but has spent just $2,400.00 so far this year. Greektown employs seven individuals and three larger firms as its lobbyist agents including Cusmano Kandler & Reed Inc. (ranked #17), Dykema Gossett PLLC (#65) and Scofes & Associates Consulting Inc. (ranked #20).

Michigan Campaign Finance Network: Michigan’s Top 200 Lobbyist 2007

Ilitch Holdings VP Failed to Disclose his Employer on Lobbying Registrations

Michael D. McLauchlan joined Ilitch Holdings, Inc. in May as Vice President of Government Relations. (Press Release). According to the Michigan Secretary of State's Web site he is registered in Lansing as a "lobbyist agent" which is defined as "a person (an individual or firm) that receives compensation or reimbursement in excess of the current threshold for lobbying on behalf of employers or clients."

Since joining Ilitch Holdings, McLauchlan has updated the mailing and business addresses on his lobbyist registration forms to reflect that consistent with the address of Ilitch Holdings, Inc. at the Fox Office Center, 2211 Woodward Ave. in Detroit. BUT, according to records available for review online, McLauchlan failed to report the name of his new "employer" when he updated the other details. His records currently read "No Employers on file."

Ilitch Holdings, Inc. provides technical and professional services to some well recognized brand companies owned by Michael and/or Marian Ilitch. The Ilitch companies in the food, sports and entertainment industries include: Little CaesarsPizza, Blue Line Foodservice Distribution, the Detroit Red Wings, OlympiaEntertainment, Olympia Development, Little Caesars Pizza Kits FundraisingProgram, Champion Foods and Uptown Entertainment. Michael Ilitch owns the Detroit Tigers. Marian Ilitch is the sole owner of the MotorCity CasinoHotel.

Two Ilitch affiliates have maintained seperate lobbying registrations: Detroit Tigers, Inc. and Detroit Entertainment LLC (of which MotorCity Casino is a d/b/a). Neither of those entities notes any relationship with McLauchlan. A third Ilitch affiliate, Little Ceasars Enterprises Inc. terminated a previous lobbying registration.


Michigan Secretary of State's Searchable Database: Lobbying/Lobbyists

Former Pombo aide reveals he has been lobbying for Detroit casino syndicator

Four months after the fact, Thomas "Tom" Brierton, a one-time senior aide to the House Resources Committee under then-chairman Rep. Richard Pombo, has registered as a lobbyist representing entities controlled by Detroit casino syndicator Michael J. Malik, Sr.

Brierton now reports he has been actively lobbying members of the House of Representaives since 2.01.08 in support of H.R. 2176; but he delayed filing lobbying disclosures until 6.13.08 -- more than four months after the fact.

Disclosures that Brierton has been retained by MJM Enterprises and Blue Water Resorts, were filed approximately 36 hours after TVT reported rumors that Brierton had been agressively lobbying House members to support Malik's casino plans.

One must wonder when Brierton would have made required disclosures had we not exposed his efforts at this time.

What other undisclosed resources are being leveraged by Malik to pass H.R. 2176? Who else is delaying disclosures? Richard Pombo has been spotted in attendance at hearings on H.R. 2176. Some insiders suggest Pombo too may be lobbying to pass the bill.

If passed in the House, and subsequently in the Senate, H.R. 2176 paves the way for Malik to develop and manage an off-reservation casino in Port Huron, Michigan, in partnership with the Bay Mills Indian Community.

Along with the support from members of Detroit's Ilitch family, Malik has been attempting to site an off-reservation casino with the Bay Mills tribe at various locations in southeast Michigan for more than a decade.

Malik, Mike and Marian Ilitch, and members of the Ilitch family, were among former Rep. Richard Pombo's top ten donors during the period Brierton worked as a senior aide to Pombo. They also fronted travel expenses for Pombo and House Natural Resources Committee ranking member, Rep. Don Young.

After Pombo failed to win re-election in 2006, he used campaign funds to pay Brierton $13,000. Brierton subsequently left employment in the House of Representatives.

American RadioWorks reports that from 2003-2005, while Brierton was with the office of Rep. Richard Pombo, he took seven trips financed by special interest groups and totalling $8,581.53. Among those paying Brierton's travel expenses at the time: SODAK Gaming, Mashantucket Pequot Tribe and the Mashpee Wampanoag Tribal Government.

In between stints in Congress, Brierton was registered as a lobbyist for two firms: Janus-Merritt Strategies and Williams, Mullin et. al. Brierton's clients included the Interactive Gaming Council, National Indian Gaming Assoc., and Viejas Band of Kumeyaay Indians.

Brierton's current lobbying firm is Franklin Creek Consulting. In 2007 his firm registered to lobby on behalf of the Scotts Valley Band of Pomo Indians and California Cities for Self Reliance.

In finally filing lobbying registration forms on 6.13.08, Brierton failed to disclose his previous tenure in both the House of Representatives and the U.S. Senate, where he served as deputy director for the Subcommittee on the Census in the late 1990s.

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.

A handful of federal political campaign disclosure records indicate Michael Malik as an employee of Ilitch Holdings

Federal political campaign contribution records on file for Michael Malik of Michigan provide a variety of employer descriptions and addresses since 2000.

His contributions are often bundled with contributions from various members of Detroit’s Ilitch Family. And although Michael Malik often reports his office address is the same as the Executive office suite for Ilitch Holdings, Inc. headquarters in Detroit, he’s rarely reported that he is employed by Ilitch Holdings.

These eight political contribution records filed with the Federal Elections Commission indicate that Michael Malik was employed by Ilitch Holdings at the time he wrote the checks. Donors are required to provide the details to committees which file the actual disclosure documents.

Donor	Employer/Occupation	Date	Amount	Committee
Malik, Michael Detroit, Mi 48201	Ilitch Holdings	8/31/2004	$595	Republican Party of Maine
Malik, Michael Mr Gladwin, MI 48624	Ilitch Holdings / Executive	8/27/2004	$595	New Hampshire Republican State Cmte
Malik, Michael Detroit, MI 48201	Ilitch Holdings	8/25/2004	$745	Republican Central Cmte of Nevada
Malik, Michael Detroit, MI 48201	Ilitch Holdings	8/24/2004	$2,530	Republican State Cmte of Michigan
Malik, Michael J Mr Sr Detroit, MI 48201	Ilitch Holdings	8/18/2004	$1,265	Republican Party of Minnesota
Malik, Michael Des Moines, IA 50309	Ilitch Holdings	8/24/2004	$1,042	Republican Party of Iowa
Malik, Michael J Mr Sr Detroit, MI 48201	Ilitch Holdings / Executive	7/15/2004	$25,000	2004 Joint State Victory Committee
Malik Sr., Michael J. Detroit, MI 48201	Ilitch Holdings	8/25/2004	$892	Arkansas Leadership Committee 2004 Fcrc (R)

Details obtained at politicalmoneyline.com and newsmeat.com and verified at www.fec.gov

This begs the question, is (was) Michael Malik an employee of Ilitch Holdings or not? If so, why does he fail to report that generally; and if not, why did he report that to these eight particular committees?

Detroit-based Barwest LLC fined $6,500 for violating CA Political Reform Act

Barwest LLC, an affiliate controlled by Detroiters Marian Ilitch and Michael J. Malik, Sr., was fined $6,500 by the California Fair Political Practices Commission (FPPC) in late 2006.

Barwest LLC made a curious last minute $26,600 contribution to Rep. Richard Pombo's San Joaquin County GOP Committee in late October 2004. Under California’s Political Reform Act, Barwest LLC was required to file a “late contribution report” within 24 hours of making the 11th hour contribution. Further by making a campaign contribution of $10,000 or more in the 2004 calendar year, Barwest qualified as a "major donor" committee. Barwest LLC failed to file a semi-annual “Major Donor” report as of January 31, 2005 and failed again to file a semi-annual report on July 31, 2005.

Only after being confronted by FPPC officials did Michael J. Malik, Sr. file a major donor report on August 31, 2005 – seven months late.

The FPPC charged Barwest LLC with two counts of violating California’s Political Reform Act and on October 24, 2006 (nearly two years later) Michael Malik on behalf of Barwest LLC was fined $6,500 for failing to report the $26,600 contribution.

Major Donor Reporting Violations

In the Matter of Barwest, LLC, FPPC No. 05/548. Staff: Chief of Enforcement Bill Williams and Political Reform Consultant Wayne Imberi. Respondent Barwest, LLC qualified as a major donor committee in the second six months of 2004. Respondent failed to file to timely disclose a late contribution in a late contribution report, in violation of section 84203, subdivision (a) of the Government Code (1 count); and failed to timely file a semi-annual campaign statement, in violation of section 84200, subdivision (b) of the Government Code (1 count). $6,500 fine.

The FPPC indicates, “Respondent Barwest LLC is a developer based in Detroit, Michigan, which is involved in the financing of an Indian gaming casino in Barstow, California.”

Barwest LLC had not previously made any contributions in California nor has it made any substantial contributions since. This was a unique and uniquely large amount by the Barwest principals’ standards.

Curious is that Congressman Richard Pombo hails from San Joaquin County. The GOP Committee there reports receiving three checks for $26,600 on October 25, 2004: Barwest LLC, Pombo’s RICH PAC (a committee that Barwest principals funded as well); and Jeff Denham for Senate (a committee Barwest principal Michael J. Malik, Sr. funded subsequently).

At the time Barwest made the contribution, Rep. Richard Pombo was chair of the House of Representatives’ Resources Committee which oversees Indian gaming matters. RICH PAC’s treasurer Barbara Bonfiglio had signed Malik (MJM Enterprises & Development) to a lobbying contract with her firm (Williams & Jensen). Barwest principals and their various affiliates and partners had various matters passing through the House resources committee.

Jeff Denham is currently vice chair of the California Senate’s Governmental Organization Committee and was on the committee in 2004 when Barwest made the contribution to the San Joaquin County GOP Committee. That committee traditionally takes up matters of Indian gaming compacts for review in the state Senate.

You may also want to review these posts:

• A Case of Abramoff-Lite: Pombo was doing favors for his Motor City Casino friends
• Team Ilitch has track record of poor compliance with lobbying and political disclosures
• Where there's smoke, there's fire: Attorney attempts to clean up FPPC mess created...
• Political cash for those who author SB 157 - the Barstow Casinos bill
• More Lobbying Irregularities related to Barstow Casino raisingmquestion...

New Federal Probe of Wis. Trucking Magnate Dennis Troha, Rep. Don Young (R-AK)

Young linked to federal investigation


By FREDERIC J. FROMMER
The Associated Press

(Published: March 20, 2007)

WASHINGTON -- Lawmakers who championed legislation easing truck-hauling regulations said this week that they had no idea that Kenosha, Wis., businessman Dennis Troha's consulting company stood to gain financially from the legislation's passage.

U.S. Attorney Steven Biskupic said that federal investigators are looking into the deal, in which Troha will be paid by his former trucking company, JHT Holdings, through 2010 because Congress passed legislation helping the company.

The legislation, which was included as an amendment in a highway spending bill that became law in 2005, was offered by Reps. Don Young, R-Alaska, and Jim Oberstar, D-Minn., who was at the time the chairman and ranking member, respectively, of the House Transportation Committee. Both members have received more than $20,000 from Troha and his family members and associates.

In addition, Rep. Paul Ryan, R-Wis., had written to Young and Oberstar urging them to support the new regulations.

Bank records obtained by the Milwaukee Journal Sentinel show that Troha's consulting firm, T Group Consulting, received two wire transfers of more than $107,000 from JHT a month after the highway bill became law.

Troha was indicted March 1 on charges of illegally funneling more than $100,000 in campaign donations to Wisconsin Gov. Jim Doyle and the federal account of the state Democratic Party.

The indictment alleges Troha concealed the nature of the transactions in his attempt to obtain approval for a casino in Kenosha and lied to the FBI about it. Troha, the former owner of a major trucking firm now at the center of a multistate tax dispute, has pleaded not guilty.

Ryan said he has donated the $58,000 he received from Troha and his family members to the Kenosha Boys & Girls Club because of that indictment.

The new trucking regulations, which the Federal Highway Administration is scheduled to put into effect this week, will allow 97-foot-long multitruck combinations. Before that, states were allowed to impose 75-foot maximum lengths.

A spokesman for Oberstar, who is now chairman of the House Transportation Committee, said that the congressman supported the amendment after looking into it and determining that the new rules would be safe.

"Jim has traditionally been concerned about longer vehicles," said the spokesman, John Schadl. "He took a long look at this and had to be reassured before he would allow it."

Schadl said that Oberstar meets with constituents and lobbyists all the time on issues.

"The important thing is all of these people clearly state who they are and what their agenda is," he said. "That clearly did not happen in this case, and he was very upset about it."

He added: "The congressman does feel he was misled here. A lot of people represent a lot of groups. You have to be up front."

Shadl said Oberstar was mostly lobbied by John Erickson, a JHT Holdings executive, and by the company’s Washington lobbyist, Stuart Dye. Schadl said that neither of them mentioned the deal with Troha’s consulting company.

Erickson said that he didn’t know about the deal at the time. Dye did not immediately return a telephone message left late Monday afternoon.

The Oberstar campaign’s field director, Alana Petersen, said that Oberstar will donate contributions he received from Troha, family members and associates to the U.S. Treasury’s Bureau of Public Debt.

Young's office declined to comment.

Ryan described his role as providing "routine and appropriate constituent service to a large employer in my district. ... I'm as frustrated as anyone to learn that some individuals did not disclose their personal interests, which were unbeknown to me at all."

He said that he and several colleagues decided to write the letter to the committee in 2005 because they believed the change would be good public policy. Ryan argued that it will improve safety and reduce fuel consumption.

But Dmitri Iglitzin, a labor-law attorney in Seattle, said the new rule will lead to less safety, not more.

"These vehicles are one-third the size of a football field -- these are huge, huge vehicles," he said. "It's dangerous. If it loses control, you have a potential for a catastrophic accident."

He called passage of the legislation "a classic example of what's wrong with the American political system, and what's wrong with Congress."

Troha's lawyer, Franklyn Gimbel, did not return telephone messages seeking comment Monday. But he told the Journal Sentinel his client is the victim of a "media feeding frenzy."

"There is not anything in the story that suggested any criminal wrongdoing," he said.

Gimbel said none of the dealings should be questioned and the deal simply meant Troha would be able to share in any profits the company saw if the legislation were to pass. He sold his majority share in JHT in early 2005 and has since sold all ownership.

http://www.adn.com/news/alaska/story/8724285p-8626359c.html

Where there's smoke, there's fire: Attorney attempts to clean up FPPC mess created when he failed to report $63,805 arrangement with lobbyist

Several weeks ago, The Verifiable Truth (TVT) began breaking reports exposing lobbying disclosures discrepancies and violations involving the Los Coyotes and Big Lagoon Indian Tribes, several lobbying firms and “silent” parties bankrolling and directing the lobbying effort.

Immediately, Michael Yaki, a Bay area attorney retained by Detroit casino syndicators to represent the Los Coyotes Indian Tribe attempted to “clean up” a year’s worth of fraudulent lobbying disclosures he filed, under penalty of perjury, as the Tribe’s representative. Amended filings indicate Yaki failed to report almost 30% of what was really spent by (or under cover of) the Los Coyotes Tribe on lobbying -- failed to report close to $65,000 paid to lobbyist R. Keith Olberg (a former Assemblyman and candidate for statewide constitutional office).

Yaki simply took lobbying reports filed by Governmental Advocates, Inc. and Capitol Ventures, Roseville and amended a years worth of his filings for Los Coyotes with data to match what was reported by the two lobbying firms and swiftly submitted them as amended disclosures. That just further complicated the mess.

Now, when the total lobbying fees reported by so-called partners the Big Lagoon and Los Coyotes Indians are added up and compared with the total fee income reportedly received by the two lobbying firms, things still don’t add up!

2005/2006 Legislative Session Lobbying Payments	Total
Two Barwest Tribes report Paying Lobbyists	$534,144
Two Lobbying Firms report Receiving Payments of	$463,928
unreported by lobbyists	$70,216

The tribes say they’ve paid two lobbying firms collectively $70,216 more than the lobbying firms have reported receiving in payment disclosures.

The truth is, despite Yaki’s “clean up” attempt, his Indian clients most likely didn’t pay anything to either lobbying firm; some “intermediaries” have been paying the bills and hiding behind the tribe. Neither attorney Yaki nor any other representative of Los Coyotes ever authorized Capitol Ventures, Roseville to represent the Los Coyotes Indians. So who did?

Either the tribe’s attorney Mr. Yaki was negligent and failed to report it had engaged and was paying Capitol Ventures, Roseville for nearly a year; OR the lobbying firm has been employed by others whose interests' are certainly being represented and yet neither the lobbying firm nor the lobbying firm’s employer have reported their relationship.

California’s political reform laws are meant to bring politics out of smoke filled rooms and expose who’s behind various political activities; who the real parties are attempting to influence public policy; where the true source of money trails from. These parties discussed here are playing games trying to avoid disclosure.

The parties involved here know better: they’re seasoned political operatives, former political candidates, lobbyists, experienced FPPC filers, White House appointees and lawyers. Mr. Yaki has been involved in previous FPPC findings involving his donors' improper disclosures/failures to disclose. J. Richard Eichman, CPA, who files reports on behalf of the Big Lagoon Rancheria has been filing FPPC disclosures for more than 12 years. This incidence and the numerous other reporting violations that continue to arise are cause enough for some more thorough and comprehensive investigation of lobbying and political activity by the FPPC and Attorney General. A group of professionals with this much experience hardly make unintended "mistakes" with this level of frequency.

“Where there’s smoke, there’s fire!”