Michael I. Goldberg, the Florida federal court appointed Receiver who filed a June 2008 $2.1 million fraudulent transfer case (Goldberg v. Malik) against Detroit “business developer” and casino syndicator Michael J. Malik, Sr., has filed a new Receiver’s report (Receiver’s Seventh Report) with the U.S. District Court's Miami Division.
In this latest report (on page 22 of 27), Receiver Goldberg indicates he’s initiated 150 fraudulent transfer claims totaling more than $20 million; claims against parties whom the Receiver alleges profited illegally from so-called “profit payments” or “client representative fees.”
While not mentioned specifically in the Receiver’s report by name, it sugggest the $2.1 million claim against Malik may be one of the most substantial the Receiver has filed to date – at least 10% of all the claims. Averaging the balance of the claims against the other 149 defendants suggests those claims might average $120,000 each -- or put another way, each of the other 149 cases represents just 6% -- a fraction -- of the total claim against Malik.
What was Malik's relationship with the defendants and their affiliates (Jack Utsick, Robert & Donna Yeager, Worldwide Entertainment, Inc., et. al.) named in the original $300 million fraud case brought by the SEC? ... seems Malik was more than just another of their run-of-the-mill investors. Was Malik fronting for other investors? Did he have investors of his own?
Although reportedly not an employee of Ilitch Holdings, Inc. or any of its affiliates, Malik's various affiliated entities are headquartered among the offices that make up the executives suites at Detroit-based Ilitch Holdings, Inc. Malik has partnered with Detroit's well-known Iilitch family on casinos and other ventures for nearly a decade and a half.
Tuesday, September 16, 2008
Monday, September 15, 2008
Ilitch holds celebration marking the end of construction at MotorCity Casino which was over budget and dealyed by almost a year
The Detroit News has reported that the Ilitch-owned MotorCity Casino celebrated the “the completion of a $300-million, three-year expansion and renovation of the site” last Friday, 9.12.08
A press release issued 11.30.05 to coincide with a formal groundbreaking for MotorCity Casino’s renovation and expansion reported the project would be completed in late 2007 and was budgeted to cost $275 million.
That seems to suggest completion of the construction project was nearly a year behind schedule; and, given that MotorCity Casino’s owner Marian Ilitch isn’t required to file full public financial disclosures, the project was at least $25 million over budget.
Consider this:
- MotorCity Casino is a d/b/a for Detroit Entertainment LLC which is owned by CCM Merger, Inc., an entity reportedly controlled solely by Mrs. Marian Ilitch, and as such she has no requirement for full public financial disclosure beyond what she chooses to include in a press release.
- Marian Ilitch reportedly borrowed hundreds of millions from investors and other creditors creating debt of more than $1 billion in orderto fund her acquisition of MotorCity Casino from MGM/Mirage Resort Group and other investors; fund the cost of construction; and fund debt service during construction.
- Since Ilitch acquired MotorCity Casino (Detroit Entertainment LLC) and established CCM Merger, Inc., that company’s credit ratings have been placed on watch lists and downgraded by both Moody’s and Standard & Poor’s. Among concerns, Ilitch has leveraged the entity beyond what investors were originally told to anticipate during construction.
- MotorCity Casino’s expanded gaming floor opened in June 2007 (15 months ago) and Ilitch reported a 3.5% bump over the previous year for the subsequent four months (July-October 2007); but so far that's not been sustained during those same months in 2008. Revenues reported for Summer 2008 (Jul-Aug) dropped 6.5% over Summer 2007. (MGCB)
- A 17-story, 400-room hotel with resort amenities opened at MotorCity Casino in November 2007 but revenues for eight of the last ten months (Nov. ’07 – Aug. ’08) have been down compared to those same months the previous year. (MGCB)
- Ilitch has desperately leveraged her family’s affiliated charitable foundation, sports teams and other business interests to promote and drive traffic into the expanded MotorCity Casino property; and still, revenues reported for the new and improved MotorCity Casino through August 2008 are down 1.65% over the previous 12 month period. (MGCB)
Source of revenue figures: Michigan Gaming Control Board
Summer not good for Ilitch's MotorCity Casino; revenues drop 6.5%
According to revenues reported to the Michigan Gaming Control Board (MGCB), MotorCity Casino's revenues for Summer 2008 (Jun-Aug) were down 6.5% over Summer 2007; a cummulative drop of $7,360,114.51 in reported revenue for the period. In June alone, revenues fell 10%.
Given Moody's and Standard & Poor's have both previously indicated concerns that MotorCity Casino's parent company CCM Merger, Inc. was over leveraged and reflected those concerns by downgrading the entity's credit ratings during the last year; the 6.5% drop in Summer revenues would understandbly be of renewed concern to investors and creditors who are owed upwards of $1 billion -- especially if either Moody's or Standard & Poor's were to downgrade CCM Merger's credit ratings again.
Summer 2007 - cummulative revenue: $126,101,544.42
Summer 2008 - cummulative revenue: $118,741,429.91
It appears the bump in revenues that Marian Ilitch's Detroit gambling hall realized after she opened its expanded gaming floor (25% larger) in June 2007 hasn't been sustained during 2008 -- not even with the November 2007 addition of a 400-room luxury hotel and other amenities to the casino resort property.
In recent months, Ilitch has leveraged her family's affiliated foundation, sports teams and other businesses in a desperate attempt to pull out all the stops and drive traffic to MotorCity Casino -- but even that hasn't helped sustain revenues.
Revenue Source: Michigan Gaming Control Board
Sunday, September 14, 2008
Ilitch, Malik contribute $13,800 to Rep. Bart Stupak
According to OpenSecrets.org, on 5.05.08 Mike & Marian Ilitch and Michael J. Malik, Sr., (Mike J. Malik) contributed $13,800 to U.S. Rep. Bart Stupak (D - MI 1st).
While neither the Ilitches or Malik live or work in Michigan's 1st Congressional District it does include the Bay Mills Indian Community. The Bay Mills tribe has partnered with Mike Malik on various casino proposals and other business ventures in Michigan. Mike & Marian Ilitch have supported the projects too.
While neither the Ilitches or Malik live or work in Michigan's 1st Congressional District it does include the Bay Mills Indian Community. The Bay Mills tribe has partnered with Mike Malik on various casino proposals and other business ventures in Michigan. Mike & Marian Ilitch have supported the projects too.
MotorCity Casino revenues down for third straight month
9.10.08
- MotorCity Casino sees declines...
..Detroit's other two gambling halls, Greektown and the Illitch-owned MotorCity casinos, recorded slight declines. MotorCity was down 0.07 percent to $41.07 million from $41.09 million a year ago. Greektown, which entered Chapter 11 bankruptcy May 29, said its take declined 3.5 percent to $26.82 million from $27.8 million in August 2007...
...MotorCity Casino opened its new hotel last fall and has unveiled other elements of its new facility in stages. So far, the piecemeal launches of the enlarged gaming floor and convention space have produced modest gains at best.
Many of those new elements have been operating for the better part of a year, but ongoing work to renovate and expand MotorCity's gaming floor and add restaurants and a state-of-the-art performance theater forced patrons to dodge construction for months while the facility remained open.
This week, the casino/hotel complex began getting the word out to customers that the finishing touches are done. Executives showed off the slick new bars and restaurants and expanded gaming floor to reporters Tuesday. On Friday, MotorCity plans a VIP party to kick off the casino's new post-construction era.
The casino is introducing an onslaught of new advertising as well. Broadcast and print ads touting the end of construction have been blanketing Metro Detroit media outlets this week.
MotorCity CEO Gregg Solomon said he expects the response to be positive for both customers and MotorCity's bottom line.
"We're interested in pushing the envelope here," Solomon said. "We're making a bold statement not just about us, but about the future of the city of Detroit." (Complete Story)
Michigan Gaming Control Board: 2008 Detroit Casino Revenues Report
Monday, September 08, 2008
Ilitch partner claiming ignorance in $2.1 million fraudulent transfer lawsuit
Detroit’s Michael Malik, the self identified business developer and casino syndicator, is claiming ignorance and has denied allegations outlined in federal court charges filed in June suggesting Malik’s involvement in a $2.1 million fraudulent transfer (Goldberg v. Malik).
The case, filed by a court appointed Receiver (Akerman Senterfitt attorney Michael I. Goldberg), seeks to recover more than $2.1 million plus interest and other charges that the Receiver alleges Malik received in the form of a “Profit Payment.” Malik says he never received a “Profit Payment.”
Malik is requesting a jury trial in the matter.
See Malik’s Official Response to Goldberg v. Malik
The case, filed by a court appointed Receiver (Akerman Senterfitt attorney Michael I. Goldberg), seeks to recover more than $2.1 million plus interest and other charges that the Receiver alleges Malik received in the form of a “Profit Payment.” Malik says he never received a “Profit Payment.”
Malik is requesting a jury trial in the matter.
See Malik’s Official Response to Goldberg v. Malik
Michael Malik's various businesses and affiliates are headquartered in the executive suite at Detroit-based Ilitch Holdings, Inc. Malik has partnered with the Ilitch family on various casino and development projects in Michigan, California and New York.
Ilitch issues statement following Mayor's guilty plea
In light of the political scandal and guilty pleadings surrounding Detroit Mayor Kwame Kilpatrick, Christopher Ilitch, CEO of Ilitch Holdings, Inc. issued the following statement:
DETROIT, Sept 04, 2008 /PRNewswire via COMTEX/ -- "This has been a difficult time for the city, region and state, and I'm hopeful that attention can return to addressing the important work at hand. History has shown we are a caring and hearty community, not easily deterred, and I believe that bodes well for our collective future. I am confident we can -- and will -- persevere and continuously improve to make this a better place for all."
About Ilitch Holdings, Inc.
Ilitch Holdings, Inc. provides professional services to the companies owned by Michael and/or Marian Ilitch. The Ilitch companies in the food, sports and etertainment industries include: Little Caesars Pizza, Blue Line Foodservice Distribution, the Detroit Red Wings, Olympia Entertainment, Olympia Development, Little Caesars Pizza Kits Fundraising Program, Champion Foods and Uptown Entertainment. Michael Ilitch owns the Detroit Tigers. Marian Ilitch owns the MotorCity Casino Hotel.
SOURCE: Ilitch Holdings, Inc.
Ilitch partner gets community service for firerarms violation
9.06.08
Malik sentenced to community service for illegally taking elk
PINETOP-LAKESIDE - Michael Malik, a Michigan man who became the center of controversy after an elk hunt on Porter Mountain last July, has been sentenced to eight hours of community service.
Malik was found guilty of firing too close to an occupied structure on Aug. 4 after a July 31 bench trial that lasted over 10 hours. The Pinetop-Lakeside Justice Court said Malik must serve the community service within 60 days. Malik must also write letters of apology to homeowners of Mountain View Ranch on Porter Mountain, where the hunt took place.
The execution of the sentence will be suspended pending the court's consideration of Malik's motion for a new trial.
The execution of the sentence will be suspended pending the court's consideration of Malik's motion for a new trial.
Ofc. Jim Hinkel, the law enforcement program manager for the Pinetop office of Arizona Game and Fish, said the sentence handed down was "disappointing" but the department will begin their own disciplinary process. He said Malik could face a revocation of his license and a minimum civil assessment of $8,000 for the elk he killed.
"What Mr. Malik is looking at is revocation of licenses to hunt, fish or trap for up to five years," he said.
Hinkel added those revocations would not just be limited to Arizona. Since Arizona is part of a interstate wildlife violator compact, Malik could face revocations in 32 states and seven Canadian provinces, including Utah, California and New Mexico.
"If you're revoked in any one of the participating states, you're revoked in the rest of them," he said.
Hinkel said he would have liked to see the justice court hand down a tougher sentence to show other potential offenders that wildlife violations would be taken seriously. However, he said it would not affect how Game and Fish carries out their action.
"We're moving forward," Hinkel said.
* Reach the reporter at seand@wmicentral.com
Saturday, September 06, 2008
Michael Malik sentenced in firemarms incident
9.06.08Malik sentenced to community service for illegally taking elk
By Sean Dieterich, The Independent
PINETOP-LAKESIDE - Michael Malik, a Michigan man who became the center of controversy after an elk hunt on Porter Mountain last July, has been sentenced to eight hours of community service.
Malik was found guilty of firing too close to an occupied structure on Aug. 4 after a July 31 bench trial that lasted over 10 hours. The Pinetop-Lakeside Justice Court said Malik must serve the community service within 60 days. Malik must also write letters of apology to homeowners of Mountain View Ranch on Porter Mountain, where the hunt took place.
The execution of the sentence will be suspended pending the court's consideration of Malik's motion for a new trial.
Ofc. Jim Hinkel, the law enforcement program manager for the Pinetop office of Arizona Game and Fish, said the sentence handed down was "disappointing" but the department will begin their own disciplinary process. He said Malik could face a revocation of his license and a minimum civil assessment of $8,000 for the elk he killed.
"What Mr. Malik is looking at is revocation of licenses to hunt, fish or trap for up to five years," he said.
Hinkel added those revocations would not just be limited to Arizona. Since Arizona is part of a interstate wildlife violator compact, Malik could face revocations in 32 states and seven Canadian provinces, including Utah, California and New Mexico.
"If you're revoked in any one of the participating states, you're revoked in the rest of them," he said.
Hinkel said he would have liked to see the justice court hand down a tougher sentence to show other potential offenders that wildlife violations would be taken seriously. However, he said it would not affect how Game and Fish carries out their action.
"We're moving forward," Hinkel said.
Reach the reporter at seand@wmicentral.com
Related Stories:
Monday, September 01, 2008
Sunday, August 31, 2008
Ehrlich, Foley & Serwer: Michael Malik's primary corporate attorneys
Attorney William D. Serwer has served/serves as Resident Agent for these entities believed to be affiliated with Detroit casino syndicator Michael Malik:
- Barwest, L.L.C. (Barstow, CA Casino)
- Blue Water Resorts Manager, Inc. (Port Huron, MI Casino)
- CB Property Holdings, Inc. (CB = Charlotte Beach)
- CB Property Investments, L.L.C.
- LCB Barwest, L.L.C. (Barstow, CA Casino)
- Gateway Casino Resorts, L.L.C. (Shinnecock, NY Casino)
- JR Property Holdings, L.L.C. (JR = Michael J. Malik, Jr.)
- MJM Charlotte Beach, L.L.C.
- MJM Enterprises Development Company (formerly North American Gaming Company)
- MJM Interactive Venture, L.L.C.
- MJM Security Venture, L.L.C.
- MV Land Holdings, L.L.C. (Malik & Vigliotti)
Serwer prepared and filed the original or amended articles of organizations for the following Malik affiliated entities (Malik serves as Resident Agent for these affiliates):
- Blue Water Holdings I, L.L.C.
- Blue Water Resorts, L.L.C.
- Hawaii Entertainment Associates, LLC
- Lucky 7 Development, L.L.C.
- MJM Bay Mills, Inc.
- MJM Blue Water, L.L.C.
- MJM Blue Water Investors, LLC
- MJM Border Holdings, L.L.C.
- MJM Royal Properties, L.L.C.
- Renegade Charters, L.L.C.
Serwer is a partner in the Birmingham, MI, law firm Ehrlich, Foley & Serwer. His partners are Joseph H. Ehrlich and Fred A. Foley.
Fred Foley formed MJM Manistee, Inc. another Malik affiliate.
Joseph Ehrlich represented Marian Ilitch before the Michigan Gaming Control Board during her acquisition of MGM/Mirage Resort Group’s shares of MotorCity Casino in 2005.
Mike Malik denied permit to develop Harsens Island Marina
8.31.08
Island permit denied
By BOB GROSS
The state Department of Environmental Quality has denied a marina permit for a 348-unit clustered housing development on the former Boys Club property on Harsens Island.
According to a letter from David Dortman, environmental quality analyst for the DEQ’s Land and Water Management Division, the proposed project “will have significant adverse impacts on the natural resources associated with the St. Clair River.
According to a letter from David Dortman, environmental quality analyst for the DEQ’s Land and Water Management Division, the proposed project “will have significant adverse impacts on the natural resources associated with the St. Clair River.
The developers, Grande Pointe Development and Lucky 7 Development LLC, had applied for the permit on May 1.
The proposed planned unit development has met with opposition from island residents. On Feb. 27, the Clay Township Planning Commission rejected a special land use request that would have allowed construction of the project.Grande Pointe and Lucky 7, which are owned and managed by former Clay Township resident Michael Malik, filed an appeal of the planning commission’s decision in St. Clair County Circuit Court. That appeal is still moving through the legal process. (Complete Story)
Wednesday, August 27, 2008
Charitable foundation affiliated with the family of Mike Ilitch uses $50,000 to purchase baseball tickets
According to its 2006 IRS Form 990, Ilitch Charities for Children (aka Ilitch Charities) spent $50,000 purchasing "baseball tickets" to distribute to "disadvantaged families."
Mike Ilitch, patriarch of Detroit's Ilitch family, owns the Detroit Tigers Major League Baseball (MLB) team. The family-owned Olympia Entertainment holds the mangament and licensing contracts for Comerica Park, the home field of the Detroit Tigers. Ilitch Holdings, Inc. is the parent company of these and other Ilitch family-owned enterprises.
Christopher Ilitch, CEO of Ilitch Holdings and a member of MotorCity Casino's management committee, is chairman of Ilitch Charities and his wife Kelle is a director. Christopher Ilitch's former executive assistant, David Agius, is president and treasurer of Ilitch Charities.
Mike Ilitch, patriarch of Detroit's Ilitch family, owns the Detroit Tigers Major League Baseball (MLB) team. The family-owned Olympia Entertainment holds the mangament and licensing contracts for Comerica Park, the home field of the Detroit Tigers. Ilitch Holdings, Inc. is the parent company of these and other Ilitch family-owned enterprises.
Christopher Ilitch, CEO of Ilitch Holdings and a member of MotorCity Casino's management committee, is chairman of Ilitch Charities and his wife Kelle is a director. Christopher Ilitch's former executive assistant, David Agius, is president and treasurer of Ilitch Charities.
Ilitch charitable foundations used to promote struggling gambling hall
Detroit's powerful Ilitch family is using its various affiliated charitable foundations to promote and possibly even generate revenue for the struggling Detroit casino owned by the family's matriarch.
According to a press release marketing the two-day festivities, on August 24 & 25, Ilitch Charities along with the Detroit Tigers Foundation and the Detroit Red Wings Foundation, hosted a Detroit area golf tournament which was preceded by a "Summer Soiree" preview party at Detroit's MotorCity Casino.
According to a press release marketing the two-day festivities, on August 24 & 25, Ilitch Charities along with the Detroit Tigers Foundation and the Detroit Red Wings Foundation, hosted a Detroit area golf tournament which was preceded by a "Summer Soiree" preview party at Detroit's MotorCity Casino.
The gambling hall is reportedly owned entirely by Mrs. Marian Ilitch. Family patriarch Patriarch Mike Ilitch owns the Detroit Tigers and along with Marian is co-owner of the Detroit Red Wings.
Christopher Ilitch, CEO of Ilitch Holdings and a member of MotorCity Casino's management committee, is the chairman of Ilitch Chairities and his wife Kelle is a director. David Agius, Christopher Ilitch's one-time executive assistant, is the President of Ilitch Charities. Patriarch Mike Ilitch owns the Detroit Tigers and along with Marian is co-owner of the Detroit Red Wings.
The Ilitch events were marketed as opportunities to play golf and mingle at MotorCity Casino with Hollywood celebrities as well as managers, players and coaches affiliated with the Ilitch owned Detroit Red Wings and Detroit Tigers.
The Ilitch family has been using its charitable foundations and other assets to promote and drive revenues to MotorCity Casino. Twice before the Detroit Red Wings Foundation and player from the NHL franchise have been used to promote poker tournaments at MotorCity Casino.
The Ilitch events were marketed as opportunities to play golf and mingle at MotorCity Casino with Hollywood celebrities as well as managers, players and coaches affiliated with the Ilitch owned Detroit Red Wings and Detroit Tigers.
The Ilitch family has been using its charitable foundations and other assets to promote and drive revenues to MotorCity Casino. Twice before the Detroit Red Wings Foundation and player from the NHL franchise have been used to promote poker tournaments at MotorCity Casino.
Major League Baseball (MLB) has strict prohibitions against gambling and casinos which apply to its players, managers, coaches and owners. The press release suggest those currently affiliated with the Tigers baseball team were partcipants at the MotorCity Casino party.
Even after spending more than $300,000 renovating and expanding MotorCity Casino, revenues at the Ilitch-owned gambling hall have been on the decline. Crain's Detroit reports that revenues at the Ilitch casino are down 1.5% over the previous 12 months and in July alone revenues took a 7.26% dive. In the last several years, Moody's and Standard & Poor's have downgraded the credit ratings for MotorCity Casino (aka CCM Merger, Inc.)
Even after spending more than $300,000 renovating and expanding MotorCity Casino, revenues at the Ilitch-owned gambling hall have been on the decline. Crain's Detroit reports that revenues at the Ilitch casino are down 1.5% over the previous 12 months and in July alone revenues took a 7.26% dive. In the last several years, Moody's and Standard & Poor's have downgraded the credit ratings for MotorCity Casino (aka CCM Merger, Inc.)
Attorneys try to block Malik's sentencing and keep him from possibly doing jail time
Michigan resident Michael Malik was found guilty earlier this month in Arizona on charges involving the illegal discharge of a firearm.
The Pinetop Justice Court was set to sentence Malik on August 15th but his attorneys have been working to block sentencing which could include up to four months in jail, two years of probation and a five year ban on hunting anywhere in the United States.
Reports out of Pinetop, Arizona, suggest Malik’s attorneys are frantically filing motions to block sentencing and keep him from possibly doing four months in jail. Malik and his hired guns are trying to find a way to appeal the court’s guilty finding and at least get Malik a new trial.
Reports out of Pinetop, Arizona, suggest Malik’s attorneys are frantically filing motions to block sentencing and keep him from possibly doing four months in jail. Malik and his hired guns are trying to find a way to appeal the court’s guilty finding and at least get Malik a new trial.
The Pinetop Justice Court is reported to have schedule another hearing in the matter on August 29th.
Local residents were furious with Malik’s disregard for Arizona’s gun and hunting laws and there’s been an outcry urging the court to make an example of millionaire Malik by giving him the maximum sentence. Other gun enthusiasts and hunters agree that Malik’s behavior was despicable.
Local residents were furious with Malik’s disregard for Arizona’s gun and hunting laws and there’s been an outcry urging the court to make an example of millionaire Malik by giving him the maximum sentence. Other gun enthusiasts and hunters agree that Malik’s behavior was despicable.
Malik is a casino syndicator who is closely affiliated with Detroit's powerful Ilitch family.
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