indianz.com: Trustee Lance Gumbs ousted by Shinnecock Nation Voters

Shinnecock Nation voters oust incumbent trustee in run-off
4.13.2011

The Shinnecock Nation of New York held its first run-off election in over 200 years.

Voters ousted incumbent Lance Gumbs and elected Frederick C. Bess, a former trustee. This will be Bess's sixth term on the board.

This was the tribe's first election since gaining federal recognition last October.

Get the Story:
Bess Wins Shinnecock Trustee Runoff (The Southampton Patch 4/12)

Related Stories:
Shinnecock Nation holds first election after federal recognition (4/6)

Blogger's Update:  A published report in the Southampton News confirms some tribal members believe that Trustee Bess is a tool of Detroit casino syndicator Michael J. Malik, Sr.  Malik and his Gateway Casino Resorts syndicate have bankrolled the Shinnecock quest for Federal Recognition and other steps needed to develop gambling halls.  Some reports suggest Malik and his investors have spent upwards of $40 million advancing their casino dreams in New York. It's not clear what has caused the rift between Lance Gumbs and Malik but it seems to have driven a large wedge between the two.  It may be the notion that Gumbs prefers the Shinnecock develop gambling halls nearer their Long Island Reservation. Detroiter Malik might obviously like to open gambling halls more convenient to Manhattan -- perhaps even in New York Harbor.

Questions Surrounding $15K Gov. Cuomo Accepted From Detroit Casino Syndicator

UPDATED: NY Governor Cuomo Latest To Reject Campaign Contributions from Ilitch Gambling Partner Michael Malik

Gov. Andrew Cuomo

Was Detroit casino syndicator Michael J. Malik, Sr., trying to hide contributions to future New York Governor Andrew Cuomo? 

1.             Why is the name of the contributor of $5,000 made on 26-OCT-09 listed as Andrew Malik rather than Michael  J. Malik?  The address recorded for that donor is Michael J. Malik’s business address in Detroit.
2.             The $10,000 contribution made on 8-OCT-10 curiously records Malik’s name using initials rather than the standard “Michael J. Malik, Sr.” he records for most political contributions and uses a little known residential address while typically he records his business address on Woodward Ave., Detroit, MI.

(1)    MALIK, ANDREW  2211 WOODWARD AVENUE, FLOOR 10 DETROIT, MI 48201	$5,000.00	26-OCT-09	ANDREW CUOMO 2014, INC.	2010 January Periodic
(2)    MALIK, M.J.  350 ASPEN ROAD BIRMINGHAM, MI 48009	$10,000.00	08-OCT-10	ANDREW CUOMO 2014, INC.	2010 11 Pre General

In October 2010, when Newsday.com was reporting some New York Senators were returning campaign contributions they received from Detroit casino syndicator Michael J.  Malik, Sr., why did Cuomo’s campaign keep the funds?  And why didn’t Newsday.com report that Malik had contributed to Cuomo?  Could it have been because those contributions weren’t obvious?  Was that intentional?

Malik has a history of violating campaign finance laws in California and he’s an expert at otherwise craftly reporting contributions elsewhere.

Also See: 
NY Senators Return Michael Malik's Campaign Contributions
Congressman Bishop Under Fire For Accepting Michael Malik's Contribution

Here They Go Again: Detroiters Planning Big Push for Commercial Gambling in Hawaii

Gambling Opponents, Supporters Lining Up for Start of Hawaii Legislature

1.14.2011

By Greg Wiles

...Hawaii is one of two states (Utah being the other) where some form of gambling isn’t allowed. More and more states have looked at expanding gambling as the recession punched a hole in their tax revenues.

Illinois is pushing for slot machines at racetracks to deal with a budget deficit, while questions have popped up about expanding gambling in Florida, Minnesota and elsewhere.

Legislators look at it as an easier way to raise revenues than increasing income or sales taxes, while opponents say the social and legal problems aren’t worth the budget fix. According to the American Gaming Association figures, commercial casinos generated $5.59 billion in taxes for state and local governments in 2009.

The question of starting a lottery, building a racing track or sanctioning casinos have been perennial issues at Hawaii’s state legislature with opponents winning annually over the efforts.

But this year the issue may receive more than a passing look given a glaring budget gap that’s been forecast. A study shows a casino could take a substantial bite out of the forecast deficit.

State projections show there’s a yawning $410.1 million hole between revenues and expenses during the coming fiscal year that begins in July.

In the following fiscal year – the one starting July 2012 and ending in June 2013 – legislators and Gov. Neil Abercrombie must come up with a way to close a $361.8 million chasm.

“There’s no doubt about it being an economic value,” said John Radcliffe, a former teacher who has held a number of union executive and private consulting positions and is now one of the Hawaii’s top lobbyists. Among his clients are gaming interests who’d like to see a casino in or near Waikiki.

“I know there are members of the legislature who are no longer opposed to it as they have been in the past.”

There are other reasons to believe gambling may receive more attention after the legislature starts up on Jan. 19.

Several legislators who opposed wagering have moved on, including former Senate President Colleen Hanabusa, now serving in the U.S. Congress, and Sen. Dwight Takamine, who has been nominated to head the state Department of Labor and Industrial Relations.

New Gov. Neil Abercrombie has voiced support for a lottery in the past, though has amended that position to say he doesn’t see a need for gambling to be explored at this time. Abercrombie spokeswoman Donalyn Dela Cruz said gambling hasn’t been on the table as discussions take place on what to do about the budget.

During Abercrombie’s campaign he released a position statement saying he was opposed to casino gambling and a state lottery because he believed there would not be a positive result for local residents.

“Neil is open to the possibility of joining existing multi-state lotteries if they would be willing to offer Hawaii specific prizes,” the position statement said.

“However, Neil does not believe that gambling in any form needs to be explored right now.”

Radcliffe, who has served as consultant to prior governors and helped with Abercrombie’s past campaigns and his recent transition team, is hoping Abercrombie reconsiders.

“I don’t believe the Governor has a moral objection to gaming,” said Radcliffe. “His objections to gaming have more to do with whether or not it’s good policy.”

Radcliffe points to other factors, including rising discourse about the ability of state government to function and provide services given cuts that have occurred. Some legislators don’t see a way to cut big numbers from the budget.

Moreover, there’s the long-time argument that Hawaii is exporting some residents’ hard-earned cash to Las Vegas casinos and other Mainland states where gambling is allowed. Vegas is one of the top destinations for Hawaii travelers, with special vacation packages and charter flights.

Radcliffe contends Hawaii loses hundreds of millions of dollars to gambling enterprises on the Mainland annually.

A study done last year for Radcliffe’s client, a casino group from Detroit owed by the Ilitch family of Little Caesars Pizza fame, estimates a single, free-standing casino could bring in $86.2 million during its first year, when a gaming fee, employee income taxes, indirect patron spending and related taxes are considered.

The study also includes a projection showing there would be 5.87 million visits to a casino, with 2.83 million of those coming from Hawaii residents. Roughly 623,000 of the visits would come from incremental tourism business, or people who will vacation here because of the casino availability.

The number of jobs created at a casino and off-site is estimated at 9,377. When a multiplier effect is used, the number jumps to 14,065.

Radcliffe said a casino might prove to be the answer for millions in operating losses racked up by the Hawaii Convention Center if the site could be converted into a gaming facility. Moreover, tax revenue from the operation could provide a funding source for Native Hawaiian programs such as the Department of Hawaiian Home Lands... (Complete Story)

John Radcliffe, a Hawaii-based lobbyist and politico, has been representing Detroit gambling interests in Hawaii for more than a decade. This and other news accounts have tied him to Lansing-based Marketing Resource Group, a firm owned by Ilitch/Malik mouthpiece Tom Shields. Shields and Radcliffe connected years ago through the American Association of Political Consultants. Another one of their cronies, Jack Seigle has also been active on their behalf in Hawaii.  Back in 2001 he organized the Coalition for Economic Diversity as a so-called third-party to advocate for the Detroiters' interests.

The model they've been pushing for a decade is similar to that Detroit voters approved in the mid 1990s and would end up with a single casino located desirably on Waikiki Beach and governed by a gambling control board or gaming commission.

The Detroiters Radcliffe represents (a syndicate organized by controversial wheeler-dealer Michael Malik and Mrs. Marian Ilitch) were among those behind the 1990s effort that got voter approval to develop and operate three Las Vegas-style gambling halls in downtown Detroit. Voters there were told the casinos would provide new revenues to improve a city that was struggling. Ten years later, and by most standards and accounts, Detroit is now the worst big city in North America.  And while most Detroiters are worse off, those behind the gambling syndicate are worth a whole lot more.

The gambling study they reference in this article was first commissioned by the Detroiters in 2000 when they started lobbying for commercial gambling in Hawaii. Jake Miklojcik, author of the study, is among the Detroiters' stable of consultants and third party advocates who often shows up wherever they are.  Do a Google search and you'll see him involved where they are pushing gambling.

Detroit's Ilitch Family Could Spend $1 Billion+ on Shinnecock Casinos

Ilitch teams with tribe on N.Y. casinos: Long Island plans could top $1 billion
10.19.2010

by Bill Shea

The Ilitches' high-profile pursuit of the Detroit Pistons and plan to build a downtown arena could be dwarfed financially by the family's quiet effort that could top $1 billion to construct casinos for an American Indian tribe on New York's Long Island.

Marian Ilitch, sole owner of MotorCity Casino and matriarch of the family whose fortune is built from the Little Caesar Enterprises Inc. pizza chain she co-founded in 1959, has a casino development deal with the Southampton, N.Y.-based Shinnecock Indian Nation, which recently said it may build up to three casinos now that it has official federal recognition.

Even if the tribe builds just one hotel-casino, because it will serve New York it's expected to be significantly larger than MotorCity, for which Ilitch financed the purchase and expansion for $600 million. A trio of casinos could each still be as large as or even larger than the Detroit property.

MotorCity reported $446 million in 2009 revenue and had 2010 revenue of $333.5 million through September.

"The location will dictate the size of the casino, but it certainly will be larger than the operation at MotorCity," said Tom Shields, owner and president of Lansing-based Marketing Resource Group Inc. and spokesman for Ilitch and her partner in the casino effort, Birmingham developer Mike Malik.

The U.S. Bureau of Indian Affairs this month rejected final objections to its acknowledgment of the Shinnecock
as a federally recognized American Indian tribe -- one seeking to build a casino, with Ilitch financial backing, to improve the lives of its roughly 1,200 members. They live on about 800 acres, mainly in mobile homes.

Such formal recognition, which the Shinnecock tribe first sought in 1978, is needed to open an Indian-run casino under federal law. It also makes the tribe eligible for federal housing, health and education funding.

Ilitch and Malik have been working with the tribe since 2003 on plans to build and operate a casino in Long Island's upscale Suffolk County -- an area better known as the Hamptons.

Casinos could be built elsewhere on the island to serve a wider population.

Ilitch and Malik are partners in Gateway Casino Resorts LLC and Gateway Funding Associates LLC, the businesses working with the tribe. They are headquartered in Detroit's Fox Theatre, whose offices are home to Ilitch Holdings Inc. and other Ilitch-owned ventures.

Additional state and federal legal, environmental and regulatory approvals are needed before a casino project can start -- something industry insiders have said is a long process with no guarantees and in which longer-recognized New York tribes have been mired for years.

The tribe prefers to negotiate with authorities to build a more lucrative Class III casino, which allows table games in addition to video slot machines under federal law. A Class III casino must share revenue with the state.

Ilitch and Malik will give the tribe financing and guidance on development and operations, Shields said. How much they'll be paid, and how much of a cut of the casino revenue they'll get, isn't yet known.

There is no timeline for the development, Shields added, noting that it's expected to take several years to get approvals and finish construction.

Beverly Jensen, communications officer for the tribe, declined to comment.

Casino spending

Malik and Ilitch have worked on casino efforts in Port Huron and Manistee and in Hawaii and California, but none have reached the stage of the New York project.

Expenditures on the Long Island effort have been significant.

Through Gateway, Ilitch and Malik paid Arlington, Va.-based lobbying firm Wheat Government Relationsmore than $1 million since 2003 to push for federal recognition for the Shinnecock, records show.

The casino project still needs the approval of New York's governor and Legislature.

Gateway hired Washington D.C.-based Mercury Public Affairs to lobby state government on behalf of the casino. The firm reportedly has met with New York Gov. David Paterson and state legislative leaders to discuss the gambling plan.

A comprehensive anonymous website, TheVerifiableTruth.com, for several years has tracked news and public records linked to Ilitch and Malik's casino ventures, and it shows that they have donated money to political candidates in positions to influence the tribal recognition or other casino-related issues.

The tribe's federal recognition suggests it was money well spent and eventually might result in new cash flow for the Ilitch empire.

In the meantime, the Ilitches will be conscious of the dangers of over-leveraging themselves, sports insiders say.

"All sports properties are acutely aware of not burdening themselves with debt," said Maury Brown, president of Portland, Ore.-based Business of Sports Network, which includes websites devoted to the business side of pro sports.

Bill Shea: (313) 446-1626, bshea@crain.com

Detroit's Ilitch Family To Develop Casinos with New York's Shinnecock Indian Nation

Shinnecock Indian Nation to Build Casinos
10.17.2010

THE SOUTHAMPTON, L.I.-BASED SHINNECOCK INDIAN NATION HAS TEAMED UP with the wealthy Ilitch family—which built its fortune through the Little Caesars pizza chain and which owns MotorCity Casino—to fund its casino ambitions, according to Crain's Detroit Business. The Shinnecocks, who were recently recognized by the federal government as an American Indian tribe, said they may build up to three casinos on Long Island to improve the lives of their 1,200 members, who live in mobile homes on about 800 acres adjacent to the upscale Hamptons. The tribe has been looking for potential sites since 2003, and it's in talks with private developers and community leaders.

Blogger's Note: Somehow the poor impoverished Shinnecock people came up with $1,250,000 it paid to D.C. lobbyists to win federal recognition and advance Gateway Casino Resorts' schemes for Long Island. Gateway paid an additional $1,085,000 to D.C. lobbyists for a total of $1,905,000 reportedly paid to  D.C. lobbyists.  Malik & the Ilitch family also contributed more than $1,200,000 to Members of Congress and their various affiliated campaign committees and PACs.

NY Senators Return Michael Malik's Campaign Contributions

Published by Newsday.com on 10.13.2010

7th S.D.: Sens. Johnson, Klein to return Malik contributions

By Reid Epstein

Yesterday we wrote about Detroit developer Michael Malik's donations to Rep. Tim Bishop (D-Southampton). Turns out Malik -- who is partnering with the Shinnecock tribe to develop a Long Island casino, paid a fine for not reporting California political donations and paid to settle a federal case involving an insolvent company in which he'd invested -- also gave $3,500 to state Sen. Craig Johnson (D-Port Washington) and $2,500 to state Sen. Jeff Klein (D-Bronx).

Johnson spokesman Rich Azzopardi said the campaign this morning wrote a check to Malik returning the money. "We sent it back earlier today," he said. "After we saw your post, we checked our records and we cut a check this morning."

Klein spokesman Austin Shafran said the fourth-ranking Senate Democrat will also be returning his contribution.

Note: Click CA-FPPC for details about Michael J. Malik's campaign finance violations in California.

Also See: 
-Congressman Bishop Under Fire For Accepting Michael Malik's Contribution
-Questions Surrounding $15K Gov. Cuomo Accepted From Detroit Casino Syndicator

Congressman Bishop Under Fire For Accepting Michael Malik's Contribution

Published by Newsday.com on 10.13.2010

Breaking News: Bishop Donor Mixed Up With Casinos, Illegal Contributions

By Reid Epstein

Tim Bishop campaign donor Michael Malik, a Detroit developer, is a partner with the Shinnecock indian tribe seeking to develop a Long Island casino and in 2009 Malik was found guilty and fined $4,000 by the California Fair Political Practices Commission for failing to disclose 17 campaign contributions during the 2006 cycle.

In 2008, Malik was charged in a Florida federal court with being involved in a $2.1 million fraudulent transfer stemming from a Securities and Exchange Commission Ponzi scheme case against an entertainment promoter named John P. Utsick. Malik settled the case with a $170,000 payment on the $620,000 he received from the scheme.

Malik, federal campaign finance records show, gave a max contribution of $2,400 to Bishop for Congress in 2009.

We asked Bishop campaign spokesman Audrey Kubetin about Malik earlier this afternoon and are waiting to hear back from her. Bishop and Republican opponent Randy Altschuler are to debate tomorrow morning at News 12…

Also See: 
-NY Senators Return Michael Malik's Campaign Contributions
-Questions Surrounding $15K Gov. Cuomo Accepted From Detroit Casino Syndicator

FPPC Investigations

Casino Syndicator Michael J. Malik Buys $5.4 Million NYC Penthouse

In Deed! Gambling Mogul on the Waterfront
The New York Observer
4.27.10

The Rushmore

80 Riverside Blvd, PH4A 

New York, NY 10069

--Casino mogul Michael J. Malik, who has been a leading proponent of the legalization of gambling and of building gambling halls, has bought a $5,362,187.64 apartment at The Rushmore at 80 Riverside Boulevard. The penthouse apartment did not appear to currently be on the market but was once listed for $7.3 million. The Michigan-based entrepreneur has also tried to develop a casino in the Hamptons, it has not yet been successful.

Penthouse 4A: 3,056 ft²; 10.5 rooms - 4 bedrooms, 3.5 baths; doorman, garage, pool, club, Sundeck; btwn W. 63rd & W. 64th Sts.  Further details at EasyStreet.com

NYC Property Deed

Two Bills Allowing Gambling in Hawaii Fail; Detroiters Actively Lobbied for Passage

From the League of Women Voters May 2010 Newsletter | Anti-Gambling Update

Anti-Gambling Results

May 2010

In February, two bills [HB 2251 & HB 2759] strongly supported by gambling interests came up for public hearing at the Legislature. After lively testimony and discussion, both bills were deferred.

Along with the Hawaii Coalition Against Legalized Gambling and other community and native Hawaiian groups, LWV’s Jean Aoki testified against the measures. John Radcliffe, an industry spokesperson from Michigan, spoke in favor of the bills, saying the casinos would generate jobs and increased revenue for the state.

One bill would have permitted a single casino in a county with more than 500,000 residents. The second would have allowed casinos on Hawaiian Homelands. As it turned out, both bills were dead. Nor did other gambling bills come forward.

Certificate of Forfeiture Issued Over Michael Malik's Lake Front Property; Casino Syndicator Owes Thousands in Back Property Taxes

On April 1, 2010 the Treasurer of Wayne County, Michigan, issued a Certificate of Forfeiture of Real Property on a residence at 960 Lake Shore Rd., Grosse Pointe Shores, Michigan. This is a mid-century lake front home in one of Detroit’s most fabled neighborhoods owned by casino syndicator Michael J. Malik, Sr.

Typically a Certificate of Forfeiture is issued when a property owner fails to pay his or her property taxes; and, in lieu of payment, the governing authority elects to seize the real property.

(1) 960 Lake Shore Rd., Grosse Pointe Shores, Michigan

In 2001, Michael J. Malik, Sr. (G P Development LLC) purchased the residential property at 960 Lake Shore Rd. from the Louis A. Fisher, Jr. Trust with a $4,250,000 mortgage held by Comerica Bank.  It had been the primary residence of Louis A. Fisher and his wife Virginia Nesbitt Fisher until their deaths respectively in 2000 and 1978. Louis was the son of William A. Fisher who along with his six brothers founded Fisher Body Corporation in 1908.  Fisher Body would later become a division of General Motors Company.

The property located at 960 Lake Shore Rd. and fronting Lake St. Clair is located in one of greater Detroit’s most exclusive neighborhoods.  Living two doors south from the Malik property are Mr. and Mrs. Matty Moroun (956 Lake Shore Rd.) owners of Detroit International Bridge Co. (Ambassador Bridge).  Approximately six doors north is the vast estate of William Clay Ford, Jr. (1000 Lake Shore Rd.) once the home of Edsel and Eleanor Ford. 

It’s not clear who, if anyone, currently inhabits the residence at 960 Lake Shore Rd.; however, between 2000 and 2008, Malik and his wife/ex- wife Michele M. Malik, owned three residential properties on Lake Shore Rd.in Grosse Pointe Shores:   

• 583 Lake Shore Rd., a 6,052 square foot home with seven bathrooms, built in 1961 and purchased in May 2003 for $2,000,000. Township records indicate the property was seized by the Sheriff who granted the deed to La Salle Bank Midwest N.A. in November 2008.  Township Property Records
• 591 Lake Shore Rd., an 8,439 square foot home with five bathrooms, built in 1961 and purchased February 2000 for $2,100,000. Township records indicate this property is still owned by Michael Malik and his ex-wife Michelle.  The tax bill is sent to Malik’s office at 2211 Woodward Ave., Detroit.  Township Property Records
• 960 Lake Shore Rd., a 5,511 square foot home with five bathrooms built in 1955 and purchased in 2001 for $4,250,000 – the property for which the Certificate of Forfeiture was issued.  Township Property Records

Detroit Casino Interests Behind Shinnecock Bid for Casino at Belmont Park & Race Track

Shinnecock Indians, Gateway Casino Resorts team up in bid for Long Island casino

NY Daily News

2.28.2010

By William Sherman

The Shinnecock Indians and their super-rich partners have spent more than $1 million to lobby state and federal lawmakers to let them build a "world-class" casino on Long Island - possibly at Belmont Park racetrack.

The impoverished Southampton, L.I., tribe doesn't have the money for the project, but their backers and development partners, Gateway, has plenty to invest.

Gateway's principals are Marion Illitch who, with her husband, owns the Detroit Tigers, the Detroit Red Wings, and Little Caesar's national pizza chain, and wealthy gambling czar Mike Malik.

Gateway's only stated business purpose is the Shinnecock casino enterprise, and Malik has made significant contributions to politicians who could turn the plan into reality.

The casino needs the approval of the governor, the Legislature and Congress.

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

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

"We're hoping to get quick resolution on a site location that's good for the state, good for the specific locality and the people there, and good for the tribe," Capel said.

Tribal leader Fred Bess said, "We're looking to build a world-class facility" which would include a full complement of table games like blackjack and poker, plus slot machines, a big hotel and Vegas-style entertainment.

A casino would be a billion-dollar jackpot for the 1,066-member tribe whose desolate reservation is near Southampton's luxurious mansions.

The Shinnecock enterprise is the latest entry in the quest for the big pot of gold - the billions New Yorkers would gamble at locations more convenient than Atlantic City orFoxwoods in Connecticut.

Two weeks ago, tribal leaders and Capel met with Paterson, state Senate presidentMalcolm Smith, and Sen. John Sampson in Albany, Capel said.

"We don't think getting the approvals will be that hard," said Capel.

On the federal level, Gateway has paid Wheat Government Relations, a highly influential lobbying firm, more than $1 million in the last six years.

Some Experts Believe New York Casino Market is Saturated; Shinnecock Casino at Belmont Would only Create Problems

In Casinos, New York Faces Uncertain Returns

1.29.2010

By Charles V. Bagli

Gov. David A. Paterson announced Friday that he had selected a casino operator for the Aqueduct racetrack in Queens. It would be the ninth racetrack casino to open in the state since 2001.

The Shinnecock tribe on Long Island, meanwhile, expects to get federal recognition later this year, and it wants to promptly build a casino, possibly at the Belmont Park racetrack just a few miles from Aqueduct.

Existing Gambling Halls - Jan 2010

And there is yet another push by Senator Charles E. Schumer, Governor Paterson and elected officials in the Catskills to allow Indian tribes to build two Las Vegas-style casinos in Monticello, 90 miles northwest of Manhattan.

But for all those wishing to further exploit gambling revenues — from the state’s chief executive to casino operators themselves — there are sobering realities: falling revenues at any number of the New York area’s gambling sites, the effects of a deep recession and the threat of what amounts to market saturation.

At the Monticello racetrack casino in the Catskills, for instance, gambling revenues (after prizes) fell by more than 9 percent in the first three quarters of the current fiscal year. And gambling revenues at the Seneca tribe’s three full-scale casinos in the Buffalo-Niagara Falls area dropped 7.2 percent last year, prompting the tribe to shut down the expansion projects at its once booming resorts.

In Connecticut, where two massive Indian casinos have long attracted New Yorkers, as well as in Las Vegas and Atlantic City, there have also been substantial declines in profits and revenues.

“It’s probably wise to err on the conservative side when projecting revenues from gambling,” said Robert B. Ward, deputy director of the Rockefeller Institute and co-author of a national study on the drop in gambling revenues.

New York’s embrace of gambling, to be sure, has had its upsides in recent years, and the combined revenue from the state’s eight racetrack casinos is still on the rise. But the outfits that run those casinos won the right to take a larger percentage of total revenues and have been sending less money to the state’s dedicated education fund — down by nearly 10 percent in 2009.

Morgan Hook, a spokesman for Mr. Paterson, said, “Moving forward with a gaming facility at the Aqueduct racetrack will not only bring real jobs to the metropolitan New York City region, but will spark economic development in surrounding neighborhoods, send sorely needed dollars to public schools and stimulate the important agriculture and racing industries upstate.”

A new casino at Aqueduct, with 4,500 electronic slot machines but no table games, would sit in a densely populated part of Queens, something the developers competing to operate it find attractive.

Analysts say that Aqueduct could generate more than $1 million a day in revenues for the state.

On Friday, Governor Paterson said he had selected the Aqueduct Entertainment Group from five bidders to run the casino. The move played well with State Senate leaders and with Queens leaders, including the Rev. Floyd Flake, who is a member of the A.E.G. consortium.

But the long awaited decision could still run into trouble from rival bidders, including Penn National, which said it was “shocked and dismayed” by the governor’s decision because it had submitted the highest offer for an upfront payment, $300 million.

Assembly Speaker Sheldon Silver said he had agreed to the governor’s choice providing that A.E.G. met a series of conditions, which includes raising its upfront bid to $300 million.

Jeffrey E. Levine, a Queens developer who is part of the A.E.G. consortium, said the group had agreed to all the conditions. State officials said they expected to complete an agreement in 30 days with A.E.G., which plans to open the casino within six months.

“I’m thrilled to bring these jobs and this financial windfall to our borough, our city and our state in these desperate times,” Mr. Levine said.

“We are ready to hit the ground running.”

But some analysts say an Aqueduct casino may wind up stealing customers from the Empire City Casino at Yonkers Raceway, the state’s best performing slots hall.

The Aqueduct casino, in turn, would come under siege if the Shinnecock tribe builds a casino at nearby Belmont, or on its reservation in Southampton...  Read Complete Story

See original story and additional graphics at NYTimes.com 

Bank Transfers Paradice Hunt Club Property to Michigan Dept. of Treasury

The Michigan Department of Treasury is holding property belonging to yet another affiliate of Detroit casino syndicator Michael J. Malik, Sr.

Fifth Third Bank has transferred property belonging to Malik's Paradice Hunt Club, L.L.C., to the Department of Treasury.

Malik through his Paradice Hunt Club owns 1,000 acres of property in Davison, MI and operates a commerical lodge and hunting grounds on that property. In 2008, Malik was found guilty of illegal firearms discharge in Arizona, was fined nearly $15,000 and stripped of his right to hunt in Arizona, Michigan and a majority of other U.S. states for five years.

Previously TVT has reported that Fifth Third Bank had transferred property to the Department of Treasury belonging to another Malik affiliate, Lucky 7 Development, L.L.C.

Lucky 7 owns property on Harsens Island in St. Clair County, Michigan. Malik's most recent development plans for that property include a marina and 348 clustered housing units. However, Malik has failed throughout the last decade to win approvals for various developments proposed for this property. The St. Clair County Department of Equalization reports that Malik is delinquent paying 2008 property taxes levied on this property which was formerly associated with the Detroit Boys Club.

In April, Fifth Third Bank filed notice with the Oakland County Circuit Court noting Malik was in default on a personal $1 million line of credit.

Fifth Third Bank v. Malik: Complaint (including promissory note)

It's not clear how these actions by Fifth Third Bank and involving Malik and his affiliates might be linked, if at all.

Ilitch Partner Delinquent on 2008 Property Taxes

According to the St. Clair County Department of Equalization the 2008 property taxes on all eight parcels on Harsens Island, MI, owned by Lucky 7 Development, LLC, and referenced below, remain delinquent. These parcels collectively are commonly referred to as the former Harsens Island Boys Club property (Camp Drusilla Farwell).

Parcel History
Documents dated February 12, 1997 and filed in St. Clair County, Michigan record that seven parcels of land situated in Clay Township, St. Clair County, were transfered from D. Fred Smith and Stephanie Smith to Lucky 7 Development LLC. These seven parcels are identified as follows:

74-14-649-0007-000
74-14-649-0011-000
74-14-618-0004-000
74-14-618-0007-000
74-14-618-0031-000
74-14-514-0033-000
74-14-514-0034-000

Lucky 7 Development LLC manager Michael J. Malik entered into a $2 million mortgage agreement with Comerica Bank covering these seven parcels on December 26, 2003.

Documents dated December 9, 2005 and filed in St. Clair County, Michigan record that one parcel of land situated in the Township of Clay, St. Clair County, and commonly referred to as 805 North Channel, was transfered from Thomas M. Wiethorn to Lucky 7 Developoment LLC. That parcel is identified as follows:

74-14-618-0008-000

Lucky 7 Development LLC manager Michael J. Malik entered into a $480,000 mortgage agreement with Comerica Bank covering this parcel on June 2, 2006.

Malik and his Lucky 7 Development LLC / Grand Pointe Development LLC have previously proposed several failed development projects for these parcels including a marina and a large-scale clustered housing project that was anticipated to re-route North Channel Road.

Malik partners with members of Detroit's Ilitch family on various casino development projects in Michigan and throughout the U.S. His business numerous affiliates are registered at the same address as Ilitch Holdings, Inc. in Detroit and his personal office is among the suite of executive offices at Ilitch Holdings headquarters.

In April, Fifth Third Bank filed notice with the Oakland County Circuit Court noting Malik was in default on a $1 million line of credit. Property owned by Lucky 7 Development has been transferred to the Michigan Department of Treasury by Fifth Thirds Bank.

Casino syndicator with history of illegal activity contributes $30k to Democratic Senatorial Campaign Committee

According to OpenSecrets.org, Detroit casino syndicator Michael J. Malik, Sr. contributed $30,400 to the Democratic Senatorial Campaign Committee on 6.19.09.

Previously such contributions by Malik and his casino gaming partners Mike and Marian Ilitch flowed to committees to re-elect Michigan Senators Debbie Stabenow and Carl Levin -- two who have spearheaded Congressional activity that would pave the way for Malik and his partners to develop an off-reservation Indian casino (Bay Mills Indian Community) in Port Huron, MI.

For more than a decade Malik has failed to win such Congressional approvals despite raising hundreds of thousands of dollars for those who have carried his water including Stabenow, Levin, Michigan Representative Candice Miller, Alaska's Representative Don Young and several others that have been key to Malik's schemes.

Malik and Ilitch are also behind similar off-reservation Indian casinos proposed in Barstow, CA (Los Coyotes Band of Cahuilla and Cupeno Indians) and Hampton Bays, NY (Shinnecock Indian Nation).

In December 2008, Malik was found guilty on firearms charges in Arizona. As a result he was forced to pay a nearly $15,000 fine and stripped of his right to hunt in a majority of U.S. states for a period of five years.

In February 2009, Malik was found to have violated California campaign finance laws and was also fined. Malik has a history of repeating such violations in California.

In April 2009, Fifth Third Bank filed a complaint in Oakland County (MI) Circuit Court claiming Malik had defaulted on a $1 million line of credit.

In May 2009, Malik entered into a settlement agreement in Florida Federal Court acknowledging that he had previously accepted at least $620,000 in fraudulent transfers (Goldberg v. Malik) as part of a Ponzi scheme. That case stemmed from a $300 million Ponzi scheme case brought by the Securities & Exchange Commission against Jack Utsick and others. Utsick has subsequently taken asylum in Brazil.