Dianne Feinstein
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New "Byrne Report" proves Senator Feinstein's
husband in bed with Station Casinos
Investigative
Reporter Peter Byrne has discovered the ongoing financial
relationship between Richard Blum & Station
Casinos!
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| News
from Sonoma County & Around the Nation |
June
18,2010 |
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Richard
Blum, Station Casinos, Colony Capital & UC Regents Business
Dealings
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An explosive report from investigative reporter Peter Byrne has revealed an on-going financial
relationship between Senator Feinstein's husband Richard Blum,
Station Casinos and Colony Capital involving millions of dollars of
University of California money.
In "Investor's Club: How the UC
Regents Spin Public Funds into Private Profit" found
on Spot.us , Byrne examines the financial dealings
of University of California Regent Richard Blum including his direct link to Station
Casinos, the company that is trying to build a Class III casino in
the small University town of Rohnert Park, CA in partnership with
the Federated Indians of Graton Rancheria.
Byrne reveals that Richard Blum's real estate firm, CB Richard
Ellis, of which Blum is the Chairman of the Board, touts
itself as the ""the leading global casino real
estate advisor.".
In his study of the Station Casinos connection, Bryne
reports
"Study No. 3: Colony
Capital
Since 2007, UC has invested millions of dollars with Colony
Capital, a Los Angeles private investment firm. One of Colony
Capital's principal partners is Richard Nanula, a longtime trustee
of the University of California, Santa Barbara. One of Colony's
business partners is Mr. Blum. The intersection of financial
interests between UC, Colony Capital, and Mr. Blum is revealed
through the workings of the leveraged buyout deals of Fairmont
Raffles Holdings International in Toronto and Station Casinos in
Las Vegas...
"Station
Casinos
Las Vegas, Nevada
The Players:
� The Fertitta family operates and partially owns Station Casinos,
one of the largest casino chains in Nevada. Until three years ago,
it was a publicly traded company.
� Real estate firm CB Richard Ellis bills itself as "the leading
global casino real estate advisor."
The Blum Connection: Mr. Blum is the chairman of
the board and a controlling shareholder of CB Richard Ellis. He is
a member of the board of directors of the hotel chain Fairmont
Raffles Holdings International, owned by Colony Capital. He is also
an investor in a Colony Capital acquisition fund.
The Deal: In 2007, Colony Capital partnered with
the Fertitta family in a $5.7 billion leveraged buyout (taking the
public company private). Colony partly financed the deal with
Colony Capital VIII. U.S. Securities and Exchange Commission
records show that as the deal was being negotiated, Station Casinos
hired CB Richard Ellis to evaluate the Fertitta-Colony offering to
Station Casino's public shareholders. CB Richard Ellis was charged
with determining if the offering was fairly priced. Mr. Blum's firm
told Station Casino shareholders that the deal was a solid
investment.
UC's Investment: While Mr. Blum served on the
regents' investment committee, UC invested $16.6 million in the
Colony Capital fund (Colony Capital VIII) which bought Station
Casinos in a deal that was partly overseen by CB Richard Ellis, a
company Regent Blum controls. The deal benefited Colony Capital, a
firm to which Mr. Blum is deeply connected through investments and
a board directorship.
Fallout: Not long after it was privatized,
Station Casinos declared bankruptcy due to the combined effects of
the recession and the $1.6 billion operating debt that its new
owners had imposed on the company via the buyout. Former
shareholders of Station Casinos claimed that the deal was not in
their best interest, as CB Richard Ellis had claimed. The Colony
Capital fund that financed the Station Casinos buyout (Colony
Capital VIII) has lost more than half its value due to the soured
deal, enraging institutional investors. As of December 2009, the
value of UC's investment in Colony Capital VIII had decreased by
$6.3 million."
In addition to the Station Casinos information, Bryne outlines a
number of questionable deals directed by UC Regent Blum.
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| More
info.... |
Most of
remember that Senator Feinstein has been MIA for the most part on
the Rohnert Park casino, even while taking direct action on the San Pablo
casino.
A cursory review of Senator Feinstein's Senate Public Disclosure Financial
Report filed in May, 2007 reveals that the Senator owned
"$205,001 - $500,000" of common stock in CB Richard Ellis, the most
recent Blum-controlled company to do business with Station Casinos,
Inc..
STC101 has learned that Blum's business relationship with Station
Casinos goes back to at least 2001-2002. By the time the Graton
Rancheria project came along in 2003, Blum-controlled Perini
Construction had already made millions from Station Casinos projects,
including Station Casinos' first California tribal casino, Thunder
Valley.
According information, some of which was developed by STC101 and
some of which was received from a third party and verified by
STC101, Perini made in excess of $1 billion from Station Casinos
building projects.
Here's
the time-line for some of Richard Blum's business dealings with
Station Casinos:
(?) 2002:
Perini begins construction on Station Casinos' Green Valley Ranch
Station in Henderson NV.
October
2002: Perini begins construction begins on Thunder Valley
tribal casino financed, developed and to be managed by Station
Casinos Inc. of Las Vegas.
April
2003: Graton announces plans to open a casino in partnership
with Station Casinos
February
2004: Station Casinos Inc. awards Perini Building Co. a $63
million construction contract to expand Green Valley Ranch
Station
April
2004: Perini awarded multi-million dollar contract on
Station Casinos' deluxe Red Rock Resort.
October
2005: Blum divests himself of Perini interests due to
controversy surrounding charges of nepotism and favoritism on
federal and state levels.
(?)
2007: According to Peter Byrne, Blum's "CB Richard Ellis"
contracts with Station Casinos to do land valuations for Rohnert
Park properties and other CA properties for the deal that took
Station Casinos private.
With
Senator Boxer's son Doug's involvement in the original casino plan
near Sears Point and Senator Feinstein's husband making millions
from Station Casinos contracts, what chance do their Sonoma County
constituents have for fair representation in the U.S.
Senate on
the matter of the the Graton Rancheria
casino?
More Reading:
"Both sides hold jokers on Indian casino"
"MIG
Attack"
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