RICO charges filed against Hudson Holdings

Remember these bums?

Well, former Lake Worth commissioner John Szerdi should remember them...he worked for them. Then we have Wes Blackman, former chair of the Historic Resource Preservation Board--he worked for Hudson Holdings too. We can't forget Greg Rice, Chair of our Planning & Zoning board, campaigning for it all, as well as the PAC for which he was affiliated, Friends of the Gulfstream, which had an ethics complaint filed against it in July 2013. It pulled a lot of dirty tricks back then.

On top of the above three, we have three city commissioners still in office: Scott Maxwell, Mayor Pam Triolo and Andy Amoroso who gave Hudson Holdings every little thing their heart desired like upzoning at the Gulfstream Hotel area as well as declaring an entire election null and void, won by the people on heights.

Anonymous Lake Worth Graphics Artist

Respectful Planning PAC won at the ballot just a few years ago getting 56% of the vote to keep the heights to 45 feet. Thanks to everyone who worked on this with special gratitude to Laurel Decker. Then the city attorney pulled a fast one on the people--so did the commission. They did not care about democracy, only giving developers what they wanted.

Changing Florida's Future, a PAC out of Tallahassee, sent out mailers supporting the election of Maxwell, Triolo and Amoroso that were funded by Hudson Holdings in the amount of $9,000. Hudson Holdings knew who their friends were.

The Gulfstream Hotel sits there and rots to this day. But wait a minute--we had a husband and wife team that blitzed into the city...supposed developers, Amy and Amrit Gill from St. Louis who told us that they were ready to embark on a $100 million project to renovate the historic building. The city fell for it and so did the residents. I wonder if any investors fell for it too? Where are these people?

Hudson Holdings had a lot of connections in St. Louis as well as failed projects. Was there not a red flag for the City of Lake Worth with this husband and wife team when it appeared out of nowhere from St. Louis? It really makes one wonder what really is going on. No one can continue to have two left feet.

The caveat for these "supposed" new developers to go forward with the hotel? They insisted that the residents approve a ballot measure in March 2020 that would allow property built adjacent to the hotel to match the Gulfstream’s 87-foot height. City guidelines limit building height east of Dixie Highway to 65 feet. Mailer after mailer was sent out to voters promoting this measure. Who was behind this mailer? It sounds like a Steven Michael tactic. The City knows nothing about this husband and wife team any more than they did about Hudson Holdings. Have they done one bit of due diligence?

Two years ago, south county developer Bill Milmoe and vitamin kingpin Carl DeSantis filed a RICO lawsuit against Hudson Holdings. It was settled and it was reported that CDS (the DeSantis group) now owns the property. Details of the settlement were kept secret and sealed.  But the owners are still HH GULFSTREAM LAND HOLDINGS LLC according to the Property appraiser's office.

**Now one of the original investors in the Hudson Holdings "enterprise" regarding the Gulfstream Hotel just filed suit under RICO statutes because of Steven Michael's and Avi Greenbaum's continuing individual and enterprise misconduct." The Racketeer Influenced and Corrupt Organizations (RICO) Act is a United States federal law that provides for extended criminal penalties.

COMPLAINT

Adam Schlesinger's history with Lake Worth and the Gulfstream Hotel

What caught my eye in the Palm Beach Post Sunday's edition was that Adam Schlesinger was back in the news. He and his companies are involved in the Ambassador Hotel Cooperative Apartments on S. Ocean Boulevard and have just been sued by them. It is stated that he is using a lot of scare tactics pressuring people to sell their units to him.

If you recall, the Schlesinger family was highly entrenched in our city at one time regarding The Gulfstream Hotel.

Back in July 2005, Schlesinger bought the historic hotel for $12,910,000 paying over double what it sold for only two years before. The hotel is 13,500 sq. ft. situated on 0.399 acres directly across from the Intracoastal Waterway and Bryant Park. It has 106 rooms in 65,456 square-feet and most rooms have a water view.

Adam Schlesinger came before a former Planning & Zoning Board on numerous occasions as well as the City Commission while Jeff Clemens was mayor. He was crying the blues that he couldn't get financing but NO one on the P&Z Board back then, (Lisa Maxwell, former candidate for District 4, Wes Blackman, former candidate for District 3 and Phil Spinelli to name a few), asked him to prove what he said--none of them even asked. They took him at his "word." They continued to give him extension after extension and allowed the Gulfstream to languish.

This is a hotel that survived the Great Depression but did not survive the financial depression we had. Asset Holding Company 5 LLC filed a foreclosure lawsuit against CSC Lake Worth Limited Partnership (Schlesinger) on August 11, 2010 in Palm Beach County Circuit Court. The lawsuit sought repayment of a $12 million loan, plus the foreclosure of the hotel property." In May 2010, it sold for $7,225,000 to HH GULFSTREAM LAND HOLDINGS LLC (Hudson Holdings). Another suit ensued and Carl DeSantis now owns the Gulfstream Hotel. Where is Steven Michael these days?

Read about Schlesinger... in Sunday's Palm Beach Post. In the meantime, the hotel, once an icon of our city, is still in limbo all these years later.

Hudson Holdings out of the Gulfstream Hotel project

Steven Michael, Hudson Holdings out of Gulfstream Hotel project

The suit has been settled where Hudson Holdings' partner accused them of engaging in racketeering activities for years. Now CDS Gulfstream that owned 51% can go forward in building out the Gulfstream Hotel.

Read about it...

Gulfstream Hotel partners suing each other

Lake Worth’s Gulfstream Hotel project snarled in partner lawsuits

Read about it...

and the two partners, CDS Gulfstream that own 51% and HH Gulfstream (Hudson Holdings) with infamous partner, Steven Michael.

It always astonishes me that Lake Worth can take a stand against its citizens (which it did in the height amendment and the lawsuit) and bend over backwards for developers every single time.

Hudson Holdings back in the news

Hudson Holdings, our favorite "developer" from Delray Beach is still fighting a battle in that city. At least their city commission is on the side of preservation rather than succumbing to the whims of Hudson--no waivers for them--no rezoning for them--in fact, the city commission is trying to get the property on the national register.

There has been a lot of resistance to the $140 million, 9 acre project that would include building a hotel, stores and an underground parking garage.

Read about it... and Hudson Holdings, the company that has neglected The Gulfstream Hotel beyond belief even after the Lake Worth commission (Maxwell, Triolo and Amoroso) bent over backwards for them even to the point of negating the vote of the people. And Commissioner Herman Robinson was the chair of the Historical Preservation Board that ok'd all of it for Hudson Holdings.

Hudson Holdings and its bullshit statement

“That the public overwhelmingly voted in people who have a positive, long-term outlook for growth is telling you what the residents want. This was a very pivotal election for that city. We feel a lot more comfortable and a lot more confident.”

~ Steven Michael, Principal of Hudson holdings

This guy has had more excuses over the last several years for not proceeding. This one really takes the cake telling us it is the election that was the decision for him taking the hotel property off the selling block...the people voted in Omari Hardy and Herman Robinson who favor growth, he says. It only takes a majority on the dais to approve of anything here. The minority commissioners were never an impediment for anything relative to Hudson Holdings and The Gulfstream Hotel. They both believed in growth but believed in democracy first and foremost--the vote of the people. Hudson could have saved its campaign contributions.

Both former commissioners were advocates of the vote on the heights referendum of 45 feet in that area. This lawsuit never had anything to do with The Gulfstream Hotel and why the city continues to imply it did, is a flat out fabrication. The commissioners were so hell bent on having The Gulfstream Hotel opened for business that they made the referendum all about that and preyed on people's emotions. The vote had everything to do with the height creep that will now take place in those several blocks and spread like an octopus.

It just shows that it is near to impossible to ever fight developers, city hall and those elected officials who believe that the tax dollar is more important than quality of life and small town charm and that a developer is more important than the vote of the people.  Perhaps a ban on receiving any campaign contributions from developers, lobbyists for developers, lawyers for developers, financial institutions for developers, etc. would be appropriate.

Why anyone believes trampling on democracy--the vote--especially in a democratic held city by those who are always screaming for the rights of the people, should be a mystery to us all.

The Biggest Losers around

“I’m a long-term investor and we want to be part of a city that is moving forward. It’s not just about our investment. It’s important that investors follow us and I feel that Lake Worth isn’t promoting that.”

~ Steven Michael, Hudson Holdings

Read more...

Who can believe this guy?  What a nerve! He's been pulling the wool over the eyes of city commissioners and City Manager Bornstein since day one when he bought the Gulfstream Hotel with the city believing that the Gulfstream Hotel reopening would be Lake Worth's salvation.  Throw in the Historical Board too that kissed their butts by voting on the approvals of a land use change from residential to commercial. The city has bent over backwards for them by giving them every little thing their hearts desired.

The city even stomped on democracy on the heights amendment that was won at the ballot box by the people who said "no more than 45 feet." Hudson Holdings said they needed 65 feet so screw the people and the city went along. To this very day the Trio commissioners are still singing the same song. You should have seen the look on the mayor's face when Commissioner McVoy suggested that the city drop out of the lawsuit against the citizens. The "visionaries" (city commission) not once listened to the people. It didn't matter what they wanted. Even after the heights amendment was won, the mayor made that area a hotel overlay district. And this trio (Maxwell, Triolo and Amoroso) was re-elected by a landslide.  Go figure.

The place is a blighted mess and not one improvement/repair ever was done since they bought it for $7,225,000 nearly three years ago. And if that wasn't enough, Hudson was informed of the heights amendment results before all of this but pursued all the waivers anyway to build high. It cost a few citizens a lot of money in legal fees, a suit for principle--something the owners of this hotel, as well as this city, never had--both the biggest losers around.

Who are they all trying to kid?

Such a deal - Hudson Holdings

The biggest joke of 2016? Hudson Holdings. And then you can throw in 2015 and 2014.

Now they're back in the news again.

Now it seems that Steven Michael of Hudson Holdings fame and the owner of the dilapidated Gulfstream Hotel, a hotel that has been given every desirable land use designation and waiver incentive in the history of lousy politics in Lake Worth to rebuild the hotel, has offered the owner of Mother Earth a few deals.

Read about it...

The Gulfstream Hotel and Hudson Holdings - All the Lies and Broken Promises

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Hudson Holdings has purposely allowed this historic building to go to seed.

Back on September 22, 2014 Steven Michael said:

Phase 1 will begin with the interior demolition expected to be completed by the end of 90 days.  That would have put the date of gutting the interior of the hotel to the end of December 2014. He anticipated that the hotel would be opened in about 14 months. That would have been November 2015.

In phase 2, the plans were for building a 4 story 250 car parking garage on the vacant lot as well as a 60 foot addition that would have another 75 rooms/apartments. There was no start date projected for this phase. That was the only portion of his property that was subject to the referendum.

Mr. Michael knew of the Heights referendum that was won by the people in March 2013  where 56% of the voters said no more than 45 feet could be built in that area. He knew that the referendum had taken place and won at the polls 1.5 years prior to this meeting at Pineapple Beach NA where he made all these promises.

Now he is claiming that a lawsuit stopped his forward motion to do anything. Everyone knows that is bogus. It had nothing to do with the existing hotel. He just stopped all work looking for someone to build on the property...looking to make his property more valuable by upzoning it approved by the Historic Board and the City Trio commissioners. He even tried to grab our beach property in the process.

He now claims:

• Hudson will now file for permits to demolish two out buildings (that could have been done years ago)

• Work on Phase 1, the rehabilitation of the hotel, will start in 4 months

• He says he is not "flipping" the property (That's just stupidity," he said) but says he has a commitment from Hilton and the deal will be finalized in the next few months.

• He said he was slowed down by a lawsuit by residents and he spent in excess of six figures to defend. What slowed him down with the lawsuit was his inability to make a deal with Hilton or some other hotel chain.

Can anyone believe this guy? I'll believe it when I see it.

What a bunch of crap - The Gulfstream Hotel Saga

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The bunch of crap is not particulalry what Kevin D. Thompson wrote but the entire farce of The Gulfstram Hotel and Hudson Holdings. Mr. Thompson gets his points from the City.

Oh, Hudson Holdings hasn't done a damn thing to this property. And even if anyone believes their excuse that there is a lawsuit against the city on the heights Charter Amendment for its inaction, it does not affect the existing hotel that is grandfathered.  It does not affect the out buildings that could be demolished. It does not influence Hudson holdings for its 100% neglect of this property and a big blight in our downtown. Trash and graffiti and vagrants.

Is this notice a joke?

Even our city attorney wants to blame the Petitioners for Hudson Holding's bull.

Read the crap...

The ONLY thing being maintained at the Gulfstream is our city planter that was moved there. And the ONLY thing that is frivolous is Hudson Holding's constant excuse for the big stall.

Hudson Holdings at it again

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"Our vision is very important. I look at this as the most important project we are working on. We accept comments and criticisms."

~ Steven Michael

Although moving eight historic homes in Delray, as Michael wants to do, goes against the city's rules as well as state and national preservation standards, he says the project wouldn't work unless the city allows their plan.

The Delray Historic Preservation Board was not the least bit thrilled with Hudson Holdings "most important project." They didn't give Hudson Holdings their stamp of approval as they got in Lake Worth. And gee, all along we were told by Hudson Holdings that it was the Gulfstream Hotel that was at the top of their importance ladder and that renovations would start in 2014.

Read about it...

In Bed Together - Strange bed fellows

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"Waiting...just waiting," says Hudson Holdings. "I'm still on the edge of the bed but in 11 days all the feathers belong to me! These yo yos have no clue."

Hudson Holdings - Has Eye on Lake Worth's Casino

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Well, who are they? We know that John Szerdi works for them. We know that Wes Blackman does too. We know that they are buying up a lot of parcels within the City of Lake Worth one of which was  the historic Gulfstream Hotel that they purchased for $7,225,000 million in May of 2014.  Nothing has been done at the hotel since they bought it. They brag about how they are now one of the top taxpayers in the city. What is their goal? To buy up the city? Steven Michael has made his money from development and his Hedge Fund.

Hedge Funds are limited partnerships of investors that use high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains. Could that be what's going on in Lake Worth and other cities or have they actually begun to renovate these properties?

They are spending a ton of money over the last few years. Last year they bought the Sunday House in Delray and promised all sorts of things for it and the surrounding area just like they promised here with the Gulfstream Hotel. All together, 7 acres of property, at Atlantic Avenue and Swinton Avenue, were acquired by affiliates of Hudson Holdings with Hudson spending $22 million. They have submitted plans to Delray that will change the area dramatically. In April 2015, they bought the Starks Building in Louisville for $14.25 million. 

You know what Donald Trump says about Hedge Funds..."They're getting away with murder. They're paying nothing, and it's ridiculous. I want to save the middle class." said Trump. Well Hudson says its "saving our city" and wants to take over at our casino and pool to save us from ourselves even calling WPTV Channel 5 and the Palm Beach Post using them for their purpose and providing embellished and/or false information.  The ITN is over so why is this guy still hanging around?

Below is a synopsis of a complaint that essentially says that Steven Michael failed to observe high standards of commercial honor and just and equitable principles of trade.

Narrative for 0212526 – MICHAEL, STEVEN ALAN **
**COMPLAINT: On October 15, 2012, NFA issued a Complaint charging Stonehenge and Michael with submitting misleading information to NFA about the status of the SD3 pool; failing to observe high standards of commercial honor and just and equitable principles of trade; using inflated figures in its promotional material; aggregating the funds of SD1’s different investment classes together in the SDMaster trading accounts thereby making the equity of participants in investment classes with higher funding levels available to margin the positions of participants in investment classes with lower funding levels; mis-allocating pool funds to pay Stonehenge and Michael’s expenses; making untimely reimbursements and redemptions; using misleading offering memorandum for SD1; and failing to supervise the overall operations of the firm.

The Complaint was filed only a few years ago and NFA charged Stonehenge with failing to obtain acknowledgements confirming that investors met the definition of a QEP. (A QEP is a sophisticated person who participates in a commodity pool or opens a managed account. The categories of persons who qualify as QEPs are listed in CFTC Regulation 4.7(a))

He failed to provide a disclosure document to individuals it solicited to invest in the SD3 pool; submitting inaccurate PQRs; failing to prepare SD1 account statements in accordance with U.S. Generally Accepted Accounting Principles; and allowing SD1 to make a loan to Stonehenge. He was charged $50,000 personally and Stonehenge was charged an additional $50,000.

Michael was charged with failing to abide by the terms of the settlement and Decision in a 2010 BCC case.  What happens if he gets control of our property?

Read about it

You need to know who you are jumping in bed with and no one can really ever figure out hedge fund guys. As Donald Trump further stated, ""The hedge-fund guys didn't build this country. These are guys that shift paper around and they get lucky." We don't want them shifting around any more paper in Lake Worth (how many plans have they told us about now?) and we don't want them "getting lucky" by bulldozing down our Olympic pool and managing our property.

So before this goes any further, let's get a complete background check including five years of financials before three people on a dais can turn over the key to our casino complex.

The Hudson Holdings' Gambit

Watch out for the Elephant in the Room

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This is a blog by Guest Blogger in response to a comment on my blog that was submitted anonymously yesterday in support of HH.

Guest Blogger
Anonymous Lake Worth Resident

Re: Hudson Holdings presentation at the Lake Worth Casino

I was afraid that this is what would happen at the Hudson Holdings meeting held at the Casino ballroom. Steven Michael is smart in picking up on the fact that people want to be heard.

But that's the trick--another bait and switch: let them voice what they want, then choose which of the above they want most. HH will compile all of the data derived from the comments and naturally they are just there to please us, or so they try to tell us. They ignore that their message is clearly not working--it's not even on the map.

People fall in love with their own ideas. Notice how more to the end of the evening they were all "good little children" and all coming up with more and more "creative ideas." People remember what they hear last.

Any mention of leave our beach alone was met with "OK, sure you can speak" and promptly labeled as "negative."

And of course, as concerned citizens who love our beach-- you are now to feel invigorated and even more passionate about being a part of improving it (and the silent clause not spoken out loud: is that it, of course, will be with Hudson Holdings, Lake Worth's savior).

Who will save the day for all of us? Hudson Holdings says that you can have your cake and eat it too, as long as they are in charge. THAT'S THE DANGER. Do not trust these bozos. I place them in the same category as the Gang of 3 and City Manager Bornstein.

Expect reality from Hudson: The Beach is being addressed the same way Steven Michael is addressing the Gulfstream. That's reality.

It's a very pretty rug--just remember to be aware of the elephant underneath it. Smooth and dangerous and at any speed.

Steven Michael - Blast from the Past

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Fifteen months ago, Steven Michael made this announcement

and John Szerdi was still a city commissioner:

A Wes Blackman public video

Unfortunately, NOTHING has been done on this property other than to accumulate a few homeless, an occasional code complaint and a lien. Fast forward to today--John Szerdi got defeated; Wes Blackman resigned from the Historic Board and works for Hudson Holdings and nothing has been revitalized nor has new life been given to this historic property.

In yesterday's PBPost propaganda piece for the city Kevin D. Thompson continues to get it wrong. He, once again, omits the fact that the $6 million is money that we borrowed from ourselves to rebuild the casino and it has nothing to do with the city's propaganda that implies that we are having a hard time paying it back. The City has made this decision to spend the money on other things. They want it to look as if it is failing. We are paying back the loan, just at a reduced rate and at our discretion.

Who is Steven Michael of Hudson Holdings?

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Now that Steven Michael has been floating around our city for over a year, purchasing the Gulfstream Hotel and promising to renovate it and now has his eyes on our beach, here is a brief introduction.

Professions
Property Manager - Licensed Real Estate Broker - Real Estate Manager - Finance and Accounting Specialist - Bookkeeper Accounting Bookkeeper - Purchasing Managers - Acquisitions Manager - Educational Manager - School Administrator - Manager Chief Procurement Officer - Operations Manager - School Principal

Experience
Position: Principle at Hudson Holdings, LLC, Fund Manager at Stonehenge Asset Management, LLC
Work: Hudson Holdings, LLC - 310 se 1 ST. Street, Suite 2, Delray Beach, Florida, 33483Principle since Jan 2013- Stonehenge Asset Management, LLC - Delray Beach, FLFund Manager since 2007

A hedge Fund is a limited partnership of investors that uses high risk methods, such as investing with borrowed money, in hopes of realizing large capital gains. (He says he plans on taking out a mortgage at the beach). U.S. laws require that hedge fund investors be “accredited,” which means they must earn a minimum annual income, have a net worth of more than $1 million, and possess significant investment knowledge.

Mr. Michael states that he is a licensed real estate broker. Perhaps he is but I couldn't find evidence of it.  Either he is licensed under a different name or he is licensed in another state.

His Gulfstream Hotel had a lien against it dated March 30, 2015. I have since found it is closed and he paid the administrative costs:

Case Number :  15-00000487   |    Address :  1 LAKE AVE

   General Case Information

Parcel ID: 38-43-44-21-15-033-0090
Location ID: 000023544
Tenant Name:
Tenant Number:
Case Status: OPEN LIEN (OL)
Case Type: CODE ENFORCEMENT
Case Disposition: Public
Case Origination: CITY MANAGER
Date Reported: 03/30/2015
Last Inspection No.: 000
Inspector Name: YOLANDA ROBINSON
Inspector ID: YLR
Meeting Case No.: 1500000487
Credit Balance: $0.00

Name	Address	Type
HUDSON HOLDINGS	C/O KEVIN CAMPBELL, 20 S. SWINTON AVENUE, DELRAY BEACH, FL 33444	ADDITIONAL ADDRESS
HH GULFSTREAM LAND HOLDINGS LL	C/O GREENBAUM, ANDREW, 310 SE 1ST ST SUITE 2, DELRAY BEACH, FL 33483	REGISTERED AGENT
HH GULFSTREAM LAND HOLDINGS LL	310 SE 1ST ST STE 2, DELRAY BEACH, FL 33483-4547	OWNER NAME

Click here for lien info

Quote of the Day - Let's push this idea down the throats of Lake Worth

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"The company [Hudson Holdings] in the next three weeks, plans to hold a public meeting without commissioners to get more input on plans for the casino/pool complex. It’s a good opportunity to get the facts out there on what we’re really doing. Then we will push the commission to make a decision.”

~ Steven Michael, Hudson Holdings partner

Read more...

Get the facts out there? What are you "really" doing?  You mean to say, get the propaganda out there? Hudson is desperate to get hold of our beach/casino area and they are spending the $$$$$$$$$$ to do it. Then they will PUSH the commission? How much more of this do we want to listen to? How many people in Lake Worth might make $$$$$ off this deal should it go through? If you control the politicians you control the city. All of this is squarely on the head of the city manager.

Hudson Holdings - Imagine!

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And I've got all sorts of cooperation from the city manager and the boys

to grab hold of the Lake Worth beach complex.

What a sweet deal to add to my growing portfolio!
IMAGINE!

Boutique Hotels are the new "in" thing

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Delray Beach, our neighbor to the south and a sizzling tourist destination according to the Palm Beach Post, now "is a target of boutique hotel chains — the biggest trend in the lodging industry. A new 4 story hotel is on the horizon."

“It’s a trend everywhere, and Delray Beach is a very good marketplace,” said Steven Michael, a principal with Delray Beach-based Hudson Holdings, a major downtown landowner.

Site of hotel on property owned by Hudson Holdings

Read about it... at the PBPost.