Mortgage Fraud: Who's to Blame?

DETROIT BUSINESS MAIN 09-15-08 A 1 CDB 9/12/2008 4:56 PM Page 1

www.crainsdetroit.com Vol. 24, No. 37 SEPTEMBER 15 – 21, 2008 $2 a copy; $59 a year

©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved THIS JUST IN MortgageMortgage fraud:crisis Suppliers wait Uncompensated care load increasing for hospitals Reflecting a worsening economy, Michigan’s hospitals provided a 61 percent Who’sfallout: to Fraudblame? on $25B federal increase in uncompensated care in 2007, to $2.1 bil- ortgage fraud continues to be a drain on the nation’s lion from $1.3 billion in economy, a byproduct of years of frenetic activity in 2005, according to the Michi- economy, a byproduct of years of frenetic activity in gan Health & Hospital Associ- the home-loan industry, when brokers happily ation, a trade group based happilyprocessed processed what they what called they “liar called “liar in Lansing. M loans,” mail arrived daily offering in- loan program From stantstant home-equityhome-equity loansloans forfor what- 2005 to WEB EXTRA everwhatever you said you yoursaid houseyour 2007, was worth, and finan- For more Michigan house was worth, and Big companies would fund details, go to hospitals cialfinancial institutions institu- from www.crains nearly Walltions Street from Wallto Cal- detroit.com. ifornia figured R&D, small ones see spillover doubled Street to Cali- the out ways to make fornia figured out BY RYAN BEENE fund their new R&D and intro- amount of charity care pro- (and later lose) CRAIN’S DETROIT BUSINESS ductions of new technologies, so ways to make vided, to $209 million from billions from they’re directly interested in the $110 million. Bad debt also (and later lose) Suppliers are watching Wash- charging high same way the Detroit 3 are,” said increased to $605 million billions from ington, D.C., while lawmakers Craig Fitzgerald, a partner and rates to buyers from $439 million. Unreim- charging high mull a program to guarantee $25 auto analyst at Southfield-based bursed costs for Medicare with bad credit. billion in government loans for rates to buyers Plante & Moran L.L.C. and Medicaid remained “There were all the domestic auto industry. Andrea Puchalsky, Lear Corp.’s the same, at about $1.2 bil- thesewith bad excesses credit. The loan program, part of the director of corporate communica- lion. in the“There market- were far-reaching Energy Indepen- tions, says her company is watch- Increasing uncompensat- dence Act of 2007, would make placeall these and excess- the NEWSCOM ing the issue very closely and is in ed care costs pushed down es in the market- $25 billion in loans available for favor of the loan program. Michigan hospitals’ operat- government sat by, watched it all happen, and did nothing automakers and suppliers to in- place and the government sat by, watched it all happen, and “These loans would assist ing margins from 3 percent about it,” said Gibran Nicholas, chairman and president of the vest in research and develop- American automotive compa- in 2005 to 2.9 percent in 2006, Certifieddid nothing Mortgage about it,” Planning said Gibran Institute Nicholas, in Ann chairman Arbor, which and of- ment projects for fuel-efficient nies in making the transition to the last year for which mar- ferspresident training of andthe certificationCertified Mortgage for mortgage Planning professionals. Institute in Ann and low-emissions vehicles, im- more fuel-efficient vehicles and gin data was available. At Arbor“People, which who offers blame training greedy and mortgage certification brokers for miss mortgage the big pro- prove assembly operations and help preserve American manu- the same time, hospitals na- fessionals. expand or build factories geared facturing jobs, ultimately tionally have increased picture. It was like putting candy in front of a baby,” he said. for advanced vehicle production. “People who blame greedy mortgage brokers miss the big strengthening the overall U.S. margins to 4 percent in 2006 Crain’s reporters Tom Henderson and Daniel Duggan Auto industry lobbyists have economy,” Puchalsky wrote in from 3.7 percent in 2005. breakpicture. the It wasnews like of puttingtwo local candy task in forces front of on a mortgagebaby,” he fraudsaid. been pushing hard for the loans, an e-mail to Crain’s. “We would Michigan’s unemploy- beingOn Pagesassembled 25-28 by, Crain’sthe Michigan reporters State Tom Police Henderson and the and FBI. with the Detroit 3 being the most evaluate the need for loans in ment rate has increased in TheyDaniel also Duggan look atbreak two thelawsuits news involving of two local Livonia-based task forces Quick- on visible proponent for the pro- funding our R&D activities to- gram. But suppliers are in the mix the last year, rising to 9.1 enmortgage Loans Inc.fraudthat being illuminate assembled how bythings the Michiganwent wrong State and Po- the ward developing alternative percent in July from 8 per- too, especially large, publicly finger-pointinglice and the FBI. that They results. also look at two lawsuits involving power-distribution solutions to cent a year earlier. Wayne traded tier-one suppliers that fo- meet the changing needs of our County’s unemployment Livonia-based Quicken Loans Inc. that illuminate how things cus on fuel-saving components. customers.” rate crept up to 10.9 percent went wrong and the Seefinger-pointing Pages 25-28 that results. “Their interest is in trying to in July, with Oakland Coun- secure low-cost capital that can See Loan, Page 29 ty and Macomb County at 7.3 percent and 9.5 percent, respectively. Rising unemployment has put pressure on to increase outreach programs such as free health screen- Can Book Cadillac be belle of the balls? ings and education, said David Seaman, MHA’s execu- hosted the event last year. The GM Wintergarden tive vice president. In its New hotel booking events; keeping them will be key hosted it prior to the Marriott. 2008 Hospital Community With a soft opening planned Oct. 1 and a Benefits Report, the MHA BY DANIEL DUGGAN raise $2 million. grand opening Oct. 25, the Book Cadillac’s sales collected data from 132 of CRAIN’S DETROIT BUSINESS The spice of having an staff is making sure that every charity event in the state’s 146 nonprofit hos- AREA VENUES event in Detroit’s newest lo- the region has to at least consider the historic pitals. The MHA, however, In the three years Kathy Kauffmann has been Competition for cale outweighs the risk of a hotel. used uncompensated care planning the American Heart Association’s Heart events grows. “It is keeping us on our toes on a daily basis,” Page 32. new operation. and operating margin data Ball, she’s never had to scout a venue with a said Judy Dufour, director of sales and market- “It’s a new thing,” she from the American Hospital hard hat on. ing for the Marriott. said. “But you have to take chances to make a Association and included all But in May, she toured the unfinished Westin While no planner has yet to experience an 146 hospitals. Book Cadillac, stared at sketches and was admit- difference.” event at the Book Cadillac, 14 social events are See This Just In, Page 2 tedly a little nervous about signing on with the The Book Cadillac’s gain was a loss for the charity’s most important event, expected to Marriott at Detroit Renaissance Center, which See Book Cadillac, Page 32

Crain’s 2008 Dauch sets window women to watch, for retirement, NEWSPAPER Page 11 Page 4 DETROIT BUSINESS MAIN 09-15-08 A 2 CDB 9/12/2008 5:19 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS September 15, 2008

Southeastern Michigan said it has Venture Investors to invest in, of the lease could not be resolved. largest residential brokers with THIS JUST IN awarded more than $4 million in one which she can then join as a The case was settled out of court. $149 million in transactions. grants in its first round of funding C-level executive. — Daniel Duggan — Daniel Duggan ■ From Page 1 to revitalize Detroit neighbor- Her position is jointly funded by Chamber hires senior director hoods extending from the river- Venture Investors and an execu- Residential brokers combine Detroit Make It Here launches front through Detroit’s near east tive-in-residence program funded Two residential real estate bro- The Detroit Regional Chamber side. by the state’s 21st Century Jobs Fund kerages in Brighton are merging Detroit Make it Here (www.detroit- has hired Dan Piepszowski to head The grants are part of the foun- and administered by the Michigan their businesses under the flag of makeithere.com) officially launch- the organization’s new communi- dation’s $15 million Detroit Venture Capital Association. one ReMax franchise. es today. The news, information ty leadership development and Neighborhood Fund. The largest Last year, Venture Investors Effective Oct. 1, the Brighton- and networking hub is designed engagement programs. of the new grants included $1.5 got commitments of $7.5 million based Michigan Group Inc. will take to grow metro Detroit’s creative Piepszowski, most recently a million to New Urban Learning to- each from the state’s Venture over the ReMax franchise which economy. consultant for nonprofit and gov- ward the estimated $15 million Michigan Fund and 21st Century In- has been used by Brighton-based The site, which is powered by ernment agencies, also was previ- cost of the University Prep Sci- vestment Fund, providing it funds ReMax Platinum. Two of the three Crain’s and sponsored by Detroit ously a vice ence and Math High School and to open a local office. It opened ReMax Platinum principals, Dan Renaissance Inc., is part of a plan president at $1.25 million to the Detroit Eco- that office in Ann Arbor and Callan and Will Steinmetz, will be- to market metro Detroit’s cre- New Detroit Inc. nomic Growth Association to fund hired local VC specialist Jim Adox come minority investors in the ative scene and urge companies and a depart- the Jefferson Retail Readiness to run it. new company, to still be called to hire locally for creative prod- ment director Program, which will provide fi- — Tom Henderson ReMax Platinum. Michigan ucts and services. Highlights infor the Archdio- nancial incentives and grants to Group President, CEO and bro- clude community building and cese of Detroit. property owners and businesses. United Way to relocate ker Joe DeKroub takes a 55-percent networking tools, free informa- The chamber tion on more than 1,700 local cre- The association said Friday it The United Way for Southeastern ownership stake and will have announced has approved its first subgrant Michigan has signed a lease for day-to-day control. ative companies, and a com- earlier this under the program, $100,000 to Hi- 46,000 square feet at the First Na- ReMax offices in Howell and merce feature that allows users to year it was re- Piepszowski bbard L.L.C. for redevelopment of tional Building in Detroit, said Brighton will be closed, but all of solicit bids on products and ser- structuring the vacant first-floor space at Kelly Major Green, vice president of the agents will be retained and vices. Creative industries include the leadership programs by com- 8901 East Jefferson Ave. for a marketing and strategy. will work out of the Brighton of- design, architecture, film and en- bining Leadership Detroit and bistro restaurant. The Detroit-based charity will fice used by Michigan Group. The gineering. the Executive Orientation Pro- — Sherri Begin be reducing its space by half when plan is meant to create opera- Crain’s will celebrate the gram. Three staff members left in it moves out of 1212 Griswold St. tional efficiencies in a down mar- launch of Detroit Make it Here at the wake of the reorganization: by the end of the year. The United ket, the principals said. The the Crain’s Ultimate Detroit House Barbara Gray, her aide Rodney Gibbons joins Venture Investors Way owns its current building and Michigan Group was ranked 16th Party on Sept. 18. Go to www.crains- Averett, and Carol Mastroianni. Christine Gibbons, who was CFO will be putting it for sale. in the 2008 Crain’s list of the detroit.com/events to register. Piepszowski becomes senior di- of Ann Arbor-based Sensicore Inc. The Roxbury Group of Detroit rector; yet to be named is a man- until it was sold to a division of represented the United Way. The ager of community leadership de- General Electric in April, has velopment. building owner, New York-based CORRECTION joined Madison, Wis.-based Ven- Northern Group, represented itself. — Robert Ankeny Ⅲ Due to incorrect information provided to Crain’s, a story published ture Investors L.L.C. as an execu- Architecture firm Hamilton An- on Page 24 of the Sept. 8 edition gave the wrong date for a British Air- tive in residence. derson Associates had planned to ways terminal redesign, a joint project of JGA Inc. and Illuminating Con- Foundation grants $4M Gibbons will look for a Michi- move into the same space but cepts Inc. The companies worked on the redesign in 1998. The Community Foundation for gan-based high-tech company for sued the landlord after the terms hap is ... your Michigan-based partner

HAP is more than just a card you carry. HAP is your partner, creating solutions that go beyond your health care needs. We design aﬀordable health plans with you in mind.

Health Care Plans PPO All HAP plans offer: 8JUIPVS110 ZPVHFUUIFGMFYJCJMJUZUPTFFLDBSFGSPNQSPWJEFSTXJUIJO t'MFYJCMFBOEDPNQSFIFOTJWFCFOFGJUT PSPVUTJEFPGUIFQSFGFSSFEOFUXPSLXJUIPVUSFGFSSBMT5IJTQPQVMBS t&YUFOTJWFOFUXPSLPGUIFMFBEJOH DPOWFOJFOUQMBOQSPWJEFTGSFFEPNPGDIPJDF BMBSHFOFUXPSLPGIPTQJUBMT doctors and hospitals and physicians, emergency coverage wherever you go and preventive t1SFWFOUJWFDBSF services – all at an affordable price. t0OMJOFIFBMUIUPPMT t%JTFBTFNBOBHFNFOU SM t)FBMUIFEVDBUJPOBOEXPSLTJUFXFMMOFTT Value Plans t1MVT FNFSHFODZDPWFSBHFXIFSFWFSZPVUSBWFM Want to save off your current health care premiums? Many businesses UPEBZBSFUVSOJOHUP)"1T7BMVF1MBOTSMGPSUIFTBWJOHT'JOEPVUXIBU .FEJDBSF"EWBOUBHF1MBOT UIPVTBOETPGQFPQMFBMSFBEZLOPXBCPVUUIFiWBMVFwJOUIFTFQMBOEFTJHOT HAP’s Medicare Advantage plans offer employers and Medicare-eligible individuals solutions with: t.FEJDBMBOEQSFTDSJQUJPOESVHDPWFSBHFBUBO *OEJWJEVBM$PWFSBHF SOLO affordable price PGGFSTHSFBUJOEJWJEVBMIFBMUIDPWFSBHF*UTQFSGFDUGPS t1SFWFOUJWFDBSF FOUSFQSFOFVST DPMMFHFHSBET FBSMZSFUJSFFTPSUIPTFCFUXFFOKPCT t&NFSHFODZDPWFSBHFXIFSFWFSZPVUSBWFM (PPOMJOFBOEUBLFBMPPL t:PVSDIPJDFPGUIFMFBEJOHEPDUPSTBOEIPTQJUBMT :PVMMFOKPZBGGPSEBCJMJUZBOEQFBDFPGNJOEBUBUJNFXIFOZPV need it most!

www.hap.org

Alliance Health and Life Insurance Company is a health insurance subsidiary of Health Alliance Plan. PPO is a product of Alliance and HAP Preferred, Inc., both are wholly owned subsidiaries of Health Alliance Plan. Individual health plans (SOLO) are offered through Alliance. Health Alliance Plan and Alliance each have a Medicare contract with the federal government. DETROIT BUSINESS MAIN 09-15-08 A 3 CDB 9/12/2008 4:21 PM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 3

Group that WEB EXTRA CRAIN’S To see more of the new terminal and hear an interview with Michael INDEX helps startups Conway, Metro’s director of public affairs, go to www.crainsdetroit.com/multimedia. For small biz: Managing debt requires wise planning, tough choices. Page 6. breeds success, Silver lining: Business conferences look to the future amid a climate of pessimism. Page 9. In the lead: wants offspring Pinnacle Race Course BY NANCY KAFFER pulls ahead of what CRAIN’S DETROIT BUSINESS track owner Jerry Detroit is open for business — that’s the mes- Campbell sage entrepreneurs Liz Blondy and Claire Nel- said it son want to get out. needed to average in Blondy and Nelson co-founded Open City last daily year, an informal meeting group that aims to wagers. Campbell pair aspiring business owners with resources, Page 30. information and a supportive community. After a summer hiatus, Open City resumes NATHAN SKID/CRAIN’S DETROIT BUSINESS meeting this week. The group meets on the The $431 million north terminal will replace the aging Smith and Berry terminals. Airport officials estimate that These organizations appear in this third Tuesday of each month at Cliff Bell’s about 7 million passengers will use the 26-gate terminal each year, an average of 19,000 per day. week’s Crain’s Detroit Business: restaurant, 2030 Park St. After seeing businesses American Axle & Manufacturing established by three Open Holdings Inc...... 4 City alums, Blondy and Nel- Barton Malow ...... 29 son are setting their sights Blumz … by JRDesigns Inc...... 32 higher. BNP Media...... 15 “This year we want to find New Metro terminal BorgWarner ...... 29 10 people who want to open a Continental Automotive Systems. . . 29 business in the city of Detroit Deloitte & Touche L.L.P...... 17 in the next six months,” Delphi Corp...... 29 Detroit Metropolitan Airport ...... 3 Blondy said. “We want to Detroit Regional Chamber...... 15 Nelson work with them, introduce DTE Energy Co...... 13 them to the city, to lenders, to Eastern Michigan University ...... 15 landlords and to each other, yet to land a name Ernst & Young ...... 6 so they can share resources.” General Sports and Entertainment . . 3 Blondy and Nelson are Gensler ...... 29 both Detroit business owners Ghafari Associates ...... 29 — Blondy owns doggy day- Deal expected before end of the year GM Wintergarden ...... 1 care Canine To Five; Nelson Greektown Casino ...... 32 and husband Francis BY BILL SHEA deal in March from the Wayne County Airport Authority Hamilton Anderson Associates . . . . 29 HMS Products ...... 29 Grunow are the proprietors CRAIN’S DETROIT BUSINESS board to handle naming rights, sponsorships and re- Johnson Controls ...... 29 of Midtown’s posh home ac- lated marketing for the new terminal. The massive sun-drenched glass-and-steel pas- Lear Corp...... 1 cessories store Bureau of Ur- That includes a corporate name for the whole senger terminal opening Wednesday at Detroit Met- Macomb County Chamber ...... 12 Blondy ban Living — who learned terminal, and marketing insiders expect the nam- ropolitan Airport has all the modern amenities, post- Marriott at Detroit Renaissance . . . . 1 things the hard way: how to write a business ing rights deal to rival that of sports stadiums MGM Grand Detroit ...... 32 Sept. 11 security and green plan, how to secure funding. such as the $40 million Ford Motor Co. paid in 2002 Michigan Department of Management technology one would expect, “I spent a lot of time talking to other business for a 40-year deal for the Detroit Lions’ home venue. and Budget ...... 16 owners,” Blondy said. “And I got a lot more in- but it still doesn’t have a name. Appleby declined to name the companies or Michigan Health & Hospital Assoc. . . 1 formation and encouragement from them than I The $431 million facility is what sectors they’re in. MotorCity Casino ...... 32 did from any book, Web site or counselor.” known simply as the north ter- In the meantime, crews are working nearly Open City ...... 3 Pinnacle Race Course ...... 30 The idea behind Open City is to offer would- minal, but that’s going to around the clock to finish the linear-designed ter- Plante & Moran L.L.C...... 1, 6 be business owners a casual, no-commitment change before the end of the minal, which replaces the aging Smith and Berry year, when a corporate naming- terminals. Ricardo Inc...... 29 environment to gather information and test Ritz-Carlton ...... 32 rights deal is expected to be ap- The 26-gate, 824,000-square-foot terminal will the waters, and in the process, to build a com- Royal Park Hotel ...... 32 munity that earns strength through numbers. proved. serve carriers that include Air Canada, American Air- Scales & Associates ...... 29 Open City’s focus is on downtown and Mid- “We’re still very, very active Appleby lines, AirTran, British Airways, Southwest Airlines, Spir- Skidmore ...... 3 town Detroit, Blondy said, with the intent of with five different companies. it Airlines, United Airlines and US Airways. Small Business Assoc. of Michigan . 3 creating a bricks-and-mortar business density We don’t have a definitive decision yet, but all signs The new facility joins the $1.2 billion, 122-gate Special D Events Inc...... 32 that can take on a life of its own. point to having an agreement in the next 45 days or McNamara Terminal, which opened in February St. John Health ...... 16 so,” said Andy Appleby, whose Rochester-based The Quell Group ...... 29 See Open City, Page 31 General Sports and Entertainment L.L.C. got a 10-year See Terminal, Page 29 Townsend Hotel ...... 32 TRW Automotive Holdings ...... 29 University of Detroit Mercy ...... 14 Visteon Corp...... 14 Walbridge Aldinger Co...... 29 Walsh College ...... 11 Wayne County Airport Authority . . . . 3 Wayne State University ...... 12 Many in small biz network online, few know its worth WCHB AM ...... 17 WDIV-Channel 4 ...... 13 BY NANCY KAFFER LinkedIn and Facebook, collectively percent reporting occasional use. “There was a lot of stuff out there, Westin Book Cadillac ...... 1 WXYZ-Channel 7 ...... 13 CRAIN’S DETROIT BUSINESS known as Web 2.0. And 42 percent reported that they and small-business owners weren’t But no single category had an were unsure or didn’t want to answer sure if was worth putting money into Michigan’s small-business owners overwhelmingly strong showing. what benefits the business derived Web sites. Was it going to be a busi- haven’t leapt into the deep end of In- Only 13 percent of respondents an- from Internet- ness tool? Of course, it became an in- BANKRUPTCIES ...... 33 ternet-based social networking — swered that they often access forums based social net- dispensable business tool.” but they’re not afraid to get their feet and discussion groups, the most in working — but 27 Tim Smith, president of Royal Oak- CALENDAR ...... 19 wet, according to a new report from any category, while 37 percent of re- percent think com- based creative services agency Skid- CAPITOL BRIEFINGS ...... 9 the Small Business Association of Michi- spondents reported less-frequent petitors are likely more, said it’s important for a busi- CLASSIFIED ADS...... 30 gan. use. using such tools. ness owner to define expectations KEITH CRAIN ...... 8 from social networking. About 75 percent of the 200 small Only 6 percent reported often ac- “It reminds me LETTERS ...... 8 businesses surveyed use some form cessing social networking sites, with of where Web sites “I think it goes back to business of social networking, the survey 20 percent saying they sometimes and the Internet owners not being sure what they OPINION ...... 8 found, whether it’s forums and dis- use such sites. were in the late think it is doing for them — if you’re RUMBLINGS...... 34 cussion groups; using online chat- Blogs fared worst, with just 6 per- Rogers 1990s,” said Mike not sure, not going to be able to mea- SMALL BIZ SOLUTIONS . . . . 6 ting, messaging or blogging; or log- cent of respondents reporting main- Rogers, SBAM’s WEEK IN REVIEW ...... 34 ging into networking sites like taining a business blog often, and 4 vice president of communications. See Online, Page 33 DETROIT BUSINESS MAIN 09-15-08 A 4 CDB 9/12/2008 4:55 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS September 15, 2008 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Dauch names retirement window; new team set, target is overseas

BY ROBERT SHEREFKIN CRAIN NEWS SERVICE FUTURE LEADERSHIP Richard E. Dauch, 67, expects to step down as CEO of American Axle & Manufacturing Holdings Inc. in one to three years, leaving his company’s push overseas to another generation. His newly anointed team of senior executives must con- vert the big De- Mark Barrett John Bellanti David Dauch Michael Simonte troit driveline Vice president Executive vice COO CFO supplier into a for engineering president for Age: 44 Age: 44 and product worldwide Dauch global supplier, Joined American Joined American from one heavi- development operations Axle: 1995 Axle: 1998 ly reliant on North America and Age: 47 Age: 54 First job: Collins First job: Ernst & General Motors Corp. Joined American Joined American & Aikman Young The company Dauch co-founded Axle: 1994 Axle: 1989 9dNdj@cdlL]d=Vh in 1994 is at a crossroads. Ameri- First job: GM First job: GM can Axle (NYSE: AXL) has been 6@ZnIdNdjg;VX^a^in4 hurt by plunging light-truck sales Between this year and 2013, inter- “They are older men who were in North America, where it gets 90 nal company documents obtained losing their risk threshold. I had to percent of its sales. by Automotive News show he plans buy them out” in 1999, he said, The company’s future leaders to spend $1.04 billion outside the “and allow them to bow out.” include COO David Dauch, 44; United States. That compares with Dauch said he had planned to re- CFO Michael Si- $219.5 million for tire after 10 years. He is now in his monte, 44; John American Axle’s 15th year. Bellanti, 54, who Richard E. Dauch’s U.S. plants. He was named exec- “My board has asked me to (stay did not dispute on) not once but twice,” Dauch told utive vice presi- those numbers plan is to have Automotive News last week. “And I With patented key control from KeyMark x4, you have total dent for world- during an inter- said, ‘Enough is enough.’ ” control of your key management system. Rest assured the wide operations operations on all view. He may step down as CEO but keys to your facility may only be duplicated by certified Medeco dealers like us, today; and Mark American and only with proper identification and authorization. Plus, KeyMark x4 has the Barrett, 47, who continents except Axle got a slow remain chairman. largest masterkey capabilities on the market, up to four times that of other today was named start abroad, “I recognize that there is a point similar style cylinders. vice president Antarctica. Dauch said, be- in time when you need to transfer for engineering cause he needed power,” he said. “After having and product development. to pump more than $2 billion into worked for 30 years for three big The new leaders’ task is to move the blighted U.S. operations that companies — Chrysler, GM and the company into China and India GM sold him. By 1997, he was Volkswagen — I saw how not to do and other growth markets with ready for a global initiative, but succession.” several customers in each, to his investors were not. From Automotive News (&("*(*"%)%%lll#gZY[dgYadX`#Xdb spread risk. “I never want to be anywhere without three or four” customers, Dauch told Automotive News last week. Mexico is his model. His Guana- STREET TALK juato plant has expanded six times THIS WEEK’S STOCK TOTALS: 32 GAINERS, 27 LOSERS, 11 UNCHANGED in seven years as demand grew. His first customer was GM. He CDB’S TOP PERFORMERS 9/12 9/5 PERCENT now supplies Chrysler L.L.C. from CLOSE CLOSE CHANGE the plant and has three to four new 1. Am. Axle & Mfg. Holdings Inc. $7.24 $5.95 21.68 customers he declined to identify. 2. General Motors Corp. 13.01 10.71 21.48 In contrast, his Detroit plants 3. Pulte Homes Inc. 16.45 14.58 12.83 remain heavily dependent on GM. 4. ITC Holdings Corp. 58.59 53.95 8.60 With GM sales tanking, Standard & 5. ArvinMeritor Inc. 16.24 15.04 7.98 Poor’s analyst Efraim Levy pre- 6. Comerica Inc. 32.49 30.15 7.76 dicts American Axle’s revenue 7. Lear Corp. 14.55 13.62 6.83 will tumble 25 percent this year. 8. BorgWarner Inc. 41.26 39.00 5.80 GM owned the five plants that 9. Credit Acceptance Corp. 18.36 17.43 5.34 Dauch and his investors bought in 10. DTE Energy Co. 43.64 41.44 5.31 1994 to create American Axle. The CDB’S LOW PERFORMERS 9/12 9/5 PERCENT company is the sole axle supplier CLOSE CLOSE CHANGE for GM’s full-sized pickups and 1. Oxford Bank Corp./MI $9.90 $12.00 -17.50 SUVs. 2. Syntel Inc. 29.05 31.64 -8.19 Dauch’s plan is to have opera- 3. Noble Intl. Ltd./United States 7.05 7.56 -6.68 tions on all continents except 4. Perceptron Inc. 7.34 7.74 -5.17 Antarctica. Today, American Axle 5. Energy Conversion Devices Inc. 63.09 66.27 -4.80 has nine manufacturing plants in 6. Meadowbrook Insurance Grp. Inc. 7.24 7.49 -3.34 the United States and 18 elsewhere. 7. Saga Communications Inc. 6.20 6.40 -3.13 He followed GM to Brazil only to 8. Valassis Communications Inc. 8.55 8.81 -2.95 have the arrangement blow up. 9. First Mercury Financial Corp. 14.25 14.55 -2.06 American Axle now has 16 cus- 10. Rofin-Sinar Technologies Inc. 35.90 36.62 -1.97 tomers in Brazil, but not GM. Now he’s not following GM. “What took Source: Bloomberg News. From a list of publicly owned companies with headquarters in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading us to Poland was not GM, but VW at less than $5 are not included. and Audi,” he said. DBpageAD.qxd 8/27/2008 3:50 PM Page 1

Don’t Push Your Luck With Your Push To Talk.

MAKE THE SWITCH TO VERIZON WIRELESS.

Make your business instantly more productive by switching to the only Push to Talk service that comes with the Network. And right now you can get a great deal on one of our hardest- working phones. Verizon Wireless. The smart choice for Push to Talk.

Add Push to Talk to any Nationwide voice plan for only $5 a month. Plus, activate Push to Talk service on 5 or more new business lines and get these great deals.

G’zOne BoulderTM Meets military standard 810F for water, shock and dust resistance, so your phone works harder. $29 99 $79.99 – $50 Instant Savings with a new 2-yr. activation on plans $34.99 or higher and $5 Unlimited Push to Talk feature.

Motorola AdventureTM V750 VZ Navigator,SM V CAST and Field Force Manager capabilities in a Mil Spec 810F- certified ruggedly refined phone. Phones require 5 or more FREE business-liable lines. $49.99 – $49.99 Instant Savings with a new 2-yr. activation on plans $34.99 or higher and $5 Unlimited Push to Talk feature.

For Push to Talk solutions for your small business, let Verizon Wireless be your “go-to” guy.

Call 1.800.VZW.4BIZ Click verizonwireless.com/pushtotalk Visit a Verizon Wireless store

Activation fee/line: $35. IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan and credit approval. Offer available for corporate-liable customers only. Up to $175 early termination fee and other charges per line. Push to Talk requires compatible phone and is available only with other Verizon Wireless Push to Talk subscribers. Offers and coverage, varying by service, not available everywhere. Network details and coverage maps at verizonwireless.com. While supplies last. Shipping charges may apply. Limited-time offer. © 2008 Verizon Wireless. 59861 DETROIT BUSINESS MAIN 09-15-08 A 6 CDB 9/12/2008 3:40 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS September 15, 2008 Managing debt requires wise planning, tough choices

Managing debt, al- but sometimes it’s hard debt,’ when it’s a valid business ways a topic of concern Small Biz to tell which is which. purpose and a positive outcome TIPS ON DEALING WITH DEBT to small-business own- Many experts agree that From where I sit, will occur from doing that.” ers, has become even Solutions “ It’s also important to distin- Watch out for hidden fees the key to keeping debt debt can be a good associated with borrowing money. more pressing in today’s good is wise planning guish between The total cost of a loan can exceed economy. With tradi- and tough choices. thing if it is used for “term debt,” the stated interest rate. tional lending institu- The old adage that all which is a set Carefully evaluate why you’re tions tightening the debt is bad debt just the right reasons. sum paid in in- borrowing money, and what you’ll purse strings, business isn’t true, said Mark ” stallments over use it for. owners may be seeking Short, a partner in Ernst a specified Mark Short, Don’t let the availability of debt alternate — and less ad- & Young’s transaction length of time, dictate the amount borrowed. partner, Ernst & Young vantageous — sources of advisory services prac- and a line of Outside funds may not be funding. Or a credit Nancy Kaffer tice. Short leads that capital expansion that will allow credit, an necessary to improve or expand a overextension in happi- practice for the Detroit the business to grow for known op- arrangement in business — experts say it’s a er times may be a source of worry area. portunities, as opposed to specula- which a banker Shapiro good idea to streamline costs today. “From where I sit, debt can be a tive opportunities,” he said. “Us- makes a set sum of credit available before seeking outside funds. Financial advisers often talk good thing if it is used for the right ing debt to make that happen to a borrower over a longer period about “good debt” and “bad debt,” reasons, for things like financing a would be being viewed as ‘good of time, said Bruce Shapiro, service industry group leader based in Plante & Moran L.L.C.’s Ann Ar- bor office. “I think it all comes down to the quality of what you’re using the money for,” Shapiro said. “With term debt, where you’re going out and buying long-lived assets, one of the things is to match the length of the debt with the life of the asset, and make sure you’re not taking longer to pay it off than to use the asset. Like with personal assets — is debt bad? Not if you get the right price on the house. But is credit card debt you use to go to the movies bad? You bet it is.” Key, he said, is planning. “You’ve got to know what you’re going to plan on using the money for,” he said. It’s also crucial to understand that not all loans are the same. “Another big issue with debt is the whole cost structure,” Shapiro said. “You need to watch the fees associated with the debt, it’s not just the interest rate that’s the relevant factor.” And it’s important to evaluate what benefit taking on the debt will bring to the business, Short said. “If a business owner is using debt for valid business purposes that will finance things that will result in the growth of the business, and the owner is comfortable that the cash flow stream coming !" in on the back end will be more #$ #%!&!#%'()( !!# than sufficient to carry the debt cost, people have to view that as !*+ #,'-)- good debt,” he said. “Business owners have to be honest with themselves regarding the performance of the business.” %.$*!$&$/'%+- And sometimes, making that de- termination is a hard choice. “If your business doesn’t support expansion, maybe you should- n’t expand it,” said Ed King, direc- *.# ##$+$$%# #%!%#,-!,0, tor of small-business services at Wayne State University. . 1 2+, Also important, he said, is not to overestimate costs — in other words, don’t take on more debt just 2223.*$3405 .!#,!,3% because you can. “If two of my students come in, and one has $100 and one has % 1*,#4 $1,000, the one with $1,000 is going 6789.-: to make more — and more expen- sive — mistakes than the guy with :,.#4#-/;68 $100,” he said. 8))68)<<7 Shapiro concurs. “One of the problems is letting 0!,,,!,=.*$340 the availability of debt dictate the spending, not the quality of the decisions,” he said. “Let’s say you have a $100,000 line of credit and you say ‘I’d like to do this, I’d like to do that.’ You’re going to use $100,000 on that and not have it for things you need to do. There’s a lot of value in having some dry powder.” Nancy Kaffer: (313) 446-0412, [email protected]. DBpageAD.qxd 9/3/2008 12:34 PM Page 1

Cardinal’s Gala Raises $568,000 for Sacred Heart Major Seminary Thank You!

Anonymous Community Central Bank Glencorp Tim McCarthy A. H. Peters Funeral Home Van Conway Dan and Susan Goodnow Patrick McQueen A. J. Desmond & Sons The Most Reverend Patrick R. Cooney Guest House The Metro Detroit Ford Dealers AAA Michigan – ClintonTownship CorporateTravel Service Patrick Haddad Michigan Business & Professional EdmundT. Ahee Jewelers FrankT.Couzens,III George and Alice Haggarty Association John J. Ahee Raymond M. and Jane E. Cracchiolo Victor Hailey Michigan Catholic Credit Union Al Long Ford Foundation John and Kristan Hale Michigan Food & Beverage Association Apartment Services Crissman Lincoln Mercury Msgr. Patrick Halfpenny Michigan Knights of Columbus Archdiocese of Detroit Curia Walter Czarnecki Mike Hayden Tye Moffatt Archdiocese of DetroitVocation Office Tarik and Helen Daoud Jim Hicks Michael and Colleen Monahan Archdiocese of St. Paul and Minneapolis Edward Deeb David Hipp Msgr. Jeffrey M. Monforton Austin Catholic Academy DenmatWindow Thomas Holzer Nicole Monte Ave Maria Mutual Funds Terence B. Desmond Bill Howenstein John R. (Bob) Moody Ave Maria Radio Detroit Auto Dealers Association Rev. Michael Hrydziuszko Michael and Carolyn Moore Michael Awwad Detroit – Oakland Serra Club The Most ReverendWalter A. Hurley Thomas Moore Robert and Anne Baker Detroit Oxygen & Medical Equipment Co. The Inn at St. John’s Mt. Elliott Cemetery Association Rev. Edwin Balazy Dick Genthe Chevrolet Jackson-Dawson Munder Capital Leslie Banas Dr. Anna Luisa Di Lorenzo Brian Joseph The Most Reverend James Murray Adam Cardinal Maida, Archbishop of Detroit, with Tarik BASS Building Automated Systems Diocese of Gaylord JPMorgan National Shrine of the Little Flower Parish and Services Diocese of Grand Rapids Rev. James Kean Rev. Norman Nawrocki Daoud, Chairman of Al Long Ford (l) and Jim Farley, Rev. Edward Belczak Diocese of Lansing Anne Kennedy The Most Reverend John Nienstedt Group Vice President of Marketing and Communications, John Berg Diocese of Saginaw Kerr, Russell &Weber, PLC Doug North Ford Motor Company. Tarik and Helen Daoud served as Dave Bethards Richard Dugas Daniel Kidd North Brothers Ford Rev. James Bilot Tony and Sarah Earley JosephT. Kohler NorthPointe Capital Dinner Chairs and Jim and Lia Farley served as Honorary Rev.Timothy Birney Msgr.William Easton Rev. Edward F. Konopka Mark O’Brien Chairsatthe11thannualCardinal’sGalaatTheRitz- Rodney and Jennifer Bloedow Ed Schmid Ford Dr.Thomas A. Laboe Old St. Mary’s Church CarltononJune11. Bodman LLP Elder Automotive Group Ladywood High School Ovations Dining Services, LLC Jim Boehler James and Mary Kay Farley George LaForest Ed and Gerri Parks Douglas A. Boehmer Jim and Lia Farley Janet Lawson Timothy and Sheila Patton Stephen H. Schott HeatherTallman James Bonahoom Ford Motor Company Lesnau Printing Robert and Mary Clare Pulte Fran and Sally Sehn TheTechnicom Group The Edward H. Bovich Family Richard and Kathy Genthe John D. Lewis PGA of America Salvatore Simone Thrifty Florist TheMostReverendEarlBoyea Arthur Getz Tom and Rita Lewry PIME Missionaries William and Sandra Slowey Tom Holzer Ford Bumler Mechanical J.M. Getz Ron Marino The Private Bank Sr. Mary Ann Smith, CSSF EmmetTracy, Jr. David Calcaterra Ghafari Associates Maritz Inc. Pulse Marketing Anthony Soave Msgr. AnthonyTocco Mike Calcaterra Yousif B. Ghafari Rev. Kenneth Mazur The Most Reverend Francis Reiss Soave Enterprises Rev. AndrewTomasko Molly Calvin Rev. Robert McCabe Ricoh Business Solutions Somerset Ophthalmology Trinity Financial CapTrust Schott Group Kathleen B. McCann Fred Robinson St. Alfred Parish Trinity Health The Most Reverend Robert J. Carlson Rob Robinson St. Hugo of the Hills Parish Tullymore Golf Club Dan Carroll Frank and Nancy Roney St. Isidore Parish Verheyden Funeral Homes Pat and Gerry Carroll Rev. Stephen Rooney St. John Health Rev. EdVikauskas Checker Sedan Roy O’Brien Ford St. John the Baptist Parish John C.Visser Michael Chilcote Royal Oak Industries St. Mary’s of Redford Parish Robert and NancyVlasic Christian Financial Credit Union Charles R. Rutherford St. Michael the Archangel Parish TomWegener Church of the Divine Child Paul Sabatini St. Paul on the Lake Parish Ray and MarieWeingartz James and Patricia Claffey St. Regis Parish Weingartz Supply Clark Hill PLC St. Suzanne/Our Lady Gate of Heaven Parish MartyWest CM&D St.Therese of Lisieux Parish DavidWidlak Comerica SacredHeartMajorSeminaryisaCatholic College of Liberal Arts and Graduate School of St.Thomas Aquinas Parish MurrayWikol St.Thomas More Parish Lawrence A.Wisne Theology that prepares priests, deacons, and lay Dennis Strum Wolverine Packing ministers who will proclaim Christ’s message of Joseph Swedish Wujek-Calcaterra & Sons love, hope, and forgiveness to the world.

2701 Chicago Boulevard Detroit, Michigan 48206 www.shms.edu DETROIT BUSINESS MAIN 09-15-08 A 8 CDB 9/12/2008 4:30 PM Page 1

Page 8 CRAIN’S DETROIT BUSINESS September 15, 2008 OPINION LETTERS Many are The region now can be reborn Editor: troit’s mayor, that has masked the Crain’s Detroit Business Few have been untouched by the greater problem of regional dys- welcomes letters to the editor. mayoral scandal that has engulfed function. All letters will be considered for Detroit. As if it hasn’t been enough publication, provided they are The Michigan Roundtable for responsible for to live through the struggles of the Diversity and Inclusion will con- signed and do not defame city’s manufacturing sector and individuals or organizations. tinue its work to build one sustain- the growing pains of economic Letters may be edited for length able inclusive community in transition; as if it hasn’t been and clarity. Southeast Michigan, comprised of enough to overcome the geopoliti- many inclusive communities that Write: Editor, Crain’s Detroit mortgage fraud cal and social divisions that under- make diversity and inclusion Business, 1155 Gratiot Ave., cut the region’s ability to unite Detroit, MI 48207-2997. work for our region. We must not and thrive; as if it isn’t enough cease our efforts to build bridges hrow the book at ’em. E-mail: [email protected] that the racial polarization has across geographic, culture, and That should be the mantra for the investigators only worsened. We have once race differences and turn those T tracking down mortgage fraud in Southeast Michigan. again found ourselves in the na- false starts and we have endured distinctions into assets that make Our state has the unenviable status of being among the FBI’s tional media eye for the failure of much bad news this year. We can’t Southeast Michigan prosperous in top-10 states in the country for mortgage fraud. our municipal leadership — allow our morale to fail — not at a all ways. One thing that’s clear from the package of stories that be- whether we are residents of De- time when the D needs support. Thomas Costello troit or of suburban communities. Despite our failings and strug- President and CEO gins on Page 25 by Tom Henderson and Daniel Duggan this gles, we remain a vital region. We Michigan Roundtable for Diversity and Inclusion Those of faith and vision will Detroit week: Fingers of blame for this mess are pointing in all direc- bear witness to this trauma as a need to seize this moment and tions. No one is taking responsibility. Not the mortgage origi- cathartic moment in this city and start again, beginning with re- Put a focus on schools newed integrity in Detroit’s may- nators or the lenders who purchased questionable loans. Not region’s transformation to a new Editor: or’s office and insisting on a col- the “victims,” some of whom were looking for a quick buck but era. Clearly, the end of the may- I don’t typically write letters to laborative environment between oral scandal isn’t the end of our di- editors; however, Keith Crain de- ended up legally liable for houses worth far less than their city and suburbs — their residents visions. serves a thank you for his advice fraudulently stated value. Not the appraisers who produced This must be the beginning of as well as their elected officials. faulty valuations. Not the regulators who watched the mess our future. Yes, we’ve had many Although the focus has been on De- See Letters, Page 9 grow but who argue that existing laws should have protected lenders, buyers and sellers from fraud. How could a nail technician earning $20,000 a year buy a house with documents that claimed she made $5,800 a month and could afford a payment that grew to nearly $1,500 a month? How could a mortgage company process loans for 16 houses TALK ON THE WWEB purchased by the same buyer without catching glaring dis- crepancies on income, assets and the listing of mortgages and From www.crainsdetroit.com other debts? In its suit against the “straw buyer” it accuses of representation on the council. To- Re: Mary Kramer’s Sept. 10 blog: Reader responses to stories and fraud, Quicken Loans neglects to mention that the same day, it is all grandstanding. Wayne County’s aeropark pro- blogs that appeared on Crain’s Quicken employee processed 14 of the 16 loans. And he didn’t Colleen posal has been out for at least 10 Web site. Comments may be see a problem? years and all they have to show for edited for length and clarity. I have a coffee mug from former Questionable practices — and downright fraudulent ones it is a horse track that has no con- Mayor Dennis Archer’s media day — happened again and again, Crain’s found. Amazingly, some nection to the aeropark. Why are targeted into right-sizing and effi- that lists these city of Detroit corner- we pushing a proposal that’s going lenders who were obviously defrauded are reluctant to com- cient operations. stones: to require massive investment in plain and launch a criminal investigation, even when given Anonymous Affirm Detroit as a safe city. the chance to do so by Wayne County Register of Deeds infrastructure into an area that Provide essential, efficient lacks it to encourage more sprawl Bernard Youngblood. (See story, www.crainsdetroit.com) Small businesses need more atten- and user-friendly services. development? Why are we chasing tion and support, both in Detroit and Restore financial solvency. The common denominator is clear: People who knew better pipe dreams at the expense of our elsewhere across the state. Here are Obtain business expansion looked the other way. They and their companies were making existing business communities? five broad areas on which lawmak- and growth. too much money. When mortgage originators could sell the Anonymous ers need to focus: taxes and govern- That still sounds relevant today. loans they issued to banks and other lenders, questionable ment spending, health care, regula- Rick Haglund loans became other people’s problems. Re: Mary Kramer’s Sept. 8 blog: tion, entrepreneurship and energy. Civil cases and criminal investigations in Southeast Michi- There are a lot of executives, Michael gan might lead to civil judgments and criminal convictions business owners and others who Re: The state of the city that result in recovery of damages. would be willing to help for no pay, I like the idea of a Committee of I think the city of Detroit is in big Since there’s so much blame to spread around — including just out-of-pocket expenses, as the 100 to assist the mayor. A priority trouble without Kilpatrick running the for them should be to find a way to among the lax practices of lenders who are now suing to recov- dollar-a-year men did in World business part. Cockrel does not War II. But the key is whether the restructure our City Council so the have the charm to win people on er cash — it makes sense to earmark some of the recovered mayor and his administration would members actually represent a his own. He might follow the money for a housing fund to help homeowners who are in dan- be willing to follow the advice, as I ward or district. Nothing will get wrong leads. ger of losing their homes because of foreclosure. would imagine much of it would be done until residents actually have Bruce Paldo

KEITH CRAIN: The Grand Hotel sure deserves a break There are few, if any, places in tics has been the use of But one of the ugly Stabenow to take the lead on this can continue to attract the legions Michigan that do more for our rep- imported labor for the byproducts of Sept. 11 has injustice and get it settled once of tourists it has over the years. utation as well as generating mil- last umpteen decades. been a toughening of im- and for all. Sen. Levin prides himself on his lions of tourist dollars. This icon of People have spent six port visas for temporary For decades this hotel has been a intimate knowledge of foreign af- a resort on the wonderful Mack- months or more work- workers. An obscure pro- magnet for all sorts of other tourist fairs. Now is the time to apply that inac Island has been a tourist des- ing at the hotel and then vision of the visa cap, institutions that generated mil- knowledge to one of his most im- tination for folks from all over the returning to their coun- H2B, has in the recent lions of dollars not just for the portant Michigan businesses. Sen. world for more years than any of tries at the end of the past made it more and Grand but for all the other facili- Stabenow should be able to use her us can remember. season. It’s a custom more difficult to allow ties in our state where folks spent considerable influence to help this The Musser family, Dan Sr. and that has worked well these workers to return. money on the way to and from the important institution. And I would his son Dan Jr., have taken such and was good for It’s a ridiculous provi- Grand Hotel. hope that our governor can contin- pride in the management of this tourism, the Grand Ho- sion that is losing money I would hope that our governor ue to push for help from Lansing. jewel that it is a resort of which we tel and the men and women who for the Grand and imperils a tourist and our two U.S. senators can do The Grand Hotel is a great all can be proud. spent their summers working on institution that deserves better. what has to be done to ensure that tourist facility that deserves our One of its charming characteris- Mackinac Island. It’s time for U.S. Sens. Levin and this Mackinac Island institution help. It’s too important to ignore. DETROIT BUSINESS MAIN 09-15-08 A 9 CDB 9/12/2008 10:44 AM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 9 Biz conferences focus on future amid climate of gloom

LANSING — Two con- or expansions. stituted a registration waiting list, The conference includes speakers reau of Construction Codes, has been ferences, two opportuni- The survey results in part because of venue capacity. on the millennial generation and on named the bureau’s director. He ties to move Michigan Capitol were to be shared with The conference will elevate the leadership, and sessions on manu- replaces Henry Green, who is now forward. Briefings Future Forum speakers growing region’s business agenda facturing, workforce, education, president and CEO of the National That’s on the business and used as discussion and is expected to produce region- governance, health care and life sci- Institute of Building Sciences in agenda this week as the points at the Tuesday al policy goals. ences. As the meeting nears its final Washington. Michigan Chamber of Com- conference sessions, ex- But at the same time, “our hope session, Dave Joos, president and ■ Kassie Kretzschmar, account ex- merce holds its annual Fu- pected to draw some 300 is that the agenda we come up with CEO of CMS Energy Corp., will intro- ecutive with WYCD FM 99.5, in ture Forum public-policy community, business in West Michigan will align with duce an “East Meets West” video Southfield, has been named direc- and government leaders. conference in East Lans- other business partners around featuring Ford Motor Co. Executive tor of communications for the Then on Thursday, ing and the Grand Rapids the state,” like the Michigan cham- Chairman William Clay Ford Jr. Michigan Department of Management more than 500 attendees and Dominos Pizza Inc. Chairman and Area Chamber of Com- ber and Detroit Regional Chamber, and Budget. She replaces Edward merce convenes the inau- are expected to gather at CEO David Brandon. Amy Lane said Jared Rodriguez, the Grand Woods III, now communications di- gural West Michigan Re- the two-day West Michi- Rapids chamber’s vice president of rector for the Michigan Department gional Policy Conference in Grand gan policy conference. Attendance government affairs. “Where they Comings & goings of Human Services. Rapids. has far outstripped the Grand ■ Amy Lane: (517) 371-5355, At both gatherings, business- Rapids chamber’s original 300-per- match, we can certainly work to- Irvin Poke, chief of the plan re- [email protected] people will examine Michigan’s son goal, and the chamber has in- gether.” view division for the Michigan Bu- standing and outlook. The conferences come on the heels of a new survey of Michigan employers that finds less optimism about the economy and heightened concern about Michigan taxes. The survey of 291 Michigan chamber members found that for the third year in a row, a growing number of business leaders listed their regional economies as in decline. Sixty-three percent said the Michigan economy is in decline, up from 55 percent in 2007. “I’m a better doctor than I am a CFO. “What strikes me is just the con- tinual pessimism,” said Jim Hol- comb, the Michigan chamber’s My patients should be reassured of that.” vice president for business advocacy. “No one is really feeling strong that people in Lansing, the elected Dr. Bodrogi came to us for a checking account. But when we listened to her plans, we found other ways we leaders, are doing what we need to do to move Michigan forward.” Employers pegged Michigan could help her business, with a line of credit, and even a retirement plan while she focused on her practice. taxes as the biggest problem affect- ing the state economy, a change We also introduced her to Key4Women, where she found networking opportunities that led to a new lawyer and a from previous surveys that placed Michigan’s shrinking manufactur- business partner. Introduce yourself to Key4Women and get more of the story at moneyneedsattention.com ing sector as the top problem. In this year’s survey by East Lansing- based Communications & Research Inc., 69 percent of respondents identified high taxes as the major problem, up from 44 percent in 2007. Tricia Kinley, the Michigan chamber’s director of tax policy and economic development, said the finding reflects tax increases some businesses are experiencing under the new Michigan Business Tax, which took effect in January and replaced the state’s single- business tax. More than half of survey respondents said they would delay or can- Dr. Anita Bodrogi cel capital investment or wage in- Key4Women Member creases as a result of negative impact under the new MBT, while 20 percent said they would absorb the tax cost. Seventeen percent said they would lay off employees and 9 percent said they would move or cancel Michigan locations

LETTERS CONTINUED ■ From Page 8

to Ken Cockrel Jr. (Keith Crain, “Our new mayor will need a good cause,” Sept. 8.) I have a blog and radio program that is dedicated to increasing admissions, improving retention, and improving gradua- KeyBank is Member FDIC. All credit products are subject to credit approval. ©2008 KeyCorp. tion rates in Detroit. Mr. Crain was exactly right: If the mayor stands firm, he can absolutely clean up the schools. Jamie Morgan www.thejmshow.com DBpageAD.qxd 9/10/2008 2:59 PM Page 1

Discover a world of leadership and educational excellence Where service to community and faith prepare us for tomorrow Where milestones are not destinations, but starting points Where character is both developed and revealed Welcome to Academy of the Sacred Heart Where Learning is a Window to the World

Save the Date ~ Inaugural Leaders of Conscience Speaker Series Featuring internationally known guests Irma Elder, Cokie Roberts and Lou Holtz, whose lives and works inspire our students and larger community with messages of hope and optimism. Tuesday, October 21 from 11:30 a.m. to 1:30 p.m. ~ Luncheon and presentation of Leaders of Conscience Award and the Board of Trustees Award to Irma Elder, CEO of Elder Automotive Group Friday, February 13, 2009 ~ Luncheon and keynote address featuring author and commentator Cokie Roberts Friday, May 1, 2009 ~ Stadium-style dinner and keynote address featuring author and coach Lou Holtz ...and mark your calendars for November 9, 2008, and February 1, 2009, when the Academy will host an Open House from 1-3:00 p.m., where you can learn more about our unique Window to the World. For more information call 248-646-8900 x 132 or visit www.ashmi.org.

The Academy of the Sacred Heart was founded in 1851 and is Michigan’s oldest independent school. Located at 1250 Kensington Road in Bloomﬁeld Hills, it is a Catholic, college-preparatory school for girls (Age 3-Grade 12) and boys (Age 3-Grade 8) of many cultures and faiths. The Academy is a member of the Network of Sacred Heart Schools, which includes 21 schools in the U. S. and afﬁliation with the Society of the Sacred Heart in 44 countries around the world. DETROIT BUSINESS MAIN 09-15-08 A 11 CDB 9/11/2008 1:29 PM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 11

Radio talk show “Inside Detroit,” hosted by Mildred Gaddis (left), has been the hot broadcast forum for Detroiters since 2001. Brigit Anthony (below), senior director of global heating, ventilation, air conditioning and European systems for Visteon Corp., is looking for a greener way to keep the inside of a car cool on a hot summer day. GARRETT MCLEAN

ne is O helping to rewrite the National Security Act. Another is

2008 NATHAN SKID/CRAIN’S DETROIT BUSINESS making sure 2008 the NCAA Final Four goes off Women to watch without a hitch. One way 1 Sheila Ronis or another, Director, MBA and Master of Science in Strategic Leadership programs these 15 Walsh College heila Ronis has been dividing her time for months between heading a program for women are S graduate students at Troy-based Walsh Col- lege and trying to make a safer nation for her students to live and work. centers of Ronis, 58, director of MBA and MSSL programs at Walsh, has been commuting between South- attention in east Michigan and Washington to serve as chairwoman of the Vision Working Group for the Pro- ject on National Security Reform. their The group is one of 10 addressing ways to up- date the National Security Act of 1947 to address 21st century global security concerns. respective Ronis, a sometime consultant for the U.S. De- partment of Defense, was recruited in late 2006 professions. based on her background in organizational be- NATHAN SKID/CRAIN’S DETROIT BUSINESS havior and strategic and systems thinking. She is Sheila Ronis divides her time between Southeast Michigan and Washington, D.C. the only person outside Washington to partici- pate. The honorees “Organizations all fundamentally operate the same way in a social structure sense,” she said. 1 5 9 13 “Even if they’re each unique in form or purposes, Sheila Ronis Marsha Ennis Michelle Hucal Tina Wheeler and can have complex structure like the mili- Walsh College Aerotropolis project director BNP Media Deloitte & Touche L.L.P. tary’s structure, they are still subject to the same This page Page 13 Page 15 Page 17 principles of social science.” After working at the University of Detroit Mercy 2 Cynthia Bir 6 Brigit Anthony 10 Susan Martin 14 Mildred Gaddis in 1985-88, Ronis was president of Birmingham- based University Group Inc. from 1988 to 2005 and Wayne State University Visteon Corp. Eastern Michigan University WCHB AM 1200 did some advisory work for the U.S. Army War Col- Page 12 Page 14 Page 15 Page 17 lege in Carlisle, Pa., and for the office of the secretary of defense. The company continues as a part- 3 7 11 15 Melanie Davis Keri Gaither Patricia Maryland Kym Worthy time operation in her home, but she has worked Macomb County Chamber University of Detroit Mercy St. John Health Wayne County prosecutor full-time at Walsh since 2005. Biggest lesson learned in the past year: Page 12 Page 14 Page 16 Page 19 “Visionary” people aren’t always born that 4 Marla Drutz 8 Sarah Hubbard 12 Lisa Webb Sharpe way, and the right education can teach anyone WDIV-Channel 4 that skill. Detroit Regional Chamber Dept. of Mgmt. and Budget If she could take a class in anything, it would be: Page 13 Page 15 Page 16 History of the U.S. Constitution. — Chad Halcom DETROIT BUSINESS MAIN 09-15-08 A 12,13 CDB 9/11/2008 1:27 PM Page 1

Page 12 CRAIN’S DETROIT BUSINESS September 15, 2008

WOMEN TO WATCH

,EARNôWHATôITôTAKESôTOôSECUREôAND 2 RETAINôTHEôBESTôACCOUNTINGôANDô Cynthia Bir kNANCEôPROFESSIONALS Associate professor, director of research #ALLôTODAYôFORôYOURô&2%%ôô Wayne State University Bioengineering Center 3ALARYô'UIDE ynthia Bir is the lead scien- Ph.D. in biomedical engineering tist for the popular “Sport from WSU in 2000. In the last eight C Science” program that pre- years, she and the bioengineering miered on the Fox Sports Network center have received more than $5 last season, winning an Emmy in million in funding, including a April. grant from the U.S. Office of Naval She spent much of August in Los Research. Angeles filming the episodes that Her areas of interest include will air the sec- less-lethal munitions, ballistic-im- ond season, pact testing and assessing sports- which kicks off impact injuries. in March. Bir is Bir said that although some on screen in might not consider academia a every episode, place for business, “I strongly dis- #ATCHôA explaining the agree. The skills required to build various forces and maintain an active research in kickboxing, laboratory are similar to those or how a fastball necessary to build and maintain a RISING STAR !CCOUNTEMPS ñ2OBERTô(ALFô&INANCEôô!CCOUNTING gets to home successful business. … Hiring the >KAñ2OBERTô(ALFô-ANAGEMENTô2ESOURCESñ>OBñQEB plate faster than the blink of the right people along the way and IB>ABOPñFKñPMB@F>IFWBAñhñK>K@F>Iñ>KAñ>@@LRKQFKD batter’s eye. PQ>ChñKDñCLOñQBJMLO>OV ñCRII QFJBñ>KAñMOLGB@Qñ Her current TV gig grew out of a building a strong team contributes MI>@BJBKQ ñOBPMB@QFSBIV series called “Fight Science” that to this process.” started on the National Geographic Biggest lesson learned in the past channel in 2006 and will continue year: “Although quick thinking is with 10 episodes next year, which important given certain circum- she will be in L.A. filming in Janu- stances, at times it is better to com- ary and February. pletely assess the situation before “Wayne State has been very sup- reacting. This is true in several as- portive, and 90 percent of what I do pects of business, but especially on my job I can do by telecommut- true when dealing with children. Unfortunately, I’m still learning ACCOUNTEMPSCOM ROBERTHALFCOM ROBERTHALFMRCOM ing. But I’ve got four kids, and it gets tough leaving them for a this one.” If she could take a class in anything Úôô2OBERTô(ALFôô!Nô%QUALô/PPORTUNITYô%MPLOYERô month,” she said. Bir, 40, got her master’s degree it would be: “It would probably be a in bioengineering from the Univer- class in how to balance my life.” sity of Michigan in 1992 and her — Tom Henderson

3 Melanie Davis President Celebrating a Macomb County Chamber elanie Davis knows first- That led to a move to merge “Woman to Watch” hand how much ground those groups last year. Davis is M can be covered by a bit of now president of the combined or- multitasking. ganization, with more than 900 The president of the Macomb members from at least eight mu- County Chamber in Mt. Clemens be- nicipalities, while Shore is CEO- gan her current COO. journey in 2005, Since then, the combined cham- with a career ber backed the Charter = County move from vice Executive ballot proposal that vot- president of ers approved in May to restructure marketing and county government and create a communications at the De- county executive position. Several troit Regional chamber officers ran for seats on Chamber to pres- the charter commission, but Davis ident of what is one of the few who survived the was then the Macomb Chamber in primary. She will face off against Warren. Democratic winner Elisabeth Sier- At the time, the board of direc- awski in Sterling Heights. Dr. Susan W. Martin tors at that organization wanted to Biggest lesson learned in the past revive discussions that had stalled year: To “keep your eye on the end about merging some county cham- result” of any involved process, bers of commerce. Davis, 37, mean- such as the chambers merger or Vision. Integrity. Energy. Leadership. while, had a personal goal of estab- the political campaign season. lishing a multichamber Also remember when a project Dr. Susan W. Martin brings all of that and more to Eastern Michigan University. We know why conference focused on sales and gets tough that it is intended to serve a greater good. Crain’s Detroit Business named our new president a“Woman to Watch.” Soon you will too. marketing. So she did both at once. Organiz- If she could take a class in anything it would be: Spanish or Mandarin Congratulations Dr. Martin! ing the marketing conference in Oc- tober 2006, Davis also used that op- Chinese, because they seem to be portunity to put out feelers to other the fastest-growing business lan- chambers about a merger. The most guages, and being fluent would be 1-800-GO-TO-EMU | emich.edu interested, she said, seemed to be a helpful skill in economic devel- President Grace Shore of the Central opment. Macomb Chamber. — Chad Halcom DETROIT BUSINESS MAIN 09-15-08 A 12,13 CDB 9/11/2008 1:28 PM Page 2

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 13

WOMEN TO WATCH 4 Marla Drutz General manager, vice president WDIV-Channel 4 umping from one station to continues its local ratings battle the top job at another station with her old station. Her objective J across town doesn’t happen is to maintain and grow Post- very often in the TV business. Newsweek Stations Inc.-owned “It’s relatively rare,” said Marla WDIV, a tall order in a highly com- Drutz, who did just that in July petitive market and in an age of when she took media budget cutbacks. over as general “We’ve got a tremendous televi- manager and sion market,” she said, citing its vice president of Detroit’s NBC af- professionalism compared to oth- filiate, WDIV- er, larger cities. Channel 4. “Larger markets are not nearly The longtime as professional in their product programming and presentation,” she said. De- director at ABC troit is the nation’s 11th-largest affiliate WXYZ- television market. Channel 7, Drutz replaced Steve “This feels like a marvelous fit Wasserman, who left WDIV Jan. 18 to me,” she said. after 11 years. If you could take a class in anything Drutz, 52, was at the ABC station it would be: “Psychology course to for 20 years, and was program- better understand people’s motiva- ming director for the past 15 years. tions and help me be a more effec- “Because I’ve lived in Detroit more than 20 years, it’s an easy tive leader.” transition for me. I know how to Biggest lesson learned in the past say ‘Gratiot,’ ” she said. “I under- year: “New challenges can energize stand and love this market.” you more than you ever imagine.” All eyes will be on her as WDIV — Bill Shea

Sheila Ronis, PhD, is working on the Project on National Security Reform. She’s also a Crain’s “Woman to Watch” and director of our 5 MBA and Master of Science in Strategic Leadership programs. Marsha Ennis Aerotropolis project director Wayne County f all the high-profile pro- rope or put up a ladder,” she said. jects under way in the myri- “My job is easy; I just have to see O ad efforts to revitalize the wall coming to know when to Southeast Michigan’s economy, ask for the help and then find the one of the most right person to ask.” heralded is the The aerotropolis is a key ele- plan to grow an ment in the “Road to Renaissance” “aerotropolis” initiative, the economic revitaliza- Bank where ONE-on-ONE care of new industri- tion contribution by the nonprofit al, commercial is standard business practice and retail devel- CEO council Detroit Renaissance Inc. to the wider “One D” economic opment on the We’ll help you nurture land between plan. The projection is 60,000 new Detroit Metropoli- jobs and $10 billion in annual eco- a healthy business tan Airport and nomic impact by the time the aero- At Level One Bank we know how to Willow Run Airport. tropolis is built out over 25 years. care for the financial well-being of your Charged with the day-to-day The proposal hinges on incen- business. Because like you, we built ours shepherding of the aerotropolis tive legislation expected to be in- from scratch. From free consultations to from economic theory to reality is troduced in coming months, and a greater account protection, our complete DTE Energy Co. Marsha Ennis, a ex- marketing plan to pitch the aero- business banking services are wholly ecutive on loan to Wayne County tropolis to the private sector. committed to your success. Executive Robert Ficano’s office. Ennis, 43, also played key roles "house calls.” Her task involves getting coop- in DTE’s eventual merger with • Our business bankers make eration from nearly a dozen local MCN Corp. and its later divestiture They bring the bank to you, so you can governments and various agen- of its electricity-transmission stay focused on your business cies, overseeing a half-dozen committees and marshaling every- business. • One-on-one personal attention thing into a unified plan … and Biggest lesson learned in the past with direct access to senior bank then waiting to see if the private year: Don’t sweat the small stuff, management there is always a bigger issue wait- sector bites and makes it all a real- • Best-in-class technologies, including ity. ing around the corner. Remote Capture “There are a lot of brick walls to If you could take a class in anything climb, but for every wall we en- it would be: Public policy, govern- Learn more about our complete business banking services at counter, there are many different ment relations, Bible studies. www.levelonebanking.com - or call 248-737-0300 or 888-880-5663 people I can count on to throw a — Bill Shea Dr. Issac Grinberg Southfield, MI “Our group of physicians wanted to start a new venture. Level One invested a lot of personal time to help us put together a financial forecast. They worked with us as a team more than a lender and a borrower.” Dr. Issac Grinberg- Cardiologist THE ONE BANK for the one and only you. 30201 Orchard Lake Rd., Farmington Hills, MI 48334 www.levelonebanking.com DETROIT BUSINESS MAIN 09-15-08 A 14,15 CDB 9/11/2008 1:15 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS September 15, 2008

WOMEN TO WATCH 6 7 Brigit Anthony Keri Gaither Senior director, global HVAC and European systems Director of athletics, associate vice president Visteon Corp. University of Detroit Mercy f there is a “greener” way to keep the inside of a car or t’s been an whirlwind of activ- That comes atop leading a Di- truck cool on a hot summer day, Brigit Anthony is ity since Keri Gaither took vision I athletics program that I hunting for it. I over as University of Detroit has 19 sports, 215 student-ath- Anthony, senior director of global heating, ventilation, Mercy’s athletic director in May letes and 60 coaches and staffers. air conditioning and European systems for Van Buren 2007, and the pace is going to in- She oversaw the addition of Township-based auto supplier Visteon Corp., is leading the crease through next spring. men’s and women’s lacrosse and company’s efforts in Europe to find a more environmental- Gaither, who had to hire men’s men’s tennis this year, too. ly friendly refrigerant for vehicle air conditioning. and women’s basketball coaches, Gaither is overseeing a period Anthony has 20 years of experience in climate-control is the tournament director and of athletics expansion not only in systems, and she says Visteon is ready to deliver the two chairwoman number of programs, but of ath- most-likely candidates for next-generation, low-chlorofluo- of the local or- letes, coaches and staff. Good rocarbon air conditioning refrigerant. ganizing com- thing she earned a bachelor’s de- At the same time, the 47-year-old Anthony manages Vis- mittee for next gree in economics from Mercy teon’s $1.3 billion global HVAC business, spanning 12 year’s NCAA four years ago. plants in 11 countries. Visteon’s HVAC unit designs and men’s basket- The school recently built a $1.7 makes the ducts, vents and air control systems that keep ball Final million athletic field and track air flowing in a car’s interior Four, which and will open a tennis complex She is a veteran when it comes to quarterbacking a busi- will be held at next month. Oh, and the school is ness operation with a global footprint. Ford Field. thinking of adding football in When Visteon spun off from Ford Motor Co. in 2000, An- Mercy is the host school. three or four years, she said. thony built Visteon’s structure for the then-$4 billion That puts Gaither squarely in “Running a Division I program North America and Asia vehicle cockpit business. She as- the spotlight. is just as challenging in a different sembled a management team from different product lines, “You have ultimate responsi- way (as preparing for the Final streamlined processes, methods and metrics, ultimately bility for the Final Four,” she Four),” she said. “You have to be boosting operating profit by 10 percent and earning $800 said. “We’re all under the micro- sure everybody is on track.” million in new business. scope.” Biggest lesson learned in the past A sign of Anthony’s success — Visteon made the process Gaither, 45, isn’t coming in year: “In taking over a depart- she created the company standard. blind. She served in the same ment and making huge strides in Biggest lesson learned in the past year: Learning the critical role for this year’s 2008 Midwest moving it forward, the key is to impact of leveraging regional relationships and business Regional Tournament. Various have the right people on your strategies on global automotive sourcing. tournament committees, sub- staff and team.” committees and monthly visits If you could take a class in any- If you could take a class in anything, it would be: Global busi- NATHAN SKID/CRAIN’S DETROIT BUSINESS ness financial strategies. Brigit Anthony has 20 years of experience in climate- from the NCAA take up her time thing: Cooking. — Ryan Beene control systems. these days. — Bill Shea DETROIT BUSINESS MAIN 09-15-08 A 14,15 CDB 9/11/2008 1:16 PM Page 2

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 15

WOMEN TO WATCH 8 9 Sarah Hubbard Michelle Hucal Revenue for the company was $2 million in 2007, up from $1.4 million in 2005. Vice president of government relations Editor She was also involved in the launch of Sustainable Detroit Regional Chamber Environmental Design + Construction Facility magazine, a publication dedicated to build- t wasn’t enough for Michelle Hucal to be the ings being operated in an environmentally safe arah Hubbard has long search and development and at- first magazine editor accredited under the U.S. manner. She is currently editor of the publication. tackled issues involving tracting such companies to the re- I Green Building Council’s Leadership in Energy Aside from being a mom, a board member for the the busiest border cross- gion. S and Environmental Design USGBC and an editor, Hucal has been involved in ing, by freight volume, in North Hubbard advanced the idea in- program. the city of Troy’s Sustainable Practices Subcommit- America. ternally at the chamber, which She’s now the only person tee. Under the Economic Development Committee, But there’s been no Southeast has made it one of its priorities. in the state of Michigan on the the subcommittee works to attract and retain green Michigan institution focused on She is talking with potential part- USGBC’s 24-person board of direc- in the business community, add sustainability ele- the more than ners and sources of financial sup- tors, where Hucal now has a say ments to the school curriculum and increase the $150 billion in port. And she hopes that once the in crafting the guidelines of the city’s recycling program. trade flowing institute is in place, it will fill a popular LEED program. Driving her are her boys: Owen, 3, and Ethan, 1. through Detroit need reinforced to her last fall Hucal, 30, is one of the few peo- “I have to do something to help save the world for and Port Huron when Texas A&M University, known ple on the board who isn’t a my kids,” she said. by truck, she for research strengths in home- builder, architect or consultant. Biggest lesson learned in the past year: It’s crucial to said, and that’s land security and immigration, “I can offer an outsider’s voice to what’s happen- surround yourself with wonderful people in your about to sponsored a Windsor conference ing in the industry,” she said. profession to contribute to your overall success. change. on border issues. Currently editor of Environmental Design + Con- If you could take a class in anything, it would be: How Hubbard, 40, “That a university on the South- struction magazine, Hucal has been working for to persuade people — in one simple step — that the is creating a ern border has to come up here to Troy-based BNP Media, a business-to-business pub- world needs greener buildings. border policy institute that will the Northern border to hold events lishing company with 40 publications, since 2002. — Dan Duggan research border-related trends, and inform the public and stake- with a goal being to expose the holders about activities and trade region’s competitive advantages at our border … that’s just wrong,” and drive economic develop- Hubbard said. ment. Biggest lesson learned in the past With possibly one or more uni- year: To think more strategically versities as partners, the institute about how the chamber can help might research areas like the cost its customers. of regulations or border delays, If you could take a class in anything and long-term trends on infra- it would be: Political history and its structure needs or traffic pat- application to current decision- terns. making and how to avoid the mis- The institute will also commu- takes of the past, taught by former nicate the border’s importance to U.S. House Speaker Newt Gingrich the general public, and focus on and U.S. Sen. Joe Lieberman. border-related technology re- — Amy Lane

10 Susan Martin President Eastern Michigan University

eadership is arguably the tion faulted the school and im- primary question mark in posed fines last year, for failing to L the outlook for Eastern disclose Dickinson’s death had Michigan University this year, and been a homicide until apprehend- Considering a degree in business? Make it a it’s a query Susan Martin plans to ing the suspect months later. answer. She said EMU staged a heavy Martin, 57, president of EMU recruiting effort in late August since July 7, is the first woman to and early September to get new product-developing-business- lead the univer- and returning students to sign sity perhaps onto its emergency text-messag- best known for ing network, adopted last spring generating edu- by contract with Framingham, law-mastering-innovative- cators. But she Mass.-based Rave Wireless Inc. The replaces a pre- school has also organized an inci- decessor fired dent planning team to brainstorm amid a scandal response measures to emergen- marketing-graduate degree. arising from a student’s mur- cies. der. Previously Martin was provost She also starts the new academ- and vice chancellor of academic ic year at an institution that still affairs at the University of Michigan- Are you ready for a new opportunity? University of Detroit Mercy’s has no permanent vice president Dearborn, and she comes to EMU graduate business programs are designed for busy professionals who of student affairs, relies on an in- with a reputation for a strong want to take their careers to the next level. Learn from professors terim consultant for business- work ethic and a hands-on style. who are active entrepreneurs, analysts and consultants, and earn a finance matters, and has a new Biggest lesson learned in the past public-safety director whose pre- year: Effective campus leadership degree relevant to today’s marketplace. In addition to offering one of decessor also departed amid the involves learning to listen more the region’s most respected MBAs, UDM has a 16-month Executive scandal. effectively to faculty, administra- Congratulations to “I intend to be very proactive MBA, an innovative joint MS degree in Product Development, a joint and involved in security matters, tion and the business community MBA/JD degree, and a MS degree and graduate certiﬁcate in Business UDM’s Keri Gaither ’04 — a practice that can be challeng- and I’ve been reading every police Turnaround Management. Contact us today for more information. on being selected as report,” she said. “I’ve been per- ing in a position that requires one of Crain’s “Women sonally involved and not delegat- plenty of talking to develop and ing in that responsibility.” communicate university policy. to Watch” honorees. Martin is convinced a case like If you could take a class in any- We want great things for you. the 2006 Laura Dickinson slaying thing, it would be: Art appreciation 800-635-5020 313-993-1245 http://business.udmercy.edu Look for her proﬁle in would play out very differently to- or history of art. this issue. day. The U.S. Department of Educa- — Chad Halcom DETROIT BUSINESS MAIN 09-15-08 A 16,17 CDB 9/11/2008 1:17 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS September 15, 2008

WOMEN TO WATCH 11 Patricia Maryland CEO You’ve earned it. St. John Health f there is one thing Patricia ical Center. She also spent 15 years Maryland knows, it is num- at the Cleveland Clinic Foundation. I bers. As a former health care But what may be Maryland’s biostatistician, Maryland has biggest challenge to date is what she crunched a few. calls St. John’s “transformation ini- Appointed as CEO of Warren- tiative.” based St. John Health in January, Since January, some 22 teams Maryland’s first have met every three weeks to dis- challenge has cuss improving patient care and re- been to cut ducing costs. $85 million in “We have a number of talented expenses and employees in the organization and turn the seven- they have come up with great ideas hospital and embraced what we have done,” Catholic system Maryland said. into a lean ma- So far, improvements include: chine that focus- Ⅲ Saving $300,000 annually by re- es on clinical quality, care coordi- ducing the number of endoscopy nation and increased admissions. equipment-maintenance vendors After 300 employees were laid from seven to one. off earlier this year, Maryland has Ⅲ Standardizing to a single, uni- been directing her efforts on im- form blood pressure cuff to save proving medical processes and re- $50,000 a year. ducing overhead. Ⅲ Saving $7.9 million annually Ask about our “From the perspective of getting by cutting by 50 percent inpatient SelectAdvantage the costs realigned, we are there length of stays for the top 25 med- and are seeing the benefits,” said ical procedures. Trust your wealth Model Portfolios.* Maryland. On the other hand, she Biggest lesson learned in the past said managers have been helping year: Health care has become too management to 734.242.2205 employees with their grief over complicated. The way we deliver losing colleagues. people who get it. www.mbandt.com care has to be different and we Maryland, 55, returned to Michi- must act quickly to drive change. gan last November after a five- St. John can be leaders of that * Not FDIC Insured. Not Bank Guaranteed. May Lose Value. year stint in Indianapolis, where Not Guaranteed by any Government Agency. Not a Bank Deposit. change. Patients need better ac- she was president of St. Vincent Hos- pitals and Health Services the last cess to information and quality four years. care, and we need to provide a tru- From 1996 to 2001, Maryland was ly coordinated care experience. employed by North Oakland Medical If you could take a class on any- Centers in Pontiac, and from 2001 thing, it would be: Golf. to 2003 she worked at Detroit Med- — Jay Greene

12 Lisa Webb Sharpe Director Michigan Department of Management and Budget or the past two-and-a-half save state government more than years, Lisa Webb Sharpe $1.6 billion in contracts, retire- F has crisscrossed Michigan, ment, real estate and fleet leasing. talking to some 6,000 business She’s also tackled energy sav- owners about how they can do ings, carrying out a Granholm di- business with rective to reduce energy consump- state govern- tion across state government. The ment. effort has included both physical She spear- changes — such as new windows, heads Gov. Jen- roofs and lighting fixtures — as nifer well as policies directing employ- Granholm’s Buy ees to turn off computers at a day’s Michigan First end and a 6 p.m. lighting shut-off initiative, which in state buildings. encourages The state has surpassed original Michigan busi- goals and has so far reduced ener- nesses to bid on state contracts, ul- gy consumption by 18 percent, rep- timately boosting competition and resenting $45 million in savings helping the state contain costs. over the past two-and-a-half years, “The goal is to spend our money Webb Sharpe said. here in the state,” Webb Sharpe said. Biggest lesson learned in the past Since Buy Michigan First began year: How to balance multiple high- in April 2006, the amount of work priority initiatives all at one time. by companies doing business in Also, the importance of strategic Michigan has grown from approxi- workforce planning, given that 50 mately 86 percent to 93 percent. percent of the state workforce is el- Currently, about $4.1 billion of the igible to retire in the next 10 years. state’s $4.4 billion in annual con- If you could take a class in anything tracting goes to such businesses. it would be: Alternative energy, to As head of the state’s central learn about different forms of ener- business agency since August gy and how it relates to facilities. 2005, Webb Sharpe, 45, has helped — Amy Lane DETROIT BUSINESS MAIN 09-15-08 A 16,17 CDB 9/11/2008 3:14 PM Page 2

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 17

WOMEN TO WATCH 13 14 Tina Wheeler Mildred Gaddis Audit partner and regional health care audit Talk show host, WCHB AM 1200 and women’s initiative leader Detroit Deloitte & Touche L.L.P. nside Detroit,” the Mil- son who gets to the helm of dred Gaddis call-in leadership has to be some- I talk show on WCHB AM one with tremendous in- ina Wheeler is helping to break With Wheeler leading the charge, In- 1200, has been the hot tegrity and character. the glass ceiling in her own ca- forum launched its Inner Circle pro- broadcast forum for De- “Kwame Kilpatrick is a T reer and in the careers of other gram last year with 80 top women execu- troiters to air views about clear example that talent women. tives in Detroit. the controversy that can take you places where Wheeler was named a partner at De- It tailored the dinner networking and swirled around Mayor character cannot keep loitte & Touche L.L.P. in 2001 after work- mentoring events it hosted to be more Kwame Kilpatrick since up.” ing reduced hours at the firm since 1995 structured, with facilitators, substan- his 2001 election. The 53-year-old Hatties- after the birth of her first child. tive questions, an honored female execu- Gaddis’ often-heated, no- burg, Miss., native came In 2005, she accept- tive and a host of aspiring female man- nonsense interviews have to Detroit from St. Louis ed the firm’s request agers and executives at each table. The garnered listeners ranging 20 years ago, and was on to become regional relationships forged that night lasted from Detroit retirees to top WJLB FM 97.9 until 1999. leader of its women’s long after the evening was over, said In- area politicians and execu- Since then, she’s been “Mildred in the Morning” initiative, working forum CEO Terry Barclay. tives, with her strong chal- to thousands of com- with the firm’s lead- The program has been so successful lenges to the power struc- muters and folks at home ers in other states to that Inforum and Deloitte are planning ture, especially the who get their news, infor- advance the careers of to roll it out in Lansing and Grand Kilpatrick administration. mation and political gos- How does Gaddis feel women. Rapids this year. sip by tuning in to her about the mayor’s guilty As an offshoot of Biggest lesson learned in the last year: show. that work, Wheeler, 40, approached De- “Don’t underestimate the influence you pleas and resignation? “Detroit is at a defining Biggest lesson learned in troit-based Inforum about creating a net- can have on other people in excelling the past year: Time is a pre- working program to help women further professionally and personally, and how moment, and what people here do over the next six mium that moves faster their careers. From that, the Inner Cir- to balance both of those things.” months is going to deter- than the speed of light, cle, a program that recognizes success- If you could take a class in anything, it mine what kind of future GARRETT MCLEAN therefore, we must maxi- ful businesswomen and gives them a would be: “Women’s history … looking at Detroiters will have,” she Mildred Gaddis came to Detroit from St. mize the moments. chance to share their stories, was born. women and the way they’ve evolved said. “The city remains at a Louis 20 years ago. If you could take a class The event is patterned after a similar over the years, their trials and tribula- state of crisis, but it’s also a on anything, what would it program that Deloitte’s Cincinnati of- tions. I think we take some of that for tremendous opportunity for positive, forward be? Skydiving. “I want to jump out of a plane, fice started before the firm rolled it out granted.” movement. We must embrace the notion that and I’m preparing in exercise class.” across the country. — Sherri Begin mediocrity has no place here and that any per- — Robert Ankeny DBpageAD.qxd 6/23/2008 10:20 AM Page 1

Make sure your working capital is actually working.

The Sweep Option for your business. It gets money that’s just sitting in your checking account working again. Add the Sweep Option to Business Checking Plus and earn interest on your idle balances while keeping your money liquid. The Sweep Option is just one of the many cash ﬂow tools available to help you manage your business. Let us customize a business checking account for you today, and start earning interest tonight. Just stop by any National City branch, visit NationalCity.com/businesschecking, or call 1-866-874-3675.

0ERSONAL"ANKINGs Business Bankings)NVESTMENTSs-ORTGAGE,OANS

.ATIONAL#ITY"ANK -EMBER&$)#sÚ .ATIONAL#ITY#ORPORATION® DETROIT BUSINESS MAIN 09-15-08 A 19 CDB 9/11/2008 1:24 PM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 19

WOMEN TO WATCH 15 Women entrepreneurs will find great success opening a business in Downtown Northville Kym Worthy – just like we did! Wayne County prosecutor ym Worthy, 50, the first black female ever to cisions, you don’t need to have this job.” Northville is located in western Wayne County about 30 miles serve as the Wayne County prosecutor, had Worthy said she had been preparing to be head northwest of downtown Detroit and can be easily accessed off of K made headlines before, but she was thrust into prosecutor since starting her career as an assistant in M-14 and I-96 (east and west), or I-275 (north and south). For more almost daily news prominence starting in March after Wayne County in 1984. She handled more than 800 information on business opportunities in Northville, including available she charged Mayor Kwame Kilpatrick with perjury cases in 10 years, with a conviction rate above 90 per- retail and office space, and incentive packages, contact the Northville and obstruction of justice in con- cent on cases that went to trial. Downtown Development Authority at 248-349-0345. nection with a 2007 police whistle- Among her notable trials was the 1993 case of De- blower trial. troit Police Officers Walter Budzyn and Larry Nevers The charges led to Kilpatrick’s in the beating death of Malice Green. This added to Sept. 4 guilty pleas, which included Worthy’s public exposure and led to her 1994 election his resignation as mayor and a 120- to the Wayne County Circuit Court, where she served as a day jail sentence, which Worthy de- judge for almost nine years. manded in exchange for approving In January 2004, Worthy was appointed Wayne the plea deal to allow Kilpatrick to County prosecutor to replace Michael Duggan, who avoid a trial and a potentially resigned to become the head of the Detroit Medical Cen- longer prison term. ter. She was elected to a full term later that year and is Making decisions on which cases to prosecute and up for re-election in November. when to accept pleas is the part of her job she likes Biggest lesson learned in the past year: “That what I most, Worthy said. have always said about criminal law is true — that “But sometime that’s hard to do,” she said. “I got a you cannot make this stuff up.” significant amount of unsolicited opinion and advice, If you could take a class in anything, it would be: Sign swaying from one side to other (on the Kilpatrick language and French. case). But if you are not willing to make the tough de- — Robert Ankeny Downtown Northville offers over 200 exciting and dynamic businesses to residents and visitors alike. A significant number of these businesses are women owned, providing high quality services, exceptional shopping, and unforgettable dining opportunities. Isn’t it time that you joined the Northville family of businesses? CALENDAR Contact us today! THURSDAY downtown SEPT. 18 ECONOMIC SOLUTIONS CALENDAR GUIDELINES UMMIT EPT IN ARREN More Calendar items can be found A New Paradigm for Public Broadcast- S S . 25 W on the Web at www.crainsdetroit. ing. 11:30 a.m.-1:30 p.m. Detroit Eco- The Michigan Regional Council of com. Please send news releases nomic Club. Paula Carpenters and Millwrights will host for Calendar to Joanne Scharich, Kerger, president the Michigan Economic Solutions Crain’s Detroit Business, 1155 timeless...with a twist & CEO, PBS. De- Summit 7:30 a.m.-1 p.m. Sept. 25 Gratiot Ave., Detroit, MI 48207- troit Marriott. $40 at the Mabry Center, 23401 2997, or e-mail jscharich@ members, $50 www.downtownnorthville.com guests, $75 non- Mound Road, Warren. crain.com. You also may submit Calendar items in the Calendar members. Contact: Speakers are to include: James © 2008 Downtown Northville Photography: Diane Johnson Design: New Moon (313) 963-8547. Epolito, section of crainsdetroit.com. president and CEO of the Crain’s Detroit Michigan Business 2008 Economic Kerger House Party. 5-9:30 Development GAMING N DINING N ENTERTAINMENT N HOTEL N SPA p.m. Crain’s De- Corp. and troit Business, the Michigan State chairman of the Housing Development Authority, Michigan MGM Grand Detroit, and other spon- sors. Enjoy house visits and cocktail Economic parties, 5-6:30 p.m., at homes, lofts and Growth Authority; condos throughout the city of Detroit. Epolito Then join us for the afterglow, 7-9:30 Roger Luksik, Naturally festive. p.m., at the MGM Grand Detroit. $80. vice president-investments, Fifth Includes a year’s subscription to Third Bank; Daniel Loepp, president Crain’s Detroit Business. Contact: (313) and CEO, Blue Cross Blue Shield of 446-0300. Michigan; Judine Bartley, vice president, Epidemiology Consulting Services; Dianne Byrum, Byrum & Fisk Advocacy Communications, FRIDAY representing Marathon Oil; Kenneth SEPT. 19 Cockrel Jr., Adcraft Club of Detroit. 11:15 a.m. incoming Mini-concert with 2008 American mayor of Idols David Cook and David Archuleta. Detroit; and Ford Conference & Event Center, Douglas Dearborn. $40 members, $30 junior Buckler, members (under 25), $45 others. Con- executive tact: (313) 872-7850. secretary- treasurer of the Michigan Regional Cockrel MONDAY Council of

Carpenters and Millwrights. SEPT. 22 ‘ Breakfast and lunch will be served. Working Toward a (New) U.S. Industrial Admission is free. For more Tis the season... to start planning your holiday party. Policy. 11:30 a.m.-1:55 p.m. Detroit Eco- information, call the union at (313) nomic Club. Andrew Liveris, CEO and 832-2887. N chairman, Dow Chemical Co. Cobo Cen- Whether you’re planning an intimate gathering for ter, Detroit. $40 members, $50 guests, ning group, Plante & Moran P.L.L.C. 25 or elaborate event for 1,500, our four-diamond $75 others. Contact: (313) 963-8547. MotorCity Casino Hotel, Detroit. $90. resort can accommodate your holiday party! Contact: (313) 446-0300. Call 1.888.7.EAGLE.7 ext. 55385 for details. A New Generation of Talent is Entering Experience More. COMING EVENTS the Workforce. Are You Ready? 11:30 N MT. PLEASANT, MI N SOARINGEAGLECASINO.COM Crain’s Family-Owned Business Forum. a.m.-1:55 p.m. Sept. 30. Detroit Eco- 5 p.m. Sept. 25. Crain’s Detroit Business, nomic Club. Matt Ferguson, president Enterprises of the Comerica Bank, Honigman, Michigan & CEO, careerbuilder.com. Troy Mar- Saginaw Chippewa Indian Business & Professional Association, riott. $40 members, $50 guests of mem- Tribe of Michigan MotorCity Casino Hotel. Paul Berhard, bers, $75 nonmembers. Contact: (313) director of the business transition plan- 963-8547. DETROIT BUSINESS MAIN 09-15-08 A 20 CDB 9/11/2008 1:22 PM Page 1

Page 20 CRAIN’S DETROIT BUSINESS September 15, 2008

CRAIN'S LIST: LARGEST WOMAN-OWNED BUSINESSES Ranked by 2007 revenue

Company Revenue Revenue Local Local Percent Address ($000,000) ($000,000) Percent employees employees woman- Rank Phone; Web site Majority owner 2007 2006 change Jan. 2008 Jan. 2007 owned Type of business RKA Petroleum Cos. Inc. Kay Albertie $511.6 $290.6 76% 91 70 100% Petroleum wholesaler, biodiesel, ethanol, E-85, jet fuel 1. 28340 Wick Road, Romulus 48174 CEO (734) 946-2199; www.rkapetroleum.com

MotorCity Casino Marian Ilitch 480.2 468.7 2 NA 2,281 100 Casino 2. 2901 Grand River Ave., Detroit 48201 owner (877) 777-0711; www.motorcitycasino.com

Elder Automotive Group Irma Elder 403.7 438.2 -8 330 241 100 Automobile dealerships 3. 777 John R Road, Troy 48083 CEO (248) 585-4000; www.elderautomotivegroup.com

Holiday Automotive Group Colleen McDonald 148.7 146.7 1 176 184 95 Automobile dealership 4. 30250 Grand River Ave., Farmington Hills 48336 owner and president (248) 474-0500; www.weloveholiday.com

Strategic Staffing Solutions Inc. Cynthia Pasky 148.0 141.0 5 537 516 78 Information technology consulting and staff 5. 645 Griswold St., Suite 2900, Detroit 48226 president and CEO augmentation, vendor management programs, (313) 965-1110; www.strategicstaff.com customized project solutions and executive search services Continental Plastics Co. Joan Luckino 135.0 130.0 B 4 NA 650 100 Injection-molded plastic trim parts, foam components 6. 33525 Groesbeck Highway, Fraser 48026 president and fabric and leather trim parts (586) 294-4600; www.continentalplastics.com

Rush Trucking Corp. Andra Rush 115.0 99.0 16 200 300 100 Motor carrier 7. 35160 E. Michigan Ave., Wayne 48184 president and CEO (734) 728-7874; www.rushtrucking.com

New Technology Steel L.L.C. Sarah Bates 90.0 76.0 18 51 58 55 Steel processing service center 8. 12301 Hubbell St., Detroit 48227 president and CEO (313) 653-4746; www.newtechnologysteel.com

G-Tech Professional Staffing Inc. Mara Ghafari 68.7 65.4 5 593 629 100 Recruitment and placement of engineers, technical 9. 17101 Michigan Ave., Dearborn 48126 general counsel C support, information technology, and finance and (313) 441-3600; www.gogtech.com accounting professionals on a contract and direct-hire basis Rodgers Chevrolet Inc. Pamela Rodgers 56.0 62.0 -10 60 67 85 Automobile dealership 10. 23755 Allen Road, Woodhaven 48183 president (734) 676-9600; www.rodgerschevrolet.com

This list of woman-owned businesses is an approximate compilation of the largest such businesses based in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. It is not a complete listing but the most comprehensive available. Unless otherwise noted, the companies provided the information. Percentage of the company that is woman-owned may not be solely held by the leading shareholder. NA = not available. NC = no change. B Crain's estimate. C Mara Ghafari is the majority owner. Theresa Ghafari, president and CEO, is the top executive. LIST RESEARCHED BY ANNE MARKS, DOUGLAS BROWN AND JOANNE SCHARICH DBpageAD.qxd 9/9/2008 12:42 PM Page 1

Construction is over. DBspreadAD.qxd 9/9/2008 12:59 PM Page 1

DETROITÔS MOST INNOVATIVE ENTERTAINMENT DESTINATION

The cityÕs Þnest dining, live entertainment,

gaming, luxury accommodations and other

indulgences, all brought together under one

roof, taking excitement to a whole new level. DBspreadAD.qxd 9/9/2008 12:59 PM Page 1

DETROITÔS MOST INNOVATIVE ENTERTAINMENT DESTINATION

The cityÕs Þnest dining, live entertainment,

gaming, luxury accommodations and other

indulgences, all brought together under one

roof, taking excitement to a whole new level. DBpageAD.qxd 9/9/2008 12:48 PM Page 1

For more information call 866.PLAY.MCCPL or visit OTORCITYCASINO.COM. MotorCity Casino Hotel and MotorCity Casino Hotel design are trademarks of Detroit Entertainment, L.L.C. ©2008 Detroit Entertainment, L.L.C. All rights reserved. DETROIT BUSINESS MAIN 09-15-08 A 25 CDB 9/11/2008 5:47 PM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 25 Agencies unite for fight State police, FBI start task forces; local agencies eager to join Crisis rife

BY TOM HENDERSON fraudulent purchase of 16 houses AND DANIEL DUGGAN in 2001-2002. (See story, Page 26.) with ‘moral CRAIN’S DETROIT BUSINESS The civil suit alleges violations When loans go bad ... of the federal Racketeer Influ- ith Michigan consid- enced and Corrupt Organiza- hazard’ ered one of the top 10 tions Act, which Bugbee Robert Van Order, chief It was a great opportunity for Melissa states for mortgage says makes it a good case economist at Freddie Mac from Jolly, but it turned out to be too good to fraud, two multijuris- for a criminal investiga- 1987 to 2002 and now an adjunct dictional task forces be true. Page 26 professor at the University of W ■ tion because of federal are forming to fight what are of- Wells Fargo charges, and Michigan, told the Detroit chap- Quicken denies, that some loans forfeiture procedures. ten complex and elaborate ter of the In- were sold improperly. Page 27 Bugbee’s fraud section crimes. ■ investigates tobacco tax stitute of In- One task force will be led by the Mortgage mess created opportunities for startup businesses fraud, bridge-card fraud ternal Michigan State Police, the other by to help victims. Page 28 and returnable-container Auditors last the Detroit office of the FBI. An- ■ Web extra: Register of deeds fraud. week that drew Arena, special FBI agent in wonders why lenders don’t ask for “We’re finding the bad “moral haz- charge of the Detroit office, said more investigations. See guys are moving from ard” played a he will make a crainsdetroit.com. those frauds to mortgage significant formal budget NEWSCOM fraud. It’s like cheats in casinos role in the proposal to moving from the penny-ante to U.S. housing Washington Bugbee said he got approval the high-stakes tables,” he said. Van Order crisis, and soon. FRAUD HOT SPOT for a task force from his superi- “We’re aware of the develop- that it grew “We’re going ors about 10 months ago and ment of the task force,” said As- much worse in 2006 and 2007. to request an Michigan might be a slow since then has been meeting with sistant U.S. Attorney Sheldon “Moral hazard is how econo- increase in mortgage market, but it’s not a federal officials, state Attorney Light, chief of economic crimes mists refer to lying and cheat- slow mortgage fraud market, say agents,” he General Mike Cox and officials for the eastern district of Michi- ing,” he said. “And there was a said. “We can the FBI and other organizations with the state’s Office of Financial gan. “We have met with Mike lot of moral hazard.” make a good that track fraudulent activity. The and Insurance Regulation. Cox’s office. We’re coordinating Van Order said available Arena case.” state is in seven top-10 lists He said he efforts with them, and we will be data shows that even as foreclo- Arena said a task force is being related to mortgage fraud activity: hopes to have involved with the task force as it sures began to skyrocket, un- formed whether or not he gets ap- No. 1 the task force evolves.” derlying factors such as credit proval to hire more agents. He by Radian Guaranty Inc., a open for busi- Regarding both federal and scores, loan-to-value ratios, said the task force will include Philadelphia-based mortgage insurance company. ness by midfall state task forces, Light said: down payments and interest representatives from such federal and that it will “We’ll try to relate to each of them rates didn’t change much. What agencies as Housing and Urban De- No. 3 in FBI cases. include mem- in the best possible way. This seemed to be happening, he velopment and the U.S. Postal In- bers of the U.S. isn’t an area where there’s any spector and local law-enforcement No. 3 said, was deception and fudging by the online foreclosure Secret Service, shortage of cases. of figures in the loan-applica- agencies. U.S. postal in- “There has been a substantial “Once we line up funding, we’ll marketplace RealtyTrac. tion process. Bugbee spectors, the effort to fight mortgage fraud in go to state and local agencies and No. 3 “We started seeing loans go- by the Reston, Va.-based U.S. Department of Agriculture, the the last couple of years, and I’d ing into default where no one see who’s interested in participat- have to say it is accelerating,” Mortgage Asset Research state’s attorney general’s office, even made the first payment,” ing,” he said. “The Wayne County said Light. “We’re getting an in- Institute (improved from forensic accountants and auditors he said. “Clearly some of the Prosecutor’s Office is interested crease in referrals from the agen- No. 2 in 2005). from OFIR and possibly the FBI. loan originators were pulling and Oakland County is interested. cies we work with, and we get No. 3 Bugbee said he has had talks fast ones.” We need to coordinate what we’re calls from attorneys from out of Detroit’s ranking for credit and with the U.S. attorney’s office in He told an anecdote about a doing. We don’t want to step on the blue who think they have a value of property misrepre- Detroit about establishing proce- house he bought in Ann Arbor anyone’s toes.” sentations, according to client who’s involved and they dures for combining federal for- with one loan for 80 percent of Meanwhile, the Michigan State Washington, D.C.-based lender want to help us out and avoid lia- feiture statutes and prosecution the value and another for 15 Police task force is setting up Fannie Mae. Dearborn earned bility.” under state statutes. headquarters in Livonia by mov- the No. 10 spot. Arena said his task force will percent, then getting a call Bugbee said he hasn’t launched ing in computers, installing office No. 8 be focused on organized groups months later from a loan origi- any formal investigations, yet, cubicles and opening files on in suspicious activity reports and expands on a focus on mort- nator in San Diego offering a but has begun a file on a possible prospective investigations. The to the FBI. gage fraud he’s had since taking loan at a better rate for 95 per- investigation growing out of a task force will be headed by Lt. Among the top 10 on the FBI’s over as head of the Detroit office cent of the home value. civil suit filed last year by Livo- Marty Bugbee, commander of the “Mortgage Fraud Hotspot” list. in March 2007. “We’ve been on top “I knew home values had nia-based Quicken Loans Inc. alleg- MSP’s fraud investigation sec- Source: FBI dropped in Ann Arbor, but they tion. ing a criminal conspiracy in the See Unite, Page 28 sent out an appraiser and it came in at $50,000 higher,” Van Order said. He didn’t go through with the loan. ‘Suspicious activity’ reports rise In an interview, he said it became obvious more than a year In 2007, the FBI had roughly 2,000 suspicious activity reports related to ago that “moral hazard” was on mortgage fraud in the Detroit area, lagging the No. 1-ranked Los Angeles, the increase. “We began seeing which had more than 7,000. 46,717 it in the behavior of loans writ- The impact in terms of overall losses still remains largely unknown. Of the ten in 2005, but it really took off reports to the FBI in 2007, only 7 percent had an estimate for the dollars with loans written in 2006 and lost. That figure, for 7 percent of the cases, was $813 million. 35,617 2007. Those years were just really different.” Nationally, suspicious activity reports to the FBI are on the rise. He said data show that for 21,994 subprime loans written in 2002, 17,127 2003 and 2004, foreclosure rates were 1 percent or less 20 6,936 5,623 months after the loans were written. That climbed to 3 percent for loans written in 2005 and went to more than 7 percent for loans written in 2006. 2002 2003 2004 2005 2006 2007 DETROIT BUSINESS MAIN 09-15-08 A 26,27 CDB 9/11/2008 5:49 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS September 15, 2008

Melissa Jolly knew the mortgage business, but bought houses with loan applications full of contradictions and errors — which Quicken approved. Both Jolly and Quicken say they’re victims. Easy money, rushed deals – when greed isn’t good

BY TOM HENDERSON volved in some- AND DANIEL DUGGAN AMONG JOLLY’S PORTFOLIO thing over her CRAIN’S DETROIT BUSINESS head. I think she A portfolio of 16 houses was was probably an in- t was a business deal Melissa Jolly wish- purchased over the course of a nocent victim,” year by Melissa Jolly, with all es she never heard of. said Hagar, who, the loans approved by Livonia- At the time, in 2001, it sounded great — after being told by the opportunity to build a portfolio of in- based Quicken Loans Inc. Crain’s about the vestment properties, earn income from Inconsistencies later emerged. I Quicken allega- the rent and put little or no money into the Her income ranged from tions, said her job deal. $5,000 to $35,000 per month “was in transi- Too great to be true, as it turned out. on loan applications, her liquid tion.” Now, seven years later, Jolly has, says her assets from $5,000 to Her attorney, Pe- attorney, lost her job, spent her life’s savings $35,000. Five times, she was ter Tangalos of and still can’t get out from underneath some a first-time home-buyer. Troy-based Tanga- of the 16 houses she bought. For the first home she GARY PIATEK/CRAIN’S los & Associates Worse, a lawsuit filed last year in U.S. Dis- purchased, at 1725 Crescent P.C., said she was trict Court by Livonia-based Quicken Loans Inc. in Flint (pictured above), the fired. alleged she was a conspirator in a series of mortgage application was Jolly and her fraudulent home purchases that violated the submitted seven days before business entity, federal Racketeer In- the closing. MerjeProperties fluenced and Corrupt Almost a year after buying the L.L.C., were named Organizations Act, first house, Jolly bought her in the lawsuit filed The hardest part and a mortgage-fraud 16th house at 115 Florence in in July 2007 by “ task force being orga- Clawson. Quicken, as were is figuring out who nized by the Michigan Whether she could pay for all Marva Brooks and State Police has the houses was never a Ronald Townsend, is the victim and opened up a file on question. NATHAN SKID/CRAIN’S who sold all of the her transactions as it Until the loans went bad. who is part of the houses to Jolly; ap- considers launching a praiser Calvin criminal investiga- ing of mortgage fraud in general. fraud. Roberts; Farmington Hills-based LaMyatt Ap- tion. There are victims and there are perpetra- ” praisals; Livonia-based Tri-County Title Agency For each of the 10 tors, and there are people who are some of Abed Hammoud, Inc.; Kathleen Roberts, sole shareholder of counts in its lawsuit, each, he said. Wayne County prosecutor Warren-based Strebor Title Inc., also doing Quicken seeks mone- business as Summit Title; and Texas-based tary damages in excess of $100,000 to be de- Competition for buyers Stewart Title Guaranty Co. termined at trial. Kathleen Roberts is the wife of well known It claims that damages of at least $1.6 mil- Mortgage fraud cases that are surfacing Realtor Ralph Roberts, who has started a com- lion have resulted from companies that pur- now are the result of a culture that fostered pany that negotiates new mortgage terms for chased the loans in the secondary market dishonesty, according to Andrew Arena, special FBI agent in charge of the Detroit dis- those victimized by mortgage fraud. (See story, and have demanded Quicken repurchase the trict. Page 28) Calvin Roberts is no relation to either loans due to deficiencies in appraisals. It “You go back four or five years and there and now lives in Georgia. also is asking for court costs and attorney’s was a competition for buyers. There was no “The situation that Quicken Loans now fees. due diligence. It was an environment for finds itself in is the unfortunate result of its The lawsuit against Jolly and others de- crooks,” he said, speaking broadly and not own overly aggressive loan polices,” said scribes a straw-buyer operation, where an about the Jolly case. Kathleen Roberts’ attorney, Randall organizer finds a buyer to purchase a house But unlike the hundreds of cases that have LeVasseur of the Berkley law firm LeVasseur and sell it to another buyer. surfaced in Southeast Michigan, the buyer Dyer & Associates P.C. “Quicken employees, Using a straw buyer is not illegal, but a here was familiar with the process. At the whose job it was to review prospective loans fraudulent version typically involves time of her purchases in 2001 and 2002 and and to give greater scrutiny to those that sharply inflated appraisals, shoddy title until last month, Jolly worked as a loan could be risky, failed to do their jobs. Quick- work, inaccurate amounts on loan applica- processor for Northwood Financial Services en now looks to blame others for its own tions for a buyer’s income and assets and, ul- Inc., a mortgage broker that was formerly shortcomings.” timately, a complicated paper trail. based in Bloomfield Hills but recently LeVasseur said Summit was hired “mere- And, according to the Quicken lawsuit, it moved to Farmington Hills as it downsized ly to make sure loan documents were proper- involved at least one loan officer and a loan in the face of the ongoing slowdown in the ly signed, that funds were disbursed in ac- company that processed applications riddled mortgage industry. cordance with Quicken’s directives ... with inconsistencies or contradictions, ac- Jolly’s boss, company founder and Presi- Summit Title did its job. cording to both Quicken’s filing and copies dent Steve Hagar, was president of the Michi- “Kathleen Roberts’ inclusion in this litiga- of loan documents obtained by Crain’s. gan Mortgage Brokers Association in 2006. Nei- tion is reflective of Quicken’s poor judgment “The hardest part is figuring out who is ther Northwood nor Hagar were named in and lack of concern with justice,” said the victim and who is part of the fraud,” said the Quicken suit. LeVassuer. “Quicken is more concerned Abed Hammoud, a Wayne County prosecu- “Melissa has been a great employee and with casting as wide a net as possible in tor on assignment to the Wayne County Regis- solid person over the years. I’d question her hopes of reeling in money from many differ- ter of Deeds mortgage-fraud task force, speak- deliberate involvement. I believe she got in- ent litigants.” DETROIT BUSINESS MAIN 09-15-08 A 26,27 CDB 9/12/2008 11:44 AM Page 2

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 27

The lawsuit describes Roberts’ once closed on two properties in and her title agency’s role as “clos- RESTITUTION WOULD two days. Each time, the sets of ing agents in the subject transac- closing documents had differing Wells Fargo sues tions, performing closing and es- TAKE CENTURIES figures for such things as assets, li- crow services required to abilities and income. complete the transactions.” Vuk Jovanovic is paying his debt to An application to buy a house society, and if he lives long enough, he’ll be paying it for in Detroit on Sept. 14, 2001, listed Masterminds or middlemen? centuries. no assets. An application the same Quicken, claims The subject of a federal lawsuit day to buy a house in Grand Blanc The Quicken suit was amended filed by Quicken Loans Inc. last listed assets of $25,000. For the first last December to add two names, year that alleges his involvement in loan, her net worth was listed as a those of Marko and Vuk Jo- mortgage fraud, Jovanovic ran negative $23,000. Her net worth for vanovic, and their Southfield- afoul of the law in 1999 when he the second loan showed a positive fraudulent loans based business, Sharmar Invest- used the false name of Scott net worth of $25,000. ments L.L.C., alleging they were McMillian to open a bank account A loan for $152,250 that closed BY TOM HENDERSON Institute in Ann Arbor, an organi- masterminds behind a conspiracy at National Bank of Detroit, where on Oct. 5, 2001, for a house in AND DANIEL DUGGAN zation that certifies financial he deposited counterfeit checks to defraud in violation of the feder- Grand Blanc, listed as an asset a CRAIN’S DETROIT BUSINESS professionals to provide mort- totaling $478,008. al RICO Act. rental-income house that she did- gage and real estate equity ad- Quicken alleges the Jovanovics In 2003, as part of a plea deal n’t buy until Oct. 25, and did not in- ivonia-based Quicken vice, said the lawsuit sends the limiting his prison sentence to 21 found 16 properties for sale, most clude as a liability a loan of Loans Inc. is being sued in wrong signal. months, he pleaded guilty to a U.S. District Court by in foreclosure at distressed prices single federal count of depositing a $201,600 that she got from Quicken Nicholas said he’d expect such Wells Fargo Bank N.A., in a — in 12 communities ranging from counterfeit check for $9,975. six weeks earlier. a dispute to be worked out before dispute over what is Flint to Lansing to Romulus — and On Sept. 2, 2005, he was placed Approvals came quickly in L it hit federal court, and that it claimed are fraudulent loans organized a team to help pull off on supervised release for five many cases. The first application, could spook other buyers of their resale at inflated prices be- years, and on Oct. 12 he agreed to for a house at 1725 Crescent Drive gone bad. Quicken loans, who are already tween Aug. 13, 2001, and July 29, make full restitution of $478,008 in Flint, was made on Aug. 13, 2001, South Dakota-based Wells Far- spooked by other developments 2002. at $50 a month. At that rate, he’ll and closed on Aug. 20. Curiously go filed the suit in June, claiming in the mortgage industry. Jolly borrowed a total of $1.8 be paid in full in 2802. enough, according to loan docu- that Quicken “This could million, buying 10 from Brooks On March 12, 2007, Jovanovic was ments, the appraisal was made has refused to very easily turn and six from Townsend. discharged from supervised three days before Jolly applied for buy back more Lenders are into a crisis of release. In June, Quicken filed a David Kull of the Farmington the loan. than $4 million confidence and lawsuit alleging organized criminal “ Hills-based law firm of Wood, Kull, That transaction was complicat- in loans that being barraged by have a domino activity involving the fraudulent didn’t meet un- Herschfus, Obee & Kull P.C. repre- ed, according to the Quicken law- effect. It’s like a sale of 16 homes to Melissa Jolly derwriting sents the Jovanovics, Sharmar In- in 2001-2002. In December, an suit. On Sept. 13, 2001, Arthur and buy-back requests, run on the standards, in vestments, amended complaint by Quicken Constance Gugin filed a claim to bank,” said violation of a Brooks and alleged that Vuk and his brother, the title to the house, saying the and they’re all Nicholas, who is 2001 contract Townsend. Marko, were the masterminds warranty deed showing that the also president He acknowl- behind the scheme. house had been sold by them to between the disputing them. two companies. ” and CEO of edged that David Kull of the Farmington Hills Brooks for $1,000 plus a redemp- Nicholas and Co. law firm of Wood, Kull, Herschfus, In August, Tony Garritano, editor, Brooks and tion fee of $12,769 on May 3, 2000, Mortgage Plan- Obee & Kull P.C., who represents Quicken filed Mortgage Technology Townsend were had been forged. In October 2002, ners. straw buyers on the Jovanovics, said his clients the Gugins agreed to dismiss their its response, Elizabeth Jones, Quicken’s behalf of Shar- were legitimate investors who, litigation, leave the house and pro- denying the allegations and de- through their Southfield-based vice president of communica- mar Invest- vide another warranty deed to manding a jury trial. company, Sharmar Investments tions, said the lawsuit won’t Kull ments, but said Brooks for an additional payment In its complaint, Wells Fargo L.L.C., found distressed properties cause problems with others who it was legal and above board. of $20,000, according to a motion in said that “Quicken made certain on the cheap and sold them at a buy its loans. She said Quicken “They worked for Sharmar and re- profit to Jolly. Any subsequent the Quicken suit. representations and warranties merely followed Wells Fargo’s ceived 1099s on every sale. I think problems were a matter between On Nov. 27, 2002, according to to Wells Fargo regarding the underwriting guidelines for the they got $200 for each one,” said Quicken and Jolly, he said. Quicken’s suit, Jolly sold the loans and lines of credit being loans in question, that it was told Hull, referring to a federal tax — Tom Henderson, Daniel Duggan house for $254,000, and Countrywide sold, such as but not limited to it was not required to document form. Home Loans, which had bought the the income and employment of “The reason they used straw $201,600 loan from Quicken, was income for borrowers who had “My clients went to Auckland the borrower and the fair market high credit scores and whose buyers is that Sharmar was the in- and said, ‘This is what we’re do- paid off. value of the real estate collater- loans had a low loan-to-value ra- vestment vehicle, and it’s easier to ing, buying up houses in foreclo- Found in the closing documents al.” tio. transfer a title from person A to sure and selling them to Melissa for the house at 1725 Crescent Dri- Wells Fargo said some loans “This matter, while it involves person B to person C than it is to Jolly. Melissa Jolly is the investor ve, in which Auckland is listed as the mortgage banker, was a memo had false representations and a very small number of loans transfer it from person A to an of choice. Are you interested?’ ” “were not eligible to be sold to L.L.C. to person B.” written by a Quicken employee originated and sold to Wells Far- said Kull. Wells Fargo in the first place.” He said the Jovanovics would “And he was, ‘Yeah, this is named Shannon Sayers: go, most more than five years The lawsuit said that as of look for properties that had been great.’ We were told that Auckland “Borrower is buying a house in ago, still strikes a nerve as it is June, the amount of bad loans foreclosed whose redemption peri- went to his higher-ups to check it foreclosure and needs to close an attempt by Wells Fargo to Quicken refused to buy back to- od — the time owners have to pay out and came back and said it was ASAP,” she wrote. “This referral retroactively rewrite its own un- source may give Pat (Auckland) taled $4,047,000 and “to the extent off the loan and keep the property a deal. Quicken was making a lot derwriting guidelines more than several of these a month if we have additional repurchase demands — was nearly expired. “My clients of money on those sales. They five years after the fact,” she a quick turnaround.” are made by Wells Fargo and de- would pay people a couple of thou- were making $9,000 on a $100,000 said. There were a number of quick clined by Quicken, this sum will sand dollars and let them pay rent loan,” said Kull. “If you look at “The Wells case is much worse turnarounds, not surprising for a likely increase.” to stay in their house, and then sell how Quicken Loans operated, a lot than Monday-morning quarter- of people made a lot of money, and company that marketed what it None of the loans in dispute re- backing. … As long as the loans it to an investor, like Melissa Jol- called “rocket loans” to speed up ly. She bought houses that she a lot of people made a lot of mis- sulted from the Melissa Jolly performed well, Wells enjoyed takes. And now they’re losing a lot the underwriting process. thought were good investments at case. the income from the loans,” said of money on their mistakes.” A loan application for a house in There is currently no shortage Jones. “However, Wells appar- a fair price.” Grand Blanc that Jolly wanted to He said any subsequent loan de- of loans that are being disputed ently misjudged the increased buy from Brooks was faxed by Jol- in the mortgage industry, said risk associated with this type of faults were a matter between Inconsistencies ly to Quicken on Sept. 17, 2001, Quicken and Jolly and had noth- Tony Garritano, editor of Mort- stated income loan. As soon as The Jolly loans were processed from Northwood Financial, ac- ing to do with his clients. gage Technology, one of several Wells began to experience losses, despite inconsistencies in many cording to the Quicken lawsuit. It Attorneys for most of the defen- niche publications focusing on they mounted a campaign of revi- loan documents: was approved on Oct. 5. dants filed responses denying the mortgage industry. It is sionist underwriting.” Jolly’s monthly income According to the Quicken suit, wrongdoing. Calvin Roberts, act- owned by New York-based Kevin Moss, executive vice ranged from $4,000 per month to Brooks didn’t buy that house until ing as his own attorney, filed a re- president of Wells Fargo’s Home $7,000. Sept. 26. She paid $1,000 to John SourceMedia. sponse saying he wasn’t part of a Equity Group, disputed Jones’ The amount of time she was and Wanda Lord, plus a redemp- “It’s not uncommon right now conspiracy, that he had never met version. listed as living in her home ranged tion fee of $102,707. Jolly bought it for an investor to say ‘you mis- “We disagree with these alle- any of the other defendants and got from five years to 32 years. for $152,250. spelled this person’s name on gations. Wells Fargo has never all his assignments directly from Her liquid assets ranged from line five, you have to buy the demanded repurchase for loans Quicken. $5,000 to $35,000. A flipping scheme? loan back,’ ” he said. “Lenders Former Quicken employee Five times she was listed as a are being barraged by buy-back from Quicken simply because Patrick Auckland processed 14 of first-time buyer; homes in both Elizabeth Jones, Quicken’s vice requests, and they’re all disput- they are stated income loans. the mortgages while at the compa- Grand Blanc and Flint were listed president of communications, de- ing them, saying they didn’t do The bulk of the loans that are the ny, according to closing docu- as intended to be her primary resi- scribed the transactions in the Jol- anything wrong and were just subject of this lawsuit involve ments obtained by Crain’s. He is dence. The others were listed as in- ly case as “a property-flipping following the guidelines.” substantial fraud. Contractually, not named in the lawsuit, but is vestments. scheme (that) involved the borrow- But Gibran Nicholas, presi- Quicken Loans is responsible for listed as a witness on behalf of Twice, Jolly closed on two er’s misrepresentation of informa- dent and chairman of the Certi- the loans that they underwrote Quicken. properties on the same day and See Jolly, Page 28 fied Mortgage Planning Specialist and sold to Wells Fargo.” DETROIT BUSINESS MAIN 09-15-08 A 28 CDB 9/12/2008 12:02 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS September 15, 2008 Companies spring up to help rework problem loans BY TOM HENDERSON her refinance, Earlier this year, he founded ing in New York, and Mandouh, a AND DANIEL DUGGAN and he said the FSDS L.L.C., which stands for fore- real estate and mortgage broker CRAIN’S DETROIT BUSINESS best he could closure self-defense system, a for- living in California, decided to do was a loan profit that charges a fee to audit move back to their hometown. Kim Sikorski couldn’t be happi- package with loan documents for fraud or irreg- “We had the idea of starting a er that a cottage industry — com- $1,300 monthly ularities and, if significant ones loan-modification business, and panies that help victims of loan payments. are found, negotiates new terms Detroit was the place to be for this fraud or incompetent or greedy She listed with lenders. business,” Scheib said. mortgage brokers renegotiate new the condo for Robert said he contacted Fannie The key to the business is bro- loan terms — has sprung up from sale with Mae, which had bought the loan, kering a compromise on a fee basis the ongoing mortgage crisis. Roberts but and Fannie Mae contacted between consumers and lenders, One of them, started by Ralph couldn’t sell it. IndyMac. After much back and helping both save money, the con- Roberts, a well-known Washington She maxed out forth, he said on Aug. 1, he got the sumer with a lower monthly pay- Township-based Realtor, got her credit IndyMac to agree in August to rene- TOM HENDERSON word that IndyMac had agreed to ment and the lender with a way to Ralph Roberts and cards. gotiate her loan terms, even terms Sikorski could afford — less avoid paying for the foreclosure Kim Sikorski through her New Baltimore condo Meanwhile, than $900 a month. process. Scheib said homeowners had gone through a sheriff’s sale — Roberts got her Roberts said that about 70 per- pay the fee, but he hopes to grow albeit with no buyer — in Febru- loan file for the IndyMac loans. cent of the cases he audits have ev- by persuading lenders to hire his ary and she was just four weeks The application listed her as an idence of fraud. Examples include firm to negotiate on their behalf. away from an eviction. employee at the beauty shop where buyers with good credit who were Scheib can be reached at Roberts’ company is one of a few she worked, when she was self-em- pushed into higher-rate products www.loanmod.com. companies trying to unravel some ployed, listed her income as $5,800 than they qualified for, or inflated The saying “buyer beware” also teaser rate on an adjustable-rate of the loans that were given. An- a month, and listed false asset to- figures for such things as income, applies when looking to renegoti- mortgage and bought her condo, other firm, Dearborn-based Mizna tals, an inflated appraisal, a false assets and appraisals. He can be ate a loan going bad. L.L.C., was founded in 2005 by Son- paying $912 a month. The ARM re- original price and a highly inflated found at www.keepmyhouse.com. Many initial modification offers ny Mandouh and Moose Scheib. set after two years and continued net worth of $166,168. Scheib and Mandouh teamed up from banks include only tempo- Sikorski, a 37-year-old nail tech to reset as interest rates climbed, Though Sikorski signed the ap- in 2005 when they saw the direc- rary and modest reductions, often who makes about $20,000 a year, hitting nearly $1,500 a month. plications, Roberts said she would- tion the mortgage industry was with fees added on to the principal found she needed help to undo her She says she asked the broker n’t have known what numbers headed. that can carve up much or all of loan. Five years ago, she got a low who did her original loan to help were required. Scheib, a corporate lawyer liv- the savings.

Jolly: Easy money, rushed deals Unite: New focus on fraud ■ From Page 27 ■ From Page 25 tion that spoke to credit worthiness, sellers’ repre- Court against Quicken and another lawsuit of it. We’ve devoted a lot of assets, new homes bought in his township sentation of property ownership and selling against Rock Financial, a Quicken company, alleg- but it’s a huge problem.” for far more than the appraised val- prices.” ing that Rock, Quicken and its chairman, Dan He said that six agents currently ue under suspicious circumstances, She said that technology Quicken has developed Gilbert, violated federal labor law by requiring its work exclusively on mortgage three involving purchases by Irving to red-flag inconsistencies in loan applications bankers to work more than 40-hour weeks without fraud. Sims in nine months in 2002-2003. “were not yet in place in 2001-2002, a time period paying them overtime. One was filed in 2004 and “We’re seeing all different types In June, the U.S. attorney’s office during which we closed more than 80,000 loans.” the other two in 2007, with trials yet to be set. of people involved,” he said. “We’re in Detroit announced felony charges She said that while today there are limits on the All three have been reassigned to new federal seeing people who used to be in the against 28 individuals involved in number of loans an officer can originate for an in- judge Stephen Murphy III, who stepped down as drug business. You can make more mortgage fraud. Sims was one of dividual, there was not a cap in place then. U.S. attorney in Detroit on Aug. 15. money on mortgage fraud and it’s them. He pleaded guilty to provid- As for Auckland, she said: “While we normally In a ruling on Aug. 22 on a motion involving the safer. No one is shooting at you.” ing a false income figure to a lender. don’t comment on the specific reasons why someone 2004 case, Magistrate Steven Pepe, a federal judge The new task forces would join Maccarone said that following the leaves our company, I feel as though I should make it on senior status who is assisting on the case, re- the task force set up in 2005 by attacks of Sept. 11, 2001, the FBI was clear his leaving was not related to this matter or as- ferred to one of Gilbert’s e-mails. “In one e-mail,” Wayne County Register of Deeds focused on terror, investigating the sociated with any allegations of wrongdoing. ... There Pepe wrote, “he encouraged loan consultants to Bernard Youngblood. Muslim community in Dearborn and is nothing to indicate he did anything improper.” sell loans at Thanksgiving dinner, telling them ‘al- In an agreement with the Wayne monitoring the border with Canada. Auckland is currently an account executive for ways to be closing.’ ” County prosecutor and sheriff’, “The Macomb office of the FBI does Chase. He declined several offers to speak on the Youngblood’s office pays the salary a good job, but they were under- record but denied wrongdoing. Easy money of three sheriff’s staffed and their priorities weren’t on Jolly’s attorney, Tangalos, said she met the Jo- deputies and two white-collar crime. Their resources vanovics through her boyfriend, who had refereed Tangalos told Crain’s that Jolly has been dis- attorneys. were strained,” said Maccarone. some of the Jovanovics’ soccer games. missed from the case by Quicken attorneys be- In July, his of- “Going after mortgage fraud is ex- Tangalos said Jolly didn’t fill out the mortgage cause she cooperated with them and because she fice won two hausting. It’s a very complex crime documents, that they were prepared by the Jo- was an innocent victim. awards: one from with a convoluted paper trail. Maybe vanovics and given to her to sign, and that she be- But Thomas Hanson of the Ann Arbor office of the National Asso- it’s a priority now, but that train left lieved she was part of a series of legal transactions. Quicken attorneys Dykema Gossett P.L.L.C., re- ciation of Counties, the station a long time ago.” He said in some cases she was to get proceeds of sponded: “At this point she has not been dismissed the other from the “I don’t dispute at all, both in this the rent from the former owners of the properties. from the case, and I would disagree that she is National Associa- office and in the FBI, agents and He said some of the properties went into foreclo- purely an innocent dupe.” tion of County prosecutors moved from fraud pros- Youngblood sure after renters moved out, some were sold and It remains to be sorted out who is to blame, or if Recorders, Election ecutions to the area of terrorism,” that she still owns two or three. there is criminal culpability. What is clear is that Officials and Clerks. The task force said Stephen Murphy, the former But if she thought the transactions were above there was easy money to be made. Easy money for has had 37 convictions so far. U.S. attorney for the eastern district board, why wouldn’t she have wanted to give the Marva Brooks and Robert Townsend, who merely “We see some traction as the word of Michigan who was recently ap- business to her boss at Northwood Financial? Why had to sign their names to get their checks. Easy gets out,” Youngblood said. “And pointed to a federal judgeship. turn to Quicken when Steve Hagar was in the same money for the Jovanovics, who were following the word gets out as people are going to Murphy said mortgage fraud is line of business? Even if he couldn’t find her a bet- tried and true path of buying low and selling high. jail.” now a chief focus, superseding other ter deal, why not funnel fees to the boss who signed Easy money for Jolly, who was being handed a Ralph Maccarone, who recently white-collar crimes such as mail her paycheck? rental income stream. Easy money for Patrick lost his bid for re-election as super- and bankruptcy fraud. Because, said Tangalos, the Jovanovics wanted Auckland and Quicken as they cranked the loans visor for Shelby Township, said he “We’re trying to send a message. the loans to go through Quicken. out and quickly resold them. is glad to see the state and federal fo- Major conspiracies will get major at- “She made mistakes. She shouldn’t have gotten “It’s easy money, until they find out down the cus on fraud but wishes it would tention. We have a handle on the involved,” said Tangalos. “The first few deals road that they’re on the hook ... and they have peo- have happened years ago. problem, now. I’m sure my successor seemed great, and then they tried to jam as many ple like me wanting to talk to them,” said Assistant A 16-year veteran of the Detroit will have his or her opportunity to on her as they could.” U.S. Attorney Sheldon Light, chief of the economic police force before getting his law stand up and announce major indict- Tangalos said part of the problem was the cul- crimes unit in Detroit.“It all boils down to this: degree, Maccarone said he put to- ments for mortgage fraud. There are ture at Quicken, where bankers were under pres- Greed is a terrible thing,” said Brian Pollice, a gether a PowerPoint presentation many more cases to be put to rest.” sure to close as many deals as possible. “It was like partner and head of the financial institutions prac- on mortgage fraud that he began Tom Henderson: (313) 446-0337, a boiler room for mortgage brokers,” he said. tice at Southfield-based Plante & Moran P.L.L.C. showing to law enforcement agen- [email protected] There are, in fact, two current class-action law- “There was just so much money to be made in a cies in 2005 without much response. Daniel Duggan: (313) 446-0414, suits working their way through U.S. District short amount of time.” His presentation included lists of [email protected] DETROIT BUSINESS MAIN 09-15-08 A 29 CDB 9/12/2008 4:58 PM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 29 Terminal: Building Loan: Suppliers wait on federal program ■ From Page 1 yet to land a name Suppliers such as Johnson Controls loan program, but if automakers and pliers play in the U.S. auto industry. Inc., TRW Automotive Holdings Corp., suppliers made a big move to retool “Suppliers are responsible for 40 ■ From Page 3 BorgWarner Inc., Delphi Corp., Continen- their own factories, it could mean percent of the R&D and 70-80 percent tal Automotive Systems Inc. and other more work for HMS. of the value of a new vehicle,” said 2002, as Metro’s other major concourse. McNamara’s princi- large suppliers are facing much of “Any time you do any retooling, it Ann Wilson, senior vice president of pal tenant is Northwest Airlines Corp., whose 500 daily flights what their customers are: falling pushes a lot of work through the sup- government affairs for the Motor and from Metro make it the airport’s biggest user. product sales, increasing raw-materi- ply base,” she said. “It puts out work Equipment Manufacturers Association. The north terminal was built on the site of the former Dav- al costs, a consumer market that is and gives more confidence to automo- Wilson is at the forefront of suppli- ey Terminal, and because its budget was less than half of the rapidly shifting away from trucks tive suppliers that they will in turn er lobbying efforts, and she says be- McNamara, much creativity had to go into its design. and SUVs and, most relevant to the be paid for the work they are doing.” tween one-third and one-half of con- “You do a lot with color and lighting,” said Michael Con- loan program, very restricted access The loan guarantee provision gressional lawmakers don’t have a way, Metro’s director of public affairs. to private capital. would also set aside 10 percent of the good grasp of the supplier industry. The dominant color is blue against a lot of white — and But the interests of tier-two and money for businesses that employ “The drafts of the bills I’ve seen in- there is a lot of glass that bathes the facility in sunlight (when tier-three suppliers may be different. fewer than 500 people. dicate to me that component manu- Michigan weather allows it). “(If you’re a tier-two supplier), Companies that size typically do facturers are right in there with au- Sports Illustrated and USA Today will each open their first- you’re not generally providing high not produce the technologies eligible tomakers, but it’s part of our ever retail shops when the terminal opens, and they join 21 technology,” Fitzgerald said. “So to receive funding under the current responsibility to continue to push on restaurants and food stops that include a Hockeytown Café. you’re probably proposal, but many are in need of cap- this,” she said. “But I do think there’s About 500 concessions jobs are being created for the new looking less for the ital improvements. a lot of concern … about a company terminal, Conway said. benefit it provides But how the program will operate that is larger and employs more peo- The facility’s cost balloons to nearly $466 million when a for funding R&D when all is said and done is unclear. ple in a given area and is more of a $28.7 ground transportation center attached to the terminal and introduction of First, lawmakers need to approve a household name. People buy a Ford, and blue deck garage and an associated $6.1 million taxiway that new technolo- $3.75 billion for loan-default protec- GM, Chrysler, Toyota or Honda, they project are factored in. The transportation center opens later gy. You’re more in- tion. The U.S. Department of Energy don’t buy a Delphi part. ... They just this year. terested in the abil- then has to write the loan application don’t have that personal connection.” The construction and architecture companies on the pro- ity of that funding and approval process. But if lobbying money spent equals to the OEMs and The lack of clarity has caused some people reached, suppliers fall short. ject include Walbridge Aldinger Co., Barton Malow, Gensler, Gha- tier-ones to provide suppliers to be reserved on the issue. Last year, the auto industry spent fari Associates, Hamilton Anderson Associates and Scales & Asso- Fitzgerald the bridge funding “The feeling in the company right more than $70 million on D.C. lobby- ciates. they need as they introduce new vehi- now is that it is too early in the ists, with the Detroit 3 accounting for Airport officials estimate about 7 million passengers will cles and new business models.” process to know what the situation a combined $28.42 million, according flow through the terminal yearly, an average of 19,000 per Nancy Negohosian, vice president will be,” said Joe Kirik, who repre- to the Center for Responsive Politics. day. Federal Aviation Administration estimates say Metro will of Troy-based HMS Products Co., sents the Van Buren Township-based Compare that with the $2.32 mil- see yearly passenger usage grow from 36 million now to near- echoed that idea. automotive engineering and consult- lion spent by Delphi, TRW, JCI, Ten- ly 60 million by 2025. That would put Detroit on par with what HMS makes automated parts-trans- ing firm Ricardo Inc. and is senior vice neco Inc., Robert Bosch Corp., Visteon Los Angeles handles today. fer systems used in assembly plants president of Troy-based public-rela- Corp., ArvinMeritor Inc., Metaldyne Corp. Visit crainsdetroit.com/multimedia to see a video report with by automakers and suppliers. Nego- tions firm The Quell Group. and Federal-Mogul Corp. combined. Mike Conway on the completion of the new terminal. hosian says her company is unlikely Another unclear issue is Washing- Ryan Beene: (313) 446-0315, Bill Shea: (313) 446-1626, [email protected] to benefit directly from a government ton’s understanding of the role sup- [email protected] DETROIT BUSINESS MAIN 09-15-08 A 30 CDB 9/12/2008 3:34 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS September 15, 2008 Pinnacle Race Course pulls ahead in daily wagers

BY BILL SHEA wagered on live said in July the facility needs to this year. Downs in Muskegon, which closed CRAIN’S DETROIT BUSINESS racing at the average $200,000 in daily wagering The out-of-state betting, of last November, including $8.2 mil- track and anoth- to get into the black, and he pre- which Pinnacle gets a 3 percent lion from simulcast wagering. Michigan’s new thoroughbred er $2.6 million dicted it would take in $50 million cut, isn’t tracked by the state, and There was $14.7 billion wagered race track has surpassed the daily bet on simulcast in its truncated first season. that’s the money that put the track on U.S. thoroughbred races in wagering average its owner esti- events at tracks “From a financial standpoint, into the black. 2007, according to the National Thor- mated it needs to earn a profit, al- elsewhere. we’re ahead of where we thought Liana Bennett, spokeswoman oughbred Racing Association, the in- though the state’s horse racing in- What that we would be,” McInerney said. for the state racing office, said the dustry’s governing body and main dustry overall is 12 percent off its doesn’t include After an opening weekend of planned addition of more stables trade group, based in Louisville. 2007 pace. is $100,000-plus about 12,000 visitors, the track has at Pinnacle in 2009 will boost the “It’s been a bad year overall for Through Aug. 24, $3.8 million Campbell being wagered averaged 3,000 to 4,000 on race number of horses and further im- the industry,” said Frank Angst, had been wagered at Pinnacle Race elsewhere on days, McInerney said. prove the take. senior writer for the weekly Lex- Course in Wayne County’s Huron races at Pinnacle, said track Presi- The average total daily betting, Overall, Michigan’s horse rac- ington, Ky.-based Thoroughbred Township, according to statistics dent Michael McInerney. He esti- or take, at Pinnacle is $101,798, ac- ing industry has had $158.7 million Times trade magazine. “In general, from the Office of Racing Commis- mates total wagering revenue at cording to the state, and that pro- wagered in 2008 compared with all tracks are down.” sioner. The venue opened July 19. about $215,000 on average daily. jects to $6.4 million in-state over $180.4 million in 2007. Lost was $9.4 Bill Shea: (313) 446-1626, That breaks down to $1.2 million Track owner Jerry Campbell the track’s 63-day racing schedule million total from Great Lakes [email protected]

MARKET PLACE REAL ESTATE

ANNOUNCEMENTS & MISCELLANEOUS AUCTIONS AUCTIONS SERVICES US DEPARTMENT OF THE TREASURY Central Place Planning SEIZED REAL PROPERTY AUCTION BUSINESS SERVICES Professionals, LLC • Urban Planning Consultation MULTI-USE BUILDING /0A=:CB3 PART TIME CONTROLLER. Make or keep your • Urban Design 1404/1406 Southfield Road business financially profitable at less than half the • GIS Mapping cost. [email protected]. Lincoln Park, Michigan 48146 866-546-2722 www.CP3Plan.com 4271/C1B7=< COMPUTER SERVICES 6,960 ± SF bldg. Commercial with existing lease of $2k a month. Business not included in sale. \93!Njdijhbo!Qspqfsujft!jo!Efuspju!boe!Tvsspvoejoh!Bsfbt^ 5 apartments on 2nd floor, each 1 BR, 1 BA, TELECOMMUNICATIONS with total monthly income of $2,788. Sale # 09-66-802/CWS # 13627/Peter Ellis #0289514 WILL BUY On-Site Auction October 9, 2008 ALL OFFICE TELEPHONE EQUIPMENT Registration 11 am/Auctions 12 noon Looking to balance your QuickBooks? Please Call: 877-RICHARD Call for Initial Consultation Package Please Call: 877-742-4273 Open Houses: By appt only 9/28 & 10/5. Call (301) 519-2304 Deposit $25,000 - Cashiers check to EG&G Tech Srvcs (734) 284-8833 www.rejaccounting.com VIDEOCONFERENCE SERVICES www.treas.gov/auctions/treasury/rp (703)273-7373 Complete Videoconference Services FILE STORAGE Job Interviews, Legal Depositions, Business Meetings Convenient Troy Location, 3 Rooms, 1-200 Capacity Horse Lover’s Paradise! Large scale (MAXI) storage units. Great for RV’s, Midwest Video 248-583-3632 www.midwestvideo.com Real Estate Auction boats, cars, warehousing. 14 x 14 door, heated, 24/7 entry, secured. Buy/Lease - I-94 & 26 Mile Area BUSINESS & Up!cf!ifme!bu!Uif!Spdl!Gjobodjbm!Tipxqmbdf!¦!Tjohmf!gbnjmz! 800-945-5816/www.stclairstoragecondos.com INVESTMENTS FINANCIAL SERVICES sftjefodft!gfbuvsjoh!b!nbhojgjdfou!ipnf!jo!vqtdbmf!Hspttf! BUSINESSES FOR SALE Qpjouf!Gbsnt!¦!Nvmuj.gbnjmz!sftjefodft!¦!Dpnnfsdjbm! COMMERCIAL LENDING qspqfsujft!¦!Jowftunfou!qspqfsujft Real Estate Loans $200K-$25 Mill Bank Turndowns Welcome, Lines Of Credit, Franchise Bounce Party facility. Established cus- Hard Money/Fast Closings tomer base, strong repeat business. Below market \Uvftebz-!Tfqufncfs!41!bu!3;11!QN!)FU*^ Call David 248-594-0100 or 248-763-1438 lease. New equipment. Perfect for hands-off or -on On-Site Saturday Oct. 11th at 1pm owner. Owners’ transferring. Call 734-455-0323 Corporate Finance Professional Preview & Registration at 11:30am EEE8>97<51=; Available to assist with bank refinance, capital raise, EQUIPMENT & Opening Bid $350,000 sale or acquisition assistance. 30 yrs exp. Transac- Originally Listed at $1,950,000 &##&#"$" tions $3 to $100 million. [email protected] MERCHANDISE 2721 Metamora Rd., Lapeer Twp 48455 AbSdS\:@SSaS`@SOZ3abObS0`]YS`)# %' %$"!$ OFFICE FURNITURE Open Houses: Sun. Sept. 28th & Oct. 5th Noon-3pm CAPITAL AVAILABLE Unspoiled natural beauty surrounds this 38.49 acre parcel. Private lake and stocked Real Estate Auction If you have an opportunity that requires MUST SELL, OFFICE CLOSED Desks $99, Chairs $39, Files $49, Partitions $50, pond. 80x120 Indoor arena, 2 cement and funding but does not fit traditional steel barns with 14 walk-out stalls and banking parameters - contact us. We do Lateral Files $99, Cubicles, Office Phone Systems On-site Sunday October 12th at 1pm Call (248) 548-6404 or (248) 474-3375. stallion barn. An additional 40 acres are not fund senior/mezzanine debt or available. Private artist’s studio with Preview & Registration at 11am working capital. We focus on special TELECOMMUNICATIONS incredible breath-taking views. Fabulous situations with investment size ranging 3205 +/- sq ft colonial sporting all the Open Houses: Sun Sept. 28th & Oct. 5th Noon-4pm $500K to $10 million. Total LUCENT . . . AVAYA. . . PARTNER. . . grandeur of barn wood, stained glass, lead Paradise anytime of the year! Magnificent slice of mother nature. 38 miles north of Oakland committed capital of $100 million. We MAGIX. . . VOIP. . .LEGEND . . . glass French doors, skylights and musicians county sits 40 acres of serenity nestled between 3 lakes. Activities include swimming, have an in-house legal team, can think MERLIN. . .SPIRIT Systems/Parts New/refurbished. alcove in the grand living room. Offers 4 boating, fishing, golfing, snow mobile riding, hunting, & more. 3 hole golf course, many "outside the box" and act quickly. Omnicall Equipment Corp. (248) 848-9282 bedrooms and 3 full baths. Life's finer accessible docks, trails for riding, 3 heated deer blinds, & beautiful views of all 4 seasons. Please refer to www.etccapital.com moments can have no more appropriate Entertain your guests at the lake-side Tiki bar located on your private beach. Pole barn w/ WE HAVE USED PHONES setting than this country estate! walk out horse stall & plenty of room for your four wheelers, golf carts, snow mobiles, etc. or call 248-560-0203 ext. 101 Nortel, Lucent, phone systems. Almost any new or Custom built log cabin with panoramic views. Sensational property! www.40acres.org for more information. used phone available. Expert installation available. Rose Auction Group, LLC Call (248)548-6404 877-696-7653 Rose Auction Group, LLC Beth Rose 1978 N. Youngs Road LEGAL SERVICES - IMMIGRATION RoseAuctionGroup.com 877-696-7653 Beth Rose, CAI Auctioneer RoseAuctionGroup.com CAI Auctioneer Attica, MI 48412 N. Peter Antone AV-rated Immigration Attorney Adjunct Professor Immigration Law at MSU real estate auctions Antone, Casagrande & Adwers, P.C. 31555 W. 14 Mile Road, Suite 100 Farmington Hills, MI 48334 Phone (248) 406-4100, www.antone.com Nominal Opening Bids

Call Us For Personalized Service: (313) 446-6068 from $1,000

CLOSING TIMES: Monday 3 p.m., one week prior to publication date. SEPTEMBER 12TH - 26TH Please call us for holiday closing times. 4668 Orion Rd, Oakland, MI FAX: (313) 446-1757 E-MAIL: [email protected] Many Homes Available for INTERNET: 400+ www.crainsdetroit.com/section/classifieds Michigan Confidential Reply Boxes Available ONLINE BIDDING! PAYMENT: All classified ads must be Homes prepaid. Checks, money order or Crain’s credit approval accepted. Credit cards accepted. 9881 Somerset, Detroit, MI See williamsauction.com 800.801.8003 Crainsdetroit.com/Section/Classifieds for more classified advertisements 5% Buyer’s Premium May Apply DETROIT BUSINESS MAIN 09-15-08 A 31 CDB 9/12/2008 4:21 PM Page 1

September 15, 2008 CRAIN’S DETROIT BUSINESS Page 31 Open City: Detroit group that helps startups breeds success ■ From Page 3 Kelli Kavanaugh and Karen Gage by experienced business owners. business owners.” and it kind of took the heart out of went to Open City meetings before A survey of early attendees had But, Blondy said, aspiring busi- me a little bit.” CRAIN’S PUBLISHER TO SPEAK opening Wheelhouse Detroit, a bike- shown interest in such practical ness owners had needs beyond the Then Wheelhouse co-owner Gage rental service on the riverfront. matters, Blondy said. Meetings reg- practical — a desire for support, advised him to visit Open City. AT OPEN CITY MEETING “As far as looking at startup ularly attract between 70 and 100. and a sense of community. Within a week, another meeting Crain’s Publisher Mary Kramer will funding, it was valuable,” said Ka- “When people wanted to learn That was the case for Dave attendee had called him to recom- speak at the season’s first Open vanaugh. “We got funding from the about writing a business plan, we Mancini, who opened Eastern Mar- mend the Eastern Market location. City meeting, Sept. 16 at Cliff Detroit Microenterprise Fund, which brought in Joel Welsh from StartUp ket’s Supino Pizzeria in mid-August. “You hear about all these ideas, Bell’s, 2030 Park Ave., Detroit. The they had talked about as a possibili- Nation,” she said. “When people “I’ve lived in the city for 11 years and it makes you think maybe there event will run 6-8 p.m. Kramer will ty.” wanted to learn about financing, we now, and I’ve always thought about is something going on,” he said. talk about why aspiring They learned what it took to get a brought in three financing sources, opening a restaurant in the city, “It’s an exchange of information entrepreneurs should open a loan — a good business plan — and one from a traditional bank, one specifically a pizzeria,” he said. where people are looking out for business in Detroit. about the Service Corps of Retired Ex- from a nontraditional bank and one “When I did my initial scouting, other people.” For more information, check out ecutives, a U.S. Small Business Admin- from a venture-capital firm. We there was no suitable place. … I was Nancy Kaffer: (313) 446-0412, www.opencitydetroit.com. istration group offering counseling tried to do panels with existing thinking of going to the suburbs, [email protected] REAL ESTATE

APARTMENT BUILDINGS AUCTIONS INDUSTRIAL PROPERTY OFFICE BUILDING

ABSOLUTE AUCTION! ROSEDALE PARK 14926 ASHTON - DETROIT. WILL SELL FOR SALE REGARDLESS OF PRICE! SEPT. 26TH 4:30 P.M. DOWNTOWN ROYAL OAK AEauctions.com (248) 473-1547 Value Add Apartment Portfolio Now Leasing: 83,700 sq. ft. PRIME OFFICE/RETAIL REAL ESTATE Where Quality Tenants Find Exceptional Value ease AUCTION BY 400 s.f. – 4,270 s.f. BANKRUPTCY COURT Catellus Group, LLC 810-695-7700 For L Historic Washington Square Plaza AVAILABLE NOW 5 +/- Acres Auburn Hills Located in Downtown Royal Oak 3 Properties Totaling 520 Units Zoned Research/Industrial 4,000 to 100,000 sq. ft. Oakland County’s Most Vibrant Retail – Restaurant – Business Destination • No Set Asking Price 595, 611 & 631 Brown Rd. Also 10,000 & 25,000 sq. ft. Free Standing Bldgs w/truckwells. • Architectural Excellence • Purchase 1 Property or Entire Portfolio (2 Residential & 1 Industrial Bldgs) 1 Mile from Metro Airport • Walkable • Opportunity to Enhance Value Between Joslyn & Baldwin REA CONSTRUCTION • High-visibility Retail Location • All Property Level Due Diligence Provided Auction September 25th Before Bid Deadline (734) 946-8730 • Conference Center For Complete Details contact • For More Info Please Contact: Also Heavy Industrial Outdoor Deck Barry Swatsenbarg Thomas A Duke Company Land Available • Many Amenities 34975 W Twelve Mile Rd [email protected] Farmington Hills Dan Blugerman www.reaconstruction.net Michigan 48331 248.848.4178 [email protected] www.friedmanrealestate.com Chrysos Development & Management Co. (248) 548-9900 248.476.3700 MISCELLANEOUS

OFFICE SPACE Aircraft / Aviation Corporate aircraft hangar space INVESTMENT PROPERTY WATERFRONT PROPERTY FOR LEASE. Available at Willow Run Airport. PRIME DOWNTOWN DETROIT LOCATION Turboprop / light jet. Office space also on site. Available for sublease, 1000 sq.ft. loft type space CANTON: CONTRACTOR PROJECT Heated - 24HR in/out service. Contract jet fuel. Booming rental business and new construction. You WATERFRONT-PRIVATE highly upgraded. Currently furnished with direct Contact Mitch 734-740-3232 access to a large state-of-the-art conference room. INDUSTRIAL PROPERTY build it and we’ll rent. 2.59 acres, next to Oakwood Contact: Off. Mgr. at (248) 540-0660 Medical Center. 18-20,000 cars pass daily. Ready to OFFICE BUILDING build, $630,000. Call 734-320-7500 or 248-380-6418 Office Space In Troy Near Somerset Mall Leasing 2 Adj. Units - 50,000 & 56,000 s.f.(106,000 Window offices and optional assistant space, comb) @ Burt Indust’l Pk. (I-96/Telegraph), Very Click On: bratemanproperties.com LYON TOWNSHIP/BANK OWNED conference room and kitchen. Near I-75. Clean, Dry, Well-Maint., Docks, Truck Pkg, EZ 12-unit rental townhouse project available. Furnished, optional phone and fax. 248-740-1688 Freeway Access. (248) 356 - 5466 Five buildings for sale in: Plymouth, Wixom, Get a great deal on this investment opportunity. Farmington Hills and Lathrup Village Contact Karen Shepherd at 248-290-5300 ext. 311 AUCTIONS Jonathan Brateman Properties (248) 477-5000 (3) GSA LEASED BUILDINGS Ann Arbor, Port Huron, Flint ULTIMATE LUXURY 153' on Lake Michigan...440' Northpointe Office Building 7 ½ % CAP $1.1M NOI Greater Detroit Real Estate 2525 Telegraph, Bloomfield Hills, Mi 810-394-5522 deep...95% wooded quiet area...with fabulous Golf, Yachting, Dining, even Equestrian activities. VACANT LAND Spectacular views over Lake Michigan toward Harbor Springs. Boat slips available. AUCTION PETOSKEY...BAY HARBOR..."the most luxurious SOLITUDE AND waterfront resort community in the Midwest!" ALSO WALLOON LAKE homes and building sites Homebuyers, PRIVATE from $450,000 to $5,500,000! Waterfront Specialist Investors, 640 Acres (Square Mile) Lease-Investment Opportunity Call Joe for all of your Petoskey area Real Estate! General or Medical Offices Buy All or Part Joe Blachy Speculators 231-409-9119 Outstanding Visibility-Great Corporate Image Call 7am til 10 pm 2 hours from Southeastern 318 E. Mitchell, Petoskey Michigan www.PetoskeyResortHomes.com 100 New Homes [email protected] Costco ep Several airports close to property

Square Target Tel gra h Originally Priced From $100,000 – $450,000 Site Hunting/Recreational Paradise Opening Bids from $30,000 Lk Rd Tremendous Investment WALLOON LAKE Rolling hardwoods, And other Petoskey area Waterfront!! PLUS! North: Bruce Township, Chesterﬁeld Township, Clinton Township, Harrison Township, Lake Northpointe streams, ponds Orion, Lapeer, Macomb Township, Metamora, FrnliRdakn Home of partridge, turkey, duck 250 Homesites, Oakland Township, Oxford, Rochester, Shelby John Poponea & Associates, Inc Township, St. Clair, Washington Township 248-706-1300248-706-1300 Fax: 706-1395 and Trophy Deer! Residential Land Northwest: Brighton, Commerce Township, Asking $2,900 / acre Fenton, Grand Blanc, Hartland, Howell, RESIDENTIAL PROPERTY “THE MOST DESIRABLE LAKE” Northville, Southﬁeld, White Lake Darryl (810) 533-1095 in Northern & Industrial Sites RAVINES OF NORTHVILLE Michigan. We have several magnificent building sites South: Carleton, Dundee, South Rockwood 2,000 built, Cape Cod, 4,000 sq. ft.+ 3,000 walkout. available: 175' on Walloon, 400' deep sunset view, hard Multi-family ready, Imported upgrades, natural park West: Pinckney, Superior Township WATERFRONT PROPERTY sandy bottom...on the West Arm...close to Petoskey... for backyard. Everything else you would expect for your large new Family Cottage. Or we will build it “Up-North”: Harbor Springs, Higgins Lake in this price home. $895,000. Call 734-320-7500 or 248-380-6418 Why drive “Up North”? for you. Large1 acre waterfront lots on 300 acre all-sports MORE THAN 40 PROPERTIES NOW available on th st RETAIL SPACE Woodland Lake in Brighton. Excellent access. Walloon Lake...as low as $450,000 Saturday, Sept. 20 & Sunday, Sept. 21 www.hiltonpointeestates.com or 810.220.8060 BAY HARBOR: Two Lake Michigan Waterfront proper- Kerrytown/Ann Arbor – Stunning retail space with ON ORCHARD LAKE ties...fantastic! loft-like feel. 5520 s/f of wood floors in a building with 4 bedroom ranch, 3 1/2 baths on Call Joe for all of your Petoskey area Real Estate! over 20 independent businesses; neighbors to the 1.4 acres premium lot. 248-335-0104 Joe Blachy Farmers Market in a quaint district in downtown Ann www.5081commerce.com www.nrc.com/816 | 866-447-0672 ext.816 Arbor. Exposed beams and brick walls, newly instal - Call 7am til 10 pm 231-409-9119 led demo kitchen and large retail area. Ideal for 200’ LAKEFRONT- 15 min. from Novi/Ann Arbor 318 E. Mitchell, Petoskey cooking classes, kitchenware store and more. on All sports Woodland Lake. 4100 sf new const. In cooperation with Michael Moceri, Inc. - MI LIC BRK www.PetoskeyResortHomes.com Contact Karen Farmer at 734-662-5008. You select interior finishes. The dock is in, enjoy the [email protected] Brokers protected. lake now, move by Aug. 810-533-5014 or 18. DETROIT BUSINESS MAIN 09-15-08 A 32 CDB 9/12/2008 4:20 PM Page 1

Page 32 CRAIN’S DETROIT BUSINESS September 15, 2008

PLEASE BE SEATED BookCadillac: Competition has been growing among hotels equipped to handle gala events for charities and other groups as more high-end hotels Big events open. Where the events go: ■ From Page 1 Marriott at Renaissance Center, Detroit planned as are 21 weddings and 12 Capacity: 2,200* holiday parties, said Scott Opened: 1977 Stinebaugh, director of sales and MotorCity Casino and Hotel, marketing. Detroit Event planners are in demand. Capacity: 1,250 “We’re getting a lot more phone Opened: 2008 calls from venues, wanting to talk, meet, tour. And they’re a lot more MGM Grand Detroit, Detroit willing to work within our bud- Capacity: 900 gets,” said Doug Ferrick, chief de- Opened: 2007 velopment officer for the Detroit- Ritz-Carlton, Dearborn based Children’s Center, which hosts Capacity: 900 the Auto Glow, an invitation-only Opened: 1989 party each year following the Chari- Royal Park Hotel, Rochester ty Preview associated with the North American International Auto Show. Capacity: 750 Last year, the Auto Glow was at Opened: 2005 Ford Field. This year, it’s at the Townsend Hotel, Birmingham Book Cadillac. Capacity: 350 Ferrick said the property’s loca- Opened: 1988 tion close to Cobo Center was key Westin Book Cadillac, Detroit in the decision. However, he ex- Capacity: 650 pects that being at the newest Opening: Oct. 1 property will boost attendance. “People will want to see the latest * Capacity is based on a seated dinner event in one room and greatest in Detroit,” he said. Source: Crain’s research Being the newest venue will certainly help the Book Cadillac get events, but it will be up to the staff to keep the events, said Jerome Raska, president of Blumz ... by CAREER JRDesigns Inc., a Detroit-based flo- ral and event company. He has had several high-end MOVES bridal clients looking at the venue. “The younger folks have a large GENERAL attraction to having a wedding in the city,” he said. “And there are a PROFESSIONAL WANTED!!! "Ex" Car,Mortgage,Real Estate, Guys $ Gals lot of opportunities now.” Six figures PLUS, easily potential, No traveling Before the GM Wintergarden in Required & Flexible hours. www.ezbankroll.com / 800-931-1480 the Renaissance Center, the Mar- REAL ESTATE riott was the only option for a large, high-end event in Detroit. Now, the RETAIL REAL ESTATE MGM Grand Detroit and MotorCity Licensed agents looking for unique opportunity, providing unlimited income. Call David S. Greene Casino have large ballrooms, with 248-415-2300 First Commercial Greektown Casino to open another. SALES The Book Cadillac is expected to A SUMMIT FOR EVERYONE compete with suburban venues, CORPORATE CATERING such as the Ritz-Carlton in Dearborn, SALES MANAGER the Townsend Hotel in Birmingham WHO LOVES A CITY. and the Royal Park Hotel in Epoch Catering LLC, exclusive caterer at The Diamond Center at the Rock Financial Rochester. Hotel executives at those Showplace in Novi, is seeking a Corporate properties said prices have not been Be a part of the creative movement re-imagining Detroit. This three-day, world-class Catering Sales Manager. $30-$35k base, plus aggressive commission plan and quar- lowered because of the competition. conference will present interactive topics and success models from the world’s most compelling terly bonus. Event planner Carol Galle said a experts on: Primary Responsibilities: price drop is only logical. • Actively prospects new catering business “Some clients will always look in corporate market segment through out- Developing entrepreneurship and talent Creating a vibrant community side sales calls, prospecting, networking for the latest and greatest,” said and referrals; Galle, president of Royal Oak-based Competing in a global economy Encouraging diversity • Maintains relationships with existing accounts; Special D Events Inc. “So that will Establishing green and sustainable communities • Booking and detailing corporate catering push down the costs for those business to meet catering sales goals. venues that aren’t the latest and FOR THE FIRST TIME ON STAGE TOGETHER – THE BIG CREATIVE THREE Preferred Qualifications: greatest.” • Prior experience as Catering Adm. Asst., Kauffmann said the Heart Ball’s Convention Service Mngr., Banquet or Sales Manager budget can be around $200,000, for RICHARD FLORIDA • Strong organizational, computer, oral and example. written communication skills and tele- author of Rise of the Creative Class phone etiquette Galle said a hotel will usually • Professional, detail-oriented, hard selling, get $100 to $150 for each guest for JOHN HOWKINS aggressive. food-and-beverage costs. Linen author of The Creative Economy Email Resume to service, setup for dancing and en- [email protected] tertainment add to the bottom line. PLUS, SPEAKERS FROM CHARLES LANDRY To keep events, Dufour said ALL OVER THE GLOBE author of The Creative City venues in town will continue to Call Us For Personalized CREATIVE Service: (313) 446-6068 stress their strengths. The Mar- October 13-15, 2008 | Detroit Marriott | Renaissance Center | $300 riott, for example, has the largest Un-Conference October 12, 2008 | $10 CLOSING TIMES: Monday 3 p.m., CITIES one week prior to publication date. capacity for a sit-down dinner at Register at: www.creativecitiessummit.com Please call us for holiday closing times. 2,200 people, and will continue to SUMMIT FAX: (313) 446-1757 attract the biggest events. E-MAIL: [email protected] INTERNET: But service and reputation are 2.0 www.crainsdetroit.com/section/classifieds key. Confidential Reply Boxes Available “We’ve had to hold onto our cus- PAYMENT: All classified ads must be prepaid. Checks, money order or tomers who’ve been loyal,” she Crain’s credit approval accepted. Credit cards accepted. said. “And we make sure they See know how valuable they are.” Crainsdetroit.com/Section/Classifieds Daniel Duggan: (313) 446-0414, for more classified advertisements [email protected] DETROIT BUSINESSMAIN09-15-08A33CDB9/12/20084:34PMPage1 September 15,2008 EDITOR-IN-CHIEF MARKETING PROJECTSMANAGER EVENTS MANAGER Evangelista, 313-446-1655 CLASSIFIED ACCOUNTEXECUTIVE 446-1692 CLASSIFIED MANAGER (323) 370-2477 WESTERN ACCOUNTS Cathy Ross,DaleSmolinski Engstrom, MatthewJ.Langan,TamaraRokowski, ADVERTISING SALES 393-0997 SALES INQUIRIES: 446-6032 [email protected] ADVERTISING DIRECTOR 115 W.Allegan,Suite220,Lansing48933. 5355, FAX(517)371-2492,[email protected] telecommunications andutilities.(517)371- Amy Lane: LANSING BUREAU food industry.(313)446-1654,[email protected]. Nathan Skid [email protected]. and transportation.(313)446-1626or marketing, entertainment,thebusinessofsports, Bill Shea: (313) [email protected]. Nancy Kaffer: [email protected]. technology andbiotechnology.(313)446-0337or Tom Henderson: [email protected]. and Macombcounties.(313)446-6796or manufacturing, defensecontractingandOakland Chad Halcom: [email protected]. environment. (313)446-0325or Jay Greene: (313) [email protected] Daniel Duggan: (313) [email protected] Sherri Begin: 446-0315 [email protected] Ryan Beene: [email protected]. County government,andlaw.(313)446-0404or Robert Ankeny: 1687 TIPLINE(313)446-6766 NEWSROOM 446-0329 EDITORIAL SUPPORT 446-0419 RESEARCH ASSISTANT 446-0403, [email protected] WEB DESIGNER/PRODUCER [email protected] WEB EDITOR 0416 [email protected] WEB GENERALMANAGER [email protected] DATA EDITOR or [email protected] COPY EDITOR or [email protected] GRAPHICS EDITOR or [email protected] COPY DESKCHIEF 446-1621 [email protected] BUSINESS LIVESEDITOR Smith, (313)[email protected] ASSISTANT MANAGINGEDITOR/FOCUS 0402 [email protected] MANAGING EDITOR 0460 [email protected] EXECUTIVE EDITOR [email protected] PUBLISHER manner withoutpermissionisstrictlyprohibited. Reproduction oruseofeditorialcontentinany Communications Inc.Allrightsreserved. Entire contentscopyright2008byCrain 9732. GST#136760444.PrintedinU.S.A. Department, P.O.Box07925,Detroit,MI48207- changes toCRAIN’SDETROITBUSINESS,Circulation mailing offices.POSTMASTER:Sendaddress Periodicals postagepaidatDetroit,MIandadditional Inc. at1155GratiotAve.,DetroitMI48207-2732. second weekinAugustbyCrainCommunications published weeklyexceptforadoubleissuethe DETROITBUSINESSISSN#0882-1992is CRAIN’S [email protected] at: (800)494-9051,Ext.144,orat Reprints: surface mail. U.S.A., add$48peryeartoout-of-stateratefor state, $79oneyear,$138fortwoyears.Outside Subscriptions Cable address:TWX248-221-5122AUTNEWDET 446-6000 1155 GratiotAve.,DetroitMI48207-2732;(313) EDITORIAL &BUSINESSOFFICES: Mrs. G.D.CrainJr. G.D. CrainJr. Patrick Sheposh Corporate Director/Circulation Dave Kamis Vice President/Production&Manufacturing Robert C.Adams Manufacturing, Circulation Group VicePresident/Technology, William A.Morrow Executive VicePresident/Operations TREASURER SECRETARY PRESIDENT CHAIRMAN CRAIN COMMUNICATIONSINC. CRAIN’S DETROITBUSINESSISPUBLISHEDBY Center [email protected]. (313) 446-0367ore-mailtheCrainInformation TO FINDADATESTORYWASPUBLISHED: (888) 909-9111 SUBSCRIPTIONS (313) 446-0301 PRODUCTION SUPERVISOR PRODUCTION MANAGER CIRCULATION Beckham, YahNicaCrawford SALES SUPPORT MARKETING ARTIST ADVERTISING REPORTERS For inquiriescallthereprintsdepartment Covers media,advertisingand Covers businessissuesattheCapitol, Keith E.Crain Covers healthcare,insuranceandthe : Multimediareporter.Alsocoversthe Mary Kramer,(313)446-0399or Rance Crain Merrilee Crain Covers autosuppliers,steel.(313) Mary KayCrain (313) 446-0329,FAX446- Covers nonprofitsandservices. Founder (1885-1973) Christine Lasek,(313)446-0473, www.crainsdetroit.com Covers smallbusinessandretail. $59 oneyear,$98twoyears.Outof Anne Marks,(313)446-0418or Vic Doucette,(313)446-0410 Covers education,non-automotive Candice Yopp,Manager. Covers realestateandhospitality. Covers thecityofDetroit,Wayne Covers banking,finance, Keith E.Crain (313) 446-0450, Suzanne Janik,Andrea Chairman (1911-1996) (313) 446-6052;FAX Gary Piatek,(313)446-0357 Nancy Clark,(313)446-1608 Nicole LaPointe Andy Chapelle,(313)446- Cindy Goodaker,(313)446- Sylvia Kolaski Jeff Anderson,Terri Anita Duncan,(313) Ellen Mazen(LosAngeles) Melissa McKay,(313) Joanne Scharich,(313) Wendy Kobylarz Michelle Darwish,(313) Marla Downs,(313) Alan Baker,(313)446- Larry Williams, Ai-Ting Huang,(313) Greg Jennifer Dunn Jennette Bankruptcy Court 11 ing andinspectionservices. on its$172,000contractforengineer- troit-based and $43,000additionalworkbyDe- tract with tion tothe$2.8millionpavingcon- camera hookups;a$394,000addi- greenway lightingandsecurity- $64,000 with Dequindre Cut-Greenwayproject: contracts forfurtherworkonthe erell. Building atBroadwayandWith- this yearintheMadisonTheatre Inc. 15; and$100,000for Book CadillacHotel L.L.C. loans, including$400,000for Corp. total liquidation. for reorganization.Chapter7involves abilities: $389,821. voluntary Chapter7.Assets:$4,000; li- 13265 CountryWalkCourt,Belleville, Instillation ServiceUnlimitedL.L.C. Chapter 7or11protectionin The followingbusinessesfiledfor Loans OK’dbyDetroitEDC ing.” on firstwaveofWebsitebuild- many mayhavegottenleftbehind behind,” Rogerssaid.“Ithink on thebandwagonandnotgetleft this stuff,andtheywanttojump decrease suchonlineactivity. only 3percentsaidtheyplannedto networking, thesurveyfound— plan toincreasetheiruseofsocial with whoIam.” awareness ofandcomfortlevel who’s goingtobeafitandhasan trust, whohasthesamevalues, Skidmore is—somebodyIcan to beawareofwhoIamand to buymyservice,butIwantthem to peoplenotbecauseIwantthem tion,” hesaid.“Iwanttobevisible with meandmyorganiza- which peoplecanfindcredibility and exposureforhisbusiness. networking toachieveawareness members touse. community-building toolsfor will includesocialnetworkingand launch arevampedWebsitethat your customers,”Rogerssaid. and requiringcollaborationwith tools, thistechnologyisenabling staff, whetherit’s10toolsor50 logue withcustomersorclients. street. It’saboutestablishingadia- nications strategy.” but it’spartofanoverallcommu- said. “It’snottheend-all,be-all, sure whetheryou’vedoneit,”he Online: From Page3 B B The EDCalsoapprovedthree The Despite popularperception,it’s “They’re seeingcompetitorsdo Many respondentssaidthey “It becomesanotheravenueby Personally, Smithusessocial SBAM, hesaid,ispreparingto “I keeptryingtoremindour Web 2.0,hesaid,isatwo-way . UnderChapter11,acompanyfiles — , scheduledtobeopenedlater , arestaurantinthe ANKRUPTCIES ANKRUPTCIES Compiled byBernadineStallings on Tuesdayapprovedseveral Detroit EconomicDevelopment ABC PavingCo. Wade TrimAssociatesInc. DTE EnergyCo. in Detroit — RobertAnkeny set toopeninOct. Few know smallbusinesses ofbeing benefit online Angelina’s Bistro of Trenton; Sept. 5- Westin Roast U.S. for , said. day’s socialnetworking,”Smith tacts includepeopleofallages. — RogerssaidhisFacebookcon- are embracingsocialnetworking of thebusinesscommunitywho not alwaystheyoungestmembers That’s thecaseforRichFarkas, “The Rolodexofyesterdayisto- ©2008 Cartier RAIN C ’ S D ETROIT B USINESS might wanttogetintroducedor list?’ andyou’llseepeopleyou you’ll ask,‘CanIaddyoutomy working. You’llknowsomeone, said. “Weuseitmostlyfornet- popular oneforourbusiness,”he LinkedIn, that’sprobablythemost CEO ofAnnArbor-based “Several ofusareusing IA Inc. 1 scratchproof sapphire crystal. opaline guillochédial.Rounded a flutedcrown. Silvered lacquered Blue sapphire cabochonseton vibrations perhour),dateaperture. Cartier calibre 049(21 jewels, 28'800 Self-winding mechanicalmovement, 8K pinkgold42mmcase. [email protected]. communicate. use instant-messagingsystemsto tion.” and youcanaskforanintroduc- do forgerelationshipsthatway, already knowontheirlist.Soyou Nancy Kaffer:(313)446-0412, Farkas saidhisemployeesalso Page 33 DETROIT BUSINESS MAIN 09-15-08 A 34 CDB 9/12/2008 4:40 PM Page 1

Page 34 CRAIN’S DETROIT BUSINESS September 15, 2008 RUMBLINGS WEEK IN REVIEW FROM WWW.CRAINSDETROIT.COM, WEEK OF SEPT. 6-12

event are to be shared by Supply Co. of Detroit and Council of Governments to de- the Detroit Goodfellows Old Council delays Joseph Caretti of Clinton velop a demonstration of a Engler on Newsboys and the Detroit Township, the head of Inde- commuter rail line linking Press Club Foundation. pendent Management L.L.C. Detroit and Ann Arbor. “I must admit that we’re vote for special and the Detroit-area repre- A three-year contract a little concerned that we sentative of Chicago-based has been agreed upon by the won’t have enough material mayoral election AA Capital Partners Inc., United Auto Workers and Blue Freddie Mac for this year’s show,” said The News reported. Cross Blue Shield of Michigan. WWJ 950’s Tim Kiska, Steak- The University of Michi- out co-chairman, with etroit City Council on gan received $10 million tongue planted firmly in Tuesday delayed a Crouchman conditionally from Ronald Weiser, the for- cheek. “It’s been an unusu- D vote to set dates for a supports Cobo plan mer U.S. ambassador to Slo- board roster special election to fill the ally slow news year in the vakia, and his wife, Eileen, he board of directors ciency ground vehicle city.” mayor’s seat in the wake of William Crouchman, chair- to help form programs for of Freddie Mac (NYSE: demonstrator project is Former WXYZ-Channel 7 Kwame Kilpatrick’s resigna- man of the Macomb County emerging democracies. T FRE), the publicly promoting a Sept. 30 indus- news anchor and discount tion, the Associated Press Commission, said Tuesday The Michigan Supreme traded lending giant that try day forum at Automa- furniture huckster Bill reported. he supported a plan to reno- Court voted that the Reform was taken over by the feder- tion Alley in Troy and sev- Bonds, the 2007 Lifetime The council was expected vate and expand Cobo Cen- Michigan Government Now bal- al government on Sept. 7, eral upcoming working Achievement Award recipi- to vote on a resolution Tues- ter by 120,000 square feet. lot measure that would have has one name familiar to group meetings. ent, will present the 2008 day that would set a Feb. 24 Tipping the scales was re- rewritten much of the state Michigan residents — that Everyone from OEMs award to lawyer, legal com- primary and May 5 general cent information from trade constitution can’t appear on of Michelle Engler, wife of for- and suppliers to startups mentator, former guberna- election. But council voted 8- unions that 1,600 or so Ma- the ballot, the AP reported. mer Gov. John Engler. with experimental new torial candidate, hair model 0 to wait until Sept. 16 to comb County residents who The partial demolition Engler serves on the com- technologies can partici- and recently acquitted leg- again take up the issue. work in skilled trades rely of Tiger Stadium is nearly pensation and human re- pate in the project, and no end-in-his-own-mind Geof- Candidates for a special on displays and events at complete, the AP reported. sources committee and the past defense contractor ex- frey Fieger, said Edward primary would have four Cobo for their livelihood. Under a tentative deal mission, sourcing and tech- perience is required, said Lapham, executive editor of weeks to file after the dates Crouchman said his sup- reached last month, part of nology committee. Thomas Mathes, executive Automotive News and Steak- are approved and need 583 port is contingent upon as- the stadium will remain Listed on Freddie Mac’s director of development at out co-chair. signatures to make the bal- surances that there will be standing until at least March Web site as living in Lans- TARDEC. Tickets, at $150 each, are lot. It’s expected to cost $3 no preferences, such as no- 1 while preservationists seek ing, she is also a member of “We are taking what I available at www.detroit- million to hold the special bid contracts, in the expan- enough money to save part the board of managers of would laughingly call a steakout.com using credit election. sion, and that management of the ballpark permanently. Incoming Mayor Ken the Chicago-based JNL Vari- ‘Monster Garage’ ap- cards or PayPal. Checks is handled by a nongovern- A federal appeals court Cockrel Jr. said Tuesday he able Fund L.L.C. and a trustee proach,” said Mathes, allud- payable to the Detroit Press mental, professional man- on Tuesday refused to halt would run in the special of the JNL Investors Series ing to the former Discovery Club Foundation can be agement firm. a lower court’s order allow- election. Also: Trust and JNL Series Trust. Channel reality TV series sent to: Steakout, c/o De- ing a recall election for Cockrel has appointed Freddie Mac has an inter- that challenged mechanic troit Press Club Founda- state House Speaker Andy George Jackson, president of Speakers urge incentives esting sense of what’s news. teams to retool stock com- tion, 37637 Five Mile Road, Dillon, D-Redford Township, the Detroit Economic Growth On the Web site’s News and mercial vehicles for en- No. 101, Livonia 48154. for aerotropolis to move forward, the Asso- Corp., to head the dead- Information Center, the two ciated Press reported. That hanced performance. “Any locked Cobo Center expan- Wayne County Executive most recent entries are for means the recall continues approach is in play, includ- BITS & PIECES sion negotiations, the AP Robert Ficano, Detroit Renais- Sept. 3 (“Freddie Mac Ex- on track for the Nov. 4 bal- ing special fuels, new mate- reported. sance Inc. President Doug tends Mortgage Relief to Nancy Schlichting, presi- lot, at the same time Dillon rials, or anything that im- City Council will con- Rothwell and Walbridge Borrowers Affected By Gus- dent and CEO of Henry Ford is up for re-election. proves fuel efficiency tinue its investigations into Aldinger CEO John Rakolta Jr. tav”) and Sept. 11 (“Mort- Health System in Detroit, has The state says the De- without compromising pro- Kilpatrick’s spending of asked the business commu- gage Rates Plunge”). been ranked No. 52 on a list troit Public Schools must tection.” taxpayer funds running his nity to encourage lawmak- No mention of the events of the 100 Most Powerful prove its adult education For more information, office and the validity of ers to approve incentives to of Sept. 7. People in Healthcare by program is not violating fed- visit http://204.255.139.206/ raises given last month to attract industry to the aero- Modern Healthcare maga- eral law before it gets $6.2 Tardec_fed. 16 appointees, and will in- tropolis that includes De- zine, a sister publication of million in state and federal Help give a Humvee more mpg vestigate the pension troit Metropolitan and Wil- Crain’s Detroit Business. funding this year for those MGM hosts satirical soiree board’s allowing outgoing low Run airports. Every trick of the trade Detroit-based Honigman students, the AP reported. With the topical theme of general counsel Sharon Also discussed Wednes- for tricking Miller Schwartz and Cohn The four-year-old Oak- “Textual Heal- McPhail to use her eight day at the Crain’s Business out a stock mil- L.L.P. was recognized by land Business Review will ing,” this year’s years as assistant prosecu- over Breakfast meeting was itary vehicle Working Mother magazine cease print publication Detroit Press tor toward a city pension, the public-private Aerotropo- will be consid- as one of the 50 Best Law with its Sept. 18 issue and Club Steakout The Detroit News reported. lis Development Corp. that will ered at an up- Firms for Women. Honig- move to online-only begin- dinner and A plea agreement offer be formed to act as the coming indus- man was the only law firm ning Sept. 25, publisher try forum on show will fea- for Christine Beatty, former agency to handle paperwork in Michigan to receive the Matt Sharp said Tuesday. fuel efficiency ture live acts chief of staff to Kilpatrick, for companies seeking to lo- honor. The firm was fea- Detroit-based Made in held by the who is charged with seven cate in the aerotropolis zone. and filmed tured in the magazine’s Au- Detroit Inc. CEO William Mer- U.S. Army Tank-Automotive felony counts, was with- sketches satirizing top area gust-September 2008 issue. riweather told the Detroit Research, Development and drawn last week, the AP re- newsmakers. Thirty-two percent of asso- ON THE MOVE Brownfield Redevelopment Engineering Command in Set for Oct. 29 in the MGM ciates at Honigman and 19 ported. A hearing is sched- Robert Casalou to presi- Authority the group wants to Warren. Grand Hotel and Casino, pro- percent of equity partners uled today. dent and CEO, St. Joseph create 93 luxury residential The TARDEC fuel effi- ceeds from the annual are women. Mercy Ann Arbor, St. Joseph lofts in the former Detroit Witnesses appear at Mercy Saline and St. Joseph Creamery building near Detroit corruption hearings Mercy Livingston, from presi- MotorCity Casino. dent, Providence Park Hospi- The Detroit Lions fran- Sheila Cockrel spent more tal, Novi, effective mid-Oc- chise is worth $917 million, Making a seasonal business pay off all year long than an hour testifying to a tober. He replaces Garry 24th in the NFL and up from grand jury in a federal in- Faja, who remains presi- $870 million for the 2006 It’s the demon every seasonal Talk e-mail, delivering small- vestigation of corruption at dent and CEO of St. Joseph season, forbes.com report- business fights. You have to work business news and information to City Hall related to a sludge- Mercy Health System. ed. However, the team had very hard one time of year if you your inbox three times a month. If hauling contract with Syna- want grocery money in another part you’re a small business with a operating income last year gro Technologies Inc. Her at- of the year. great story, pressing concerns or of negative $3.5 million. torney said she was a OTHER NEWS This week in Small Talk, we’ll meet suggestions for other coverage, The Southeast Michigan witness, not a target. a business owner who has learned e-mail the Small Talk crew. I can Oakland University plans Council of Governments and to ride the waves of a seasonal be reached at [email protected]; At least two other wit- to invest up to $2 million in the Metropolitan Affairs Coali- business. We’ll learn the ups and Small-Business Reporter Nancy nesses appeared at the hear- early plans for a satellite tion have joined One D, the re- downs and the challenges and Kaffer can be reached at ing, the Detroit Free Press re- campus at Macomb County gional collaborative of civic rewards of a seasonal business, [email protected]. ported: Lou Pavledes, former College in Clinton Township. organizations founded to re- and whether one is right for you. Small business isn’t the only e- Cobo Center director; and The State Administrative vitalize the region. We don’t want to give too much mail topic we have. If you want to Wilbourne Kelley III, former Board, which OKs contracts away in this column, but let’s just sign up for our Daily News Report, Detroit Metropolitan Air- for state agencies, on Sept. WEB WORLD our Weekly News Report, our OBITUARIES say it should be a delicious story. port director. It isn’t known 2 approved the addition of Alan Baker Nonprofit Newsletter, our if Kelley testified. $100,694 and one year to a Thomas Angott, co- That video will be posted Web General Manager Technology Newsletter, or “Givers Wednesday at and Shakers” coverage of charity Newly named as being un- deal between the Michigan chairman of C.F. Burger www.crainsdetroit.com/smalltalk. giving with Julie Yolles, go to der federal investigation are Department of Transportation Creamery Co. in Detroit, died And while you’re there, sign up for our Small www.crainsdetroit.com/getemail. Vision Janitorial and Facility and the Southeast Michigan Sept. 11. He was 82. DBpageAD.qxd 9/4/2008 3:29 PM Page 1

In one hour, Ryan McMichael is making a presentation that could triple his business. The spyware attacking his PC isn’t impressed.

Now with AT&T Tech Support 360SM, tech problems quickly become tech solutions. Ryan quickly called Tech Support 360 and the certified U.S.-based technician remotely removed the spyware, as well as unnecessary files, and had his PC and AT&T High Speed Internet running more efficiently than before. And all with 15 minutes to spare. Visit att.com/techsupport360 or call 888-369-2008.

Get AT&T Tech Support 360 for as low as $19/month (after $89 one-time set-up fee). Just call 888-369-2008 or visit att.com/techsupport360

Use of AT&T Tech Support 360 is subject to the user’s acceptance of the terms and conditions posted at https://tech360.att.com/ATT/termsofservice.asp. Each Service Package requires a 12-month minimum commitment and is subject to a $50 early termination fee. Unlimited support applies to phone-based remote technician services, chat and e-mail services only. On-site technical support is offered at an additional fee based on an hourly rate. The service assists the user with software and hardware installation, configuration, security, performance and other issues; however, AT&T does not guarantee any results or response times. This is not a hardware warranty service. Each supported PC requires a separate service package. Minimum system requirements: Windows 98, XP or Windows Vista and a high speed Internet connection. © 2008 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners. Affiliates and subsidiaries of AT&T Inc. provide products and services under the AT&T brand. DBpageAD.qxd 9/4/2008 12:28 PM Page 1

Position your business for the long run.

With trusted advice, capital strength and enduring commitment.

There is no ﬁnish line to success, but there are many milestones. Like the progress you make during periods of uncertainty. The new ideas, capabilities, resources and safeguards you seek out now may drive your success well into the future. Bank of America is with you all the way, delivering extensive local experience and the strength of America’s No. 1 middle-market bank.1

To learn more, contact us at 1.866.690.3165.

Opportunity is everywhere. Seize it with Bank of America.

1 Proprietary research based on number of clients. Bank of America, N.A., LaSalle Bank, N.A., LaSalle Bank Midwest, N.A. Members FDIC. Certain activities and services referred to above may be provided by Banc of America Securities LLC and/or other afﬁliates of Bank of America Corporation. ©2008 Bank of America Corporation.