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Politically connected broker's deals raise conflict questions

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Brokering lease deals for government agencies has made John M. Bales a wealthy man.

Bales Bales

His firm, Venture Cos., earned $2.9 million in commissions on lease deals for state agencies from 2006 to 2009, and another $270,000 in commissions on the sale of surplus state properties, records show.

And Bales has pocketed more fees on lease deals for local government agencies and private companies with contracts to run parts of the state’s welfare program.

But the politically connected real estate broker has earned more than commissions. He has quietly acted as a developer for several public-sector tenants he represents—putting government agencies into buildings he owns or those owned by his friends and associates.

A recent example involves friend and partner Carl Brizzi, the Marion County prosecutor, who wound up owning a building in Elkhart where the state Department of Child Services later leased space.

Bales factboxAnd IBJ has found Bales orchestrated deals to put the company that runs Indiana’s welfare-to-work program into at least two buildings he owns in Indianapolis. The parents of a Bales partner at Venture own a third building, in Kokomo, that landed the same tenant.

Bales—who in recent years has given at least $10,000 in campaign contributions to Brizzi and another $30,000 to Gov. Mitch Daniels—also owns or has direct ties to the owners of space leased by the Marion County Coroner’s Office, Marion Superior Court and Marion County Probation Office. In each case, he represented the tenant.

None of the deals appears to violate Bales’ representation agreements, but local real estate brokers say it is unusual and questionable for a broker representing a government agency to put the agencies in his own buildings. The most important question: Were Bales’ interests aligned with getting the best deal for the government agency?

Scott Newman, an attorney who represents Bales, contends the answer is yes.

Newman, the former Marion County prosecutor, acknowledged Bales sometimes bought buildings and served as a landlord. But Bales did not put tenants into his own buildings if there were viable market alternatives.

“That’s really his niche—to place hard-to-place clients in quality facilities,” Newman said. “What he’s done is legal, is a service, and it has been disclosed.”

Deal loophole

balesThe state’s lease deal with Venture, executed in 2006 and renewed in 2009, explicitly bans Venture and its partners and employees from “any ownership interest” or any “attempt to acquire” properties to be leased by the state.

In its bid documents, Venture amplifies the point: “Our mission is to represent our clients zealously and without favor and through that commitment, achieve superior results. We have never represented a landlord in a transaction with the State of Indiana.”

But in some cases, Bales is the actual landlord in deals he brokered with Arbor Education & Training, the state’s welfare-to-work contractor. The state’s ownership ban does not apply to lease deals Bales arranged for Arbor—even though the state reimburses Arbor for its rent expenses at dozens of offices across the state.

IBJ.COM EXTRA
Click here for a complete list of Bales’ 2008 DCS lease renewals.

Records show Bales has an ownership interest in the former Southgate Plaza Shopping Center at 3920 Madison Ave., where Arbor leases 9,300 square feet for about $163,000 a year, or roughly $17.50 per square foot.
The building owner, North Crossing Properties LLC, is registered to a post office box Bales has used for his companies and political contributions. Marion County Probation also leases space in the building—another deal brokered by Bales.

Bales also owns a second Indianapolis building that houses Arbor, at 1213 N. Arlington Ave., through a company called Statewide Property LLC.

Arbor pays annual rent of more than $443,000, roughly $17 per square foot, on a lease that runs through 2016. Venture has listed the building for sale with an asking price of $2.6 million. It is assessed at $784,400.

‘Inside information’

In another case, investors tied to a Bales associate own a building where an Arbor-run division leases space.

The Howard County Division of Family Resources moved to 400 N. Main St. in Kokomo in 2008, shortly after a company called MPK Acquisitions LLC paid $275,000 to acquire the 15,000-square-foot building.

The company’s original incorporation documents list the Bales post office box, and Howard County property records list an address for MPK Acquisitions of 438 Edgemere Drive in Indianapolis—the home of Terry and Elizabeth Michael, parents of Bales partner Wendy Michael.

Wendy Michael said in an e-mail that Arbor was fully aware of her parents’ involvement and signed off on it.

But the whole deal stinks if you ask David K. Rayl, a developer who owns the building where the state used to have its welfare office. Rayl’s building now is vacant.

Meanwhile, the Arbor-managed agency has taken 4,100 square feet in the two-story, 400 N. Main St. building. It’s paying more than $13 per square foot, or $54,000 annually. The second floor is listed as available for $9 per square foot.

“It’s just all insiders taking care of themselves,” Rayl said. “It would be like me being able to compete knowing all the inside information to put the deal together. They were supposed to be an independent agent representing the state. It ends up they were my competition.”

Conflict of interest?

One of the earliest government assignments for Bales, in 2001, was to find space for the Marion County Coroner’s Office. He settled on a 25,000-square-foot building at 521 W. McCarty St., and recruited a company with ties to his own firm to buy the building and act as the landlord. The prior owner, an industrial coatings firm, wasn’t interested in becoming a landlord.

Follow along: The building is owned by an Indiana company called Ting LLC that is registered to an address in Frankfort, Ky. The property with the Kentucky address is owned by DLD Real Estate LLC, which is registered to Fred Dorsey. Dorsey is the father-in-law of former Bales partner Greg Rankin.

Records show Bales also has an ownership interest in 902 Virginia Ave., where the Marion Superior Court leases 12,000 square feet. The property is owned by RB2 LLC and Now Properties LLC, both of which are registered to the same post office box as the other Bales companies.

Acting as a broker for both sides of a lease deal is not unusual, but it can be a serious conflict for a broker to put a tenant he represents in a building he also owns, said Gus Miller, a veteran office broker and principal in NAI Olympia Partners.

That’s because a building owner has much more to gain: Adding a long-term tenant can double or even triple a building’s value, far eclipsing the commission check from a simple brokerage deal.

“The ability to maintain your objectivity gets sorely tested,” said Miller, who handled some state leasing before 2006. “The gravity of the situation changes because now your interest as the owner of the property both on the upside and downside are so dramatically leveraged that it’s much harder to be objective.”

DCS windfall

More than half the commission Venture has earned on the state contract—about $1.7 million—came in 2008, as the state ramped up its new Department of Child Services. That’s when the company ballooned to 30 employees and brokered leases in most Indiana counties.

The deals have rates that, on average, are 36-percent higher than the previous lease terms—in large part, state officials say, because of modified floor plans, expensive new fixtures and many more employees.

The state agreed to 10-year deals, a departure from the more typical four-year terms, in part to amortize the upfront costs over several years. The longer deals also led to much higher commissions for Venture.

Building owners paid 4-percent commissions on the total value of each deal, and Venture rebated 25 percent of the commission back to the state. The state collected about $967,000 in lease commission rebates from Venture from 2006 to 2009, and paid part of it back to Venture to cover the company’s expenses.

One of the DCS deals went to a company called L & BAB LLC, which had just bought an office building in Elkhart. Brizzi and defense attorney Paul Page are equal partners in the building, which is valued for tax purposes at $900,000, though Brizzi did not put up any cash or credit.

The deal does not appear to violate the state lease agreement since Brizzi, a partner in several Bales real estate deals, is not a partner in Venture, state officials said.

L & BAB LLC and each of the other companies tied to Bales were registered by Benjamin Pecar of Barnes & Thornburg LLP—the same firm that consulted on Bales’ successful bid to take over state leasing efforts in 2006 and a contract he earned for disposition of surplus city of Indianapolis property in 2008.

Pecar said he was not involved in the formation of the companies but rather listed as a contact in the event of a legal dispute.

State review

The Indiana Department of Administration, which oversees the Venture deal, launched a review of the company’s lease deals for the state after learning of Brizzi’s ownership in the Elkhart building, said Anthony Green, the division’s chief of staff and general counsel.

Venture did not disclose the prosecutor’s ownership of the building, but the department determined disclosure wasn’t required under the contract. DOA does not oversee any of the deals with Arbor.

“We’ve reviewed contracts and haven’t found any evidence of conflicts of interest on the state side,” Green said. “We’ll take appropriate action when we see such evidence and refer it to the Inspector General’s Office.”

The state still is using Venture, but the lease volume is down substantially from the rush of DCS deals in 2008, said Steve Harless, the state’s leasing manager. The company lowered its commission to a flat $1 per square foot so it could retain the contract in 2009. Venture shares tenant-representation duties with Resource Commercial Real Estate.

“Up to this point, we think Venture has performed up to the contract,” Harless said. “I have no evidence otherwise.”

The state’s Family and Social Services Administration, which assumed oversight of Arbor’s contract from IBM last year, stopped using Venture for its own lease deals in 2008 and doesn’t plan to use the company in the future, said spokesman Marcus Barlow.

“We just didn’t feel like we were getting the customer service we were paying for,” he said.

Arbor, a division of Louisville-based ResCare Inc., also has stopped using Venture. The company hired it initially to leverage Venture’s state relationship to land better lease deals, said ResCare spokeswoman Nel Taylor. The company’s contract permitted Venture and its principals to own buildings where Arbor signed lease deals, she said.

“At the time, our primary concern was making sure our offices were located in the same area as state offices so clients would have easy access to the services,” Taylor said. “We really didn’t get into who owns buildings. It wasn’t a factor at all.”

Introductions

Bales, now 43, already was an up-and-coming agent for CB Richard Ellis in 2002 when he got a big break: He brokered a deal for the Marion County Prosecutor’s Office to consolidate its operations into 251 E. Ohio St.

Newman, the departing prosecutor, had picked Bales on the advice of Marion County Auditor Martha Womacks. Newman introduced Brizzi and Bales and left the details of designing the space to them.

The pair began to hang out and partner on real estate deals. Brizzi—then a rising star in his own right—helped Bales make more political connections, while Bales brought Brizzi into property deals.

Bales, a Carmel High School and Ball State University graduate, left CB Richard Ellis in 2003 to form Meridian Asset Development, which later became Venture.

There, he ramped up political contributions. Bales and his companies have given at least $52,000 to Daniels and state Republican committees since 2003, records show. He personally gave Daniels $10,000 in October 2004 and another $10,000 in July 2008, while Venture Cos. kicked in $5,000 in December 2007 and another $5,000 in August 2008.

Just three years after Venture was formed, the firm landed a plum state assignment: selling surplus state property and representing the majority of state agencies in lease negotiations all over the state.

Marion County Republican Chairman Tom John said he has no specific insight into how Bales landed the state contract.

But it probably was some combination of good ideas, a compelling presentation and Daniels’ desire to shake things up.

“It’s a matter of getting in front of the right people—some people can close and some people can’t,” John said. “One thing Bales is really good at is closing. Back then, he looked like a guy who was hustling and hungry.”•

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  • Are you...
    Do you all expect John Bales to do all of the work he's done for free? And the people who work for him?
  • Ignorance...
    is what I read here. Have any of you ever actually responded to a State RFP? Let alone hundreds of them? Have you ever scoured the local market in, oh... Liberty City to try and find a building with a lease rate lower than the current rate, but while upholding state standards? Have any of you even met John Bales? Have you spent any time at his office looking over the leases with the State? Can any of you honestly say that you have any idea of what all John Bales has done in the State?

    Please... unless you really know what you're talking about, it seems pretty presumptuous--and petty, idiotic, wasteful, arrogant, ignorant--for anyone to be speaking on here as if they have a deep understanding as to how ALL of these deals work, ALL of the legal language involved, the the commercial real-estate markets in ALL 92 counties... Seems one would need ALL of this in order to form an objective and informed opinion on this matter, right...?

    It's funny I don't see Pat Bauer being laid out for the crook he is on here... So strange how IBJ also was so eager to help keep Bart Peterson in office, yet so critical of Mitch Daniels... Odd how I get the feeling this comment will be deleted after posting...
  • Shhhhh
    Carothers â?? who was indicted in May for allegedly accepting $40,000 in home improvements, meals and sports tickets from a West Side developer in exchange for zoning changes that netted the developer millions â?? spent a year secretly recording public officials and real estate developers for the feds, the Sun-Times disclosed earlier this year.

    http://advanceindiana.blogspot.com/2009/11/rash-of-suicides-hit-chicago-politicos.html
  • John Bales makes announcement about Indianapolis fraudster
    http://www.prnewswire.com/news-releases/indiana-man-sentenced-in-extensive-fraud-scheme-92511109.html

    oops, wrong John Bales...it gets so confusing!
    • re
      you mean right after Brizzi found out the FBI was about to raid Durham? The timing sure is suspect, now isn't it?

      Either Page is innocent and his checking account records will support the flow of funds or he lied to the reporter at IBJ. I suppose all of this will be out soon enough when the trustee is done with case.

      In the meantime I hear things are not so rosy with Huntington. That partnership in Southwest Florida didn't turn out so good, did it? Don't worry--that will be in the news soon enough, so enjoy racing to the blogs, we are not finished outing the rest of what we uncover.
    • IRS Section 707 Issue?
      Lets see if your an attorney you draft a mortgage and then have the parties sign it, have your notary in your law office sign it and then you fed ex it perhaps even to the title company that did the closing and BAM they record it. What is the consideration given? Did Huntington give its consent. Was a Intercreditor Agreement/Subordination Agreement Executed with Huntington Bank?
      • Timing is everything
        Odd that this purported mortgage would not have been recorded in, say, spring-June 2008 when the building was purchased and closed on, or later in 2008 or even any single day in 2009 except the one that was the day before the infamous FBI raid of Timothy S Durham.

        Imagine driving up to Goshen, Indiana, where the Elkhart County Recorder's office is on the Monday of Thanksgiving week. That is not a fun drive, and I cannot imagine someone making that haul on the Monday of Thanksgiving week without a really good and pressing reason to.

        Carl could shut everyone up by releasing his checking account and brokerage records for the period today through mid 2004. But he won't do that, will he?

        Those with nothing to hide hide nothing. That's okay, I hear the feds are all over this one. Guess someone will be looking at the checking account records and sources of funds for everyone involved.
        • I've met Bales
          Can Brizzi Explain The Mortgage On The Elkhart Property?

          An avid reader has made an interesting discovery on that building Carl Brizzi and Paul Page purchased up in Elhart and then quickly turned around and leased to the Indiana Department of Children Services in a sweetheart deal for the pair. Brizzi crony John Bales brokered the lease agreement on behalf of the state. Less than 24 hours before the FBI raided Tim Durham's offices in Indiana and Ohio as part of its investigation of an alleged Ponzi scheme deal involving Fair Finance, the company on which Brizzi briefly served as a member of its board of directors, a mortgage was recorded by L&BAB, LLC as mortgagor and BAB Equity, LLC as mortgagee on the property located at 1659 Mishawaka in Elkhart. Coincidence?

          Who owns L&BAB? According to the IBJ's reporting, it is equally owned by Paul Page and Brizzi. The two purchased the building from a company owned by Craig Lockmandy, a used car dealer, for $825,000. Brizzi claims the purchase was made without a down payment, and that Huntington Bank extended a loan to cover the purchase price. The loan is secured by the new lease the new owners entered into with the state following the building's purchase. But did the money actually come from a Huntington Bank loan? That's a question this avid reader and this blog would like to have answered.
        • IRS coming
          Man oh man, i hear the IRS is almost finished...wonder who didn't declare what on his taxes. The Madoff boys are about to be hit big for living all those years high on the hog with no reporting of the purported loans....i hear that's what is about to happen on a federal sweep in the next few weeks to certain people in the Indy gang, some of whom think they can hide from it in LA.....

          As for Johnny boy, what a change in his taxes from 2007 to last year, where'd that brokerage account run off to, Johnny???
          • Bales is sexy
            Bales has got to be the sexiest man in Indy.
            • what about....
              the Condo my husband purchased in 2003 was a neighborhood built/ran by Bales. When my husband looked up property taxes for it he found Brizzi was an "owner" of two of the $200k+ condos. It all makes sense now. No wonder Brizzi wont walk away... if he does he has no leverage, he won't be able to give friends and cronies political favors in trade for personal favors. (houses, inventments, $$)
            • Brizzi' deceptions
              There are no laws that have to be honored or followed by any official in Indiana. Brizzi can allow criminals to get off, ignore crimes done to protect his friends, just as Federal Judge Larry J McKinney can allow IAG David Arthur & Greg Zoeller to help DCS James Payne to commit perjury & violate citizen's constitutional rights to be heard. All crimes done by Indiana officials is simply okay & all complaints of it is simply frivilous. Bend over Indiana citizens, you have no rights, not even in Indiana federal court. Is this court Republican too? We just keep paying to support the criminals in governmental offices & bury innocent children, as feds allow officials to say, 'I did not do it", then it is okay. James Payne, Carl Brizzi, & Lisa Borges, simply partners of crime.
            • Less than $133,000 total in Fair Finance's accounts
              pretty much sums it up....

              http://www.kccllc.net/documents/1050494/1050494100426000000000002.pdf
            • Good Work
              Cory - You wrote a great article. Congrats.
            • Pullin a Nixon
              So you are saying Brizzi is pulling a Nixon...

              http://www.youtube.com/watch?v=sh163n1lJ4M&feature=related
            • I am not a Crook Speech
              Remember Nixon:

              Orlando, Fla, Nov. 17 -- Declaring that "I am not a crook," President Nixon vigorously defended his record in the Watergate case tonight and said he had never profited from his public service.

              I have earned every cent. And in all of my years of public life I have never obstructed justice, Mr. Nixon said.

              People have got to know whether or not their President is a crook. Well, I'm not a crook. I've earned everything I've got.

              Everytime I see Brillo Man I think of this speech and then the final outcome with Nixon.
              • Something New?
                Like a fool i keep reading these stories thinking something new will be listed but it is the same story recirculated over and over followed by the same 3 or 4 people ranting in the bloggs below. All of you guys want to act as if you have information the government needs but you are to afraid to post your real names on your comments? Would it be because you have a conflict of interest in making the comments that you are making? (competing brokers, fired personnel)Cory- If you are going to come up with something new then i will read your next article but for the sake of the enviornment please stop wasting trees on this retread story. All you dead beat bloggers move out of your moms basement and go to work. My confession-Yes I have met Carl Brizzi before and i liked him and yes i know John Bales and consider him a good friend. Lets see any of you bloggers post something truthful after your comments.
                • Arlington Ave Property
                  $17/sf seems kind of high for office space at 1213 N. Arlington. Anyone w/ knowledge of the market care to comment?
                • Fiduciary Responsibility
                  Can Mr. Bales, Mr. Brizzi, or Mr. Pecar explain this to me like I was a 3rd grader? Mr. Bales has an obligation to the State, City, and affiliates to negotiate the best lease possible. If all these buildings that he and his friends bought were the best options for the tenants, wouldn't the owners that sold them have been able to lease the space cheaper? Did the former owners know about the planned tenancy? Since Mr. Bales obligation was to the tenant, what if any rules were violated? What percentage of Mr. Bales' completed assignments resulted in signed leases for space that neither Mr. Bales nor his friends and associates owned or bought knowing the lease would be signed? If the State, legal professionals, Elected Officials, and public entites were not involved, this would seem like a standard real estate transaction in which the buyers control the tenant. This was not standard. This involved taxpayer monies, public officials, and public entities.
                • Make more cuts
                  If Brizzi is to make such a profit from DCS lease, either Payne also has some corrupt pac with Brizi' scheme to absorb millions of tax dollars or Payne has too much money alotted for buildings. Maybe DCS should have more funding cut, as much is going to Brizzi's account rather than to those children and families in need. We must be paying too much taxes to DCS, they seem able to pocket much of it, and sharing among themselves. Or, did Lisa Borges, James Payne, and Brizzi scheme to allow child abusers to continue with 'Hands off' & not prosecutor child abusers, those in DCS and DCS's fosters and friends. Is this why children die under state care, but no one is held accountable? Were can a child in Indiana go for help? Not Brizzi's office, not James Payne, not IMPD.
                • Brizzi's 'handsoff' for childabusers
                  Nothing like a little girl crying out for help to IMPD, to be told Brizzi will just 'roll his eyes' & ignore the crys. Nothing like a little girl with brain trauma, but Rob, Lisa Majors, Stacy Hawk, Lisa Borges, IMPD Randy Taylor, do nothing. Child tells teacher of her butt being touched & hurt, told to stop telling as nothing can be done. "Hands off" says Brizzi's office, the abuser is protected, the child must suffer. Even Paternity court refused to honor own court order or to listen to child. Now, Brizzi is making profit on building leased to DCS. Brizzi not only laughs at women abused, he must like children to suffer molestion to. Why not? James Payne condones child abuse, molestation, & death. He wrote it himself. Who can stop a child from being abused? In Indiana, it is all about elected officials making a profit from tax paid services. They laugh at us citizens, who are violated of our rights to be served by those we elected with thought to honor the interst of citizens, not their self gradification.
                • STOP
                  Stop this Corey, your making me famous. I just got a free iced tea at Harry and Brizzi's...
                • Hang on
                  Cory, I would respectfully submit that the relevant taxpayer question is not whether the State lease rates are higher than previous rates but whether the negotiated rates are higher than rates offered by competing landlords (if there were any).
                • Ut oh
                  Anyone notice how the comments that include Ben Pecar's name keep getting deleted?

                  Delicious! We will add Ben and L to the list of those for which the SEC should pull the Cellstar/CLST trading records.
                • Wasted Talent
                  Thesebloggers are wasting their talents.





















                  Some of the blogers should be directing movies or writing mysteries. Others truly need to get a life. On one blog a writer wrote that the accuser is often guilty rather
                  than the accused. Interesting thought. Can
                  someone tell me why now that Scott Newman is
                  Massa's campaign manager and Bales attorney,
                  he claims everything is legal and never raises questions of ethics or perception and
                  "thicket". Tom John had a memory lapse as to
                  how all the deals came about and I'm sure
                  that Massa, former chief counsel to the Guv
                  can't recall how the state contracts were
                  awarded. Is it a WITCH HUNT?????? Come on McQuaid surely your snoop talents don't just
                  stop with Brizzi or do they???? Where was all
                  this great reporting and public outrage when
                  Andre Carson took contributions frm terrorist
                  groups (advance Indiana). Do you think they
                  wanted something in return?????



                  • memo i have
                    wasn't bales on the metropolitan development comm-mdc-few years back. also, i think the bigger story here is prop mgmt!!!! spectrum management and development llc also has the same po box add physical address www.spectrum-md.com. does he get the property management fee / royalty also? who the heck are the principles of venture anyhow? i uses to work at the virginia ave enviro courts building and i have a memo i kept that lists the owners of the building as: wendy a michael john m bales II greg rankin and it gives thier emergency phone numbers
                  • Crime Beatoff Show
                    Yeah, that is what I heard too. Then I heard him say he let Paul have what he wanted (i.e. what Paul's perception of the "deal") which included the $10,000 pay off for Pauls' apparent attorney fees. I heard him say that he had to cover for integrity issues presumably referring to his staff. At least that was my perception of what was said.

                    Why didn't Moberecki get a taxpayer public defender?... Why was it Carl's responsibility to make sure Paul Page was paid.
                    Paul should know plenty of public defenders as he is on the Board of the Public Defender Agency by someone's appointment.

                    http://www.indy.gov/eGov/County/PubDef/Administration/Board/Pages/home.aspx
                  • Did Carl throw his staff under the bus?
                    Did you hear Carl yesterday trying to say that he couldn't talk about the Mobarecki case because internal staff issues. So, now Carl is trying to insinuate that his staff screwed up this case? And, he would love to tell us all about it, but he can't because of "staff confidentiality issues."

                    Hey Carl, why don't you lift the gag order on your employees and let them talk about this case on the record and give their side of the story? I think you will find that the only person who screwed up this case is you!

                    I can't wait for the golfcart story to get out!
                    • Corruption in office
                      The sad thing is that many honest hard working citizens in Indiana are having to suffer the wasteful use of taxed to support Carl Brizzi & his corrupt friends. The lack of protection & concern for women & children has cost lives. Brizzi can laugh at woman being beaten or children beaten resulting with brain trauma. The crime rate is up do to the 'payoffs' and many innocent are harrassed & falsely accused strong armed by IMPD to kiss Brizzi's butt. Deep is the corruption in Indiana, as even IAG David Arthur, signed by Greg Zoller, the perjury for James Payne, DCS, to Fed Judge, Larry J. McKinney, who allowed violation of rights to fair hearing & accepted to perjury of Payne, who condones child abuse & death of children in Indiana.
                    • re
                      Clarification: None of the principles in Venture Value Fund has securities licenses or the necessary exemptions to advertise any type of offering like that over state lines, which includes on an internet basis.

                      Certainly Carl Brizzi and John Bales do not have securities licenses, at least not that I can find. I guess Carl doesn't need to get licensed since he is so psychic and can guess so well on when to come into possession of huge quantities of stock in companies that are about to be purchased or pumped.
                    • Pecar
                      Now that's pretty funny that Ben claims he is simply listed as a contact. All these reporters! Man was Ben spinning some goodies when the reporters came a'calling about VENTUREVALUEFUND, which was being advertised online for the last two years with NO securities registration in either Florida or Indiana, and with none of the principals--Carl Brizzi included--registered in either state. And, unlike Brizzi's buddy Tim Durham, these guys didn't even bother with an intrastate exemption. Nope, they just did what they wanted, right Ben?

                      Now Ben has had the webmaster take the site down. Don't worry--Russ has the pdfs including the updated copyrights from 2009 and 2010 so it's going to be hard to lie your way out of that one, regardless of your excuses....like the alleged excuse, Ben, once you found out that the media was about to bust the story, that the site was an intranet and wasn't supposed to be accessed!!! LAUGHING!!!!

                      Oh yeah, John Bales was a principle in Venture Value Fund, too!!!! WHY IS NO SHOCK?

                      Hey, you know what's even funnier? NO ONE IS GOING TO DO ANYTHING TO THEM! HOW DO YOU ARREST EVERYONE INVOLVED? LAUGHING!!!!!

                      As for Seth over at the Disciplinary Commission--you know, the dude that took Don's place and is supposed to be heading the Carlito investigation, of course this was to be delayed! You guys are missing the point, Carlito has done a phenomenal job and deserves a pension. Without his presence and assistance Tim Durham would not have been able to harass a former competitor and get the Oregon prosecutors involved in trying to shut down one of that man's celebrity coaches up in Oregon. Remember that phone call, Carlito? The one where you intervened and told the Oregon prosecutor that Tim's competitor in Mississippi was breaking the law by having his bus illegally registered in Oregon to avoid sales tax? Now that is so funny given that your buddy Tim hasn't paid sales tax on millions of dollars for years because he had a bogus dealership license. Remember? By the way, the bus wasn't shut down but that bus driver sure remembers your involvement. Oh, thought that one was buried, huh?

                      Carl, John, Ben, Tim, Houchins is now dead, this is funny but creepy with elements of sudden deaths thrown in....

                      #
                      Contact Us - Venture Value Fund I
                      www.venturevaluefund.com ... mtuttle@venturevaluefund.com 602 N. Capitol Ave, Suite 200. Indianapolis, IN 46204 ... John Bales. Carl Brizzi. Bryan Chandler ...
                      www.venturevaluefund.com/venture_value_fund.aspx - Cached
                      #
                      Venture Value Fund I
                      Venture Value Fund is a private equity fund formed to take advantage of real estate opportunities throughout the United States.
                      www.venturevaluefund.com/Default.aspx
                      • According to the Annoited One
                        Hey its Official Carl has said he has done nothing wrong... the Media has blown all these misconduct cases, dishonest business dealings out of proportion.

                        He expects the taxpayers that pay his salary to put it behind them... Why did his Disciplinary Hearing with the Indiana Supreme Court get pushed back until October... It was to be heard this week... and he barely knows it.. But it gets extended beyond November and then the Disciplinary Commission will deal with all of this crap... after the election in the quiet of the night....

                        I think its been continued 2 times... I doubt the Supreme Court wants to even deal with him....
                      • State bliss
                        So the state of Indiana, Governor's office, sees nothing wrong...technically. So they think a $19/SF lease in Elkhart, Indiana is a good deal, huh? Suckers!
                        • re
                          did you hear Carl say he owned "at least 50% of the Elkhart building?"

                          Did you hear Carl say he had disclosed all his stock holdings? Semantic, Carlito. You always disclosed your share lots BEFORE insider tips beat, remember? 300 shares of ESS and 400 shres of OI??? Remember?

                          Then you went on to disclosure CELLSTAR. No mention of how many shares, because you bought, or came into possession of, hundreds of thousands of shares of Cellstar, a Dallas penny stock, right before Brightpoint bought them! And you came into possession of hundreds of thousands of shares of Red Rock Pictures, a boiler room, right before Dan Laikin--brother of Brightpoint CEO Bobby Laikin--was arrested for illegally pumping the stock!

                          How stupid do you think the public is?

                        • Crime Beatoff Show
                          Wow Carl admitted on WIBC with Simpson in the interview that due to integrity issues in the Moberecki Case he had to payoff Paul Page $10,000... but maybe I misunderstood him again or my perception is different than his.... Isn't this in effect what he was saying...?
                          • take a closer look at virginia ave
                            the virginia ave. court lease was obtained only after the court broke an existing lease. The names of other partners in the Bales virginia ave. LLC are crucial to show the systemic corruption in marion county republican politics.
                            until federal indictments come down, the star will pretend nothing is happening.
                            • Disclosures
                              Carl has never disclosed the NUMBER of shares of Cellstar he timely bought before the Brightpoint acquisition.

                              Said he spoke to Tim Durham last week. Wonder which cell phone he's using.......

                              Carl, we know what you did. You are so full of crap. I promise, I promise, I promise it is all going to come out.

                              http://www.livestream.com/emmis_indianapolis/video?clipId=pla_a2336d16-81ff-423f-9caa-d1576c298366
                            • Nice
                              Nice brokerage account that was loaded with Cellstar but now no 1099s last year.... How is that, huh

                              ps guess who did the trades?
                            • I seem to remember
                              Wasn't Bales/Venture appointed by mayor Ballard to handle both the inventory of surplus city parkland and the sales of said parks, until the citizens responded they did not want our parks to be sold? I guess citizens can't keep track of agency leases and landlords quite as easily, so they did get away with that...for a time it seems.
                            • woo woo! early message deleted!
                              the one that was making fun of the wiretaps on whistlblowers and bloggers phones....and Ben Pecar being listed as registered agent for a # of properties, like the 1428 West Henry piece of crap Brizzi tried to shove down Metro Drug Task force's throats...and Pecar's stockbroker wife who might or might not have traded in CLST/Cellstar/Brightpoint...don't worry, I'm sure the SEC knows.....oh, this is sooooo good to kno certain people sweat when they log onto IBJ....
                            • LOAD OF CRAP
                              Newman, the former Marion County prosecutor, acknowledged Bales sometimes bought buildings and served as a landlord. But Bales did not put tenants into his own buildings if there were viable market alternatives.

                              As Brizzi's Chief Narcotics Prosecutor once said... "That's a load of CRAP".

                              Here Mr. Newman let me spell it for you "CONFLICT OF INTEREST".

                              WOW L&BABS Registered Agent is Ben Pecar....
                              Why is it every other company Paul Page has formed he made himself or Paul Pittman registered Agents on their Real Estate Companies... Oh I forgot Bales uses Ben Pecar.

                              Stop treating the public like we are country Bumpkins.
                              • DISHONEST SERVICES
                                In its bid documents, Venture amplifies the point: ââ?¬Å?Our mission is to represent our clients zealously and without favor and through that commitment, achieve superior results. We have never represented a landlord in a transaction with the State of Indiana.ââ?¬Â?

                                You or your partners, employees never assisted L&BABS in anyway? Why does the State's Tenant Representative work with the "potential landlord's" mortgage lender before L&BAB's CLOSES on the Real Estate in Elkhart?

                                Without the delivery of a state lease a newly formed LLC did not have the financial capacity to close.

                                Why would you seek out someone to buy the Elkhart building? Then that person cuts Brizzi in the deal? Was there a secret contract or implied contract since the new landlord had cases and would have future cases pending in front of the Prosecutors Office?

                                THIS IS A SCHEME FOR PERSONAL ENRICHMENT AND NOTHING SHORT OF IT.

                                NICE TRIBUTE TO Tajanay Bailey!
                                Afterall, the NO BID contract for land and buildings for DCS was given by Mitch thru an Executive Order. Venture acted in Bad Faith of the spirit of that order FOR PERSONAL ENRICHMENT.
                              • Racketeering
                                Fire those state workers. This is plain and simple public corruption. Perhaps they are getting brown bag lunches to look the other way? Commercial Real Estate has been in a downward spiral for nearly 3.5 years. Venture takes over in 06 and we get higher lease rates? If nothing else landlords are willing to cut rates and or give tenant allowances to keep tenants (Especially State Tenants). Yet the citizens get increased rates in far out counties. BALES YOU SUCK IN REAL ESTATE. YOUR NOTHING MORE THAN A HUMAN SPONGE ON THE TAXPAYERS.

                                How many times did Greg Ranking meet with Paul Page and the banker to put the Elkhart deal together? You are so dirty and corrupt. Come on FEDS isn't this Racketering? This in no way resembles Honest Services.
                              • PR Move: Brizzi should go to rehab and then AA
                                then he could turn the tide to sympathy....except on the insider trading issues, which shouldn't be a problem since the SEC is apparently too busy these days watching porn. Maybe those boys at the SEC in Chicago started watching Tim's lifestyle after the original tips came in, looked at his R-Rated Myspace and thought, cool! To have ignored this case for years is what allowed all these crooks to pull it off.


                                http://ruthholladay.com/2010/apr/22/carl-theyre-talking-about-you/
                              • La Scala....oh oh oh.....La Scala..ooohhh oh ohhhhh
                                Come to Florida to La Scala...the brainchild of what Ponzi schemer, what Ex prosecutor, what current prosecutor, certain short attorney whose wife traded in certain stocks the Ponzi scheme was in...yada yada yada.....it's all coming out, baby...stay tuned for the report very soon......

                                $10 Million smackaroos....mortgage fraud, bank fraud....it's all coming out very soon.....

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