The Provocateur: anthony demasi

It was a beautiful summer evening in 2005 and Chicago's social scene was gathered at Japonais, the posh sushi restaurant along the Chicago River, for a fundraiser for Tsunami Foundation. The party was organized by promoter to the charities Jennifer Schwab, who became legendary in the scene by convincing macho men to don high heels and race around the United Center all in the name of charity. Tsunami Foundation offered youth mentoring programs in some of Chicago's roughest neighborhoods as well as college scholarships to deserving high school seniors. The guest of honor Rudy Fratto Jr, the recipient of Tsunami's latest scholarship, was a relatively impressive young man. He maintained a B average, starred on his high school's hockey team and kept up an impressive list of other extracurricular activities. Nevertheless, the choice of Fratto for a scholarship was peculiar for a couple reasons. First, his father is Rudy Fratto Sr., a reputed lieutenant in the Chicago Outfit, who wou ld plead guilty to tax evasion in 2009 and subsequently also be charged with mail fra ud in the spring of 2010. Second, at 14 years old, Rudy was still several years away from needing a scholarship. The crowd was also a curious mix. Celebrities like Jerry Azumah and Ozzie Guillen Jr. were at the shindig. Sarah Preston and Ted Widen covered the event for Chicago Magazine and Chicago Scene respectively. The socialite community was represented with guests like Austin Manzure, Anderson Bell, and Amanda Puck. Also in attendance was John "No Nose" DiFronzo, reputed boss of The Outfit. Even the advisory board of Tsunami Foundation was an eclectic mix of Chicago’s movers and shakers. It included the proprietor of Tsunami Foundation, Tony Demasi. Also on the board was AT&T executive and future Alderman Brendan Reilly. Another member of the board was “restaurateur” Joe Farina. It’s alleged that the restaurateur Farina is also connected to the Outfit. For Tony Demasi, the then-30-year-old Tsunami Foundation founder, it was a day in a life equal parts Entourage, Sopranos and Wall Street. Fundraisers like this put Demasi in direct proximity to his natural market for his new nightclub, Reserve, which he owns along with Tsunami Capital, an investment firm

In the spring of 2010,Tsunami is out of business, Reserve is under new ownership, and Demasi keeps a low profile, waiting for his sentence on a number of fraud related charges on July 2nd, 2010.

Whereas he was once received VIP treatment at everything from the ESPY’s, the MTV Movie Awards, and the Grammys, he now enjoys Cubs games, concerts and dinner at Chicago restaurants as one of the crowd. His unlikely rise and catastrophic fall is part gothic novel and part Greek tragedy, all filtered through the wholly real mesh of modern-day Chicago's political and cultural stew.

Anthony A. Demasi came to Chicago in 2001, fresh out of Georgetown Law School, and took a job working on the legal end of collateralized debt obli gations at Bear Stearns, the financial instrument that, ironically, would later bring the legendary Wall Street firm crashing down at about the same time Demasi was facing his own reckoning. Through a mutual friend he met the daughter of Marty Gu tilla and through her, he met Gutilla himself. Gutilla is the main proprietor of Tavern on Rush, a cornerstone of Chicago’s infamous Viagra Triangle, where wealthy older men go to find attractive young women. Everyone from politicians, to business folks, to members of the Outfit frequent Tavern on Rush. Before long, Demasi counted himself among the regulars.

By 2002, Demasi started the Tsunami Foundation and over the next five years, the foundation would send nearly sixty kids to college while widening his circle of in-the-know event promoters and well-heeled partygoers. By 2003, Demasi started thinking about opening a nightclub. In doing so, he would be an unconventional entrant into a world where nightclub owners usually fall into one of three categories: those who worked their way up in the business, from bartender or bouncers to manager and then struck out on their own; those who were independently wealthy and then started clubs as playpens for them and their wealthy friends, like RiNo, owned by Jim Kaulentis, who'd made his millions trading in the pits of the Chicago Mercantile Exchange. Also, there was the more recent phenomenon, the multi-venue corporate operators, like Ala Carte Entertainment.

Demasi was a lawyer working for an investment bank. He was from the Detroit area and had only been in Chicago about two years. To the outside world at least, he had no connection to the club world, a world especially inhospitable to outsiders, given its culture cloaked in a certain manufactured mystique, as well as myriad and notoriously difficult licensing requirements. In fact, he’d already made all the necessary connections into the hospitality business thanks to his Tavern on Rush "apprenticeship" with Gutilla. Gutilla’s other friends included Joe King, part-owner of the posh nightclub Le Passage, commodities trader Jim Kaulentis, Lakeside Bank owner Joe Cacciatore, Assistant Majority leader in the State Senate Jim Deleo, insurance m agnet Dickie Parrillo, and restaurateur Phil Stefani.. And, through Tsunami Foundation, he had an avenue to many of the future club’s patrons.

But as helpful as a seasoned group of nightlife operators can be to a boot-strapping young entrepreneur, Tavern on Rush had another set of regular clientele even more important to the entrepreneur interested in opening a nightclub. For owning a club introduces the proprietor to the seedy world of Chicago politics unlike any other business. In order to own a club one would need as many as six different licenses: a liquor license, a tobacco license (smoking was still legal in bars at the time), a valet license, sidewalk license, and the Public Place of Amusement license, which allows a venue the ability to charge a cover for live music or a DJ. In order to get these licenses successfully, building inspectors, plumbing inspectors and electrical inspectors from various city zoning and buildings departments, along with the local Alderman and Police commander would all have to approve parts of any and all of these licenses. With his connection to Gutilla’s circle of friends, Demasi had just the right influence to navigate this process.

From befriending Gutilla to ingratiating himself in the socialite community, Demasi had done everything necessary to have a successful night club, and so it was no surprise that Reserve became an instant staple in Chicago’s nightclub scene when it opened in 2003. Stars like Justin Timberlake, Lenny Kravitz, and Michael Jordan all made frequent appearances there, and these appearances were documented in gossip magazines like US Weekly

. Reserve became known for the white tigers that greeted guests as they waited to be allowed entrance, but the most lasting impression of Reserve was its introduction of bottle service. Reserve was filled with long tables that were perfect for large groups to mingle. This would clash with a waiter or waitress constantly coming around asking for drinks. Instead, at Reserve patrons were allowed to buy entire bottles of liquor at a time. These same bottles would cost someone $20-$50 at a liquor store but at Reserve high rollers had no problem dishing out up to $800 for each bottle. This made the ownership, especially Demasi, quite wealthy. A good weekend would profit the club as much as $40,000. While Reserve’s

success was undeniable, it was missing one thing coveted in Chicago’s nightclub scene. That was the 4AM license, which allows clubs to stay open until 4AM. So, it was an unwritten rule at Reserve that when it closed they would suggest to their guests that still didn’t have their fill of alcohol to continue on to RiNo, owned by Jim Kaulentis.

Meanwhile, Demasi’s empire had only just begun to grow. At the same time he was laying the foundation of success at Reserve, he was also beginning another venture, Tsunami Lake Shore. This was billed as a hedge fund that initially would focus on futures trading. By doing so, Demasi was now expanding his reach even past the man most responsible for introducing him to this world, Marty Gutilla. While Gutilla was wealthy and powerful, his empire began and ended with Tavern on Rush. Demasi was growing a conglomerate empire that looked more like other members of Gutilla’s crew, Joe Cacciatore and Dickie Parrillo. Cacciatore owned Lakeside Bank. Through a series of business and real estate ventures Cacciatore developed a business empire that stretched into every corner of the city. Meanwhile, Parrillo is an insurance magnate that’s also a silent partner in all sorts of other ventures including Tavern on Rush itself. Demasi was headed down the same financial path. Only at 30, Demasi was doing what most of the rest of his crew were doing at twice his age. He was well on his way to developing an empire that would rival any in the city.

Then, in the summer of 2006, that empire was threatened. On August 13^th 2006, the Illinois Liquor Control Commission executed raids on thirteen C hicago nightclubs and ticketed all of them because they were each involved in bottle service. The raided clubs included Demasi’s Reserve, RiNo, Le Passage, Zentra and Enclave. The raid and tickets were peculiar. That’s because the establishments were operating openly with bottle service for years. Reserve had served bottles since its inception in 2003 and many of the other clubs followed once they saw its success. Also, they used an obscure portion of a 1986 happy hour law that forbade serving more than one drink at a time to a patron as the basis of their ticket.

Peculiar or not, this threatened the very existence of Reserve which made bottle service an integral part of its business plan. Furthermore, Demasi was months away from opening up Crescendo, which would also make bottle service a staple. So, Demasi and everyone else ticketed were none too happy when ILCC Executive Director said this,

It (happy hour law) is designed to eliminate the over-consumption of alcoholic liquor and to eliminate promotions that encourage over-consumption. We take this law seriously; those found guilty will face the consequences

Despite the gravity with which the ILCC took this matter, about four months later the Illinois legislature would change the law, Governor Blagojevich would sign it, and bottle service would continue in nightclubs. That remarkable turnaround has lead to all sorts of speculation and accusations of corruption. As recently as March, John Kass quoted two “anonymous sources” who claimed that Demasi approached a “restaurateur” and a “saloon keeper” with $50,000 and this set wheels in motion to change the law.

The only real evidence of wrongdoing is the peculiar set of events that lead to its passage. First, the law was passed out of both chambers during veto session. While laws can be passed anytime the state’s legislature is in session, veto session is generally reserved for legislators to act on any changes the governor has made to bills they passed in the regular spring session. For instance, in 2004, the agenda for the veto session included the CTA bailout, the approval of more casinos (which could have paid for the CTA bailout), and the legislature was going to look again at a bill by Democratic Sen. William Haine that would have applied tort reform on the state level. The seriousness of these matters far outweigh that of bottle service, and they were all issues already discussed during the regular session in 2004.

By doing it in veto session, the law passed very quietly. The transcripts from the Illinois Senate show that the entire process took less than fifteen minutes.(pages 15-17) It was introduced by State Senator Jim DeLeo. The bill was briefly explained by State Senator John Cullerton and then the Senate voted and passed it overwhelmingly.

Second, the sponsors of the bill in both chambers were a collection of legislative power brokers. In the Senate, the bill was sponsored by Senate President Emil Jones, Assistant Majority Leader Jim DeLeo and Cullerton. In the House, the Second Republican Angelo “Skip” Saviano sponsored the bill. Normally, such heavyweights save their sponsorship for budget matters and other bills that land on the front pages of newspapers. So, it’s curious that all wound up sponsoring a bill on such a trivial matter.

While all of this was going on, the Mayor held his annual holiday fundraiser right before Christmas. The fundraiser was held at the premier Chicago steakhouse Gibson’s. In attendance were Jim Kaulentis, Demasi, and Joe King, Kaulentis’ RiNo, Demasi’s Reserve, and King’s Le Passage all just happened to get ticketed by the ILCC in August. Meanwhile, DeLeo, Cullerton, and Saviano also attended the fundraiser. It was a crowd of insiders as John Kass notoriously enjoyed dinner downstairs at Gibson’s with then Cook County Clerk Dorothy Brown, both uninvited to the event.

So, was there something going on beyond the surface? Only those that passed the law know for sure but in Chicago, “if you don’t like the law, you change it”.

One thing was certain. Demasi had reached the zenith of his power and influence. The passage of the new law paved the way to his club, Crescendo, in the spring of 2007. Meanwhile, his inclusion in Daley’s annual fundraiser put him in eyesight of the entire power elite in the city. Little did he know that in less than four months, his whole world would crash on top of him.

On April 27^th, 2007, the Commdoties Futures Trading Commission would execute a warrant and filed formal civil charges against Demasi and Tsunami Lake Shore. The charges read in part.

Demasi convinced at least one prospective pool participant to invest by providing him with a false track record showing that Tsunami was profitable in all but two months in 2003-2004 and had its highest rate of return of 26.85% in April 2003. In reality, Tsunami did not have an active account in April 2003 lost money every month it traded in 2003, and did not trade at all in 2004.

Demasi didn't deny most of the charges against him and eventually was found guilty in a civil proceeding many of these charges. (the CFTC is a civil not criminal entity) Still, the timing and nature of the charges lead many insiders to speculate that Jim Kaulentis was partially responsible for Demasi’s legal troubles. First, Kaulentis’ roots as an old school trader deep in the pits of Chicago’s Board of Trade made him connected to most in that world. If there was wrongdoing going on anywhere, it’s hard to believe he didn’t know about it. Second, the charges were filed and released less than a month before Crescendo would open. Unlike Reserve, Crescendo would have the coveted 4AM license and put it in direct competition with Kaulentis’ RiNo. This lead Kass to speculate at the time,

one was that his (Demasi’s) 4AM license put him in direct competition with RiNo,a popular club run by Michael Kaulentis, the son of influential commodities trader James Kaulentis. A feud began

This and other circumstantial evidence make it hard to believe that Demasi’s downfall was entirely organic and rather had help from a rival. Demasi would open Crescendo and Crescendo is still a staple in Chicago’s nightclub scene, but he would eventually lose ownership in both Reserve and Crescendo and all his fortune from pleadings to charges related to this civil suit. The CFTC suit was only the first shoe to drop.

It was February 17^th, 2009; the same Tony Demasi was now in Cook County criminal court on 5600 Old Orchard Road in front of Judge William T. O’Brien facing what was supposed to be a routine hearing related to charges from a domestic incident with his then girlfriend Stephanie Abraham. Demasi had been dating Abraham for about two years at the time of the incident, and it probably never occurred to him throughout that her older sister Trina was married to Michael Heffley. Heffley is a Chicago area trader who’d spent time working for Cadent Financial Services, the firm owned by Jim Kaulentis. He was also a good friend of Michael Kaulentis, Jim’s son. As events would begin to unfold over the next hour, Demasi must have felt a little like Truman Burbank, the man whose life is being orchestrated by others. In fact, Demasi must have been shocked that things had even gotten that far. First, while the initial incident happened on June 5^th, his girlfriend didn’t file charges for two weeks. While she claimed that Demasi had bitten her, there was no visual evidence (on her face that is) that it ever happened. Furthermore, Abraham herself had a history of alcohol abuse including a DUI when she was fifteen. Finally, Stephanie’s mom, then estranged from her and her dad, sided with Demasi in the matter and even wrote a letter on his behalf to the court. Still, Demasi was facing these charges six months later, and what he didn’t know was that a judge was about to force him to spend the next forty five days in prison including a five day stint in the Isaac Ray Center for the criminally disturbed. A complicated and confusing set of events would culminate in Demasi’s jail stint on this day.

The whole affair started the previous June 5th when Demasi and his then girlfriend were involved in a domestic dispute. Two weeks following this dispute, Abraham would file charges with Chicago police alleging that Demasi had bitten her during the course of an argument and then broke the air conditioner on her father’s car. On September 9^th, 2008, Demasi surrendered himself to police where he faced battery and criminal destruction of property charges. Because the automobile was actually owned by Stephanie Abraham’s father, the charges were split into two and Demasi would face Judge William T. O’Brien on criminal destruction of property charges. He would be in a different court on Harrison in front of a different judge on different dates to face battery charges.

Both judges ordered all parties, Demasi and both Abraham’s, to stay at least 500 feet away from each other and avoid all contact through restraining orders for the duration of the court proceedings. Then, on October 22nd, Demasi was in his old club, Crescendo, when Stephanie Abraham also entered the club. He immediately sent her a text message demanding that she leave. By doing so, he violated the restraining order. For this, Demasi was reprimanded in his previous court appearance in front of Judge O’Brien and had his bail raised from $10,000 to $100,000 in his previous hearing on January 5^th, 2009.

To complicate matters even further, while Demasi was the defendant in Cook County, he was simultaneously the complainant in another case in Miami, Florida. Both Demasi and the Abraham maintained second residences in Miami and on January 7^th, an alleged confrontation occurred between Tony Demasi and Gene Abraham, Stephanie’s dad. According to a police report from Miami-Dade police, here’s how Demasi described the incident that allegedly occurred on January 7^th, 2009,

I was walking down to the cigar shop and as I was walking I had a feeling that someone was behind me. When turned around I saw him coming after me (Albert) flailing his arms. He hit me in the face I fell to the ground and hit the back of my head. I then got up and ran away from him as fast as I can

When police went to arrest the older Abraham, Stephanie Abraham allegedly attacked one of them and was also arrested on site. In fact, Demasi was scheduled to fly back to Miami right after this hearing to testify against the elder Abraham.

That never happened. Instead, when the prosecution heard about the incident on the 7^th they complained that Demasi hadn’t received permission to travel to Miami on that date. The prosecution argued that because Demasi had already violated an order of Judge O’Brien this second violation took on an added importance.

In fact, Demasi was making frequent trips to Miami all throughout the process. For each trip, he would need permission from both judges. He had in fact received permission to take trips from Judge O’Brien. According to court testimony, Demasi had even received permission to take the trip that would put him in Miami on the 7^th, however there was now confusion about whether or not that permission was still valid. Judge O’Brien was now claiming that because the text message violated the restraining order it also inherently revoked his earlier permission to travel. O’Brien even once said, “he blew that” referring to his own earlier permission to allow Demasi to travel on the 7th.While Demasi’s attorney called the confusion a “technical violation”, Judge O’Brien considered it much more serious,

It’s not a technical violation it’s a blatant violation. I remember having a conversation with him asking him whether or not he understood certain things and his position is he’s an attorney, he knows better.

Judge O’Brien must have believed that Demasi’s skills as an attorney come along with powers of ESP since the judge never actually revoked Demasi’s permission to travel in writing. Instead, he revoked them after the fact in the courtroom right there on February 9^th.

Despite this curious logic, Judge O’Brien then raised Demasi’s bail from $100k bond to $1 million cash. So, unless Demasi could come up with one million dollars cash, he would immediately go to jail and remain there during the duration of the trial or until it was lowered to a level he could pay. At this point, Demasi attempted to set a 402 hearing so that he could plead guilty to the class IV felony of criminal destruction of property. Since Demasi had no criminal record, jail time for a guilty plea would be blatantly corrupt. The sentence guidelines would require probation and court supervision. By pleading guilty, Demasi would subsequently avoid the indefinite jail stint Judge O’Brien had just handed down to him. Judge O’Brien was having none of it. He denied his guilty plea and said this,

At this time the Court is going to refuse that request. Based upon my experience
with Mr. Demasi and observing him on prior occasions here and knowing somewhat a little bit about the facts of the case as a result of various violations of bail bond requests for permission to travel. I think it behooves us that the Court has a doubt as to whether or not Mr. Demasi is fit to stand trial.

Now, Judge O’Brien, who only minutes earlier expected Demasi to have ESP powers, believed that Demasi wasn’t even competent enough to enter plea, even a guilty one. An incompetent person isn’t allowed by law to plea anything. This action also meant that Demasi had to go through a mandatory 45 day jail stint that would start in the looney bin annex of the jail system, the Isaac Ray Center. Because the standard for fitness to stand trial is so low he was asked the standard battery of questions like (with a straight face) “are you human”. Once he answered those brain teasers effectively, he then spent the next five days in a holding cell with criminals with serious mental disorders. He was then transferred to Cook County jail where his million dollar CASH bail put him in a population filled with accused and convicted murderers, rapists, and bank robbers. The next time Demasi would even be eligible to be released would be at his next court hearing March 19^th.

While in Cook County jail, Demasi was visited by US Attorneys who served him with a federal indictment with a series of charges related to his activities with Tsunami Lake Shore. The whole set of events was so bizarre that John Kass was moved to make this not so subtle shot across the bow in a column on February 26^th, 2009,

Some are worried. And I don't want Demasi getting accidentally hit by a bolt of lightning or choking himself to death with plastic bags in the jail shower. That might ruin Chicago's reputation.

Kass recently confirmed that he wrote this column out of genuine fear for Demasi’s life while in prison.

On March 19^th, Demasi’s parents flew in from Michigan in hopes of swaying Judge O’Brien to reduce Demasi’s bail. Judge O’Brien was having none of it and responded this way to the request,

Bond is going to stand. It is a reasonable bond seeing that the Court clearly recalls admonishing Mr. Demasi to avoid contact with the victim in this case, and not two days after telling him that, him also having training as a lawyer, outright disobeyed a court order and went and left the jurisdiction. He is not above the law. He violated the terms of bond. Therefore, the Court has appropriately increased the bond to a million dollars cash. The bond is to stand.

Facing an indefinite prison stint, Demasi and his attorney again moved for a 402 conference so that he could plead guilty. With competence no longer an issue, Judge O’Brien had no choice but to accept his guilty plea. Demasi was given probation and court supervision and slept at home that night.

On August 19, 2009, with twenty five supporters and two supporting witnesses ready to testify, the charges that he bit his girlfriend were dismissed in a Cook County Courthouse on Harrison Street in Chicago.

Because Demasi was jailed on February 9^th, he never was able to testify against Gene Abraham and those charges were dropped. Stephanie Abraham was subsequently convicted of charges against her since Demasi’s testimony wasn’t necessary in that matter and is still on probation in Miami. (Judge O’Brien didn’t respond to a phone call for this story)

Finally, on March 17^th, 2010, Tony Demasi’s downfall was complete. That’s when he faced Judge Rebecca Pallmeyer in a US District Court in the Dirksen Federal Building. Shortly after 1PM Central Time, Tony Demasi plead guilty to five counts ranging from wire fraud, misuse of funds, and making false financial statements. On more than one occasion, he even took responsibility for the actions of unnamed employee who also made false statements. The only victim in the court room that day was a commodities trader named Rocky Nendza. Nendza was eager to share his experience. He said he invested $104,000 with Tsunami Lake Shore. Upon receiving a statement that Nendza described as “unreal”, Nendza asked for his money back. For the next seven months, Nendza tried unsuccessfully to get his money from Demasi. On one occasion, Demasi’s check bounced. Finally, according to Nendza, seven months later $100,000, what Nendza asked for, was wired into the account. Nendza considered the affair closed and had “mixed emotions” about the issue.

One thing that Anthony Demasi didn’t plead to was perjury and forgery, and it’s what Demasi didn’t plea to that is at the heart of the untold story of the fraud that surrounds Tsunami Lake Shore. While most media have described this as nothing more than a Ponzi scheme, Demasi has vehemently denied this characterization. He points to his partnership with Stuart Simonsen, a professional trader from Billings, Montana, as proof of a successful business venture. While Demasi admits to mismanagement leading to acts of criminality at Tsunami Lake Shore , he also maintains that this partnership lead to a successful sale of Simonsen’s blackbox technology. A blackbox is a computer program for entering trading orders with the computer algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention. In fact, according to a contract signed on December 26^th, 2006, Demasi and Simonsen entered into an agreement with Tradelink, a Chicago area private equity firm. This agreement would have Tradelink provide capital to trade the black box system developed by Simonsen and co owned by Simonsen and Demasi’s Tsunami Lake Shore.

Simonsen wouldn’t make any statements on the record but his contention is that he and Demasi were never partners. Instead, he has claimed that Demasi leased his blackbox for trading. He doesn’t know what Demasi did with the technology and so Demasi’s crimes are his alone. While he wouldn’t make a statement on the record, he instead pointed to a summary judgment from Billings, Montana on May 20^th, 2009 that would speak for him. In that judgment, Judge Richard Fagg of Billings, Montana ruled said contract null and void and thus agreed with Simonsen’s contention that he was never partners with Demasi but instead leased the technology to him.

The story would be over however Anthony Demasi would subsequently testify under oath in US District Court in the Dirksen Federal Building on July 7^th, 2009 in front of CFTC attorneys. During that testimony, Demasi admitted to all of the same crimes to which he plead guilty to the following March 17^th, however, Demasi stated under oath that he and Stuart Simonsen were business partners, Tsunami Lake Shore was involved in the sale of Simonsen’s blackbox technology, and as a result he and all his investors are owed their legal share of profits. In that testimony, Demasi even produced a tape recording of Stuart Simonsen admitting to Demasi in a phone call everything that Demasi just testified to. Finally, a source that wished to remain anonymous has since backed up Demasi’s version. This source said he was recruited by Demasi to help sell this system for 5% of total profits. He said that he participated in dozens of meetings with Demasi and Simonsen in which they were identified as “partners”. Furthermore, this source says that he too has been deposed in U.S. District Court and everything he told me he also said under oath to federal prosecutors. Finally, he says he provided federal prosecutors with dozens of business cards of CEO’s that met with all three that could verify all these meetings.

Because Demasi made his statements under oath on the 7^th of July 2009, he would have perjured himself if there were any lies. On March 17^th, 2010, he wasn’t charged with perjury or forgery, but then again, Simonsen hasn’t been charged with any crimes either. If the prosecutors believe Demasi then the same federal prosecutors must then charge Simonsen criminally and/or civilly. Federal prosecutors have done nothing and the CFTC refused to comment when asked about this dichotomy.

One thing the truth, whatever it is, won’t do is change the fact that over a four year period Tony Demasi committed a series of serious criminal acts. Still, this dispute is no small point. Tony Demasi is facing up to 80 years for a fraud that federal prosecutors estimate is $4.7 million. The initial investment of Tradelink, according to the contract, was $10 million and it would be raised to $100 million if they were happy with the performance. So, if Demasi is telling the truth that would make Simonsen’s fraud, with the help of Tradelink, exponentially larger. Furthermore, if Demasi was truthful in his July 7^th testimony, then this means that his criminal behavior would also have no victims financially. If Simonsen is being untruthful and the government did its job, it’s almost certain that all investors in Tsunami Lake Shore would receive their initial investment, their promised returns, and a hefty premium on top of it. In fact, Tony Demasi himself would walk away with at least eight figures, despite committing these crimes. It’s no small point that the anonymous source would walk away with millions as well. Yet, while Demasi was never charged with perjury or forgery, so too, Stuart Simonsen has not been charged with anything either. The dichotomy has never been explained.

The story of Tony Demasi is fascinating on the level of Greek tragedy. His meteoric rise was only eclipsed by his even larger fall. Yet, there is something there that’s more sinister. Outside Demasi’s hearing on the 17^th of March, John Kass asked rhetorically,

“how did HE (Demasi) get a 4AM license?”.

The same John Kass also suggested that Demasi initiated $50,000 worth of payments to change the bottle service law. What all those that suggest that Demasi is a criminal mastermind fail to mention is that Demasi couldn’t have done any of this alone. He attached himself to Chicago insiders who get things done. If there were payments made to change the bottle service law, what does that say about the power brokers that sponsored that law? How did he secure the 4AM license, and better yet, why is it so hard to get this license? Why did Demasi receive a $1 million cash bond for a class D felony? Why is Demasi facing 80 years for a $4.7 million fraud while the fraud that’s exponentially larger goes unexplained? Why is the media fixated on Demasi’s wrongdoing and totally ignoring all these other questions? I suspect the answer to that is wrapped up in something we all cynically call the Chicago Way.

UPDATE:

Starting on Sunday July 14, 2012, I received a series of cryptic emails asking me to remove this blog post. The emails claim that an unidentified male has tried to commit suicide as a result of this post. The male is not identified.

Furthermore, hours after I responded to one of those emails, my email account was spoofed (slightly different than hacked), and a vile and inappropriate email was sent to hundreds of random emails claiming that this blog post is about them, and not the people actually involved.

Please note, if you are here as a result of this email, I apologize but know that I didn't send it. It was done without my permission, and again, I apologize for its content.

Because I believe that these emails are being used to illicit a response to perpetuate this spoofing, I will not respond. I'm not sure what "male" would be driven to suicide as a result of this article.

If this is a serious call, please contact me formally and provide real evidence of such. If not, please stop sending me emails as I will not respond.

UPDATE 2:

Check out a photo gallery related to the article here.

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