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Tshuva's Strip...
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FINCEN
Administrative Assassin


Joined: 08 Mar 2006
Posts: 1351

PostPosted: Thu Jun 14, 2007 7:30 am    Post subject: Tshuva's Strip... Reply with quote

So who is that shaking things up in the Nevada desert? Spending money like a drunken sailor on leave, well that would be Israeli billionaire Yitzhak Tshuva. With so many glowing media mentions from Forbes to the Wall Street journal why is Mr. Tshuva afixed in the cross hairs here? For starters, anyone remember Judah Hertz's disasterous trip before the Nevada gaming commission which resulted in his failing to secure a gaming permit for the two Reno casinos he purchased? Well Mr. Tshuva apparently learned a thing or two from that experience as he has found a way to avoid the licensing process altogether.

Having agreed to pay the outrageous sum of $1.2 billion for Phil Ruffin's New Frontier property. "A deal where he agreed to pay $34 million an acre, more than twice the previous strip record of $17 million per acre set just a few months ago." Tshuva raised heads and opened eyes with the announcement that he planned to invest an addition $3.5 billion transforming the property into a luxury multi-use facility. When all is said and done, Tshuva's redevelopment program would transform the New Frontier into New York City's Fifth Avenue.

This is indeed an ambitious plan but something just isn't right with the deal. My concerns begin with the outrageous purchase price. Ruffin purchased the property in the mid 90s for roughly $160 million. This deal provides him with a ten fold profit on a dog of a resort. Inspite of the boom times in Vegas, the New Frontier was a loser year after year. Who can be mad at Ruffin for taking advantage of a sucker. After all that is the gaming business right? Nonetheless Ruffin himself had shelved plans to redevelop the property citing the rising cost and scarcity of construction materials. The cost is no less today and supplies are still hard to come by so what is Tshuva thinking?

Another odd step taken in securing the property, Tshuva has decided to close the New Frontier permanently before the escrow closes inorder to bypass the Nevada gaming commission. Had the New Frontier stayed open Tshuva would have been subjected to the prying eyes of the notoriously picky governing body. So what does Tshuva have to hide? The official line is this was done to stream line the process as it would have taken up to a year to secure a gaming license. This in itself is odd considering Tshuva and his partner Nochi Dankner "Dankner is the principal owner of IDB Development Corp., the partner in the deal," have stated the ground breaking isn't set until sometime in 2008 with the opening slated for 2011. In essence Tshuva and Dankner are investing upwards of $4.7 billion in a property which won't produce a dime over the next four years and won't recoup what they have spent for another decade provided other investors follow their lead and overpay for other properties on the strip. So is Tshuva a shrewd investor? Is he psychic? A visionary or is he swindler angling for a big score? I happen to think he is the latter. Here's why.

Elad is one of those companies which doesn't really have a focus and is fast gaining a reputation for bluster. The Vegas deal being just one of a handful of deals which smell, well alittle fishy. The more Tshuva's representatives promote their deals, the more they look like carnival barkers. With all of the interest generated in the New Frontier redevelopment, it initially looked as though Tshuva had plans to use his own cash to pull the deal off then came the announcement that he was planning a U.S., bond offering to finance the deal. The estimated value of the offering was set at $5 to $7 billion. Get it? See all Tshuva has on the table thus far is $100 million he advanced to Ruffin as good faith money. If his IPO goes as planned, he stands to make a cool billion at least. Courtesy of the American stock market.

All we have to go on is Tshuva's pervious forray into real-estate to judge this deal by. It is Tshuva's Plaza Hotel in New York City which we should view. Elad Properties purchased the Plaza Hotel in 2004 paying $650 million for the property. Again they announced redevelopment plans which featured luxury condo living, fine dining and top of the line shopping in one place. With the opening date fast approaching not a single store or restaurant lease has been confirmed. None of the fantastic sales of condos has been confirmed and on one has even seen the work which has taken place at the Plaza. So is this a fantastic scam, money laundering operation or a look at how things are done in other parts of the world?
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beemoe
Commission Member


Joined: 07 May 2006
Posts: 845

PostPosted: Fri Jun 15, 2007 12:09 am    Post subject: From Beemoe Reply with quote

It sounds like your man is trying to make money off the IPO. After all he has "only" 100 mill but stands to make a billion plus on the shares as they go public, not to mention going OTC. To me it sounds like he has it coming and going. Was there a PPM here? I`m starting to see a lot of this in the Silicon Valley since I moved back last winter.
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beemoe
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Joined: 07 May 2006
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PostPosted: Fri Jun 15, 2007 12:12 am    Post subject: From Beemoe again Reply with quote

Does Tshuva have any underworld connections? Or maybe this a laundering thang for wealthy associates. After all Nevada like Delaware is considered a finance center for Americans
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FINCEN
Administrative Assassin


Joined: 08 Mar 2006
Posts: 1351

PostPosted: Mon Jun 25, 2007 5:18 pm    Post subject: Tshuva Reply with quote

It is a vast money laundering operation. Washing funds from illegal arms transactions and drug sales. This is the grown up version of what Hertz tried to pull a few years ago. In fact it is the same network.
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