Little hope Summerside will ever see $1.3 million, councillor says

Mike Carson
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In July of 2009, the city sent a payment of $650,000 to promoter Katrina Sussmeier of Starlink Productions. A second $650,000 payment was made in March of 2010 for the tour. The concert never materialized and the money remains in California.

SUMMERSIDE — Summerside taxpayers should not expect to see any of the $1.3 million paid to a California promoter for the failed Michael Jackson Tribute Tour.

In July of 2009, the city sent a payment of $650,000 to promoter Katrina Sussmeier of Starlink Productions. A second $650,000 payment was made in March of 2010 for the tour.

The concert never materialized and the money remains in California.

Councillor Peter Holman said while the city is still in U.S. District Court in San Jose, Calif., there’s little hope of seeing any money recouped.

“It is highly unlikely that we’re going to recover any monies, and the reason being is Katrina Sussmeir has filed bankruptcy,” Holman said.

Other players in the concert was Frank DiLeo of DLM Management Group/DiLeo Entertainment and Touring Inc. and his affiliates Mark Lamicka and Quincy Krashna. They were named as co-conspirators with Sussmeier in the city’s lawsuit.

But Holman said there is little chance of getting any payback from these individuals as well.

“Frank DiLeo has passed away,” Holman said.

“Krashna and the other individual (Lamicka) cannot be located and we believe they would not have any assets that we would be able to attach to. We have been successful that now we’ve been able to register judgment against Sussmeier and the two other individuals involved (Krashna and Lamicka). The judgments work somewhat differently in the U.S. in that there is some administrative stuff that has to occur first. Once that occurs then the judgments are going to be registered. In regards to Sussmeier, the judgment does withstand the bankruptcy because it is for fraud.”

“It is highly unlikely that we’re going to recover any monies, and the reason being is Katrina Sussmeir has filed bankruptcy,” Councillor Peter Holman

Holman said that doesn’t ensure the city will see any return on its deposit and there is little chance the city can recoup any of its losses from the estate of DiLeo.

“That doesn’t necessarily get you any money,” he said.

“It’s the same with the DiLeo estate. There are no assets. However, should there ever become any and we are aware of that then we would certainly go after that. But, at this point in time, it’s highly unlikely that we’re going to recover anything. Legally, we’ve done all that we could possibly do to try and get our money back.”

Twitter.com/PEIGuardian

Organizations: US District Court, DLM Management Group/DiLeo Entertainment and Touring

Geographic location: California, Summerside, San Jose, Calif. U.S.

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Recent comments

  • Geez
    August 31, 2012 - 10:56

    Suckerside got conned but fault lies with the people who brokered an international deal putting tax payers at risk

  • Island Girl
    August 31, 2012 - 09:37

    Two questions that have not been asked or answered: what are Dennis Hoppings qualifications for undertaking such a review and what was the process for selecting the person/firm to undertake the review?

  • Lyle Langley
    August 31, 2012 - 09:36

    I've sold monorails to Brockway, Ogdenville, and North Haverbrook, and by gum it put them on the map! Say it with me folks - monorail.....monorail.....monorail!

    • Mr. Langely's right on . . .
      August 31, 2012 - 13:37

      Mayor Quimby: Now, wait just a minute. We're twice as smart as the people of Shelbyville. Just tell us your idea and we'll vote for it. Marge: But Main Street's still all cracked and broken. Bart: Sorry, Mom, the mob has spoken! Homer: Mono—D'oh!

  • Johnny Cash
    August 31, 2012 - 09:23

    check out Sussmeier's Startlink Productions "website"...i use that term very loosely. I'm quite certain my 9 year old neice could produce a more legitimate looking website... http://www.starlinkproductions.com/Starlink-Producers2.htm

  • Jimmy
    August 31, 2012 - 07:58

    This looks good on Summerside

  • tim tonkin
    August 31, 2012 - 07:31

    Someone should go to jail over this .

  • At least Summerside isn't a crazed zombie
    August 31, 2012 - 07:24

    This fiasco, embarrassing as it certainly is, pales in comparison to another fiasco that is literally 30 times worse. One need only look as far as Mr. Ghiz and Mr. Vessey's monster - Plan B. The people of Summerside, had they been given the facts, could have stopped the concert project. However, Islanders have found out the facts out about Plan B - and cannot stop it anyway. Micheal Jackson tribute aside, Plan B crawls forward like some crazed zombie. Budgetary wise, it's the difference between first and second degree murder. Summerside's "crime" was unintentional. Mr. Ghiz's "crime" is, by design, very intentional. The question is: What do Islanders do about it?

    • Cricket . . . cricket . . . cricket . . . cricket . . .
      August 31, 2012 - 13:30

      What evidence is there that if the people of Summerside had known about this, they could have questioned it to a halt? Look at that gentleman from Summerside who presented at the environmental meeting for Plan B. He had excellent points and relevant questions. All he got back from the panel was the sound of crickets. That may be the sound of Island governance - but it sure isn't sound governance.

  • Brian from Stratford
    August 31, 2012 - 07:15

    Ok, so let me get this straight: Summerside council gave her $1.3 million for nothing and she STILL goes bankrupt? That takes skill.

    • Johnny Cash
      August 31, 2012 - 09:26

      Ghizonomics

  • Larry
    August 31, 2012 - 07:14

    As I read all the media attention on this concert debacle, I have to sit and shake my head at the intellect of the reporters, editors and the general public. I read a few weeks ago that Summerside is in the Fibre optic business competing with the private sector. I have read 2 stories on this colossal waste of money (1.7 million spent thus far and 12 customers I believe). Already more money lost on this project than the concert but no coverage. What does that say?

  • Terry Stewart
    August 31, 2012 - 06:54

    There should be pressure put on Council to release report so we can see who the real clowns were...

  • John W.A.Curtis
    August 31, 2012 - 03:50

    Time for a foresnic audit on the rock concert, and Wellness Center and raceway then sue the mayor and city Council and senior management for all this debt.

  • K
    August 31, 2012 - 02:40

    Best get Bones to clear out city hall.

  • lmacdonald
    August 31, 2012 - 01:10

    1.3 million + how much in legal fees? Are they releasing how much of the taxpayer money was squandered trying to get back the money they so foolishly threw away trying to play "Big Shot" ? Summerside council is nothing but a big fat expensive joke, they should be made personally responsible for the closed door decisions they made.

  • C
    August 30, 2012 - 22:14

    free lil boosie

  • DL
    August 30, 2012 - 21:26

    I saw Ret/Col Hopping on compass tonight and fault in dealing with this entire Concert issue is with the Mayor and Council at the time. No by-Laws followed, no meetings recorded and the actual vote for two million dollars was taken at Barry Chappells cottage party. Unbelievable. All of these under handed actions lay with the Chief Magistrate of Summerside Mayor Basil Stewart, this is where the buck stops. Resign now Basil before you get in more serious trouble. Great work Ret/Col Hopping with your fair and impartial review,.Alot of people are truely greatful to you.

  • SSide taxpayer
    August 30, 2012 - 20:51

    This is scandulous.....the buck stops at the desk of the mayor..and whoever held that impromptu meeting at a cottage and decide after a few brews to send a million bucks out the window............a million dollars......time for a regime change..the old boys club pulled aboner!

  • Seriously
    August 30, 2012 - 20:42

    Is there not one single part of any government on this island that is WORKING FOR THE PEOPLE and being FISCALLY RESPONSIBLE right now? If there is, please name them. And if the answer is NO, then let us GET RID of those in ALL AREAS OF GOVERNMENT who are so wasting taxpayers money and destroying PEI. This island may be small but if it is to exist, we need each and every single one living on this island who pays taxes and are trying to make a living, (and get over the you were not born here even though you live here zone), to stand up and fight and get things back on track. Forget your forefathers political leanings...you stand and fight for what will make life work here for you and for future generations, and if it is a party you disagree with, then get over it. Vote for a party who will get us out of the ditch. It is also time to get something in government policies where if politicians are not doing what we the people want, them we can have the right to RE-CALL them. It is time we stand up and fight.

  • DS
    August 30, 2012 - 20:04

    Holman is from the same cut as Mayor Stewart, Deputy Mayor MacDougall, Councillor Dowling, Acting CAO Malcom Millar and past CAO Terry Murphy, all should be run out of the City for their handling of the Concert issue. This is as bad a what they tried to do to the past Deputy Chief of Police David Griffin and they failed miserably on that as well. He must be having a great laugh now.

  • Island voter
    August 30, 2012 - 19:46

    I would think that this council and mayor should resign immediatly or at the very least, not re-offer in the next manicipal election. This is not a little mistake, but an irresponsibe override of thier own council procedures. They lost over 1,000,000.00 of taxpayers money foolishly! Resignation would be the next logical step.

  • C
    August 30, 2012 - 19:42

    lol @ summerside