# Feds invade office of boat broker over bad loans



## Hamilton Reef (Jan 20, 2000)

Note: The Grand Rapids developer Jon Rooks is the same developer of Ellenwood Landing on White Lake that destroyed the most critical fishery habitat at the mouth of the White River.

Feds invade office of boat broker over bad loans

04/06/07 By Chris Knape The Grand Rapids Press

GRAND RAPIDS -- A 29-year-old Alpine Township man with a penchant for the high life is being linked to an alleged fraud that has several banks locking down accounts and assets as they scramble to recover millions of dollars. 

While bank officials declined to confirm Michael Vorce's name, several sources say the former boat broker is involved in the $5.2 million in bad loans that Macatawa Bank called fraud last month. 

Speculation has built for weeks over the borrower's identity, but attention heightened Thursday when U.S. Treasury agents raided a Bridgewater Place office, reportedly targeting Vorce's records.

Until recently, Vorce had run several businesses from the offices of the private security firm Redline 22 LLC in Bridgewater. Among them was West Michigan Yachts, for which public records list Vorce as the registered agent. 

Reached at his home, Vorce declined to comment. Also, federal authorities would not talk about Thursday's raid. 

But it was hard to not notice the activity as office workers headed out to lunch. They could see agents carting computer equipment and files from the glass-walled offices on the ground floor of the high-rise tower at 333 Bridge St. NW. 

Redline, which specializes in security for companies doing business in the Middle East, Africa and other hot spots, is operated by Ryan Steensma, 36, of Ada. He declined to comment Thursday. 

But several sources who know Vorce said he was behind a series of businesses that imploded as a result of unpaid bills and alleged fraud. 

On March 15, Macatawa Bank Chairman Benjamin Smith announced the bank had $5.2 million in "impaired" loans in what "appears to be an intentional effort to defraud the bank." 

As a result, the Holland-based bank was forced to slash its quarterly earnings in half. Other banks also are involved, Macatawa's statement said.

"From what we can gather, we've been the quickest to really take action and disclose it," Chief Financial Officer Jon Swets said in the statement. 

Public records show Bank of America and Irwin Union Bank have liens on unspecified properties related to loans with Vorce. Those banks declined to comment. 

Larry Willey, an attorney specializing in white-collar crime, confirmed he is representing Vorce but declined to comment.

Robb Wardrop, a bankruptcy attorney also working for Vorce, declined to comment. 

No criminal charges related to any alleged fraud have been filed against Vorce in Kent or Ottawa counties. Grand Haven police confirmed Wednesday that Vorce is being investigated, but declined to describe the nature of the investigation. 

Those who know Vorce, the son of retired Forest Hills Public Schools administrators Bruce and Carol Vorce, say he enjoyed a lavish lifestyle, selling luxury yachts often worth hundreds of thousands of dollars, buying expensive cars and generally living the high life. The vanity license plate on the Aston Martin Vanquish registered to him in Miami read: HIRISE. 

He also is listed as having a Miami condo in the same luxury high-rise where pop stars Jennifer Lopez and Marc Anthony keep a home. 

After helping start the telecom company VoEX and running a yacht brokering firm for several years, Vorce endeared himself to banks by successfully negotiating loans worth hundreds of thousands of dollars, sources said. State records show he has had at least 12 boats registered in his name in the recent past, although it's unclear how many he still owns. 

These were boats that cost as much as a middle-class home. One was a 41-foot Saber racing boat valued at more than $200,000. 

According to those who have done business with him, the situation ballooned out of control as Vorce began applying for large loans to finance boats he said he was purchasing, ostensibly to quickly resell. Those familiar with the situation say the banks' concerns arose over whether the boats ever existed, or ever belonged to Vorce or his company, Barrett Bruce Holdings.

In 2003, National City Bank sued him over $555,000 in loans related to two boats. That case was settled when Vorce came up with the money he owed. 

Along with expensive cars, boats and a Miami condo, Vorce has been involved in ventures such as the now-closed Level nightclub at American Seating Park and Red Star, a club that is slated to replace it. 

His home in Alpine Township sits behind a secured gate flanked by video cameras. Tax records value it at more than $540,000. Vorce owes $7,326 in back taxes for 2006 on the property, according to county records.

Left behind in Vorce's business dealings are people like Kline Kauramaki, president and chief executive at JW Messner/Marketing Tools Inc. Kauramaki said his marketing and advertising firm is out $32,607 as a result of Vorce. On Wednesday, he filed a lawsuit in Kent County Circuit Court against Vorce and several of his companies. 

Kauramaki said he had been talking to Vorce until last week about getting his bill paid. 

"I told him he had a receivable that is very old, it goes back to December," Kauramaki said. "I said, 'I need an answer, a payment plan today.' He said, 'I'm meeting with my partner this afternoon and we're going to powwow and I'll send you an e-mail in the evening.'" 

That e-mail never arrived, Kauramaki said. Vorce did respond to an e-mail after Kauramaki mentioned he had talked to The Press and, he said in his e-mail, had separately been told Vorce was the man behind the Macatawa Bank loan problems. 

Grand Rapids developer Jon Rooks said he also was stung by Vorce, to whom he had leased The Wharf Marina in Grand Haven. Rooks said Vorce fell behind in his lease payments and hadn't made property tax payments for which he was responsible under his lease. 

"There's a long list of intelligent people who made the same mistake I did," Rooks said. "I would have called him a friend, but I didn't know him as well as I thought. It's a combination of being angry, hurt and embarrassed." 

Rooks, who is retaining the Wharf's employees and planning to hire a new manager for the dry dock marina, said he will honor any deposits made by customers of the Wharf to Vorce for the upcoming season.

Press staff writers Ken Kolker and Jim Harger contributed to this story.


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