on Roman Catholic Easter and Roman Catholic Palm Sunday when Nassau OTB was closed and bettors could not bet the many races being run all across the United States. These guys are not as talented as Roger Clemens. Why waste time with these guys who can't even read NY Const. Art. 1, Sec. 3 and know that you can't close Nassau OTB on one Easter Sunday over the other. NYRA has more lives than Larry Seabrook and Pedro Espada. We need some competent crooks with character in New York?
The Saratogian (saratogian.com), Serving the Saratoga Springs, N.Y. region
The Saratogian (saratogian.com), Serving the Saratoga Springs, N.Y. region
News
NYRA officials could face criminal charges for overcharges, chair of Assembly's racing committee asserts
Wednesday, May 2, 2012By PAUL POST
ppost@saratogian.com
Twitter.com/paulvpost
SARATOGA SPRINGS — The state Assembly’s racing committee chairman says top New York Racing Association officials might face criminal charges in the wake of a shocking “takeout” scandal.
In December, state auditors discovered that NYRA overcharged bettors more than $8 million during a 15-month period beginning in September 2010.
NYRA President and CEO Charles Hayward has said the error was an oversight, but an interim state report released Monday said that he and Senior Vice President and General Counsel Patrick Kehoe knew about the situation and failed to take action.
“Because the takeout is done statutorily, to knowingly not abide by it is actually a criminal act,” Assemblyman Gary Pretlow, D-Yonkers, said Wednesday. “It’s one thing if the board tells you to do something and you don’t do it. When the law says to, you have issues. I expect to see some shakeup at the top at NYRA and a full-blown audit. I do think the comptroller’s office is going to go after this because state money is involved.”
State racing Franchise Oversight Board Chairman Robert Megna has ordered NYRA to respond to the report’s allegations by Friday.
“The report presents the possibility of violations of state law,” he said, in a letter to NYRA Chairman C. Steven Duncker. He has also called on the state inspector general’s office to determine if NYRA officials broke civil or criminal laws.
The state Racing and Wagering Board has been investigating the takeout incident since it first came to light in December. The seriousness of findings made to date prompted Monday’s interim report.
An investigation is continuing and a full report is expected soon.
Takeout is the percentage of each bet that a racetrack operator keeps before payoffs are made. NYRA kept 26 percent of the takeout on some exotic bets, instead of 25 percent.
“This is not an isolated instance,” Megna told Duncker. “Previously, I raised concerns about management’s failure to reveal the salaries of top officials.”
In December 2010, when NYRA was projecting a year-end $11 million loss, the NYRA board approved pay hikes for 10 top executives. Hayward, who has the highest salary — $475,000 — got a 3.2 percent raise; followed by Kehoe, $423,000, up 2.4 percent.
Hayward joined NYRA in autumn 2004 and guided the company through a tumultuous racing franchise selection process, when other firms challenged NYRA for the contract to run Saratoga Race Course, Belmont Park and Aqueduct Racetrack.
NYRA has recently been in hot water over other issues as well.
“Last month, I requested an independent inquiry into equine deaths at NYRA facilities,” Megna told Duncker.
In January, state Comptroller Thomas DiNapoli said NYRA had failed to adopt recommendations made in two previous audits, and that it would likely squander revenue from Aqueduct’s new casino if business practices weren’t improved.
In September 2008, NYRA was granted a new 25-year franchise to run its three tracks. However, Megna said NYRA is required to follow laws and rules that govern racing in New York.
“A failure to meet this most fundamental obligation puts into doubt the continued efficacy of the state’s franchise agreement with NYRA,” Megna said.
NYRA board member and New York Thoroughbred Horsemen’s Association President Rick Violette declined comment.
“There’s so many moving parts to this, the dust really hasn’t settled,” he said.
In December, state auditors discovered that NYRA overcharged bettors more than $8 million during a 15-month period beginning in September 2010.
NYRA President and CEO Charles Hayward has said the error was an oversight, but an interim state report released Monday said that he and Senior Vice President and General Counsel Patrick Kehoe knew about the situation and failed to take action.
“Because the takeout is done statutorily, to knowingly not abide by it is actually a criminal act,” Assemblyman Gary Pretlow, D-Yonkers, said Wednesday. “It’s one thing if the board tells you to do something and you don’t do it. When the law says to, you have issues. I expect to see some shakeup at the top at NYRA and a full-blown audit. I do think the comptroller’s office is going to go after this because state money is involved.”
State racing Franchise Oversight Board Chairman Robert Megna has ordered NYRA to respond to the report’s allegations by Friday.
“The report presents the possibility of violations of state law,” he said, in a letter to NYRA Chairman C. Steven Duncker. He has also called on the state inspector general’s office to determine if NYRA officials broke civil or criminal laws.
The state Racing and Wagering Board has been investigating the takeout incident since it first came to light in December. The seriousness of findings made to date prompted Monday’s interim report.
An investigation is continuing and a full report is expected soon.
Takeout is the percentage of each bet that a racetrack operator keeps before payoffs are made. NYRA kept 26 percent of the takeout on some exotic bets, instead of 25 percent.
“This is not an isolated instance,” Megna told Duncker. “Previously, I raised concerns about management’s failure to reveal the salaries of top officials.”
In December 2010, when NYRA was projecting a year-end $11 million loss, the NYRA board approved pay hikes for 10 top executives. Hayward, who has the highest salary — $475,000 — got a 3.2 percent raise; followed by Kehoe, $423,000, up 2.4 percent.
Hayward joined NYRA in autumn 2004 and guided the company through a tumultuous racing franchise selection process, when other firms challenged NYRA for the contract to run Saratoga Race Course, Belmont Park and Aqueduct Racetrack.
NYRA has recently been in hot water over other issues as well.
“Last month, I requested an independent inquiry into equine deaths at NYRA facilities,” Megna told Duncker.
In January, state Comptroller Thomas DiNapoli said NYRA had failed to adopt recommendations made in two previous audits, and that it would likely squander revenue from Aqueduct’s new casino if business practices weren’t improved.
In September 2008, NYRA was granted a new 25-year franchise to run its three tracks. However, Megna said NYRA is required to follow laws and rules that govern racing in New York.
“A failure to meet this most fundamental obligation puts into doubt the continued efficacy of the state’s franchise agreement with NYRA,” Megna said.
NYRA board member and New York Thoroughbred Horsemen’s Association President Rick Violette declined comment.
“There’s so many moving parts to this, the dust really hasn’t settled,” he said.
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