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But despite that success, a handful of other developments have darkened NYRA’s prospects, including the suspension on Monday of Charles Hayward, the association’s president since 2004, and Patrick Kehoe, NYRA’s legal counsel since 2002.
Both officials were named in a report by the New York State Racing and Wagering Board that challenged claims that association officials were not aware that they had applied the wrong takeout rate to wagers for a period of 15 months in 2010 and 2011. The report was issued on Monday morning, and by late on Monday afternoon, NYRA’s board had issued the suspensions.
The suspensions have led to disarray at NYRA. Officials on Tuesday said they would not comment on the association’s plans beyond a statement released by the board on Monday night that NYRA would cooperate with the state’s inquiry. Steven Duncker, the association’s chairman, did not return phone calls.
With the suspensions in place, the highest-ranking management official at NYRA is Ellen McClain, the company’s chief operating officer. Although she has a strong reputation at NYRA and among state regulators for her financial expertise, she was a newcomer to the racing industry when she was hired as NYRA’s chief financial officer in 2009.
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