FBI probing Western Regional Off Track Betting
INVESTIGATION: Sources confirm OTB officials have been contacted by the bureau, focus of probe unclear but closing on on easter sunday over the other is ok with the fbi despite ny const art 1 sec 3
BATAVIA – The FBI has contacted individuals associated with the Western Regional Off Track Betting Corp., but the focus of the bureau's inquiry is not yet clear.
Reports of the federal investigators' interest follow a litany of accusations made against OTB officials by former state Sen. George Maziarz. The Newfane Republican publicly aired his claims in February but first made his accusations known in a letter to the New York State Gaming Commission in June of last year.
The online news organization Investigative Post, based in the City of Buffalo, first reported the FBI's interest in Western Regional OTB on Friday.
A source with direct knowledge of the FBI's inquiry confirmed to the Niagara Gazette that the bureau has approached individuals with ties to Western Regional OTB. A second source confirmed the information. Both spoke on the condition of anonymity due to the sensitive nature of investigations.
Neither the Gaming Commission nor the FBI will address whether probes are underway in their respective offices.
Brad Maione, a spokesman for the commission, said he would not "confirm or deny the existence of an investigation."
A spokeswoman for the FBI, Maureen Dempsey, gave a similar answer in response to questions from the Gazette on Friday.
"We do not confirm or deny any investigation until if and when it's made public through a court filing or a press release," she said.
Maione confirmed that the commission received an outreach from Maziarz but declined to comment on its content or form earlier this week. The Gazette subsequently obtained a copy of the complaint letter, which is dated June 15, 2018 and is addressed to the organization's inspector general.
In the letter, Maziarz alleged that tickets nominally meant to serve as perks for high-end customers at the Batavia Downs Casino were predominantly allotted to friends and family members of OTB officials, including Western New York politicians.
Maziarz made similar claims at his February press conference in the City of Lockport, though his letter to the commission contained specifics not addressed publicly during the press conference.
"WROTB expends hundreds of thousands of taxpayer dollars for payment of sporting events, golf outings, concerts and other entertainment events including luxury boxes at Buffalo Bills and Buffalo Sabres games, ostensivly (sic) and publicly these tickets are for the use of frequent high end customers at the Batavia Downs Casino," the letter reads.
"In reality, the overwhelming majority of these tickets are used by Henry Wojtaszek, his family members and friends, (former North Tonawanda Clerk Treasurer) Scott Kiedrowski, the former WROTB board member and current Vice President of Operations, his family and political allies and members of the OTB Board of Directors," the letter continues.
Maziarz contends in his letter that "none" of the uses are "reported in any financial disclosure reports."
"Diverting public funds to private benefit is expressly prohibited in the Public Officers Law," Maziarz said in his letter.
Kiedrowski, who has denied Maziarz's claims as "categorically false," previously served as the clerk-treasurer in the City of North Tonawanda and chief of staff for state Sen. Robert Ortt, R-North Tonawanda, who succeeded Maziarz as the representative in New York's 62nd Senate District.
Wojtaszek and OTB spokesperson Ryan Hassenauer did not immediately respond to requests for comment from the newspaper on Friday.
Tania Lopez, a spokesperson for the Office of the New York State Comptroller – another agency that could exercise oversight at OTB – said the office has not conducted a review of OTB operations in nearly four years.
"The last audit of the Western Region OTB was in 2015," said Lopez, who added that the previous audit was "not specific to Batavia Downs."
Spending wat venues for the Bills and Sabres have been significant in recent years, but OTB has yet to respond to Gazette inquiries for an itemization of the costs. The corporation has also refused Freedom of Information Law requests to release a list of ticket recipients.
Batavia Downs Gaming, LLC, paid $165,000 to Western New York Arena, LLC, for use of a full suite for all events, including 18 tickets for all Sabres games and Buffalo Bandits lacrosse games at what was then the First Niagara Center in downtown Buffalo for the 2016-17 season, according to a contract obtained by the newspaper.
Batavia Downs received 12 suite tickets for all other events held at the arena. Attendees would have access to a slate of amenities and the arena's private patron clubs. According to financial documents, the WROTB spent $298,125 with Western New York Arena, LLC, in the last two years.
At New Era Field, home of the Buffalo Bills in Orchard Park, Batavia Downs spent $78,500 for a 16-seat suite for 10 football games for the 2018-19 season. The amenities included $750 in food and beverage credits, catered cuisine, in addition to access to the stadium's club area and invitations to Bills VIP events.
Documents obtained by the Gazette indicate Batavia Downs paid Buffalo Bills, LLC, $226,060 in the last two years. The majority of the spending, about $192,000, occurred in 2018.
Reporter Philip Gambini can be reached by telephone at 282-2311, ext. 2251.
No comments:
Post a Comment