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View Full Version : Sanford Goldfarb caught up in Illegal Wagering and Corruption Probe with Mass. Track


Suff
07-20-2004, 03:13 PM
http://news.bostonherald.com/localRegional/view.bg?articleid=36351

Probe claims racetrack honcho let high roller phone in wagers
By Dave Wedge, Boston Herald.
Tuesday, July 20, 2004

Plainridge Racecourse head Gary Piontkowski took illegal phone and credit bets from a wealthy New York broker at the Plainville horse track, filtering cash payments through the track's money room, a scathing state police report alleges.

The explosive charges, which have been forwarded to the state racing commission and are being sent to Attorney General Tom Reilly for possible prosecution, allege that Piontkowski blatantly allowed high rollers to phone in bets in violation of state laws.

According to the report obtained by the Herald, Big Apple commodities broker and horse owner Sanford Goldfarb phoned in bets on credit and was paid with checks Plainridge officials originally claimed were for unspecified services. A top Plainridge manager later admitted to state police that the payments were for bets placed via the phone, a practice banned until this year. Beyond the phone bets, Goldfarb also allegedly was allowed to bet on credit, a practice still illegal.

According to the report, in some cases cash was removed from the money room and wagered at pari-mutuel windows on Goldfarb's behalf. ``Rebate checks'' were later cut to Goldfarb for his winnings. All the while, the Plainridge track would take a commission as high as 27 percent for all the wagers, racing insiders say.

One source told the Herald that Goldfarb bet as much as $100,000 in a day.

The report claims that he bet horses at various tracks through the Plainridge track and usually won. Piontkowski sometimes bet the same horses and also cashed in, according to the report.

Citing Piontkowski's ``obvious criminal culpability,'' state police Lt. Debra A. Simon called on Reilly's office to take action.

``Telephone account wagering which was prohibited by (racing) Commission regulations was being conducted at the Plainridge Racecourse and . . . Mr. Gary Piontkowski had knowledge of and sanctioned/encouraged the continuance of the activity,'' Simon wrote in the report.

Simon also charged that Piontkowski was ``less than truthful'' at several commission hearings, bet higher amounts than he disclosed and fostered a culture of ``intimidation, coercion and fear,'' retaliating against former employees who cooperated with the probe.

Piontkowski's attorneys also engaged in ``excessive stall tactics'' to slow the probe and avoid any licensing problems, the report states.

``As long as Plainridge operated, there was no need to cooperate,'' Simon wrote.

Piontkowski claims the charges are bogus and were investigated several years ago, without any criminal charges. He alleges that state police are seeking retribution against him for filing several complaints against troopers who worked at the track.

``There's nothing illegal,'' Piontkowski said. ``This is absolute retribution, retaliation and smacks of corruptiveness.''

Simon concluded in her report that Piontkowski's complaints of wrongdoing were unfounded.

The scandal is the latest in a long line at the Route 1 harness track and comes amid a shakeup on the state racing commission. Longtime member Leo Fama was removed from the board last week.

Sources say Fama's removal was tied to his outrage over the handling of the Plainridge scandal but officials say he was removed by Gov. Mitt Romney [related, bio] as a matter of politics. Fama was appointed by former Gov. Jane Swift and Romney is appointing his own members, commission spokesman Chris Goetchus said. Commissioner John Sherman also denied Fama's removal was tied to the Plainridge situation.

kenwoodallpromos
07-20-2004, 05:58 PM
NOW I ubderstand!

Suff
07-20-2004, 06:04 PM
btw.. before he got his Licsense to Operate Plainridge... Piontowski was our State Racing Commissioner!

And he's taking 6 figure phones bets,and using house money to put them in play? Then backing up Goldfarbs bets as well...

With what money was he wagering with?

This guy was in up to his eyeballs... His track wasn't open a month when his Partner sued him... His Partner mind you was an organized crime guy.. They went at for two years...and Piontowski wrestled control of the Track.. But the Mob still owns the land it sits on..

That whole operation is off the hook

the little guy
07-20-2004, 10:31 PM
I'm glad that you pointed out he was Mass. Racing Commissioner. Kind of surprising the author of the article didn't seem to know that. He also botched the whole " rebate " concept, as I have to believe Goldfarb was getting a substantial rebate, while the article seems to suggest he was paying a premium.

Big fan of the whole Goldfarb/Dutrow operation that I am, I was really sad to see this article, I only " hope " it gets wider release.

Tuffmug
07-21-2004, 10:03 PM
Why is this still a CRIME? Big deal over a guy using a PHONE to make a bet with a RACE TRACK!? The "Gambling is IMMORAL" crowd made this a crime and made us all victims of their holier than thou schpiel!

It's time for us "DEGENERATES" to get mad and get our rights back!

Pace Cap'n
07-21-2004, 10:20 PM
Originally posted by Tuffmug
Why is this still a CRIME? Big deal over a guy using a PHONE to make a bet with a RACE TRACK!?

Making a phone bet seems like no big deal.

Dipping into the till to cover such wagers seems to be a crime of some magnitude.

Figman
07-21-2004, 10:26 PM
I believe the problem is that the rules were different for people such as Goldfarb than they are for you and I. In betting with this Massachusetts racetrack, "special" customers did not have to set up an account beforehand and debit their bets off their established balance.....they could bet on credit! Racetracks are not by statute allowed to offer credit betting.

Suff
07-21-2004, 10:43 PM
not to mention..... If I make bets in 6 figure sums in cash....and you pay me in a check for "services Rendered"...

Thats money laundering.

Tuffmug
07-21-2004, 10:47 PM
The Track didn't lose a dime! In fact, they made money. Where's the crime. WHO GOT HURT? NOBODY!

Why is there a statute on the books making credit illegal for wagering purposes? It's the friggin "NANNY Patrol" out to protect us from ourselves. What crap!

Tuffmug
07-21-2004, 10:56 PM
Suff, If the check is for services rendered then it's taxable income. Goldfarb wasn't laundering anything. The "cash" was credit from the track to place bets within the paramutuel pools, not illegal drug profits.

The only thing Goldfarb was "laundering" was the paramutuel pools by winning big bets.

Pace Cap'n
07-21-2004, 10:57 PM
Originally posted by Tuffmug
The Track didn't lose a dime! In fact, they made money. Where's the crime. WHO GOT HURT? NOBODY!


Uhh, bettors putting up cold hard cash whose odds were depressed (significantly) by those with NO cash outlay?

Suff
07-21-2004, 11:05 PM
Originally posted by Tuffmug
Suff, If the check is for services rendered then it's taxable income. Goldfarb wasn't laundering anything. The "cash" was credit from the track to place bets within the paramutuel pools, not illegal drug profits.

The only thing Goldfarb was "laundering" was the paramutuel pools by winning big bets.

Exactly.... Laundering is designed to take money that you cannot pay tax's on and come up with a reason you can pay tax's on it.

If I have a 1/2 million in cash...(obtained Illegally) and I can give the govt no reasonable explanation "where" it came from... So I give Piontowski all the cash in the form of bets... and he pays me for "services".... BINGO... Its "earned income.

Laundering does'nt avoid tax's... It avoids explaining the origination of the money

kenwoodallpromos
07-22-2004, 11:06 PM
Anybody who pays parking and admission.
Is this like a margin call in the stock market?
How close to the post time (before or after?) were his bets accepted?
Did the front money amount show up on the toteboard?
Did the tote ever change after the race went off?
Is this done at tbred tracks where totes change after post time?
Do they have cancel delay there after the race goes off, and if so, was he hanging on the phone as the race went off and cancelling bets based on the start?

Suff
07-23-2004, 08:18 AM
I'm not insuating Sandy Goldfarb was Laundering Money....

But Think for a moment??,,,, You think Sandy Goldfarb was the ONLY guy they took bets for? Or used house money for? Or paid like a vendor? Or "who knows what else" for??

linrom1
07-23-2004, 07:18 PM
Who was paying WG-2 tax. The size of the bets would imply that withholding tax would be mandatory.

So none was paying any withholding tax, and the guy gets also a rebate! Can you still get a percentage from IRS for reporting fraud? If the guy was getting payed for services rendered, did he get 1099s? I don't think so.

Whom was he making the bets for! Was it Dutrow? Was it on his horses?

Figman
09-02-2004, 07:54 PM
What's up with this duo of Goldfarb and Dutrow?
Total disregard for any rules!
http://www.drf.com/news/article/58760.html