"Integrity"

[boomman]

'Integrity' Report Released; Rebate Shops a Concern
Date Posted: July 2, 2007
Last Updated: July 2, 2007



New York state Inspector General Kristine Hamann
Photo: File

By Tom LaMarra and Tom Precious

A report (http://www.ig.state.ny.us/pdfs/Report%20to%20the%20Governor%20on%20the%20Integrit y%20of%20Those%20Seeking%20to%20Operate%20the%20Ra cetracks%20at%20Aqueduct,%20Belmont%20Park%20and%2 0Saratoga.pdf) by the New York Office of Inspector General (http://www.ig.state.ny.us/reports/reports.html) to Gov. Eliot Spitzer lists four “general areas of concern” among the four entities seeking the franchise to operate Aqueduct, Belmont Park, and Saratoga, including relationships with rebate shops and bookmakers who take bets on racing from the United States.

The Office of Inspector General was ordered by Spitzer to conduct a due diligence review of the ethics and integrity of the groups seeking the franchise: Capital Play (http://www.capitalplayny.com/), Empire Racing Associates (http://www.empireracingny.com/), Excelsior Racing Associates (http://www.excelsiorracing.com/), and the New York Racing Association (http://nyra.com/), which currently holds the franchise. The report was released July 2.
more at www.bloodhorse.com (http://www.bloodhorse.com/)

Is it just me, because somehow the word "integrity" is not the first thing that comes to mind when I read this stuff!! LOL :D

Boomer

[speedking]

Seems to me that the word "Integrity" should not appear in any article or review related to this topic unless preceded by the words " lack of ".


speedking

[GoBabyGo]

Is it just me, because somehow the word "integrity" is not the first thing that comes to mind when I read this stuff!! LOL :D

Boomer


some of the best stuff i posted, too much to post all.



There are, however, serious risks associated with rebate shops. A foreign bookmaking operation is in a unique position to launder illicit drug proceeds through back-door access to pari-mutuel pools in the United States. By betting consistently on races where the risk of loss is known to be relatively slight, money can easily be laundered through the unregulated settlement process by which race tracks and international rebate shops settle pari-mutuel winnings and losses, usually on a monthly basis. For example, by using sophisticated computer arbitrage systems that maximize the probability of selecting winning betting combinations; by “batch betting,” in which a computer is configured to emulate a betting terminal and in which batches of wagers are transmitted to the totalisator3 at a rate of up to 50 bets per second at the very end of the betting cycle, or in some cases, illegally placed after the cycle is closed; or by simply betting on fixed races, a money-laundering operation can extract “clean” pari-mutuel wagering dollars from a U.S. track, either directly or by using a settlement agent in the United States.

A racetrack can minimize this risk by entering into agreements with only licensed, regulated simulcasting services. Yet even these companies may present integrity concerns. For example, Grupo Caliente is a simulcasting service and licensed bookmaking operation based in Tijuana, Baja, Mexico, that has been the subject of numerous allegations of illegal activities. On the surface it appears to be a legitimate operation, managing racetracks and bingo halls in Mexico and a network of more than 165 off-track betting sites located throughout Mexico and Latin America. In addition, the company has been issued 88 additional permits to operate off-track betting sites and
bingo halls in Mexico. Through Grupo Caliente’s race track in Tijuana, Mexico, the company provides simulcasting of races from the United States as well as Mexico. It is licensed by the Mexican Department of Interior, with a license valid for 25 years. For several years, Jorge Hank Rhon, Grupo Caliente’s chief operator and the current mayor of Tijuana, has been suspected by U.S. law enforcement and Mexican authorities of illegal money-laundering activities related to illicit drug trafficking, particularly with the Arellano Felix drug cartel based in Tijuana. Additionally, Carlos Hank Rhon (Jorge Hank Rhon’s brother) allegedly laundered money for one of Mexico’s former presidents through Laredo National Bancshares of Laredo, Texas, a bank Carlos Hank Rhon partially owned.To the extent that Grupo Caliente may be involved in money laundering, it could easily exploit its status as a licensed bookmaker to launder illicit proceeds through U.S. tracks’ pari-mutuel wagering pools. It is a relatively simple matter for a licensed out-of country bookmaker to partner with an offshore rebate shop with access to pari-mutuel pools in the United States. Using the anonymity provided by the offshore rebate shops, bookmakers can access the pari-mutuel wagering pool to control risk by “laying off” significant wagering activity to one of the offshore rebate shops permitted to place bets into U.S. tracks’ pari-mutuel pools.

At least two gaming regulators have formally made know their concerns about Grupo Caliente and Jorge Hank Rhon. The Nevada Gaming Control Board (NGCB), perhaps the preeminent gaming regulator in the country, has cited Grupo Caliente in three different public hearings relative to the licensing suitability of American Wagering in June 1997, as well as in connection with VirtGame Corp. in October 2002. Essentially, these companies were directed by the NGCB to conclude any contracts with Grupo Caliente and to not renew those contracts. Grupo Caliente’s U.S. representative for simulcasting events in the United States and Mexico, Arturo Alemany Salazar (who operates a company called MIR International), came under similar scrutiny by the Puerto Rico Racing Administration. Mr. Salazar, of San Diego, California, was a recent applicant for licensure with the Puerto Rico Racing Administration, for whom the Administration recommended a finding of “unsuitability.”


Magna and Churchill Downs have commercial arrangements with various offshore rebate shops and simulcasting services, including Grupo Caliente. Churchill Downs stated that as part of its long term business relationship with Grupo Caliente, it reportedly conducted a limited due diligence review and, as a result, Churchill continues to do business with the entity. :lol:


Additional discrepancies were also discovered. For example, one individual, Michael Dubb, has as many as 46 separate active lawsuits that he did not disclose but were later discovered during this integrity review. Dubb, also failed to disclose his racing or gaming licenses. While not included in his questionnaire, investigation revealed that he was issued a license by the New York State Racing and Wagering Board in February 2005. Moreover, his Racing Application History Report set out that a racing claim slip held by him was found to be invalid for the reason that “the signature [on the claim slip]
was not Mr. Dubb’s.”

how the hell can you be sued 46 times and forget it. much more good stuff actually not so much good as friggin sad :(

[Good4Now]

in the list of areas of concern is "Political Relationships or Contributions"

Anybody wanna play NAME THE BAGMAN????

[kenwoodallpromos]

Sounded to me more like bashing everybody except the track land owner, NYRA!

[Indulto]

Sounded to me more like bashing everybody except the track land owner, NYRA!KW,
A “Discrepancies and Omissions in Responses to Questionnaires” section appears for each bidder. For NYRA it appears on pp 46-48. It does seem that the NYRA would be better off without some of its “key” members.

http://www.ig.state.ny.us/pdfs/Report%20to%20the%20Governor%20on%20the%20Integrit y%20of%20Those%20Seeking%20to%20Operate%20the%20Ra cetracks%20at%20Aqueduct,%20Belmont%20Park%20and%2 0Saratoga.pdf (http://www.ig.state.ny.us/pdfs/Report%20to%20the%20Governor%20on%20the%20Integrit y%20of%20Those%20Seeking%20to%20Operate%20the%20Ra cetracks%20at%20Aqueduct,%20Belmont%20Park%20and%2 0Saratoga.pdf)

[Edward DeVere]

or in some cases, illegally placed after the cycle is closed

Quite the interesting tidbit, wouldn't you say?

[LaughAndBeMerry]

For several years, Jorge Hank Rhon, Grupo Caliente’s chief operator and the current mayor of Tijuana, has been suspected by U.S. law enforcement and Mexican authorities of illegal money-laundering activities related to illicit drug trafficking, particularly with the Arellano Felix drug cartel based in Tijuana. Additionally, Carlos Hank Rhon (Jorge Hank Rhon’s brother) allegedly laundered money for one of Mexico’s former presidents

Where Was The TRPB?


Additional discrepancies were also discovered. For example, one individual, Michael Dubb, has as many as 46 separate active lawsuits that he did not disclose but were later discovered during this integrity review. Dubb, also failed to disclose his racing or gaming licenses. While not included in his questionnaire, investigation revealed that he was issued a license by the New York State Racing and Wagering Board in February 2005. Moreover, his Racing Application History Report set out that a racing claim slip held by him was found to be invalid for the reason that “the signature [on the claim slip] was not Mr. Dubb’s.”

Where Was The TRPB?

According to DCJS, based upon the fingerprint cards received from an Empire key person, the FBI identified a record indicating that an Empire key person had been arrested in 2006 and charged with Driving Under the Influence. According to the County Sheriff’s Department, the case is still pending. This arrest was not disclosed on the key person’s integrity questionnaire.


Where Was The TRPB?


When questioned about simulcasting contracts, including any involving Grupo Caliente, Johnston referred the consultants to Jim Hannon, who oversees simulcasting for Johnston’s racetracks. Hannon stated that two of Johnston’s tracks, Maywood and Balmoral Park, simulcast to a San Diego, California company, MIR International, which does business with Hippodrome de Caliente (i.e., Grupo Caliente), a race track in Tijuana, Mexico. MIR International is Arturo Alemany Salazar’s company. As mentioned above, Salazar is Grupo Caliente’s U.S. representative for simulcasting events in the United States and Mexico, and was recently found by the Puerto Rico Racing Administration to be unsuitable for licensure.


Where Was The TRPB?


Magna has commercial relationships with various offshore rebate shops and simulcasting services including International Racing Group and the Elite Turf Club, both of which are among the banned NYRA Ten. Magna also does business with Grupo Caliente, its history being discussed above.


Where Was The TRPB?

According to The Wall Street Journal (May 11, 2007), officials of Magna International, Inc., a Canadian auto parts maker, and Oleg Deripaska, a Russian aluminum magnate, announced a plan in which Mr. Deripaska would purchase a $1.54 billion stake in Magna. United States law enforcement officials suspect Mr. Deripaska of having ties to Russian organized crime. Deripaska’s visa to travel to the United States was canceled last year because of Washington’s legal concerns. The sale would give Deripaska significant control of Magna, giving him the right to nominate six of Magna’s fourteen Board members, the same number as are nominated by the Stronach family that currently controls Magna.

Where Was The TRPB?

Oh wait, I forgot. The TRPB is owned by the racetracks. Now it is making more sense. :rolleyes:

[LaughAndBeMerry]

Churchill Downs also does business with another rebate shop named in the UvariIndictment and originally part of the NYRA Ten: Lakes Region Greyhound Park (Lodge at Belmont).

Sorry last one. The people associated with Lakes Greyhound were all indicted and most of them plead guilty to money laundering, tax evasion. I copy and pasted some of the link below . Here is link too. http://www.greyhoundnetworknews.org/backissues/05/Q01_cover_a.html




Lakes Region Greyhound Track Execs Indicted in $200 Million Gambling Ring
Track Revenues Plummet Following Indictments

Belmont, New Hampshire: Lakes Region Greyhound Park general manager Richard Hart and assistant general manager Jonathan Broome were among 17 individuals arrested Jan. 14 on federal charges of operating an illegal off-shore gambling operation that allegedly brokered more than $200 million in bets on horse racing. Hart and Broome are facing numerous charges, including operating an illegal gambling business and money laundering.

The Hart family took over the track in 1991, forming the New Hampshire Gaming Association, a limited partnership that owns the racing license. Allan Hart is the general partner; the limited partners are his sister-in-law Joan Hart and Vincent DiCesare of Massachusetts, a longtime friend of Allan Hart's. DiCesare owns 40 percent of NHGA. Richard Hart is the nephew of Allan Hart and one of the three sons of Joan Hart.

Richard Hart, 45, and Broome, 49, were arraigned in a New York City federal courtroom Jan. 18. Both men had appeared earlier in U. S. District Court in Concord and were freed on $100,000 unsecured bail. The indictment seeks the forfeiture of at least $200 million in assets, including homes in several states. Hart's $589,000 Londonderry residence is among those assets, along with his accounts at Laconia Savings Bank and Sovereign Bank.

The charges are the result of a two-year federal investigation into a gambling business that operated over four years, principally in New Hampshire, New York, New Jersey, Florida and Nevada. The indictment alleges that Hart and Broome, through a Concord company, the International Players Association (IPA), funneled bettors' funds between the Uvari Group and Euro Off-Track on the Isle of Man in the United Kingdom. Federal prosecutors allege that IPA was part of a trans-Atlantic money laundering scheme. Richard Hart is a principal and chief executive of IPA; Broome is an emloyee.

Gambino Crime Family Involved
According to prosecutors, three alleged associates of the notorious New York-based Gambino organized crime family - Gerald Uvari of Coconut Creek, Florida; Cesare Uvari of Marlboro, New Jersey; and Anthony Uvari of Las Vegas - along with two other indicted men, acted as intermediaries between bettors and several off-site gambling businesses where gamblers could place bets by telephone or over the Internet. Court documents refer to the intermediary organization as the Uvari Group.

Prosecutors charged that the scheme allowed bettors to set up anonymous accounts for illegal gambling at off-site facilities, including operations in Great Britain, Curacao, North Dakota and Oklahoma. Each account had a Social Security number that belonged to one of Uvari Group's five partners, which was used to report income and losses to the Internal Revenue Service. That allowed bettors to avoid paying taxes on winnings and allowed the five partners to claim gambling losses that were not their own. One of the indicted Uvari Group members, Anthony Uvari, received a tax refund of $156,794 for the 2003 tax year.

According to the indictment, "[Richard] Hart transferred the funds he received either from bettors or the Uvari Group to a betting account maintained at Euro Off-Track for the benefit of the Uvari Group."

AG Seeks License Revocation
At a press conference held March 8, New Hampshire Attorney General Kelly Ayotte recommended that the state's Pari-Mutuel Commission revoke the operating license of Lakes Region Greyhound Park, charging it is "intimately connected" to IPA.

Ayotte's report to the commission, supporting her request for the license revocation, was made public March 11. The report states the track's partners are part owners of IPA, which allegedly conducted an illegal gambling business at the track using track employees and telephones. Ayotte alleges that Allan Hart's three nephews, Richard, Kenneth and Robert, are part owners of the track but the three brothers tried to hide their ownership shares behind a trust set up by their mother. Ayotte also alleges that NHGA knowingly hired people with past gambling convictions. The three brothers were all convicted of various gambling-related crimes in Massachusetts between 1988 and 1991. Richard and Kenneth each held managerial positions at Lakes Region for more than a decade.

State law prohibits track owners from employing anyone convicted of gambling-related crimes within ten years of their convictions. The state is now in the process of re-evaluating licensing and background check procedures.


http://www.greyhoundnetworknews.org/backissues/05/Q01_cover_a.html