Rotten to the core

[karlskorner]

NYRA should be closed down now. They admitted in Dec. 02 that they "owed" $14 million to owners and horsemen, which now has increased to $20 million, they "borrowed" the money, which was being used for the association's operating expenses and have no idea how they are going to pay it back.

So they came up with a new plan, open up a seperate account for owners and horsemen, which will be used to pay purses and hold claiming desposts and will be ADMINISTERED by NYRA. THE FOX IS STILL IN THE HEN HOUSE. Closed Hialeah still owes Fla. owners and trainers millions, which they will never see.

www.drf.com/news/article/51416.html

I think the U.S. Attorney has good reasons to consider indictments against the NYRA, it's rotten to the core

[andicap]

Funny how so many people on this board violently defended NYRA and attacked NY state attorney general Spitzer when the first report came out on NYRA eariler this year.

Now of course we see where there was smoke, there was fire and NYRA's in a heap of trouble. I'm not saying its better for horseplayers if NYRA loses its franchise -- already the delay on VLTs is hurting the tracks and horsemen -- but if there's corruption and malfeasance, its the attorney general's job to root it out. I hope NYRA is proven innocent.

Spitzer has gone aggressively after corporate criminals, leading the nation's law enforcement officers in bringing manyof the scoundrels to justice -- such in the recent mutual fund probe. Just because he's a Democrat -- and may indeed be propeled by political ambitions -- does not mean he is wrong. After all, why do voters in NY so often elect a Democratic comptroller and attorney general and Republican governor or vice versa? As a checks and balance against each other.
Do you honestly think Dennis Vacco -- Spritzer's predecessor -- would have gone after Wall Street and NYRA?
This isn't partisanship on my part -- I cheered when the Republican US attorney in Chicago indicted the corrput Democratic pols outo there year ago.

Politics does help to keep officials on their toes.

[Figman]

andicap
If my memory is still functioning right, it was the Republican Governor's Racing and Wagering Board in NY that started this investigation, carried the ball as far as they could and turned over their findings to the attorney general's office and the NY comptroller. Somewhere I saw in print that the Racing & Wagering Board had all this in a report that they didn't release until many months later so the AG & the Comptroller could complete the work initiated by R&W.

This is the same NY Racing & Wagering Board that did all the work in the infamous Breeders Cup Pick Six scandal. Remember all the early reports on the Fix Six from R&W in which the press got the same answer day after day..."R&W is investigating the matter." Well they must be pretty good to come up with these doozies; especially with the Fix Six as there were three convictions lickety split!

[stgeorge]

Actually NYRA VP Bill Nader was the first racing authority to question the authenticity of the 2002 Breeders' Cup Pick Six. He is credited with lighting the fire that began the investigation.

[Suff]

They have a comingled Bank account. Money that was in there was used for Operating expenses.

not One Horseman was owed money that he could'nt draw on.

Damn.. Read the article.

[karlskorner]

The 3rd paragraph: NYRA had "acknowledged" in a Feb. letter to federal prosecutors that the association "OWED" $14 MILLIION to horsemen as of Dec. 31/02, because it had "borrowed" against the account to pay operating expense. The amount "owed" to the horsemen has grown to an estimated $20 million since NYRA sent the letter.

Of course the account was co-mingled, how the hell else are you going to steal (sorry borrow) money, certainly not from yourself. Sounds like the gentleman from Boston (Ponze) who ran a great pyramid scheme, the trainers/owners can withdraw as long as they don't look at the cooked books. When is the last time you heard of a owner/trainer being able to look and have an accounting of a tracks books. Kenny Noe had to know this, certainly would have not allowed it at CRC, but kept his mouth shut until they gave him his parachute, Terry Meyocks jumped ship with severance pay, leaves Barry Schwartz holding the bag.

Another qutoe: Duncker said that for now NYRA will cover its obligations to the fund by "continuing to put money into the account to the extent people (horsemen) take it out". Sure sounds like a Ponze scheme to me.

[Suff]

Yes.. But further in the article it tells you that the MONEY it spent is money that Horseman LEAVE in the account.

Its like your bank telling you , you have 20K in a CD. Do you think they have the 20? Or did they use it in the pursuit of additional Business.

The ability to close your CD and get paid any day you want still exsists. They only keep CASH reserves on hand for the "expected" withdrawals.

If a bank has 10 Billion in deposits...it Probably has less than 5 Million in actual CASH at its branchs.

You can make a case that the Accounting structure is not the best...

But no horseman ever asked for his winnings and did'nt get it.

[Figman]

Suff,
Let me wager using your betting account. I'll replace any losses if I have the cash (or at the very least, Iwill give you an IOU) on a regular basis but don't ask me to ever stop using your account. I need it for my daily wagers! That's what NYRA is doing with the horsemens' money.

But I have to admit, that you are not the right person to ask to use your account. For with your big heart, you would probably go for it!

[Suff]

Originally posted by Figman
Suff,
Let me wager using your betting account. I'll replace any losses if I have the cash (or at the very least, Iwill give you an IOU) on a regular basis but don't ask me to ever stop using your account. I need it for my daily wagers! That's what NYRA is doing with the horsemens' money.

But I have to admit, that you are not the right person to ask to use your account. For with your big heart, you would probably go for it!

LoL.. Thats not my BIG heart.. its my small Brain.

I believe people take any chance they can to take a whack at NYRA.

NYRA is the best Race circuit in North America. I really enjoy it. It brings me alot of pleasure. They've treated me well. Following the Horses, the trainers and Jocks..& the ins and out of the daily Race grind is a Hobby for me. Like being a Red Sox Fan. I'm a NYRA fan. I enjoy it...it makes me happy. I'm being a loyal fan when I try and get people to see both sides.

[Figman]

I'm right behind you Suff.

NYRA racing gives me my daily fix too. I go back to the large field races on the straightaway at Jamaica Race Track and can remember seeing NASHUA winning the Hopeful, the Jaipur-Ridan 1-1/4 mile head-to-head Travers race viewed from the Saratoga infield as if it was yesterday. No greater thrill for me than seeing my all-time favorite DR.FAGER, named after the Boston surgeon, winning his second career start at Saratoga and coming back two years later to win the Whitney by eight. This horse always came on the track looking like he was ready to explode.

Can't these people just get their act together and satisfy their regulators?

[takeout]

Originally posted by karlskorner
Closed Hialeah still owes Fla. owners and trainers millions, which they will never see.

What's the situation these days with Hialeah? Why can't the owners and trainers get their money? Is Hialeah still standing or has it been leveled?

[karlskorner]

Hialeah still stands, part of the grounds is an historical site, so can't be touched. The paddock side is probably one of the nicest piece of track architecture in the country. John Bernetti is the problem, he has been holding back big money from horsemen for years, accounting problems he says, he has buried it so deep they will never find it. For awhile I thought Magna was going to buy it, but they built Palm Meadows Training Center instead, 1700 horses stabled there another 1600 at GP, should be a great 90 day meet come 1/3/04. Come on down, horseracing don't get any better than this.

[takeout]

Karlskorner,

Thanks for the info. Makes me wonder where the dough from all of those high takeouts went. There sure are a lot of companies having "accounting problems" these days. :rolleyes:

[Suff]

Originally posted by karlskorner
. Come on down, horseracing don't get any better than this.

Whats the FOY date. 80% sure I'm going to come down to see it?

[karlskorner]

FOY 2/14/04. Haven't been too one for several years, can't handle the crowds. Sundays concerts are bad enough, mama's pushing armored steel SUV's baby carriages around with their child strapped in is scary enough, they learned from Teddy R, going up San Juan hill, CHARGE.

[Suff]

well if I come to this one...and I am pretty sure I am... Your going too. I'll get us a couple of Nice seats with plenty of elbow room... In case I feel Like throwing one!....:o

Seriously.. If I go..I want to get a Look at you!

I'll get you a seat and Buy You Lunch.

[cj]

I'll lay 100-1 that seat gets filled by the invited guest.

[Suff]

I need a Handicapping contest... I'm Challenging RMANIA to a DEATH MATCH capping Contest.. I'm inviting KARLKORNERS out to lunch at the FOY...

I'm just looking for trouble where ever I can find it.

I'm like a Teenager with out his Ridilin if I go to long without Competitive Handicapping. I need a contest before I hurt myself.

[karlskorner]

Thanks for the invitation, but I "hardly" think so. A couple of weeks back you made some harsh and "uncalled" for remarks about me to CJ (look it up if you forgot) which left me sour. I already have my free pass for the meet, sent to me by GP, so I don't need your seat if I decide to go. You "bought" a lot of people, but you can't buy me.

[PaceAdvantage]

Easy there killer....let's try and put that ugly past behind us, shall we??

[VetScratch]

Here's what I get out of Karl's linked article:

NYRA has millions on its books in horsemens' accounts that are subject to withdrawal upon demand. NYRA has spent $20-million of these funds and would not presently be able to cover a "run on the bank." They have a $20-million deficit in funds payable to horsemen.

A separate funding account will be opened, but that will not alleviate the $20-million deficit. It seems obvious that NYRA must depend on trainers to convince owners to forestall withdrawing their funds because the vast majority of these millions are in owners accounts. Trainers can be expected to cooperate because their careers are at stake.

However, past experiences at HIA and the Georgia track (BIR) have demonstrated that owners need to be vigilant. When and if the bad news comes, owners will be the last to know... the folks at the track will be the first to empty their accounts.

[VetScratch]

How ominous is the NYRA $20-million deficit?

What would it take to make things right so that horse owners can withdraw the funds that legally belong to them?

Will NYRA reduce staff and cut costs by $20-million? Very unlikely... not-for-profit organizations are notoriously inept at cutting costs because they lack profit-motivated ownership.

NYRA has been operating at a net loss. That why the horsemens' funds were misappropriated and the deficit grew so rapidly from $14-million to $20-million.

Can NYRA stabilize costs and make up the deficit? Very unlikely... without incurring additional expense, handle would have to increase by an unprecedented amount to offset the deficit. For example, because the NYRA share of simulcast handle is only about 2%, $1-billion in NEW simulcast handle would be required (at no additional cost) to recoup $20-million. Even when on-track, intra-state (OTB), and simulcast handles are combined, NYRA would have to freeze costs and dramatically increase handle for many years before the NYRA share of increased handle could recoup the $20-million deficit. The reason it would take many years is that only the NYRA share of increases to takeout revenues can be used pay off the deficit.

Will VLTs/slots rescue NYRA? Maybe, but New Yorkers will have to push billions through the slots before the NYRA revenue share of slot handle recoups $20-million at the same time as all the promised benefits associated with the new gambling legislation are honored.

IMHO, the motto at NYRA must be, "Bend over, New Yorkers!"

[Suff]

Originally posted by karlskorner
. Come on down, horseracing don't get any better than this.

You invited...I took you up on it... Now you are declining my acceptance of your invitation? I invite all people out to lunch. Its a Thing I do..

Ok.. I won't buy you lunch... and you have seat.
Thought I'd just say Hello and break bread. I did'nt think I'd own you for a Lunch.. But anyway. I was only trying to be somewhat cordial.

Thats done.

Its nice to meet people from the board. If its not your cup of tea then I understand.

As far as me insulting you? I think it was in referenece to you shootint your MOUTH off at CJ. Who , by they way, is part of the 90% of the people at Saratoga that gave me what they cost me. He gave me 200.00 for 2 days. Generous guy.

You are a LOUD MOUTH Karl.. you know that right? Your sharp tongued.

Plus your sensitive like a BROAD. Did'nt you say some real insulting things to CJ? Like he was only in the Military because he was not tough enough to make it in the real world? or something to that effect. Thats fine. Your entitled. Did you get my PM two days later where I said,, Karl I think you were way out of line but everybody has a bad day. Shake it off, I told you. No big deal. Words are just words. You ignored it or did'nt see it.

Anyway no big deal... I made an attempt.

But If your going to shoot your mouth off like you do...and Like I do as well.. You really should able to do two things

1. If you dish it out.. You gotta take it.

2. Put your Body where your keyboard goes.

[Suff]

Just for the record Karl. I would like to meet you and say Hello while I am in Florida. I'm a much more agreeable in person than I am out here. I Just thought... Here's a Guy that Posts almost everyday to the Board.. I'm heading to his HOME TRACK.. It'd be nice to put all the BS aside and meet him for a Cup of coffee and a Hot Dog.

And I still feel thatw way. I take very little of what is Posted here serious. This is a silly little message board in a HUGE internetr Galaxy. What we say and do here adds up to a Hill of beans. But when You can meet someone ans share a few Mniutes together and perhaps make a new friend..or better understand what the REAL person is about...thats real and substinant.

The offer stands. I'm not trying to twist your arm or "talk" you into it. I'd just like you to reconsider. Before I leave I'll post my Iternary and Lodging plans. If You change your mind , you can look me up. We'll go to lunch, dutch. But when Your in the Bathroom I'll pay the Bill. Then I'll own you!...;)

[karlskorner]

Although he resigned, he is still there

http://news.bloodhorse.com/viewstory.asp?id=19180

How short of money is the NYRA ? They are billing now for next years Saratoga meet (last 2 paragraphs)

[VetScratch]

Since Meycock's salary is $1,000 per day, why should he leave before the checks start to bounce? That's the good news... until he leaves, we can assume that not every penny of the owners' money has been spent, but the bad news is that NYRA must not have enough cash to pay $4-million owed to MGM.

Does anyone have the email address of that hapless Nigerian who can't find anyone to accept $-millions in a discrete skimming transaction? He needs to do lunch with NYRA. If he saves racing, let him run the show. Off-shore management is better than no management at all!

Of course, others may defend NYRA. It won't offend me. As Suff has proclaimed, "What we say and do here adds up to a hill of beans." :)

[PaceAdvantage]

How about Magna bleeding cash like a wounded pig..... Any comments about that entity?

[VetScratch]

PA,

I don't think horsemen place a lot of trust in Magna or the Churchill group. Many suspect that the real agenda of most tracks is to get into the casino business.

The tragedy in NY is that horsemen did trust NYRA, primarily because it is not-for-profit and ends up being viewed as a benign public service organization.

On the Chicago circuit, it is my understanding that the Horseman's Guarantee Company of America (HGCA) was set up to ensure that horsemens' accounts could NOT be treated as petty cash by racetrack owners and management. This is a model for reform that NY horsemen should insist upon.

If a fiduciary agency like the HGCA had existed in NY, the horsemen would have become aware of NYRA's problems $20-million sooner, when it started defaulting on payments due to the horsemen.

[PaceAdvantage]

Wait a minute....has NYRA ever officially defaulted on a payment due a horseman?

[VetScratch]

In Karl's original linked article, NYRA admitted the money is gone, and they do not have the funds to replace it. Are you suggesting that it was NYRA's to spend? Should horsemen be advised that their funds belong to NYRA? If that's so, I guess the horses that get claimed also belong to NYRA.

NYRA should NOT have spent money that belongs to the horsemen!

The problem with NYRA's official story about "borrowing" the money is that it invites the IRS to raise the question of interest. Check your tax codes... interest income is implied and taxable on an annual basis even if it is not collected... should the horsemen pay that too!

[Tom]

NY should ban implementation of VLT's until this is sorted out. Apparently, NYRA has light fingers, and adding more cash to the til is very risky. Whether or not they defaulted YET is irrelevant. They used someone else's money and that is stealing. They are not a bank and cannot create money. Time for house cleaning at NYRA. Time to award the franchise to fiscally responsible people.
Time for some Grand Juries to be created.

[PaceAdvantage]

MY PROBLEM IS THE CAVALIER ATTITUDE ON THIS THREAD BY VETSCRATCH....

VetScratch just tosses out that NYRA defaulted on payments to horsemen, WHICH IS COMPLETELY FALSE. Not one horseman who requested funds was denied, as far as I know.

NYRA has enough heat on it without VetScratch starting TO MAKE THINGS UP. Check your facts before you spout allegations....

[gonatas]

I don't quite get why this is such a big deal. All this stuff about the "light fingered" NYRA etc. The NYRA may be inept, inbred, and possible nepotistic, but they aren't exactly evil.

This is all about NY State politics. No horseman is ever going to lose a penny over any of this. Plenty of politicians would love to fill the NYRA with their own patronage (like the State OTBs).

Get real guys.:cool:

[VetScratch]

PA,

I think you would understand this issue better if you look at any active horseman's account statement. Every debit and credit is clearly shown by date, description, and amount.

Now, NYRA officials admit that funds do not exist to cover the balances in these accounts. The explanation in Karl's linked article is that NYRA borrowed these funds from horsemen, which is pure nonsense for two reasons:
(1) As the article points out, horsemen were never informed about such borrowings, which were discovered only when a memo from NYRA to federal prosecutors was leaked to the press.
(2) If NYRA had authority to borrow these funds, since no interest is actually being paid to horsemen, "Below Market Rate" rules for forgone interest would apply. Horsemen would have to annually pay taxes on forgone interest income calculated at the "applicable federal interest rate" published by the IRS. None of this is being done, of course, because NYRA did not have the authority to borrow.

What do you call "borrowing without consent?"

What I said in a previous post was that horsemens' accounts should have been maintained by a fiduciary agency like the Horseman's Guarantee Corporation of America (HGCA). Had this been done, NYRA would have defaulted on payments to the fiduciary agency, and NYRA's financial mismanagement would have been discovered long before the deficit grew to $20-million.

I would also assert that there are no deposit insurance policies on the horsemans' accounts because NYRA is reluctant to open its books to scrutiny. If NYRA had not been so secretive, reserve requirements similar to those for banks could have been determined, deposit insurance could have been obtained, and NYRA could have legitimately used a substantial portion of the horsemans' funds for business purposes.

[VetScratch]

gonatas.
This is all about NY State politics. No horseman is ever going to lose a penny over any of this. Plenty of politicians would love to fill the NYRA with their own patronage (like the State OTBs).If the politicians "patronize" NYRA to make good on this situation, you can bet that the money will come right out of taxpayers' pockets.

Why is this not a big deal?

[PaceAdvantage]

So Vet, you still can't admit you were wrong when you stated:


the horsemen would have become aware of NYRA's problems $20-million sooner, when it started defaulting on payments due to the horsemen.


What horsemen's payments were defaulted on? Name names.

And another thing:

Exactly what laws have been broken here?

[VetScratch]

PA,

Let's quote me in proper context:If a fiduciary agency like the HGCA had existed in NY, the horsemen would have become aware of NYRA's problems $20-million sooner, when it started defaulting on payments due to the horsemen.I never said NYRA had defaulted. Are you saying that NYRA would have been able to deposit the horsemens' $20-million with a fiduciary agency like the HGCA? Given what has been revealed about NYRA's financial condition, I don't see how that would have been possible. Why hasn't MGM been able to collect $4-million due from NYRA?

[VetScratch]

BTW, the purpose of a fiduciary agency is to maintain the accounts so that neither the horsemen or the racetracks can fiddle with them. Things could have gone just as wrong if a horsemens' association had been maintaining the accounts as they have with NYRA maintaining the accounts.

[VetScratch]

To understand exactly what I mean, inquire with any of the many NY trainers who have shipped to the Chicago circuit and won stakes races. None of them received account statements, checks, or 1099's issued by AP, HAW, or SPT. Everything is administered for both the tracks and the horsemen by the HGCA.

The tax identifier for all 1099's is that of the HGCA and not that of any of the tracks. When checks are cut, they are HGCA checks. When statements are printed, they are HGCA statements that encompass all debits and credits associated with activities at any of the racetracks.

[VetScratch]

And to be precise, I should have said inquire with any of the NY owners (and/or trainers if they have ownership interests) that have shipped to Chicago and won stakes.

Too much time in the backside community has conditioned me to think the way most backsiders do... sooner or later the owners' money will end up on the backside! :)

[Tom]

Originally posted by VetScratch

... sooner or later the owners' money will end up on the backside! :)

....mine too!:rolleyes:

[VetScratch]

PA,
Until Spitzer and/or the federal prosecutors take action or the legislature intervenes, speculating about NYRA is too gloomy a subject, so let's see what really happens.

In the meantime, we can more cheerfully look ahead to next year's maiden races at BEL!5-1/2 Furlongs. MAIDEN SPECIAL WEIGHT. Purse $41,000 IOU from NYRA. For Maiden Two Year Olds, foaled in New York State and approved by the New York State-Bred Registry. Weight 118 lbs. :) :) :)

[Figman]

More NYRA clerks plead guilty today.
http://tinyurl.com/vfnt

[andicap]

Latest: Spitzer wants to know why the feds are dragging their feet, one way or the other on indictments. The feds are holding things up -- with the indictment hanging, NYRA can't put in VLTs. If they knew they wouldn't be indicted, it could unlock the logjam there.

[Tom]

Originally posted by VetScratch
PA,
Until Spitzer and/or the federal prosecutors take action or the legislature intervenes, speculating about NYRA is too gloomy a subject, so let's see what really happens.

In the meantime, we can more cheerfully look ahead to next year's maiden races at BEL! :) :) :)

Claiming price-$10,000
If for $8,000, allowed 3 pounds.
If for cash, allowed 5 pounds

Gives new meaning to the term...
probabal payoffs!
:D :rolleyes: :D

[PaceAdvantage]

Maybe the feds are dragging their feet because it ain't worth their time, cause it might just be a BS case....we'll see....

[VetScratch]

PA,
NYRA has enough heat on it without VetScratch starting TO MAKE THINGS UP. Check your facts before you spout allegations....As you well know, I never said NYRA has defaulted on disbursements to horsemen. And you know as well that what NYRA actually did with the horsemen's money is currently under investigation.

I am truly puzzled that you apparently condone the way NYRA has handled the horsemen's money.

Your position is puzzling because no one seems to contest the fact that funds recorded in the horsemen's accounts actually belong to the horsemen.

Are you defending NYRA because you believe it was entitled to spend $25-million that belonged to horsemen? If so, you must condone furtive "borrowing" without consent. It was clearly NYRA's intent to hide the "borrowing" because the resulting deficit was only revealed when a plea-bargain memo to federal prosecutors was leaked to the press.

You seem to think horsemen are lending to NYRA when they make deposits, and are accepting credit memos when they win purses. I would suggest that because NYRA steadfastly refuses to submit to an independent audit, the NY R&W Board has been unable to monitor NYRA for compliance with existing escrow regulations for purse monies. NYRA's publicized financial woes suggest that NYRA has probably offered purses that exceeded current funds in escrow. The very existence of escrow regulations should be enough to convince you that racing is a cash business.

When owners make a claim, it is invalidated unless collected funds are in their accounts. This rule often requires owners to take cash or a cashier's check to the horsemen's bookkeeper because personal checks must clear through the banking system and Federal Reserve before collected funds are credited to a horseman's account (except that some U.S. tracks have been accused of violating this rule for inner-circle "friends of the management"). Prior to any race, an owner's account must also contain sufficient collected funds to cover the standard riding fee for the named jockey; otherwise, the stewards are supposed to scratch such horses. I can't count the times my uncles have deposited last-minute cash in their owners' accounts to thwart a stewards' scratch.

When owners win purse money, their account statements show a clearly dated credit to their account. Immediately following is a debit to pay the jockey. For a winning ride, the owner pays 10% of gross purse winnings to the jockey. Did you think NYRA was responsible for paying jockeys? Furthermore, jockeys don't bank with NYRA for the same reason that you don't bank with institutions that lack deposit insurance. Thus, the jockeys are unaffected by the $25-million deficit. Likewise, most trainers are surely smart enough to keep minimal operating funds on deposit in uninsured NYRA accounts. Some owners pay trainers from their horsemen's accounts, but the bulk of such payments is soon deposited in federally insured banks. As a result, the owners are essentially the only parties who have been "borrowed from" by NYRA. Finally, it should be obvious why NYRA does not carry deposit insurance: no independent audits, no financial discipline, and massive debt (with much of it in deferred payment status).

If NYRA won't trust owners, why do you seem to think that owners should trust NYRA?

NY owners should insist upon the creation of a clearing house like the Horsenan's Guarantee Company of America (HGCA) in Chicago. The HGCA maintains horsemen's accounts and is responsible for collecting and clearing all funds. Everyone benefits because racetracks, owners, jockeys, trainers, photographers, and all other parties know that transactions are based on collected funds and that account balances are insured. Horsemen can review their accounts via horsemen's bookkeepers at racetracks, via personnel at the HGCA offices, by requesting interim statement mailings, or (optionally) by using their PIN numbers to review accounts via the Internet. Although the first level of deposit insurance relies on the financial strength of the insurance industry, for a nominal annual fee, the HGCA offers horsemen the additional security of Federally Insured Deposits, VISA/Mastercard convenience, and HGCA drafts (like checks). Otherwise, all HGCA services are free.

If such a system had been in place in New York, the NYRA "borrowing" scam would have never got started.

[Dave Schwartz]

A question: Why should the federal government be involved in an audit of NY racing? Is there interstate commerce or some other federal issue involved?

Dave Schwartz

[VetScratch]

Dave,

Who suggested federal audits of NYRA? So far, NYRA has merely refused requests by the NY Comptroller for an independent audit. However, there is no way NYRA would be able to obtain deposit insurance without opening it's books to outsiders.

With respect to the HGCA, the option for Federal Deposit Insurance requires an optional fee because the FDIC insurance is obtained by maintaining funds in an FDIC insured bank account. For the standard deposit insurance (free to horsemen), the HGCA must only satisfy the examination requirements of the insurance industry.

Do you put your money in uninsured accounts?

[VetScratch]

Dave,

And it is most likely the nominal optional fee has less to do with FDIC insurance than it does with the convenience features: plastic cards and drafts. If an HGCA account holder wants withdraw funds (e.g., to make a deposit into his/her own interest-bearing account), all they have to do is write an HGCA draft.

The system is designed to protect both tracks and horsemen by ensuring that ALL racing transactions are based on collected funds.

==========
"No son, I don't think that weasel is out to borrow some eggs, I think he plumb means to eat them!"

[andicap]

Crime is actually very low in NYC on a per capita basis, among the lowest in the nation among big cities.

New York is a very safe place -- if you use a little common sense (don't go walking in Central Park after dark or certain neighborhoods.)
Even the subway is safe most of the time.
It pisses me off when David Letterman jokes about how dangerous NY is -- just spreading a stereotype that is totally false.

And in my neighborhood north of NYC, it's incredibly safe.

[cj]

Andi,

When you say NY is very safe, are you referring to Manhattan, or Queens, the Bronx, etc. as well? Big difference. Of course the showpiece of the city will be safe. The Inner Harbor in Baltimore is very safe too. Just don't stumble too far north or west.

[Observer]

Aw .. don't blame Dave .. that's just the way he is .. always joking. I think part of the problem is that when something happens in NYC .. it's major .. if the same thing were to happen in another city .. probably wouldn't be considered as major in the media .. and let's face it .. it's the news (tv and print) that makes stories major.

and as for the part about using smarts when going through Central Park and certain neighborhoods .. you can say that about alot of places .. the important thing is to try never to put yourself in a vulnerable situation .. anything can happen anywhere .. how many times do you hear people say .. "this is such a quiet neighborhood .. I never could have imagined something like this happening here."

[VetScratch]

Andi,

Out in Oklahoma, as the ranchers used to say,
You can't knock Pretty Boy Floyd, the outlaw;
You'll be robbed by fountain pens far sooner
Than by Mrs. Floyd's finest, on any given day.