'Hammer' Coming Down on NYRA

[PaceAdvantage]

BIG article in Friday's Newsday....here's the first three graphs...


The Justice Department is on the verge of completing an unusual deal in which the politically connected New York Racing Association would be indicted on conspiracy, tax evasion and fraud charges but would not go to trial, sources say.

Instead, the association would be allowed to continue to run the Aqueduct, Belmont and Saratoga Springs racetracks for the state if it agrees to thoroughly clean up its operations, according to the sources.

However, several of the association's managers will be indicted on similar charges and have to stand trial, the sources added. NYRA has agreed to pay several million dollars in fines and several members of its board of trustees will resign, the sources said.

Complete Story Here (http://www.newsday.com/ny-linyra1205,0,7211646.story?coll=ny-top-headlines)


BTW, this is the lead story on Newsday.Com home page.

Looks like its a slap on the wrist for the corporation itself...just like I thought it would be....more show then go.....

Now, the big $40,000,000 question is whether or not this "indictment" will or WILL NOT allow MGM to continue building the slot parlor at Aqueduct.....me thinks this is going to be a very sticky situation, because this "source" in the Newsday article is calling this an indictment, although NYRA will continue to run the show, and won't have to stand trial. Technically, this does not sound like an indictment to me, but what do I know....

If the official Justice Department report uses the word indictment, I think MGM is going to have a big problem with Nevada regulators....right?

[VetScratch]

You beat me to it PA! I was just about to post. This is great news!

NYRA's Supporters Work Out Indictment Deal!

http://www.newsday.com/news/local/longisland/ny-linyra1205,0,661297.story?coll=ny-linews-headlines

The way Security Chief Cook's appointment was announced was the tip-off that NYRA's supporters were disgusted and ready to take control. The sharks have to be fed, so let's hope Cook manages the gangplank procession with dispatch.

Finally, Pataki/Bruno/et al can begin meaningful negotiations with THA attorney Alan Foreman to formulate a plan that will re-start the VLT implementation.

The story says NYRA will be in "deferred prosecution" status after the indictments. This should keep NYRA under control until the details of MGM's legal position and options are evaluated.

[kenwoodallpromos]

Appearantly no one wants NYRA out and Stronach in! Lots of interesting connections! BTW, I just read that Stronach is Austrian, like Arnold! I will have to keep an eye on Ca Racing!!

[andicap]

I disagree, PA.
Several people getting indicted and millions in fines is no slap on the wrist. If it will get the VLTs in faster and clear up the situation, its a big win for New York racing. Worst thing would have been fed indictment, long drawn out process, etc.

As long as the guilty people don't get off (of course they might get acquitted for convicted and a suspended sentence, but that's the justice system, not the prosecution), I'm happy. And if NYRA truly does clean up its act, that's a plus too.

[Suff]

Originally posted by andicap
[B]I disagree, PA.
Several people getting indicted and millions in fines is no slap on the wrist. B]

When compared with what the Goal or worst case was , this is a VICTORY for NYRA..

#1 They retain Control.

#2 The Corporation that is NYRA will not be indicted... only individuals..

Both these are big because Construction Loans and Revenue sharing, and UPFRONT fees were all being withheld. MGM is prohibited from doing business with a Corporation under an active indictment...

This clears the way for NYRA's Business PLAN. 10% takeout here we come. Great news!!!

[VetScratch]

Suff,

NYRA has no control over anything... and won't for a long time.

Spitzer and the IRS will get idictments and the choke-chain grip of "deferred prosecution." A way to enable MGM to proceed must be found/determined.

Hevesi will get his share of oversight reforms to end the NYRA game of Hide & Go Seek.

The THA will let nothing proceed until the issues concerning the horsemen's funds and VLT subsidies are resolved in their favor. Horsemen must have their funds restored. Pataki must drop his proposal to exclude breeding and purses from VLT subsidies during the first two years.

Pataki and other NYRA supporters will be credited with saving the VLT program and bringing in a state tax bonanza.

[Suff]

Originally posted by VetScratch
Suff,

NYRA has no control over anything... and won't for a long time.

Spitzer and the IRS will get idictments and the choke-chain grip of "deferred prosecution." A way to enable MGM to proceed must be found/determined.

Hevesi will get his share of oversight reforms to end the NYRA game of Hide & Go Seek.

The THA will let nothing proceed until the issues concerning the horsemen's funds and VLT subsidies are resolved in their favor. Horsemen must have their funds restored. Pataki must drop his proposal to exclude breeding and purses from VLT subsidies during the first two years.

Pataki and other NYRA supporters will be credited with saving the VLT program and bringing in a state tax bonanza.

So your an expert in Federal Prosecution tactics as well?

Hyberbole. Hypothetical Bolder Dash on your part.

Anti-New York slant intertwined in every word you type.

Your vernacular has become far to copius for my diminutive comprehension. But Your hate speech is wrong. Dead wrong.

Now go sit down over there and be quiet for the rest of the evening.

[kenwoodallpromos]

Vetscratch sounds more like a fortune teller than an expert!LOL! / I thought all of us in here were experts at everything off topic! LOL!

[freeneasy]

Originally posted by Suff
So your an expert in Federal Prosecution tactics as well?

Hyberbole. Hypothetical Bolder Dash on your part.

Anti-New York slant intertwined in every word you type.

Your vernacular has become far to copius for my diminutive comprehension. But Your hate speech is wrong. Dead wrong.

Now go sit down over there and be quiet for the rest of the evening.

u to funny suff

[Suff]

Originally posted by freeneasy
u to funny suff

Funny huh?? Funny How? How am I funny? Funny Like I'm here to ammuse you? or Dick Schmidt Funny?

[highnote]

Suff,
Now that's funny.

[PaceAdvantage]

Andicap,

When I said "slap on the wrist", I meant to the NYRA corporation as an entity.....of course those individuals who end up on the chopping block won't consider it a slap on the wrist. But, I believe this whole thing SHOULD have been handled on a case by case INDIVIDUAL basis, instead of bringing the entire NYRA into the picture as an endangered species....

It was silly to throw the baby out with the bathwater, which is what many people wanted (Stronach and Trump to name 2)....

And VetScratch continues to make a big deal out of owners and trainers and the purse money. Until I see a story with some owner or trainer stating he or she did NOT get the purse money that was coming to them, I will consider this a minor issue, and one that will most likely be easily corrected in the near future....

Seriously Vet, do you really think that if owners were NOT getting paid, there would be no public outcry?? No strike at the entry box???

Obviously, this is NOT a big problem....I'm not saying it's RIGHT, but I am saying it is not (at least until this point in time) a major problem.


==PA

[VetScratch]

Suff,

NYRA misappropriated the horsemen's funds, and no reasonable person disputes that. They deserve every sanction forthcoming on that basis alone.

You need a new quiver of arrows. Lately, you have forayed into several topics with abundant gusto but misleading information.

About the new tax breaks:
(1) There is no IRS Regulation D to be considered. Regulation D is an SEC consumer protection regulation.
(2) Ordinary expenses do not change cost basis on assets (horses).

About shin buck treatments: bones are not shaved or whittled to treat shin bucks.

If my interpretation of what the news and other sources portend, I will have no problem accepting that I missed the mark. Retractions and corrections are just as valuable as any other post.

[JustRalph]

they should indict whomever was responsible for the lousy cards this week..........

[VetScratch]

PA,

If horsemen were getting "paid" there would not be a $20-million-plus deficit in their accounts. You are confusing withdrawals with depository misrepresentation. Mass withdrawals would bankrupt NYRA immediately, and attorney Foreman together with THA officials have advised against a "run on the bank" until they have the opportunity to negotiate all issues from their current position of leverage. Foreman did not say that liability issues remain on the table without forethought.

The biggest issue is backing down Pataki on his proposal to exclude breeders and owners (purses) from subsidies during the first two years of VLT operation. A credible and timely method of restoring the horsemen's funds must also be negotiated before the VLTs jeopardize the bargaining power of horsemen. Powers above NYRA will have to earn the trust of horsemen.

[VetScratch]

PA,

Why don't you talk off-the-record with typical owners/trainers when stall applications and other considerations are shielded by anonymity?

Everyone was disgusted to learn about the missing funds by way of a NYRA plea-bargain memo that got leaked to press.

[VetScratch]

Kenwoodallpromos,
Vetscratch sounds more like a fortune teller than an expert!
Thanks for the compliment... you must have compared the date of the most recent news to my earlier post in another thread:
http://www.paceadvantage.com/forum/showthread.php?s=&threadid=8795

[Tom]

Originally posted by JustRalph
they should indict whomever was responsible for the lousy cards this week..........


Now that's funny! :D