State investigating NYRA takeout issues; Hayward, Kehoe terminated

Here's the e-mail I sent to the Saratogian and Albany Times-Union when this story first hit last December:

"I don't understand why the New York State Department of Taxation and Finance is getting a pass on this. You need to talk to someone in what passes for their Pari-Mutuel Revenue Unit in Albany and ask them why they didn't catch this error for 15 months.

Prior to 1991, Pari-Mutuel Examiners of the Tax Dept. were in place at NY State tracks and off-track betting venues to check EACH AND EVERY POOL to insure the accuracy of the reported handle, commission, breakage, and payoff to the public. They also saw to the collection of franchise fees and admissions taxes. In that year, NY State decided, AS A COST-CUTTING MEASURE, to disband the entire unit, and lay off or transfer the employees.

I know this for a fact because I was one of the examiners so affected. All you have to do is check the history of NYRA's transgressions over the last two decades to realize the State Tax Dept.'s decision to leave the henhouse unguarded was actually a very costly one. Had we been in place, say, on 9/15/10, the error would have revealed itself after the running of the very first race with "exotic" betting."

Incidentally, my ex-boss at Pari-Mutuel who was the last remaining Tax Dept. representative at NYRA until August, 2010 (!!!) just e-mailed me to let me know he was contacted recently by a reporter from the Albany Times-Union.

[pointman]

Tom DiNapoli already shifting blame instead of explaining why his office missed this for so long. The seeds for the political motivations seem to be planted. He seems ideally suited for a position on the Obama campaign.

http://www.nypost.com/p/news/opinion...tF3vgapzfVmMhI

Originally Posted by Ocala Mike

Incidentally, my ex-boss at Pari-Mutuel who was the last remaining Tax Dept. representative at NYRA until August, 2010 (!!!) just e-mailed me to let me know he was contacted recently by a reporter from the Albany Times-Union.

Here's what my ex-boss just sent me:

"My phone still ringing with calls from Albany tax people and that reporter from the Times Union. He is writing an article for this Monday's edition and tells me my picture will appear. Quite a hornet's nest your note to the Times Union stirred up. It will be interesting to see what he writes. I suspect NYRA and the Racing & Wagering Board will be targeted. NYRA for failing to act when advised of their error and the Racing and Wagering Board for their inefficiency. We know our pari-mutuel crew was the eyes and ears of racing surveillance. We assured the integrity of racing in NY State and with our departure the void was not filled."

I'm looking forward to reading that article on Monday. Keep in mind that my old boss was basically "forced to retire" in August, 2010 just a month before this fiasco hit, so he might be a little "disgruntled."

Story I wanted to see published finally hit:

http://www.timesunion.com/local/art...yes-3538781.php

Guess I'm a "whistleblower" of sorts. Reporter did a great job with this story, I thought.


Ocala Mike, nee Michael Napolitano