nyra big wigs suspended

[Caradoc]

Like a lot of us, Steve may consider it a benefit to do whatever he can to help a friend in serious need.  After all, how else could we interpret his continuing attempts -- even today, in the face of significant evidence to the contrary -- to persuade us that he does not believe Hayward knew the takeout practice was illegal until December 2011?

[RICH]

i would\'nt let my mother stash a body in my house, let alone a friend

[mjellish]

Nor would I.  Just making a point.  Maybe I should have said \"stash a crazy mistress.\"  Regardless, how long would you cover something \"big\" up for a \"friend\" with nothing in it for you when your job/career could depend upon it?

To me, ineptitude makes more sense.

[JR]

A reasonable explanation. I\'ll withhold any further leaps to judgement before the facts are known.

[sighthound]

LOL - we could ask John Edwards aid, Andrew Young ...

[moosepalm]

mjellish Wrote:
-------------------------------------------------------
> Nor would I.  Just making a point.  Maybe I should
> have said \"stash a crazy mistress.\"  Regardless,
> how long would you cover something \"big\" up for a
> \"friend\" with nothing in it for you when your
> job/career could depend upon it?
>

Perhaps Joe Paterno could have shed light on that question.

[mandown]

I agree. I was responsible for getting Crist to be Editor of the Racing Times. I was business, he was editorial so we weren\'t best buddies. I don\'t think I\'ve spoken to him for the best part 15 years.

The one thing I would say though is that I always found him a man of integrity. I doubt very much that he would have it in him to cover up for Hayward, despite whatever personal friendship there might have been.

I think he simply got the letter from the reader wrong, reading it as NYRA could apply for a reduction in the take-out rather than that they were legally bound to apply it.

And I\'d also be pretty certain that what\'s keeping him awake at night is that he missed the story, rather than he\'s implicated in a cover-up.

The reason I thought Crist would be a good editor for the Racing Times was that as well as being a good journalist he was also clearly a degenerate horseplayer. The great thing about the Racing Times was, to quote Andy Beyer, was that it was the lunatics taking over the asylum.

I may be wrong but I\'d be very surprised and disappointed if Crist has become \'establishment\' and no longer sees himself as a horseplayer. I doubt very much that he is the villain of this piece.

Cheers,

George

[Rich Curtis]

I agree with some of this, Mandown, but on the question of whether Steve Crist \"has become establishment,\" well, when Queen Elizabeth 2 decides that she REALLY wants to become establishment, she would do well to study Crist.

[HP]

I have no problem leaping to judgement.  Why does everyone want to make excuses for Crist?  The GAPING hole in this remains...Crist knew they could apply...and he also knew they did not apply.  Was there a story in the intervening months between August and December that said \"NYRA applies for takeout reduction?\"  Hell no.  So at some point wouldn\'t it be logical for Crist to call Hayward and say, \"hey what\'s up with the takeout thing?\"  Since he\'s such a right guy and understands the players?  It STINKS.  Personally I have a job where I don\'t have people advocating for me when I screw up this big.  All of sudden he didn\'t understand half of the email?  He\'s a pretty bright guy.  Not buying it.  I don\'t have to figure out his motives.  Stinks.  HP

[miff]

Albany hunting for scalps!!



NY Inspector General Investigating NYRA
By Tom Precious

State investigators wasted little time launching a full-scale probe of the New York Racing Association, a day after it was revealed top NYRA officials may have known about and covered up efforts to keep a takeout decrease from kicking in—a move that cost bettors more than $8 million.

The state Inspector General's office began formal inquiries—talking to officials at NYRA and requesting documents—on May 1 as part of a probe that lawmakers say could have civil and criminal implications for NYRA officials.

Several sources close to the investigation say the IG's office, which has broad investigatory powers, is also seeking thousands of documents that state racing regulators claim NYRA declined to release during its probe of the matter.

The IG's probe was requested by Robert Megna, chairman of a state panel that oversees NYRA's finances and who was personally told at least once in public by top NYRA officials that they had no knowledge of the takeout overcharges.

With NYRA already under fire for an increase in equine deaths during its winter meet, and talk over the months about some state officials interested in closing down Aqueduct racetrack, the new scandal represents a potentially crippling blow to the current leadership at the nonprofit racing association. There was speculation at the Capitol that the Cuomo administration, no fan of NYRA, could seek to undo NYRA's exclusive franchise to run Aqueduct Racetrack, Belmont Park, and Saratoga Race Course if the takeout troubles worsen. Megna's oversight panel has the legal authority to assume NYRA's operations.

NYRA officials, meanwhile, declined on May 1 to respond to a number of inquiries, including who will be appointed to take over the duties of NYRA President Charles Hayward and the group's counsel, Patrick Kehoe. Both officials were suspended Monday, without pay, as the takeout probe expanded to the inspector general's office.

NYRA Board Chairman C. Steven Duncker for a second day declined an interview request. Duncker is to report by May 4 to Megna, who is also Gov. Andrew Cuomo's chief budget advisor, on steps the NYRA board is taking to address the takeout controversy.

Hayward had repeatedly denied any knowledge of the takeout problem. The state in 2008 permitted NYRA to increase its takeout on certain exotic bets to 26%—with a sunset on that level due to take effect in September 2010. But NYRA continued charging the higher level, instead of the required 25% rate, until state auditors with state Comptroller Thomas DiNapoli's office caught the mistake in December 2011. By then, more than $8 million in additional takeout costs had been imposed on bettors.

An interim report by the state Racing and Wagering Board released this week depicted Hayward, and potentially other NYRA executives, with knowledge that the takeout decrease was required under law.

Megna this week suggested racing licenses of NYRA officials, at least, could be at stake depending on the outcome of the investigation by the IG, which has subpoena power and the authority to refer wrongdoing cases to prosecutors

[sighthound]

Here\'s how I see it now:  Crist did call Hayward and ask.  Hayward gave Crist an answer.  Why would Crist think Hayward would purposely lie or give him misinformation?  He wouldn\'t.

The problem is Hayward was wrong in his answer to Crist.  It could have been caught at that time, had Hayward bothered to double-check with the law/counsel.  Did Hayward double-check with counsel?   What did Kehoe say?  Was counsel\'s advice wrong? Did Hayward not bother to double-check?  

That\'s the point where deliberate or malfeasant wrongdoing, if it occured, would have happened.

[HP]

Sight - I\'m with you...but how do you account for Crist not following up on this for MONTHS after he got his answer from Heyward?  It\'s a pretty important subject, right?  Crist even acknowledges not following up.  I\'ll say you can\'t prove Crist did anything wrong from a legal perspective, but given his status in the game, it\'s beyond me how he didn\'t say another word about this, to Heyward or anyone else, for MONTHS.  

HP

[sighthound]

Agreed.  If the possibility existed for takeout to be lowered, why not discuss that in public?  His agreement with Hayward that their conversation (was off the record) with Hayward noting the discussion of political backlash and pressures probably put Crist on hold with pushing that in public, as Hayward told him discretion would be needed.

[Caradoc]

Sight,

Hayward\'s answer to Crist was not wrong.  It was correct on both counts, that NYRA was over-withholding and all the stuff about the takeout changes.  That\'s not where this problem started.

You might know that what Hayward told counsel (and vice versa) is still an open issue, as NYRA has withheld some documents and other evidence on the basis of attorney-client privilege.  Remember that he responded to the first email by indicating he was forwarding the email onto Kehoe, the general counsel?  The report indicated that investigators could not find such an email, but of course such an email may be one of the things NYRA has not produced on the basis of privilege.

[HP]

Sight - 1,000%, but...what about a PRIVATE question?  In four months.  \"Hey Charlie, anything new on that takeout thing?\"  Crist\'s account makes it clear he did not venture a PRIVATE, off-the-record (since these guys like to keep things off the record) question either.  

Crist has every opportunity to EXPLAIN himself, and he\'s articulate enough to do so.  I don\'t see anything in his account that explains him TOTALLY abandoning this topic from August until December, in public or not.  Early Alzheimers?  He forgot?  It\'s just bizarre.  HP