2005 - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 7, 2005BALA GUILTY ON ALL COUNTS In federal court in Providence, Rhode Island, theA federal jury has convicted Susan Bala and her former CFO of Wembley USA, read from handwrittennotes of a company meeting on Jan. 24,company, Racing Services, on all 12 counts of illegalgambling against each, after a trial that 2001, stating that a proposed payment to the lawbegan on Jan. 18. The company also was mentionedin a federal indictment in New York in-increase from $500,000 to $1 million a year ifpartner of the then Speaker of the House wouldvolving three alleged members of the Gambino Wembley’s Lincoln Park got more slots. Defenseorganized crime family who were running bets lawyers for former Lincoln GM Daniel Bucci andthrough four rebate shops, including Racing Services.Ms. Bala, smiling as she emerged from the the handwritten comments were not included informer Wembley CEO Nigel Potter asked whyfederal courthouse in Fargo, ND, after the fivewoman,seven-man jury found her guilty after said company executives had not decided to in-the official typed minutes of the meeting. Brentsix hours of deliberation, told reporters “The case clude the payment in the company budget, but itisn’t over.” She faces up to 20 years in prison appeared there when he received the budget in aand a $500,000 fine for each of the eight convictionson money laundering and one on money Britain.spreadsheet sent from Wembley’s offices in Greatlaundering conspiracy, and up to five years anda $250,000 fine on single counts of illegal gamblingand conspiracy to conduct it. The convic-Members of the Harness Racing Museum andHONORS, HONORStion on transmission of wagering information Hall of Fame have voted Beach Towel and CRcarries up to two years in prison and a $250,000 Kay Suzie into the Living Horse Hall of Fame.fine. No sentencing date was set, but jurors returntoday to hear evidence in forfeiture allegationsagainst Bala, RSI, and her former boyfriend the Year, the brilliant 3-year-old pacing fillyIn Canada, Luc Ouellette was named Driver ofRaymundo Diaz Jr. and his company, Global Rainbow Blue was named Horse of the Year, andContact. As part of a plea agreement, Diaz, who Joe Stutzman was named Trainer of the Year astestified against Bala, agreed to a $100,000 personalmoney judgment against him. His sentenc-the late, great trainer-driver Joe O’Brien, wereCanada’s prestigious O’Brien Awards, named foring is set for April 1.announced.ELSEWHERE, IN COURT NEWSThe attorney for jockey Jose Santos, who lost a$48 million libel case against the Miami Heraldin December when a U.S. judge ruled that a federalcourt in Louisville had no jurisdiction, sayshe probably will refile the case in south Florida.Jose sued the paper and its parent, Knight-Ridder, after it printed a story and photographsuggesting he was holding a device of some sortin his victorious ride of Funny Cide tovictory in the 2003 Kentucky Derby.Elsewhere in Canada, in a heated meeting of theOntario Harness Horse Association, the membershipapproved most of the agenda, but voteddown a proposal that would have allowed OHHAdirectors to remove fellow directors who twothirdsof the board considered disruptive or notacting in the best interests of the association.YOUBET REACHES A BILLIONYoubet.com announced a bet on Jan. 31 put itover the billion dollar mark since it tookits first bet eight years ago.