HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICABRUNO PALS IN BIG TROUBLETimothy McGinn and David Smith, whoseMcGinn Smith & Co. investment firm in Albany,NY, was one of the first to hire disgraced politicalleader Joe Bruno as a “consultant,” now is indeep trouble of its own. The Securities and ExchangeCommission has obtained a court orderto freeze the assets of the company and its owners“to halt a fraudulent scheme” in which the firmsold $89 million in unregistered securities andfalsified information in raising some $120 millionfrom investors which it knew it could neverrepay. The SEC said “the full extent of the fraudis not yet known” but it appears that investorsare owed at least $80 million on the 25 or moreofferings of unregistered securities. The chargesinclude use of some of the money for “a sexuallythemed cruise” with hired strippers, and filingfraudulent documents.HERE COMES CHINAThe Meydan Group, developers of the world’sbiggest racing complex in Dubai, now haveturned their attention to China, announcing a10-year plan to build a “horse city,” with a spectacularlydesigned track, international equestriancollege, horse breeding center, auctionbase, animal feed factory, and luxury hotel. Thecompany says it has been invited to develop thecomplex by the Chinese government, newly interestedin becoming a major international racingpower. China, which legalized horse racingonly two years ago, hopes to emulate the successof Dubai, which in 18 years went from no racingto hosting the world’s richest horse race, the $10million Dubai World Cup. Work is scheduledto begin next month on the 660-acre equestriancollege, stud farm and feed factory, with completionexpected by the end of next year, with thefirst 1,000 students to be enrolled in 2012.A second “horse city” with a stud farmbreeding 1,000 horses a year, is plannedExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, April 21, 2010in the mainland city of Wuhan, which sent representativesto Kentucky last year to gain expertise.A 3,600-bed hotel is planned there by theOrient Lucky Horse Corporation, which expectsto sell 700 horses at its new auction center.In still another indication of the rise of gamblingin the Pacific Rim, Las Vegas entrepreneurSteve Wynn said he is considering moving theheadquarters of his huge Wynn Resorts gamingempire from Las Vegas to Macau, calling thatcountry the future resort capital of world gaming.Wynn announced that he is building a thirdhotel in the region, where his first property producedhalf of Wynn Resorts’ income last year.PREWITT GETS KHHA JOBGabe Prewitt, the 27-year-old go-getting announcer,publicity man and successful harnesshorse owner who works for the Red Mile andThoroughbred Times advertising, has toppeda list of 14 candidates for the job of ExecutiveSecretary of the Kentucky Harness Horsemen’sAssociation. Among his plans: contacting eachmember of the association and “listening to anyonewith any concerns and try to address theirneeds.”LUCKY JIM TO ELITLOPP?The American trotting king Lucky Jim has receivedthe first invitation from the managementof Stockholm’s Solvalla track to its May 30 internationalclassic Elitlopp, or Elite championshiprace. Should his owners accept, and with PeterKleinhans’ and Jerry Silva’s Enough Talk headedfor a European campaign and likely Elitloppinvitation, the U.S. will have its strongest entryin years in the rich Swedish invitational. Sixteenof the world’s best trotters are invited, and pastAmerican winners have included the great mareFresh Yankee and Mack Lobell.