NYRA, Employees Indicted

NEW YORK – As reported by the Associated Press: The New York Racing Association and six former employees were indicted Thursday on fraud charges, contending tellers ran money laundering, gambling or loan-sharking schemes using their access to NYRA and bettors' money.

"The racing association agreed to co-operate with the government and restructure its management in exchange for deferred prosecution, authorities said Thursday in announcing the conspiracy and tax charges.

"…The charges resulted from an investigation of the racing association, a non-profit corporation licensed by the state to operate thoroughbred tracks at Belmont Park, Aqueduct and Saratoga.

"…The investigation revealed many employees from 1994 through 1999 dodged federal taxes by claiming tax-deductible shortages from betting transactions that did not really exist.

"During those years, 143 racing association employees deducted millions of dollars in that way, sometimes making their bogus shortages equal to their paycheques so it would appear they would have to pay no taxes, investigators said. Authorities said Thursday the scheme had resulted in $19 million in unreported income since 1980.

"…The indictment of the racing association, filed in U.S. District Court in Central Islip, contended NYRA and its senior management were aware of the tax-cheating scheme but did nothing to stop it…"