Plainville: Will this be white-washed?

STATE HOUSE NEWS: As track bids for slots license, meeting focuses on former president

By Michael Norton

State House News Service

Posted Jul 25, 2013

Boston —

State officials expressed concerns Thursday that a former Plainridge Racecourse official did not attend a key meeting regarding the completion of a background investigation for Plainridge, a contender for the sole slot parlor license under the state’s expanded gaming law.

During a meeting in Boston, Massachusetts Gaming Commission officials said they were concerned that former chief financial officer Timothy Peterson, who resigned this week, was not on hand for questions about former track president Gary Piontkoski’s personal cash withdrawals from the track’s money room.

Piontkowski abruptly resigned in April, saying he had left the enterprise for health reasons. John Grogan, his successor, told commission officials that Peterson’s resignation this week was a “total surprise.”

Karen Wells, MassGaming’s director of investigations and enforcement, said Ourway Realty majority owners Stanley Fulton, founder and operator of Anchor Gaming, and Alfred Ross appeared in position to fund the development of the slot parlor at the Plainville harness racetrack.

MassGaming investigators concluded in their report that while the commission will make the final decision on whether Plainridge’s team is suitable for a slots license, the applicant and its owners “have the requisite financial stability, integrity and responsibility, the availability of suitable financial resources, have demonstrated sound business experience, good character and personal integrity.”

As for Piontkowski, former chair of the Mass. Racing Commission and the longtime “public face” of Plainridge, Wells said he had routinely and almost daily withdrawn small amounts of cash from the track’s money room that “amounted to a very large sum of money.” When the funds were not repaid, they were characterized as an “accommodation” or a “distribution” to the former track president. In their report, investigators redacted the amount of reported distributions to Piontkowski from 2004 to 2011. Wells also told commissioners Piontkowski had once advised an employee “never write anything down.”

Investigators questioned Peterson during the course of their work. Addressing Piontkowski’s alleged conduct, investigators “found that Peterson testified in a credible fashion that he was uncomfortable with this particular business practice of his boss, tried to bring it to the attention of the Members through the audit letters but was not in a position to stop this practice.”

Investigators reported that Grogan, who lives in Westwood and was an investment banker for 25 years, has implemented new internal controls to address “past shortcomings in the applicant operation.”

Grogan said he understands that Plainridge must present “clear and convincing evidence” that the track is a suitable slot license applicant. He did not dispute findings of deficiencies in the track’s operation.

Grogan also said the investigation into the money room resulted in Piontkowski’s resignation.

“He has no contact, influence or involvement in the company right now,” said Grogan, who testified Thursdaywith attorneys from Foley Hoag.

Probing the integrity of the applicants, commission officials spent considerable time raising questions about financial arrangements made by the slots license applicant with Piontkowski as he left the company. Grogan said conversations with Piontkowski about his departure were “extraordinarily difficult.”

In an April press release announcing his retirement, the track reported that Piontkowski “looks forward to spending more time with his wife” and two daughters and “will concentrate on his health." Piontkowski said at the time in a statement, "This has been a long journey, requiring intense effort. I am deeply grateful to my business partners at Plainridge for their faith and support as well as for their understanding for this personal decision."


Read more: http://www.wickedlocal.com/bridgewater/news/x273440918/STATE-HOUSE-NEWS-As-track-bids-for-slots-license-meeting-focuses-on-former-president#ixzz2aFVMfYRS
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Plainville: Too Much Slot Barn Kool Aid Consumption!

Too much Slot Barn Kool Aid consumption in Plainville has caused Selectmen to fail to ask the right questions to protect their town and protect its future.

There are remaining questions that need to be answered.
Did the 'partners' approve of the 'cash payments'?
Who was complicit?

NoPlainvilleRacino

The financial malfeasance at Plainridge goes beyond the loss of money to the track and the owners: Was the actual amount of money earned by the track reported to the Commonwealth and the federal government? Were taxes ever paid on that amount of money? Did the theft and the "accommodation" of the "distributions" by the owners mean that those monies were never reported in full to the state, and so the share of the "handle" paid to Plainville was less than it should have been?

NoPlainvilleRacino

Did anyone bother to let the Plainville selectmen know that there was a thief in their midst BEFORE they signed the Host Community Agreement?

"Plainridge boss faces tough questions over finances"

Plainridge boss faces tough questions over finances
Friday, July 26, 2013
BY EMILY O'DONNELL SUN CHRONICLE STAFF

The Sun Chronicle


Gary Piontkowski talks about plans for Plainridge that are tied to pending action at the Statehouse. (Staff file photo by Martin Gavin)


BOSTON — Plainridge President John Grogan was feeling the heat as gaming and investigation officials grilled him at a hearing Thursday afternoon to determine if the Plainville racetrack is suitable to hold the state’s only slot machine parlor license.

 In his testimony before the state gaming commission and investigation board, Grogan explained how former Plainridge President Gary Piontkowski pocketed money from the company for years without detection.

Grogan said Piontkowski had “a capital withdrawal accommodation” from which he often made small personal cash withdrawals.

Grogan said his understanding was that rather than repaying the money, Piontkowski account would eventually be settled “as positive funds flowed into the company.”

When the money was not repaid, Plainridge’s accountant justified the deficit has a “distribution,” the president said to the gaming commission.

The company never asked Piontkowski to repay the money he allegedly took, and granted him a severance package when he retired in April, Grogan said, in an effort to sever his ties to the company as quickly as possible.

Grogan was asked if he saw any financial statements, to which the president answered “I saw annual financial statements.”

Grogan then clarified that he did not notice that a “distribution” was going solely to one person, Piontkowski.

Gayle Cameron, a member of the state Gaming Commission, which will determine which of five applicants will receive the slot license, pressed Grogan, asking “Who was the accommodation by?”

“The accommodation was by the major shareholders of the company,” Grogan answered.

Ourway, the corporate entity under which Plainridge submitted its slot license application, had 15 members, with two major shareholders, Alfred Ross, the company’s manager and Stanley Fulton, chief financial officer.

Both Fulton and Ross were interviewed by the investigative arm of the Gaming Commission. In the resulting report, Fulton said he had no recollection of approving such distributions.

Ross said in the interview Piontkowski had “too much control” over the company’s funds.

Cameron questioned Grogan’s thoughts on Piontkowski’s actions because the current president has spoken favorably of Piontkowski in the past.

“Let me be clear. Gary was a personal friend, but his actions were unacceptable,” Grogan said. “It should have never happened.”

The hearing is part of a day of turmoil for Plainridge, one that potentially jeopardizes its 14-year bid to bring slot machines to the Route 1 track.

According to a report in the Boston Globe, which was confirmed at today’s hearing, Piontkowski made personal cash withdrawals from the struggling track’s money room “almost on a daily basis” for years, according to the Globe report.

At the time of Piontkowski’s departure, Plainridge suggested he had retired and sold his stake in the venture due to health concerns. But a report from the gambling commission’s investigative arm revealed that — after meeting with investigators and reviewing Piontkowski’s conduct — the track’s majority owners “decided that it was not in the company’s best interest to have Piontkowski remain as president,” according to a copy of the report obtained by the Globe.

Investigators were unable to confirm whether the track’s majority partners had knowingly approved the withdrawals, the report states.

In addition, Plainridge CFO Tim Petersen has resigned, the state’s gaming commission learned this morning. Petersen had been scheduled to testify at today’s hearing.

Karen Wells, director of the Gaming Commission’s investigative arm, said at the hearing Petersen’s absence is “troubling” and “raises grievous concerns” about Petersen’s financial practices while with the company.

Plainridge officials made clear that neither Piontkowski nor Petersen represent the racecourse, and maintain that their case for the slots license remains strong.

Grogan said in a prepared statement: “The rigorous review of our application by the I.E.B. has made the Plainridge Racecourse an even stronger applicant. We remain very excited by our application’s prospects.”

http://www.thesunchronicle.com/news/local_news/plainridge-boss-faces-tough-questions-over-finances/article_57572973-2458-5d6d-b8bf-44e4f4847097.html?_dc=200824801344.4245

Falling in Love! And Losing All Perspective.....

As a voter, just a regular citizen, I had the great misfortune of attending a Sham Hearing in Gardner Auditorium.

Beacon Hill made a mockery of the democratic process -- Sorry, Folks! This was a Bi-Partisan Mockery!

Hearing? Nothing of the sort! Debate? Never Happened!

Anyone...Absolutely Anyone connected with this Aberration should be embarrassed.

Maybe you weren't paying attention, but some of us were, including my friend, Gladys who explained this Beacon Hill JOKE here:

Six Degrees of Suffolk Downs

More than a year ago, The Baffling Raffle conducted by Plainridge in violation of any vague interpretation of the Massachusetts Statute was questioned.

The Attorney General's Office accompanied by the Plainville Police Department swooped in, collected boxes of evidence........then DEAFENING SILENCE. The Baffling Raffle was conducted ACROSS STATE LINES, for which the FBI may or may not have been involved.

The political hacks in the Gambling Commission were put on notice, shuffled emails and brushed aside responsibility.

The BAFFLING RAFFLE was among the most BIZARRE -- it raffled opportunities to bet on the Kentucky Derby. Huh?

A Plainville kids' organization forced kids to purchase the BAFFLING RAFFLE TICKETS when they participated in sports.....apparently no one questioned beyond schmoozing. 

There's much else about Attorney General Martha Coakley's failure to act, but doesn't anyone think it odd that former Plainridge Face suddenly develops health issues and rather than merely step aside also divest any financial interest? Will he also FALL ON HIS SWORD for the BAFFLING RAFFLE DEBACLE?

Plainville, harness track reach slots deal

AP / July 9, 2013

PLAINVILLE, Mass. (AP) — Plainville officials and the owners of the Plainridge Racecourse have reached an agreement that will pay the town more than $4 million in the first year if the harness track wins the state’s sole slots parlor license.

 

The town Board of Selectmen approved the agreement 3-0 on Monday. The agreement will be put to a town-wide referendum in September. The state gambling commission must also approve of any gambling facility.

 

‘‘This process took time and was not easy but we see this agreement as a solid and fair product as a result,’’ Plainridge President John Grogan said in a statement.

 

Board members Rob Rose and Robert Fennessy called it the most important vote they would ever take.

 

The agreement will pay the town about $2.7 million in fees [OVER 5 YEARS OR $560,000 PER YEAR] on top of $1.5 million in property taxes if the harness track wins the license.

 

Plainridge has agreed to pay $2.7 million in host community fees for the first five years in which the slots are fully operational. Over the following five years, the fee would be based on 1.5 percent of gross gambling revenue and would jump to 2 percent starting in year 11.

 

The track will pay another $1.5 million in real estate and personal property taxes on the $125 million facility that could house up to 1,250 slot machines.

 

Plainridge is one of four companies seeking the only slots parlor allowed under the state’s 2011 gambling law.

 

Raynham Park LLC wants to build at the 125-acre site of the Raynham Park simulcast facility and former dog track; Maryland-based Cordish Cos., which is now looking at Leominster following failed efforts to get the ball rolling in Boxborough and Salisbury; and Rush Street Gaming, which is searching for a site after efforts to build a slots parlor in Worcester fell through.

 

http://www.boston.com/news/local/massachusetts/2013/07/09/plainville-harness-track-reach-slots-deal/ak3MJmE9m5kgWgtRZgiQXJ/story.html

 

Plainridge Racecourse reaches deal with Plainville for slots parlor; deal needs voter approval

By Mark Arsenault / Globe Staff / July 8, 2013

 

 

Plainridge Racecourse became on Monday the fourth casino applicant to complete negotiations with its host community, reaching a deal for a slot machine parlor that would pay the town of Plainville more than $4 million the first year the facility is open, according to a statement from the track.

 

“This process took time and was not easy, but we see this agreement as a solid and fair product as a result,” Plainridge president John Grogan, a member of the racetrack’s negotiating team, said in a statement.

 

Plainville selectmen approved the deal with the track on a 3-to-0 vote Monday evening, according to Plainridge. Voters will have their say on the project in a referendum, expected in September.

 

Plainridge, at the junction of Route 1 and Interstate 495, is one of four applicants seeking the state’s sole slot parlor license, which will permit up to 1,250 slot machines. The state’s 2011 gambling law also authorizes up to three resort casinos, no more than one in each of three regions of the state.

Under the agreement negotiated by the track, Plainridge would guarantee the town $2.8 million a year during the first five years of operations, [THAT'S $560,000 PER YEAR] Plainridge said. Over the following five years, the agreement calls for a payment to the town of 1.5 percent of gross gambling revenue, which increases to 2 percent after 10 years of operation.

‘This process took time and was not easy, but we see this agreement as a solid and fair product as a result.’

Town negotiators and Plainridge officials have agreed on projections of approximately $200 million in revenue in the first year. The agreement also calls for Plainridge to pay commercial property taxes guaranteed to be $1.5 million in the first year, growing by 2.5 percent annually.

One of the track’s competitors for the license, The Cordish Cos. of Maryland, is pitching a slot parlor in Leominster, near the junction of Route 2 and Interstate 190 in the north central Massachusetts community, a company official confirmed Monday.

Cordish, a developer of Hard Rock casinos in Florida and the Maryland Live! Casino outside Baltimore, was scheduled to brief Leominster officials Monday evening on plans for the $200 million project, said Joe Weinberg, Cordish managing partner.

Cordish has long been interested in the northern half of the state and has unsuccessfully proposed a slot parlor in Boxborough and in Salisbury. Cordish prefers a northern location in part to be far from resort casino projects planned for Greater Boston and a tribal casino proposal in Taunton.

The stakes are rising for Cordish to find a community to embrace its plans. To meet deadlines set by the state gambling commission, Cordish needs to strike a deal with a host community in the next several weeks.

A Cordish project in Leominster would include a performance venue, restaurants, and other amenities, said Weinberg.

The other applicants for the slots license are Raynham Park, which has a deal with Raynham officials, and Rush Street Gaming, which has not announced a new site after failing to strike a deal with Worcester officials.

Wynn Resorts, proposing a resort casino in Everett, and MGM, which wants to build a gambling resort in Springfield, have completed their negotiations with those communities.
Mark Arsenault can be reached at marsenault@globe.com. Follow him on Twitter @bostonglobemark.

 

http://www.boston.com/news/local/massachusetts/2013/07/08/plainridge-racecourse-reaches-deal-with-plainville-for-slots-parlor-deal-needs-voter-approval/YLdJdJS1nh7WFDX2sVDw7N/story.html