What happend, did the Federal grand jury to investigate OTB ?

 

Story from September 2019 Investigative post

 https://www.investigativepost.org/2019/09/11/federal-grand-jury-to-investigate-otb/

A federal grand jury is investigating possible corruption at the Western Regional Off Track Betting Corp.

Sources told Investigative Post and the Niagara Gazette the grand jury is looking into issues previously reported by the two news organizations, including the:

• Provision of free health insurance to the board’s part-time board members.
• Awarding of vendor contracts to businesses with political ties to OTB President Henry Wojtaszek and Chairman Richard Bianchi.
• Possible distribution of tickets purchased by OTB to Sabres and Bills games to friends, family members and political associates of OTB executives and board members.

In addition, the state comptroller has started a previously announced audit and sources said the state Gaming Commission is engaged in some sort of review, as well.

OTB is charged with running state-sanctioned gambling operations in Western and Central New York and returning a portion of it profits to the 15 counties and the cities of Buffalo and Rochester. It operates a race track and casino at Batavia Downs and 15 betting parlors and 30 betting kiosks in restaurants and bars across the region.

The OTB’s board and executive ranks are dominated by Republican partisans. Wojtaszek is the former chairman of the Niagara County Republican Committee. Bianchi is a member of the Monroe County Conservative Party’s executive committee, which is aligned with the Republican Party in the Rochester area.

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OTB, a state public benefit corporation, operated in relative obscurity until last December, when Investigative Post reported on the health insurance provided board members despite an opinion from the state Attorney General that appeared to have prohibited the practice. The AG and state comptroller subsequently reaffirmed that opinion, as did private attorneys retained by the OTB board.

The board has refused to act, however, and continues to enjoy the benefit, described as the “richest plan available.” OTB self-insures, and the health, dental and vision insurance provided board members costs between a quarter and a half million dollars a year, month that could otherwise flow to the 17 counties and cities.

In February, former state Sen. George Maziarz accused OTB officials of giving tickets to suites it leases for Bills and Sabres games to family, friends and political allies. Wojtaszek denied the charge, but OTB has refused requests made by the Gazette and Investigative Post to release the names of ticket recipients under the state Freedom of Information Law. The OTB subsequently announced it had revised the frequency and method of ticket giveaways.

A third area of interest to federal investigators is OTB’s contracting practices, in particular a deal with Growth Marketing Group to place advertising for Batavia Downs. Growth Marketing is one of OTB’s largest vendors, receiving payments of $533,162 last year and $601,381 in 2017, according to OTB records. The OTB board recently extended the contract, after Investigative Post and the Gazette reported the FBI was investigating the contract.

The company is headed by Arnie Rothschild, who is active in Republican and Conservative party circles. Since 2012, his Growth Marketing Group has been paid nearly $3.5 million by party committees and candidates for elected office in New York State. Most of the payments involved television and radio advertising he purchased on behalf of Republican candidates and party committees. Another of his firms, Normal Communications, has been paid nearly $1.3 million for similar work since 2012.

The grand jury examining these issues is working out of the Robert H. Jackson Courthouse in downtown Buffalo. A grand jury, typically comprising 16 to 23 citizens, is authorized to investigate potential criminal conduct. It can subpoena evidence or a person to testify. Its proceedings are conducted in secret.

Grand juries work with a prosecutor to determine whether to indict or otherwise bring criminal charges, usually serious felonies, against a potential defendant. In this case, the grand jury is working with the FBI and U.S. Attorney for the Western District of New York.

The innocence or guilt of a defendant would be determined in a criminal trial before a judge and separate

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“We do not confirm or deny investigations, nor do we comment on grand jury proceedings,” said Barbara Burns, public affairs officer for the U.S. Attorney’s office.

While federal investigators have been looking into the OTB for months, the office of State Comptroller Thomas DiNapoli began work on an audit last month. DiNapoli, in announcing the audit in July, said, “Questions have been raised about the Western Regional Off-Track Betting Corporation that warrant a deeper look.”

Nearly two months later, Jennifer Freeman, the comptroller’s director of communications, confirmed “the audit process is underway.”

Freeman said audits typically take six months to a year to complete. She would not comment on whether the comptroller’s office was working with federal prosecutors or the state Gaming Commission.

Officials from the Gaming Commission declined to comment. But sources said Gaming Commission officials from its New York City office are asking questions. Sources said investigators are scrutinizing OTB’s lobbying contracts and health insurance benefits, as well as the distribution of sports and entertainment tickets to its luxury suites, including the use of other perks related to the private boxes.

Wojtaszek, the OTB president, declined an interview request for this story. But he has steadfastly denied any wrong-doing by OTB.

King of Niagara County Gets Life Benifits

 

 

When Henry Wojtaszek, the president and CEO of Western Regional Off-Track Betting Corp., steps down at the end of the year, he’ll take a gold-plated health insurance plan with him.

The plan features no deductibles, a $25 copay for doctor, specialist and testing visits and drug copays between $5 and $40.

Wojtaszek, according to the buyout agreement obtained by Investigative Post, can participate in one of two plans beginning Jan. 1. Wojtaszek’s employment contract states both he and his family can participate in the insurance plan.

The buyout agreement lists no date for when Wojtaszek’s ability to use the health insurance would end.

“That is beyond ridiculous. I’ve never heard of that,” said Assembly Member Monica Wallace when informed of Wojtaszek’s buyout including health benefits. “[It’s] more frivolous benefits for the leaders of OTB.”

Henry Wojtaszek’s buyout agreement, obtained via the state Freedom of Information Law.

It was not immediately clear if Wojtaszek and his family currently use the insurance plan. Timothy Callan, OTB’s board member representing Erie County, said in a statement that he was “led to believe” Wojtaszek does not and earns additional pay as a result. Wojtaszek’s wife, Caroline Wojtasek, is a Niagara County Court judge, making her and the family eligible for health insurance through the state. Her 10-year term is up at the end of 2030.

Current OTB officials — including Wojtaszek, Human Resources Director Danielle Fleming and OTB Chairman Dennis Bassett — did not return phone calls seeking comment. Neither did OTB spokesperson Ryan Hasenauer.

The health insurance plan is in addition to a buyout payment worth a year’s pay. Wojtaszek earns a base salary of $287,000 and total pay of $299,000. The agreement doesn’t spell out which amount he will be paid. Wojtaszek and other OTB officials signed first-ever employment contracts in April 2023, just prior to the state Legislature instituting reforms that spring.

Wojtaszek, according to his buyout agreement, will also be paid for unused vacation and sick days. The value of those days was not immediately clear. Wojtaszek’s contract states he receives five weeks of vacation annually.

Two other OTB executives — Chief Financial Officer Jacquelyne Leach and Vice President of Administration William White — also received buyout agreements. Leach and White, too, will receive health insurance benefits once they leave their positions, as well as payment for unused time off.

 

Leach’s buyout is $122,000, according to her agreement, or about half her annual salary. Officials previously said White would receive an $87,000 buyout, but such a payment is not mentioned in his agreement.

OTB practice enables part-time board members to receive health insurance at no cost. Depending on the length and timing of their time on the board, members can be eligible for lifetime coverage.

Health insurance for board members has been a contentious issue for years. Both the state comptroller and attorney general have opined that OTB board members are not eligible to receive health insurance, as did outside counsel retained by the agency. Nevertheless, OTB under Wojtaszek has continued to provide the benefit.

Investigative Post obtained copies of the buyout agreements under the state Freedom of Information Law. The request was submitted July 12, but OTB officials refused for three months to release the agreements, claiming they were “not fully executed.”

After an appeal filed by Investigative Post on Sept. 25, the agency relented and released the documents Tuesday. The agreements reveal that Wojtaszek and Dennis Bassett, chairman of the OTB board of directors, signed and dated Wojtaszek’s agreement July 25.

Leach and Bassett signed and dated her agreement July 30. White and Bassett signed and dated his agreement Sept. 26.

Callan, the OTB board member, said in a statement he has been asking OTB leadership for a copy of the buyout agreements for months and was “disappointed” the agency released them to Investigative Post before circulating them to board members. He and other directors were not shown copies of the buyout agreements before being asked to vote to approve them in June, he said, though OTB has since shared copies with him.

Callan in June was the sole vote against the buyouts.

“I am left to infer that the corporation’s management and board chair did everything they could to prevent a director from seeing the agreement,” he said in the statement. “This is not surprising. WROTB’s management and leadership continues to operate in a secretive, non-transparent manner that does not well serve the corporation, its member governments and the taxpayers.”

Callan, who along with Wallace and state Sen. Sean Ryan, has been critical of Wojtaszek’s buyout, said he was further disappointed that the agreement included health insurance.

“To discover that this buyout agreement will allow him to receive lifetime health insurance through the corporation after he separates from service appears dubious,” he said. “Employees who want to retire and leave the corporation of their own volition should not be given a golden parachute totaling $300,000 on their way out the door.”

 

Mike Norris past criminal behavior lands him a judge seat, did the voters know?

 

 

A New York state assemblyman from Niagara County, who struck immunity from prosecution deals as part of criminal investigations in the past, is now in line for a new job as a State Supreme Court judge.

While Assemblyman Mike Norris, R-Lockport, said in an interview earlier this month that he intended to seek reelection this year, the newspaper learned Wednesday that he is among a group of four state supreme court nominees who were endorsed for positions on the November general election ballot this week by Republican and Democratic delegates representing Western New York’s Eighth Judicial District.

Niagara County Republican Committee Chairman Richard Andres confirmed Wednesday morning that GOP judicial delegates endorsed Norris as one of four candidates for state supreme court judge during a meeting on Tuesday night at Chef’s restaurant. Andres said the delegates also backed incumbent Republican Henry J. Nowak and two incumbent Democrats, Deborah A. Chimes and Catherine Nugent-Panepinto, all from Erie County. If elected in November, each of the four candidates would serve 14-year terms.

The newspaper also confirmed that Democratic delegates endorsed the same slate of state supreme court candidates during their judicial convention Wednesday evening.

Andres cited Norris’ tenure as an assemblyman and as a partner in the Lockport law firm, Seaman Norris LLP, as factors in determining whether he would be a good fit to serve behind the bench.

“The assemblyman is an accomplished lawyer and has been involved in that space for a long time so with his experience in government we certainly felt he was fit for the job,” Andres said.

When asked about Norris’ prior immunity deals, Andres said he was aware of “some issues” in his past while suggesting they have been “resolved.”

Andres said none of those issues were deal breakers for local Republicans and that, having known Norris for quite some time, he believed he had the temperament and the knowledge necessary to be a fair jurist.

“His experience certainly was relevant to being a judge,” Andres said.

The newspaper spoke with a staff member from Norris’ office Wednesday afternoon, however, Norris didn’t respond to questions.

Norris, a Lockport attorney and former Niagara County Republican Party chairman, has served as the 144th District state assemblyman since 2016.

The newspaper previously reported that he struck immunity deals with prosecutors on two separate occasions in the past, including:

• A 2000 investigation that examined how Norris, Niagara County’s Republican elections commissioner at the time, and his Democratic counterpart, Judith Cirifalco, continued to collect full pay despite an earlier vote by county lawmakers to cut their pay by 10%.

In that case, Cirifalco and Niagara County Legislator James Ward were charged with misdemeanors while Norris was not charged because he was granted immunity from prosecution by the district attorney’s office.

• A second investigation in 2017 when, as head of the Niagara County Republican Party, Norris received a subpoena seeking information from an Albany County grand jury about a probe into a so-called “pass-through scheme” involving funds from the campaign committee of former state senator George Maziarz. Prosecutors alleged that Maziarz campaign funds were secretly funneled to former state senate staffer and Niagara County lawmaker Glen Aronow after his dismissal from Maziarz’s office following accusations from a female co-worker who claimed he sexually harassed her.

 Norris was not charged in that case.

In 2019, multiple news outlets, including the Niagara Gazette and Lockport Union-Sun & Journal, reported that Norris told the FBI during a separate investigation that he took part in an effort to steer a lucrative Niagara County grant writing contract to individuals with ties to another former Niagara County GOP Chairman, current Western Regional Off-Track Betting Corp. CEO and President Henry Wojtaszek.

“Jeff Glatz, the Niagara County manager, and Wojtaszek are very close,” Norris said as part of statements made to the FBI that were provided to local news outlets by Maziarz in 2019. “Glatz is from North Tonawanda. Wojtaszek told Glatz to put a Request for Proposal (RFP) together for a new grant writer for Niagara County. Wojtaszek told Glatz that they needed to get Winter (Four Points Communications) in there.”

Due to a conflict of interest with prosecutors in Niagara County, Maziarz’s allegations of bid-rigging were investigated by Monroe County District Attorney Sandra Doorley who determined, in July 2020, that no criminal charges were warranted in the case. In a letter announcing her decision, Doorley noted that while she considered the consulting practices of the grant writing company Four Points Communication to be “suspect,” they did not “rise to the level to warrant criminal prosecution.”

 His lucrative side jobs

 Outgoing Republican state Assemblyman Mike Norris won’t be able to keep his lucrative side jobs — 10 in all in Niagara County — presuming he becomes a state Supreme Court justice next year.

The assemblyman did not respond to a request for comment, but his law firm, Lockport-based Seaman Norris, confirmed this week that Norris will be withdrawing as a partner if elected to the bench in November.

Norris, 48, a Lockport attorney and former Niagara County Republican Party chairman, has served as the 144th District state assemblyman since 2016. He has twice been embroiled in public corruption investigations, both times trading his cooperation with investigators for immunity from prosecution.

His move from Albany lawmaker to a position behind the bench is virtually assured as Norris has been endorsed as one of four candidates for four state supreme court justice positions up for election in November.

Daniel Seaman, a senior partner with Seaman Norris, said Norris will be removed as a partner if he is elected judge, in keeping with state judicial conduct rules, which bar state Supreme Court justices from maintaining or receiving any income from private practice. Norris has been a partner in the firm since 2013.

“The firm will be reconstituted with the remaining members and staff, and a new name upon Mike’s departure,” Seaman said in a statement issued by the law firm in response to questions. “We will continue to maintain our private and municipal practices, as before with our other partners, associates and paralegal staff.”

As a state lawmaker, Norris receives an annual salary of $142,000. His side earnings total at least $220,000. He would earn $232,600 per year as a state Supreme Court justice.

During his tenure as an Assemblyman, state records show Norris bulked up his annual income considerably by providing legal and secretarial services to various local municipal governments and public entities.

New York Focus reported last year that Norris disclosed earning between $100,000 and $150,000 at the firm during his first four years in office. While his legal income dipped in 2021, his disclosure reports showed a combination of investment income and the sale of a Lake Ontario beach house “more than made up the difference.”

On his 2023 financial disclosure, Norris claimed income from his position as a partner in Seaman Norris for providing legal and secretarial work for 10 municipalities and public agencies in Niagara County.

New York’s financial disclosure laws require state lawmakers to identify sources of outside income. However, they are only required to disclose income in ranges, starting with “none” and extending to $10 million or more.

 

 

 

In his 2023 report, Norris indicated that he earned between $5,000 and $20,000 each for work performed as a partner in Seaman Norris for the Village of Barker, Lockport City School District, Town of Lockport, Village of Middleport and the Tonawanda Housing Authority.

In two instances — Town of Lewiston and Town of Hartland — Norris claimed income between $20,000 and $50,000.

Norris claimed earnings of between $50,000 and $75,000 each for the Niagara County Water District, Town of Lockport Industrial Development Agency and Town of Somerset.

Add it all up and Norris earned between $215,000 and $425,000.

Norris was among a group of Republican state lawmakers who filed a lawsuit last year in an effort to block a cap on outside income for members of the state Legislature. The restriction was tied to legislation passed in December 2022 that raised the annual salaries of Senate and Assembly members from $110,000 to $142,000, the highest pay in the nation for state legislators. Under the cap, members of the state legislature will not be allowed to make more than $35,000 from other jobs starting in 2025.

While Democrats believe the cap would help curb corruption in Albany, Norris and other Republicans who filed the lawsuit argued that it is unconstitutional and would reduce interest in seeking public office.

Norris did not respond when asked if he has withdrawn, or intends to withdraw, as a party in the lawsuit in light of his expected transition from the Assembly to the Supreme Court.

Norris twice struck immunity deals with prosecutors investigating allegations of public corruption: once in 2000, when he was Niagara County’s Republican elections commissioner, and again in 2017, when investigators were probing alleged misuse of campaign money by former state Sen. George Maziarz and his staff. At the time Norris was chair of the Niagara County Republican Committee.

During judicial conventions held earlier this month, Democratic and Republican delegates from across Western New York’s Eighth Judicial District cross-endorsed Norris and three other candidates for Supreme Court justice for the four seats up for election.

Earlier this week, Norris’s chief of staff Paul Bologna announced that he intends to seek election as his replacement in the 144th Assembly district. The Republican will face former Lockport Mayor Michelle Roman, the endorsed Democrat.