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(Editor’s note: The below article was published June 10, 2023 and available via Yahoo. It is offered here for those who think the Express was too soft on Henry Wojtaszek.)
By Mark Scheer
Lockport Union, Sun & Journal
Jun. 10—Western Regional Off-Track Betting Corp. CEO and President Henry Wojtaszek conducted a wide-ranging interview earlier this week with a reporter and members of the editorial board for both the Niagara Gazette and Lockport Union-Sun & Journal.
During the meeting, which lasted about an hour and a half, Wojtaszek addressed the organization's handling of tickets for sporting events and concerts, defended the practice of providing fully covered health insurance to part-time board directors and suggested the overall financial performance of the public benefit corporation has been stronger than ever under his watch.
While admitting that WROTB is or has been under investigation for various reasons by, as he put it, "everybody," Wojtaszek urged onlookers and critics to take a closer look at the positives of his tenure, including increased profits for Niagara County and the 16 other municipalities served by his organization.
"You can't argue with the success in the numbers we've had at Batavia Downs," he said.
WROTB: BY THE NUMBERS
Defined under state law as a public benefit corporation, WROTB manages betting parlors and EZ Bet locations across Western New York. It draws the bulk of its revenue from Batavia Downs, a complex in Genesee County that includes a horse racing track, casino and hotel.
The public entity distributes 49% of its gaming profits to the state of New York, with the remaining profits shared by the cities of Buffalo and Rochester and 15 counties in the region, including Niagara County. Operations are overseen by a 17-member board of directors appointed by lawmakers in each of the communities that benefit from the organization.
Wojtaszek, an attorney and the former chairman of the Niagara County Republican Committee, has been CEO and president since 2016.
In recent years, Wojtaszek and the organization have drawn criticism from state auditors and interest from state and federal investigators.
Language included in the state budget finalized in May removed all 17 members of the previous board in favor of installing new directors under a system that would provide greater voting power to larger participating municipalities, including Buffalo and Rochester and Erie and Monroe counties.
Democratic lawmakers in Albany pushed to fire the former board as part of a larger reform effort. State Sen. Tim Kennedy, D-Buffalo, said he supported the change because he thinks it's time to end what he called a "pervasive culture of corruption" at WROTB.
Defenders of the organization, including top Republicans like U.S. Rep. Claudia Tenney, R-Canandaigua, and state senate Minority Leader Rob Ortt, R-North Tonawanda, have described the Albany maneuver as a "power grab" that comes at the expense of rural communities.
Jun. 10—Western Regional Off-Track Betting Corp. CEO and President Henry Wojtaszek conducted a wide-ranging interview earlier this week with a reporter and members of the editorial board for both the Niagara Gazette and Lockport Union-Sun & Journal.
During the meeting, which lasted about an hour and a half, Wojtaszek addressed the organization's handling of tickets for sporting events and concerts, defended the practice of providing fully covered health insurance to part-time board directors and suggested the overall financial performance of the public benefit corporation has been stronger than ever under his watch.
While admitting that WROTB is or has been under investigation for various reasons by, as he put it, "everybody," Wojtaszek urged onlookers and critics to take a closer look at the positives of his tenure, including increased profits for Niagara County and the 16 other municipalities served by his organization.
"You can't argue with the success in the numbers we've had at Batavia Downs," he said.
The organization remains the subject of investigations at the state and federal levels. During his interview with the newspaper, Wojtaszek would not disclose any specific agencies or authorities that are involved.
He admitted some of WROTB's past practices were deemed "improper," but said no evidence has been presented to confirm that he or others in the organization have operated in an illegal or corrupt manner. He said management continues to cooperate and has nothing to hide.
He noted that the New York State Gaming Commission, the lead oversight body for WROTB, has taken no action for non-compliance with state gaming guidelines.
"Anybody who comes to ask questions we make people available," Wojtaszek said. "There's nothing that we haven't provided people relative to answers. We don't fear the truth. We don't fear any of the agencies that come and ask us questions."
QUESTIONS RAISED
Auditors from New York State Comptroller Thomas DiNapoli's office started looking into WROTB's operation in March 2019, shortly after former state senator George Maziarz, a Newfane Republican and one-time Wojtaszek ally, went public with claims that board directors and other personnel were misusing tickets for Buffalo Bills and Buffalo Sabres games and other events that were purchased to promote Batavia Downs.
In September 2021, state auditors released a report that found WROTB "spent at least $121,000 on tickets to sporting events, concerts, food and alcohol for board members, employees and other individuals without the oversight required by state rules."
A second state audit released at the same time found Wojtaszek, as CEO, "did not reimburse the organization for his personal use of an official vehicle in a timely manner."
DiNapoli's office has also remained firm in its opinion that OTB's board directors have no legal right to continue to receive full-time health and dental coverage for their service, which generally includes attending two days of meetings per month.
The Gazette, the US&J and the Buffalo-based news outlet Investigative Post all reported in September 2019 that a federal grand jury had been empaneled to investigate possible corruption within the organization.
Former Chief Operating Officer Mike Nolan, who served as the second-in-command at WROTB, claimed in 2020 that he was dismissed after being targeted by Wojtaszek and former board Chairman Richard Bianchi for disclosing that he agreed to cooperate with state and federal investigators.
In January, WROTB's board agreed to spend $20,000 in public funds to hire the Buffalo law firm Personious Melber. A resolution supporting the move indicated that the firm would be providing legal services to "certain employees" who were being interviewed as part of an undisclosed "investigation."
WROTB previously hired noted defense attorney Terry Connors who has for several years now provided the organization with legal advice on various matters, including the ticket issue and questions about board directors' health insurance.
TICKETS AND CONCESSIONS
WROTB has agreements in place for use of luxury suites at three of the largest venues in Western New York: Highmark Stadium and KeyBank Center in Erie County and Blue Cross Arena in Monroe County. It also buys tickets for concerts and events under arrangements with other venues such as Darien Lake and the Riviera Theater in North Tonawanda. All of the tickets are supposed to be used to drive return business at Batavia Downs by rewarding regular customers.
State auditors found, during a review covering operations from September 2017 to October 2019, WROTB failed to properly account for $121,000 worth of tickets, food and drinks, including alcohol, given to non-players who should not have been eligible for the promotional program benefits. The audit asserted that some of the tickets and concessions were enjoyed by OTB board directors and friends and family of OTB officials.
Auditors identified specific instances when board members received tickets, but no business purpose was identified by OTB officials.
For a hockey game on Nov. 23, 2018, the board chairman received six tickets and the vice president of operations received nine tickets. In addition, one of OTB's vendors received three tickets. OTB had no record of who actually attended the game. However, the bill for concessions was $1,167, which included $177 in alcohol purchases.
For another hockey game on Dec. 29, 2018, the board chairman received four tickets, five tickets were given to another board member and five other tickets were recorded as given to "host." Again, according to auditors, the OTB had no record of who actually attended the game. The bill for concessions was $1,443, which included $493 in alcohol purchases.
According to the state audit, at least 547, or 9%, of program tickets were given to non-players, including WROTB officials, employees, vendors and charities. Auditors noted that, due to incomplete records and the likelihood that other tickets were given to non-players the number of tickets given to non-players was "most likely greater."
Wojtaszek said that while he respects the findings of the audit, "many" of the tickets in question were ultimately passed along for use by charitable organizations. He noted that WROTB followed one of the audit's main recommendations in 2019 when it adopted a new ticket distribution policy which he said has tightened record-keeping for the promotional program.
"It was incomplete inventory of the tickets and that was the big problem," Wojtaszek said.
Under the policy, only one OTB official is allowed to serve as a "host" for events. Multiple OTB officials are no longer attending Bills or Sabres games or concerts, according to Wojtaszek.
"I'm very glad that the attention was brought to it because now we have a great program that is done extremely well," he said.
While state auditors recommended that OTB reimburse the public for tickets distributed to non-players and for concession costs tied to their attendance at Bills and Sabres games and other events, Wojtaszek acknowledged that his organization has not done so to date.
"If it hasn't been reimbursed, it's because it was properly utilized in the first place," he said.
Wojtaszek noted that he reimbursed WROTB a little more than $3,000 for the use of his agency issued vehicle and cell phone and no longer receives either perk from the organization.
In May 2020, OTB's former board agreed to compensate Wojtaszek $7,000 for use of his personal vehicle.
DEFENDING THE HEALTH INSURANCE
The state comptroller's office continues to insist that WROTB has no legal standing to provide part-time directors with lifetime health insurance coverage at the public's expense. An attorney for the state comptroller's office previously described the practice as "impermissible." The state attorney general and a private attorney hired by WROTB came to similar conclusions.
"The state comptroller has repeatedly and unambiguously informed the OTB that it may not provide health insurance for board members; an opinion shared by the state attorney general's office," DiNapoli spokesperson Jennifer Freeman said. "We again urge OTB to take appropriate action to recover improperly spent public monies."
Wojtaszek said another one of WROTB's attorneys, Terry Connors, put together a report that concluded none of the previously rendered opinions has been confirmed by the courts, which he believes places the matter into the category of undecided.
"It's not an illegal or criminal activity. It's not a corrupt illegal practice," Wojtaszek said.
While Wojtaszek and other representatives continue to disagree with the opinions from the state comptroller and attorney general, the former board did approve a change in policy that bars newly appointed directors from receiving health care benefits through the organization.
"When the board is reconstituted, nobody will be on the Batavia downs health insurance plan," Wojtaszek said.
As to public opinion, Wojtaszek said he understands why residents in the WROTB service area would frown on it but believes the perk has helped the organization attract qualified and dedicated directors in what he described as a highly competitive Western New York gaming market.
"In order to compete you sometimes have to take other business approaches," he said.
"Of course I can see why people might not like it. Then they vote with their feet and they vote with their money," he added.
ACCESS TO INFORMATION
Wojtaszek insisted that WROTB has been forthcoming with information whenever it has been requested by the media or outside investigatory agencies.
However, this newspaper notes three instances where that has not been the case, including:
—Initial denial of Freedom of Information Law requests seeking information about the identities of recipients of tickets purchased under the promotional program.
—Denial of another FOIL request seeking a copy of a 380-page internal report compiled by Connors in response to various accusations of wrongdoing at WROTB.
—Denial of a third FOIL request that sought a copy of a 31-page report put together by Core Consultancy, a Buffalo company owned by former FBI agent Paul Moskal that conducted an assessment of WROTB's operations.
In October 2019, under pressure of a possible lawsuit filed by Greenberg Traurig, a law firm that was representing the newspaper, WROTB disclosed 201 documents that included information about ticket recipients.
On Monday, Wojtaszek said he regretted not fulfilling the initial FOIL request as it related to the tickets, admitting it was a mistake on his part.
"I should have released that information," he said.
Wojtaszek described the reports by Connors and Moskal — both paid for with public funds — as exempt from public disclosure due to "attorney client privilege."
Before meeting with editors on Monday, Wojtaszek provided excerpts from a deposition stemming from Nolan's lawsuit that reflected testimony offered by Nolan and his attorney Steve Cohen as it related to their interaction with one of WROTB's chief critics, Maziarz.
While he brought a copy of the full deposition with him to the interview, Wojtaszek refused to release a full copy to the newspaper, saying WROTB attorneys advised him not to do so.
FORMER FRIEND, BITTER FOE
Wojtaszek assigned much of blame for his organization's troubles to a small group of people whom he said have shown an intent to cause trouble for him.
At the top of his list is former friend and associate, Maziarz.
Wojtaszek insists Maziarz — who was among the first to raise concerns about OTB's operation in 2019 — has been feeding regulatory agencies and news outlets misinformation about him and others working for the organization because he has a vendetta against him and his family.
Maziarz retired from public office in 2014. Four years later, he pleaded guilty to offering of a false instrument for filing in the second degree, which prosecutors allege was related to a pass-through scheme in which he used money from his campaign committee to funnel secret campaign payments to a former Senate staffer, Glenn Aronow, who had left government service amid charges of sexual harassment. Maziarz paid a fine of $2,500 to resolve the matter. Wojtaszek cooperated with prosecutors in the case and the two have been at odds ever since.
Wojtaszek contends that before he got the job leading WROTB, Maziarz hoped to become the organization's CEO himself.
While Maziarz has personally contacted the FBI and other state and federal agencies with claims about wrongdoing at WROTB, Wojtaszek said no formal legal action has been taken because the former senator's accusations are baseless and grounded in spite.
"We haven't seen anything to give us any indication that there's any corruption," he said.
OTHER CRITICS
Much of the reporting on WROTB operations has come from three sources — the Niagara Gazette, the Lockport Union Sun & Journal and the Buffalo-based news outlet Investigative Post.
Wojtaszek suggested that IP and its managing editor and founder, former Buffalo News investigative reporter Jim Heaney, have been overly aggressive when it comes to him in particular, and he charged that Maziarz has been an overused source for reports published by the outlet as well as the newspapers.
In addition, Wojtaszek cited Nolan and former board director and Schuyler County representative Phil Barnes as individuals who have their own axes to grind with WROTB.
Nolan has been characterized by Wojtaszek and former board chairman Richard Bianchi as a disgruntled ex-employee who was fired for poor on-the-job performance.
Nolan sued the agency under a whistleblower claim that alleged Wojtaszek and Bianchi retaliated against him after he agreed to talk with state and federal investigators. The lawsuit was dismissed last fall as untimely by U.S. District Court Justice William Skretny.
Investigative Post reported last week that Nolan has filed a similar lawsuit seeking to hold the directors liable for the agency's alleged misuse of millions of dollars.
While the false claims lawsuit was unsealed by a federal judge in February, Wojtaszek questions its standing as a legitimate claim, saying neither he nor any other individuals named as defendants have been served in the case.
"You have to serve them to have a lawsuit," he said.
If the matter does end up being litigated, Wojtaszek said he's confident that WROTB will prevail as it did in Nolan's previous legal action.
As to Barnes and his criticisms, Wojtaszek said he's entitled to his opinion.
"I simply told him I don't fear anybody coming in here and looking at the operations of our company," Wojtaszek said.
Wojtaszek said Barnes has not attended the past 51 WROTB board meetings and he believes Barnes is part of a larger effort to taint him as a leader and drag down the organization as a whole.
"He is clearly working with George (Maziarz) and Mike Nolan to actively hurt the brand of Western Regional Off-Track Betting," Wojtaszek said. "I think George Maziarz got him fired up."
Barnes previously indicated that he no longer attends board meetings due to concerns about the organization's leadership and direction. He has also indicated that leaders in Schuyler County have advised him to stay away amid the ongoing investigations.
In a 2022 interview with Jim Shultz, a contributing writer for the US&J and the Gazette, Barnes, a Republican and retired deputy sheriff, expressed concerns about various WROTB matters, including the distribution of lucrative contacts and the hiring of lobbyists under Wojtaszek's watch.
"I'm the one who called the FBI, and I'm proud of it," Barnes said.
WHAT'S NEXT?
For now, Wojtaszek and other OTB officials are operating under a "business-as-usual" approach. Batavia Downs and other gaming outlets continue to operate much the same as they did before the board shakeup.
While it has been widely speculated that Wojtaszek and his allies would be ousted once a new regime took hold, several of the participating counties have either reappointed their former directors or replaced them with new ones who would appear to be aligned, at least politically, with Wojtaszek.
On Tuesday, the newspapers and Investigative Post reported that, during their final meeting in April, the board of directors approved three-year employee contracts for Wojtaszek and at least two other members of management team. The three-year deals would, on paper at least, tie them to the organization through April 2026.
Wojtaszek has said there's no guarantee and it will be up to the new board members to decide his future and that of those around him.
THE BOTTOM LINE
Amid all the controversy, Wojtaszek said he hopes residents of the communities served by WROTB focus on what he considers the most important thing: The overall health of the public benefit corporation.
He invited the media and his critics to do the same.
Under his leadership, Wojtaszek argued, Batavia Downs in particular is performing better than it has in years. He provided newspaper staff with financial reports that show the "net win" — the amount of money held by the organization after paying out slot machine winners — grew from $53 million in 2016 to $76 million last year.
Last year's net win of $76 million represented a $9.6 million or 14.5% increase over the 2021 numbers at Batavia Downs Gaming & Hotel, officials said.
Wojtaszek said indications so far this year suggest net win will increase again by the end of 2023.
While 49% of all profits go to the state, Wojtaszek said that still leaves what's been a growing share for host communities, including Niagara County.
WROTB reported in January that its stakeholders were set to share an estimated $9.2 million in 2022 earnings, after what officials described as a "record-breaking" year where credits played topped $1 billion for the first time. Niagara County's projected share was $713,000.
Wotjaszek said efforts to grow what's been a successful concert series at Batavia Downs have helped. He believes the hotel at Batavia Downs — purchased by WROTB from its prior owner in 2021 — will prove to be another asset that will encourage visitors to come to Batavia Downs.
"We do our job," Wojtaszek said. "We have great employees. We have absolutely crushed it in giving back to the counties, which is what we're supposed to do in the first place."