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Ex-SEC Chief Joins Vernon Downs Lawsuit

NEW YORK – As reported by the Syracuse Post-Standard: "The former chairman of the federal Securities and Exchange Commission has joined a lawsuit alleging fraud against the Las Vegas group that controls Vernon Downs.

"Richard Breeden, who served as SEC chairman from 1989 to 1993, decided to sue the track after the board of directors rejected his call for an independent panel to investigate possible wrongdoing. Breeden acts as the bankruptcy trustee for the Bennett Funding Group and controls about 15 percent of the shares in Vernon Downs' parent company, Mid-State Raceway now he owns 15 percent.

"That's why Breeden has joined the lawsuit, said Martin Gersten, the lawyer for Scott and Mid-State.

"…Scott noted that the Mid-State board of directors, acting on the advice of lawyers, approved all the transactions that gave him the rights to buy up stock and loan the track money.

"He has countersued in state court, saying the three plaintiffs - Signorelli, Gary Greenberg and New York City real estate investor Jeff Gural - are trying to depreciate the value of Vernon Downs so they can buy it cheaply…"

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