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Investor Accused of Bilking New York Harness Track

SYRACUSE, New York – As reported by the Associated Press: "A Las Vegas investor and his associates have been accused of bilking an upstate New York harness race track of $7.5 million in questionable loan fees.

"A lawsuit filed Wednesday in federal court by three shareholders also claims Shawn Scott lied to gain control of the stock of Vernon Downs' parent company, Mid-State Raceway Inc.

"…The lawsuit was filed by John Signorelli, a former track executive who resigned in 2001 after being fined by state regulators; Jeff Gural, a New York City businessman whose recent offer to buy the track was spurned by Scott; and longtime shareholder Gary Greenberg.

"`Scott and his affiliates looted Mid-State, obtaining millions of dollars in exorbitant commitment and loan fees and excessive interest payments,' the lawsuit says.

"…Meanwhile, Vernon Downs is losing about $5 million a year, according to the suit, with the debt now at $23 million owed to a Las Vegas mortgage company of which Scott is an investor…"

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