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The N.Y.R.A. Tries to Head Off a Criminal Indictment

``The racing association, a nonprofit corporation licensed by the state to conduct racing at Aqueduct, Belmont Park and Saratoga Race Course, has proposed paying a civil fine rather than face charges that it took part in a criminal conspiracy to commit tax fraud, the officials said.

``...The meeting is part of a discussion, first reported in The Albany Times-Union today, between racing association lawyers and the United States attorney's office for the Eastern District of New York. No final decision appears imminent, the officials said.

``...The two sides met in February to examine whether the racing association's management had colluded or allowed tax fraud by clerks in a decade-old practice called shorting, in which clerks would take money from their cash drawers. The racing association, in turn, would deduct that amount from their paychecks, which allowed the clerks to pay lower income taxes.

``…The racing association's argument for a civil resolution rather than a criminal charge is centered on four points, according to these two people: that its current senior management was not involved in the wrongdoing; that the problem was discovered and solved before the federal investigation was underway; that the racing association cooperated with the government, including waiving the attorney-client privilege; and that innocent employees, pension holders and horsemen would be severely damaged…”

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