Ryan, Wallace urging state to investigate OTB severance deals

Buffalo, N.Y. (WBEN) - Two state lawmakers are now urging state investigators to look into the severance package deal for three outgoing Western Regional OTB executives. They claim the executives have been accused of impropriety.

State Sen. Sean Ryan and Assemblymember Monica Wallace last month called on the OTB Board of Directors to rescind the wasteful buyouts totaling more than $500,000 at their next meeting. They say further analysis of the Public Authorities Law has supported the legislators’ claims that the buyouts violated the Severance Pay Limitation Act.

Both legislators sent a joint letter to the New York State Office of the Inspector General and the New York State Office of the Attorney General outlining their conclusions, and urging both offices to review the legality of the buyouts.

Ryan says his concern is that the Board of Directors voted to have these people leave the payroll sometime next year, but to pay them a year's salary or less when they left.

"Remember, surplus money from the OTB is supposed to go to Erie County and the City of Buffalo. It's not designed to give their pals and their cronies, big golden parachutes," said Ryan with WBEN.

Ryan says the OTB, under the current leadership, has a long and deep history of corruption.

"They feel as though the money that comes from the OTB is to benefit the executive director and board members," he said. "Whether it's hotel rooms, box seats with all the beer and food you want, all paid for on the taxpayer dollar. So the OTB has long thumbed its nose at any rules and responsibilities, and this is just one more in this long episode of malfeasance at the OTB."

Wallace says that's not all the OTB has been called out for.

"[The Comptroller] has called out OTB for illegally providing health insurance benefits, very high quality health insurance benefits and dental insurance benefits, and vision insurance benefits to the board members who are just supposed to be basically appearing at board meetings," said Wallace in an interview with WBEN.

Wallace and Ryan are hopeful to hear from the state sometime soon.

"We'll give them time to look over and really dig into this a little bit, but I know there have been other situations," Wallace said. "I think it was Catskills and maybe the capital region, where there was mismanagement and malfeasance and fiscal irresponsibility by people in those organizations. And I know that in those situations, either the inspector general or the attorney general, or both, took action."

She adds the OTB could have eliminated the inquiry by just rescinding those contracts, but refused to do so.

A request for comment by the OTB was not returned.