Top execs out at Vernon Downs

CNY Business Journal (1996+), May 04, 2001 by Dickinson, Casey J

VERNON - Two members of Vernon Downs management team have pulled out of the race right before post time.

Vernon Downs President John Signorelli has resigned his post with Mid-State Raceway, Inc., the track's parent company. The board accepted his resignation at its scheduled April 24 monthly meeting. Three days later, Greg DeFrank, Vernon's director of racing, quite without notice, says Jim Moran, Vernon Downs director of publicity. Signorelli had recruited DeFrank to Vernon from a track in Florida when he joined Mid-State in 1999.

The departures haven't disrupted the track's scheduled opening, says Moran, and the duties of the departed have been taken over by others. However, he says, DeFrank's departure, "kind of left us in a tight spot."

The State Racing and Wagering board had levied a $5,000 fine on Signorelli after finding fault with many of Vernon Downs's business practices. He had served as Vernon Downs president since September 1999, after he and others made a $1.5-million investment in MidState. Signorelli still holds a 15-percent stake in the company.

The board has named no permanent replacement for Signorelli, according to Chairman Dominic Giambona. MidState's previous president and current board member, Justice Cheney, will return from retirement to head the company until a permanent successor to Signorelli is named. Vernon Downs begins its 49th season with a 90-day temporary license, because of irregularities outlined in a state report issued in March.

Attempts to reach Signorelli were not successful.

On April 30, the Racing and Wagering Board gave Vernon another 30 days to get its debt payments up to date, says Stacy Walker, spokesperson for the board.

In late March, the board gave Mid-State 30 days to pay down the company's racing-related debts. State auditors found more than $500,000 overdue in the track's accounts when they examined its books as part of their 2001 licensing investigation. Lanz Construction, a Vernon-based contractor, had filed a complaint with the board about Mid-State's failure to pay for materials used in the track's new 7/8-mile course. Vernon Downs must keep its bills current through the rest of the year as a condition of licensing.

After finding a number of apparent violations, the board required the track to hire an independent monitor to report on its co mpliance with state racing laws during the 2001 season. The monitor, former state Supreme Court Judge Robert Sise, will update the Racing Board on Vernon's progress in a 75-day report due later in the season. The Racing Board has given its approval to the choice, says Walker. Sise has previously served as head of the state's Task Force on Casino Gambling.

After Sise submits his report, the board will have 15 days to decide whether to issue Vernon Downs a license for the remainder of the year.