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Wednesday, June 10, 2009
Marc Correra Pulls Out of Raton Racino Deal
By Thomas J. Cole
Journal Staff Writer
Caught up in a scandal over state government investments, Santa Fe broker/dealer Marc Correra has pulled the plug on his involvement in a planned horse-racing track and slot-machine casino in Raton.
Correra was a man without good options; continued involvement threatened to delay construction of the racino or scuttle the project altogether.
The state Gaming Control Board announced at a meeting Tuesday that an attorney for Correra had advised the board he was giving up his minority ownership in Horse Racing at Raton.
With Correra out of the picture, the board voted, subject to several conditions, to grant Horse Racing at Raton a gaming license for slot machines and approve the involvement of majority owner Michael Moldenhauer of Toronto. Moldenhauer plans to break ground June 24 for the $50 million racino. The state Racing Commission previously licensed the track.
The Gaming Control Board tried to put the best shine on Correra's exit.
"Mr. Correra has decided to focus on other business opportunities currently available to him," the board said in a written statement.
"The board respects Mr. Correra's decision and would take this opportunity to express our appreciation to him for his participation in our licensing process. We compliment him on his professionalism and wish him the very best in his future endeavors."
The Gaming Control Board delayed action last month on a license for Horse Racing at Raton and the involvement of Correra and Moldenhauer.
Asked whether the board advised Correra that his continued involvement in the racino would cause further delay in licensing or that he needed to end his involvement, board Chairman David Norvell said, "I think Mr. Moldenhauer realized that on his own accord."
Moldenhauer said Correra made the decision to get out.
Neither Correra nor a Chicago attorney representing him in his dealings with the Gaming Control Board could be reached for comment.
Correra and Moldenhauer still must reach a formal deal on Correra's exit from the partnership, and that agreement must be approved by the Gaming Control Board.
Correra's problems began several weeks ago when the State Investment Council and the state Educational Retirement Board disclosed fees paid to independent marketers by investment firms for helping them get hundreds of millions of dollars in government investments.
Correra shared in more than $16 million in fees — more than any other so-called third-party marketer.
On two state investments, he shared fees with another marketer who has pleaded guilty in a kickback scheme involving state government investments in New York. A hedge fund that Correra worked for as a marketer also has been accused of taking part in the New York scheme.
Also, Correra was a marketer on two state investments totaling $90 million that are now worthless and at the center of a lawsuit alleging that the investments were politically motivated.
No one has been charged in New Mexico, but federal authorities have conducted interviews and subpoenaed documents at the State Investment Council and the Educational Retirement Board.
Correra's father, Anthony, is a major campaign contributor and adviser to Gov. Bill Richardson. He also helped in the search that led to Richardson's hiring of State Investment Officer Gary Bland.
Marc Correra also has close ties to Bland. His lawyers have said he worked hard for his fees and had done nothing wrong.
Closed doors
The Gaming Control Board met behind closed doors before announcing Correra was ending his involvement with the Raton track and approving the gaming license for Horse Racing at Raton and the involvement of Moldenhauer.
The board placed seven conditions on the license for Horse Racing at Raton, including Correra's finalized exit from the partnership within 30 days. The board also wants more information on the company's ability to finance the racino.
The board voted 4-0 to approve the license for Horse Racing at Raton, with member Demesia Padilla abstaining. The vote was 4-1 on Moldenhauer's involvement as a key person, with Padilla casting the vote against.
Padilla, a certified public accountant, said after the meeting that she didn't feel "we have the best proprietor at this time" for the Raton racino. At times, she said, she hasn't been fully confident or comfortable with the financial information provided to the board.
"As the CPA on the board, I'm not convinced of all the financial records and the accuracy," she said.
Moldenhauer said after the meeting that all financing is in place for the racino and that his focus now is on getting construction started, not finding a new partner or partners.
UpFront is a daily front-page opinion column. Thom Cole can be reached in Santa Fe at (505) 992-6280 or at tcole@abqjournal.com
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