Columnist Ralph Siraco: Justice moved swiftly in betting scheme

Ralph Siraco

Monday, Dec. 16, 2002 | 8:53 a.m.

Ralph Siraco's horse racing column appears Monday and his Southern California selections run Tuesday-Sunday.

When Derrick Davis, 29, of Baltimore pleaded guilty in federal court at White Plains, N.Y., on Thursday to one count of wire fraud and one count of computer fraud, it put a finality to the criminal action of the now famous Breeders' Cup Pick Six scam.

Although the racing industry still faces security issues in its totalizator betting systems, restoration of consumer confidence in that system and a rebuilding of integrity of the betting practices within the sport, the perpetrators of the biggest wagering fraud in the sport's history have been brought to justice in swift time.

Just 47 days after the Oct. 26 Breeders' Cup at Arlington Park, all three conspirators of the crime are now awaiting sentencing.

Glen DaSilva, 29 of Manhattan, N.Y., pleaded guilty, in the same courtroom just one day prior to Davis, to one charge of computer and wire fraud in addition to one count of money laundering.

DaSilva and Davis joined former Drexel University fraternity brother Christopher Harn, 29 of Newark, Del., who was the first to strike a deal with the U.S. attorney's office. Harn entered a guilty plea of one count of conspiracy to commit fraud and one count of money laundering on Nov. 20.

Harn, a former Autotote employee, admitted that he was the mastermind of two separate betting scams that involved DaSilva and Davis which included rigging the only winning Breeders' Cup pick six tickets worth a total of more than $3 million.

The other betting schemes included participation by DaSilva and Davis in cashing counterfeit tickets at automated teller machines and using off-track phone betting accounts at the Catskill, N.Y., OTB that produced approximately $200,000 in altered pick four and pick six tickets manipulated by Harn. As an Autotote employee, Harn had the opportunity and the necessary security clearances to infiltrate the computerized betting system at the company's Delaware hub.

Harn, who will be sentenced Feb. 19, and DaSilva each face a maximum of 25 years in prison and a $750,000 fine. Davis faces a maximum of five years in prison and a $250,000 fine. Both DaSilva and Davis will be sentenced on March 11. U.S. attorney James Comey of the Southern District of New York has indicated that the trio will receive lesser penalties for their cooperation in bringing this case to a close.

While the crimes by Harn, Davis and DaSilva uncovered a gapping breach of security to a system that processes billions of dollars from millions of wagering transactions annually, the industry moved with haste to investigate the problem, identify and prosecute the criminals and to immediately begin rectifying the image of racing.

The National Thoroughbred Racing Association has commissioned a task force on the issue and hired former New York Mayor Rudolph Giuliani's firm to handle the tedious job of investigating any other breaches in the system. Giuliani's company has the needed expertise in systems security, internal and government investigations and crisis management.

In a recent interview by The Daily Racing Form, NTRA commissioner Tim Smith summed up what the racing industry must do in the aftermath of the Breeders' Cup pick six scam and what the industry did in the early stages of the scandal.

Smith was concise in his comments on how to restore the confidence in the lifeline of the racing business. His advice: "Acknowledge the problem. Take the issue seriously. Implement concrete steps. Look at both short-term and long-term improvements. Communicate what you're doing."

In the days and months ahead, we will all be listening.