Foe seeks probe of track owner

Thursday, July 24, 2003 | 9:36 a.m.

HARRISBURG, Pa. -- An outspoken Senate foe of gambling has asked Gov. Ed Rendell to order an investigation into the finances of the owner of the Philadelphia Park racetrack, questioning the business practices that have allowed the track to avoid paying much in federal and state income taxes.

Sen. Gibson Armstrong, R-Lancaster, in a letter to Rendell and Revenue Secretary Gregory Fajt, asked for the investigation as part of a background check ahead of the possible legalization of slot-machine operations at the state's racetracks, which would almost certainly enrich racetrack owners.

Citing news articles in recent years in The Philadelphia Inquirer, Armstrong noted that the track's owner, Greenwood Racing Inc., reports little in annual track profits after debt transactions largely with overseas affiliates or related parties.

A 1998 review of financial and court documents by the Inquirer show that Lebanese businessman Watche A. Manoukian has used the Bensalem racetrack as the hub of an expanding American gambling empire that ships tens of millions of dollars overseas -- virtually tax free -- to a family company in Liechtenstein, a country renowned as a tax haven.

Manoukian's attorney, Terrence Everett, declined comment.

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