The Western Regional Off-Track Betting Corp reached a settlement with a former employee, who cooperated with an FBI investigation into suspicious contracts
A former executive at a New York state-owned racetrack and casino, who testified against its employer and was subsequently fired, recently settled a years-long lawsuit. The legal battle involved Michael Nolan and the Western Regional Off-Track Betting Corp (WROTB), a publicly owned casino and racetrack.
Former Executive Claims Harassment, Unlawful Termination
Back in April 2019, a report by the Investigative Post revealed that the FBI was looking into suspicious contracts inked between OTB and companies tied to politicians. Reportedly, some businesses were tied to Henry Wojtaszek, who held the role of CEO at the time and led the Niagara County GOP. On the other hand, the feds were also interested in contracts by OTB’s former chairman, Richard Bianchi, who headed the Monroe County Republican Party.
Nolan was approached by the FBI and agreed to cooperate with the investigation into OTB. However, once he disclosed that he cooperated with the federal authorities to his superiors, Wojtaszek and Bianchi, the executive claimed that he was harassed.
Steven Cohen, Nolan’s attorney, described the treatment his client endured as “a living hell.” Nolan was allegedly forced to work on weekends, saw some of his responsibilities taken away and lost his health insurance. What’s more, the whistleblower was allegedly denied a pay raise.
Lawsuit Resolved with a Settlement as OTB Agrees to Pay $550K
After months of harassment, Nolan was terminated from his role at OTB. Not unexpectedly, he decided to turn to court, describing the harassment he endured and claiming he was wrongfully terminated. Notably, Nolan pointed out that he is protected from potential retaliation under existing laws that safeguard whistleblowers.
In response to Nolan’s lawsuit, OTB filed a counterclaim, alleging that the former executive was involved in a “public smear campaign” that damaged the reputation of the publicly owned racetrack and casino. He was also accused of disclosing information regarding OTB that sought to negatively impact its reputation.
Several years after Nolan filed his lawsuit, the legal battle was recently resolved. Last month, OTB and the former executive reached a settlement in the wrongful termination lawsuit. Per the settlement, Nolan’s former employer agreed to pay $550,000 to close the matter.
It’s important to note that neither OTB, nor Nolan admitted any guilt under the conditions of the settlement. According to John Owens, OTB’s attorney, who was quoted by the Niagara Gazette, the operator would pay $150,000 out of the total sum of the settlement. The remaining share would be settled by OTB’s insurance company.
