Federal judge dismisses OTB whistleblower lawsuit

Oct. 13—A federal judge has dismissed a whistleblower lawsuit filed by a former employee of Western Regional Off-Track Betting Corp. who claimed he was fired for cooperating with state and federal investigators taking a closer look at the inner workings of the public benefit corporation.

In a ruling issued Wednesday, U.S. District Court Judge William Skretny dismissed as untimely a lawsuit filed by OTB's former chief operating officer, Michael Nolan.

Skretny's ruling notes that Nolan's claims of First Amendment retaliation were "time barred" as they were filed last August despite the alleged retaliation accruing no later than April 30, 2019. According to the judge's ruling, the lawsuit fell outside a statute of limitations requiring such claims to be filed within one year and 30 days from the date of the first alleged incident.

"We are gratified by today's District Court decision," said OTB's CEO and President Henry Wojtaszek in a statement. "From the beginning we have stated that these accusations were politically motivated. We continue to believe that any thorough examination of the facts would show Western OTB acted in an appropriate and professional manner."

Nolan sought the court's assistance in compelling OTB to pay him $14.5 million compensation for his alleged mistreatment over a two-year period. Nolan also asked the court to reinstate him in his old job with OTB.

The lawsuit singled out Wojtaszek and OTB's board chair Richard Bianchi, suggesting they "swiftly, aggressively, and austerely" retaliated against Nolan for cooperating with investigators and testifying before a grand jury. Nolan claimed, following his decision to cooperate with authorities, he was wrongfully denied a raise, forced to work weekends and was stripped of various responsibilities, including his role as OTB's Freedom of Information officer.

Nolan enjoyed a nearly three-decade career at OTB before he was dismissed in December 2020. His lawsuit argued that the experience caused him significant "emotional distress" and personal financial cost.

Wojtaszek described Skretny's decision as "clearly well researched" and "well-reasoned". He also contended that OTB management, contrary to Nolan's claims, has the entity returning "record revenues" to the 15 counties and two cities in Western and Central New York that benefit from profits earned at OTB outlets including Batavia Downs horse racing track and casino. With Nolan's "baseless" allegations having been dismissed, Wojtaszek said OTB looks "forward to building on that success."

"Once again, WROTB, has won another victory in court against a frivolous attack on our operations," Wojtaszek said. "This is our fourth victory this year, against what appears to be a never-ending string of attacks by those with an ax to grind. As we stated, during our meeting with our 17 member counties last week, we have done much to improve the transparency and accountability of our organization, but many of the charges that were thrown at us were simply unfounded, and that was again underscored today in federal court. Matters get dismissed when people miss deadlines. It must not have been a priority for Mr. Nolan or his attorney, which sometimes happens when you start with a baseless claim."