In the wake of a recent embezzlement arrest and a spate of resignations by Humboldt County Fair Association executives, California Horse Racing Board (CHRB) commissioner Thomas Hudnut on Thursday questioned whether or not the Northern California half-miler better known as Ferndale would be able to operate its traditional late-August race meet in 2023.
Jim Morgan, the legal counsel for the Humboldt County Fair, immediately provided assurances that Ferndale's racing would not be affected by the in-process criminal audit and management shakeup.
And another CHRB member, vice chair Oscar Gonzales, quickly leapt to Ferndale's defense, accusing Hudnut of delivering a “low blow” simply for making his query about the fair's level of financial and management fitness.
That testy exchange evolved out of a seemingly routine agenda item during the Dec. 15 monthly meeting.
Back in October, the CHRB voted in a 2023 race dates calendar for NorCal that largely mirrored the framework from the 2022 schedule.
The lone exception was that the board held off on a decision on whether Ferndale would once again have to run its second of two weeks of racing against overlapping competition from the commercial licensee Golden Gate Fields.
The CHRB was prepared to decide that issue on Thursday. But the license applicants jointly requested another month to try to reach a compromise so commissioners wouldn't have to impose one. A chief issue relates to stabling.
But since that last CHRB meeting, Ferndale police on Nov. 15 arrested the fair association's bookkeeper, Nina Tafarella, on charges of having embezzled from the fair and another nonprofit.
Then on Dec. 5, Rich Silacci, the fair association's general manager, abruptly resigned from his position. He claimed that his stepping down was unrelated to the embezzlement arrest, and that he had already made his decision beforehand based on being burned out from the job.
According to a Dec. 6 story in the California-based news outlet North Coast Journal, “the fair's books are currently being audited for evidence of embezzlement. Three long-time directors with the fair association have also stepped down in the last few weeks, leaving four open board positions.”
The Journal wrote that according to Silacci's final report to the board, auditors are still reviewing several years' worth of transactions, but the association's bank statements show a healthy balance of 'just over a million dollars,' which is close to or ahead of where the balance stood the prior year.
“Given the disarray at the Humboldt County Fair that we've read about in the press of late, is Humboldt County going to be able to mount a fair next summer?” Hudnut asked.
“Is it going to have sufficient personnel?” Hudnut continued. “And maybe should Humboldt take the year off from horse racing?”
Morgan replied, “The answer is, we'll handle the disarray. I'm not sure of the extent of the issue once it shakes out. Humboldt is committed to have a fair this year, next year, and every year.
“Members did resign, yes,” Morgan explained. “And the general manager, that position is going to be up for renewal with a new individual. But the fair is functional and they're ready to move forward.”
Hudnut said he trusts that next month Morgan will be able to back up those assurances with a more detailed plan for Ferndale's race meet, especially considering the board still has to vote on how to handle the potential dates overlap with Golden Gate.
“Until otherwise, I will be skeptical of Humboldt's ability to carry on effective racing next summer,” Hudnut said.
Gonzales then spoke up.
“I don't think it's all that fair to ask whether Humboldt is prepared to race,” Gonzales said. “Of course they're prepared to race. There's been some growing [pains].
“The TOC just had some turmoil in their organization not that long ago,” Gonzales continued, obliquely referencing the resignations earlier this year of both the Thoroughbred Owners of California president and a board member. “I don't see anybody asking whether the TOC is fit to represent.
“All organizations have some ups and downs. This is horse racing. And I don't appreciate those low blows there,” Gonzales said, directing his remarks to Hudnut.
“I resent that,” Hudnut retorted. “I don't think they're low blows when you ask legitimate questions about what's been in the press.”
Gonzales replied, “They're fit to race, and they just need some time to sort some things out. That's all.”
Chairman Gregory Ferraro, DVM, then stepped in to stem the spat.
“I don't think it's unreasonable to ask them to address the issues next month, to tell us what the status is,” Ferraro said, declaring that the discussion is to be placed on the January agenda.
In conclusion, Morgan underscored that “Humboldt's clearly addressing the issues and resolving them. And I'm optimistic that we will solve it, and be a participant with live racing for many years to come.”
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