Owners of the Russett Community Association in Laurel are expressing alarm regarding the appointment of former Russett board member and resident Joe Franco to the newly formed Maryland Thoroughbred Racetrack Operating Authority (Authority). Franco's appointment was first reported by Maryland Matters. Franco's selection is renewing unsettling questions around his abrupt resignation from the Russett board and the vetting process that allowed his questionable appointment even though he no longer lives in Laurel.
Source: Anne Arundel County Democratic Central Committee
The Authority was created during the recent Maryland General Assembly to help decide the future and viability of horse racing in Maryland. Among its key duties, the Authority will explore decisions around the futures of Laurel Race Track and Pimlico.
Franco served on the Russett board for several years but resigned after owners discovered that he took almost $10,000 from gambling interests while serving as a sitting member of the Russett board during the 2010 Question A ("slots") referendum. Franco did not disclose receipt of the money to the homeowners association's attorney, fellow board members, or to owners. Sources say that Franco's conduct raised significant alarms about self-dealing and collusion and that Franco was advised that the matter would be referred to the Maryland Attorney General and other authorities for investigation.
Franco actively worked to influence fellow Russett owners to oppose slots at the Laurel Race Track. Evidence shows that Franco took money under an entity called "Phalanx" from pro-gambling interests affiliated with Cordish Companies' bid for a gambling license. The Cordish-backed interest group organized neighborhood opposition to a slots license for Laurel Race Track. Maryland voters overwhelmingly approved slots during the referendum and the first license was eventually granted to the Cordish Companies and located at Arundel Mills Mall as Maryland Live. Some state leaders have attributed Laurel Race Track's failure to thrive to its failure to land a gambling license ultimately given to Cordish.
Franco, who no longer lives in Laurel, MD, was appointed approximately a week ago to the new racing authority as the "Laurel representative." Public records however show that Franco lives in Odenton, MD. He was appointed to the Authority at the recommendation of state Senator Pam Beidle according to sources. Beidle represents a portion of Laurel and serves as the Chair for the Executive Nominations Committee for the state Senate. Franco, who also currently serves as a member of the Anne Arundel County Democratic Central Committee for District 33, supported Beidle's campaign for state Senate according to sources.
Source: Maryland State Board of Elections
Franco's questionable appointment to the Authority follows several missteps by the Executive Nominations Commission. Republican Jason Rheinstein of Severna Park was also recommended by the Commission to serve on the Anne Arundel County Board of Elections. Rheinstein however was disbarred as an attorney in the State of Maryland for violating rules of "professional conduct, including rules about competence and dishonesty" during a 2011 lawsuit against a private lending company.
This is a developing story.