Franco Was Forced to Resign from Russett HOA Board. Ethics Office Determines That Racing Authority Members Are Subject to Maryland Ethics Laws Involving Financial Disclosures
State ethics official revealed in a response to Russett Reader that the agency does not yet have any financial disclosure forms for Joe Franco or other members of the newly established Maryland Thoroughbred Racing Authority (Authority).
The request was made by Russett Reader in light of Franco's troubling appointment to the Authority. Franco's appointment to the Authority was first reported in Maryland Matters.
Franco was forced to resign from the Russett Homeowners Association Board after owners discovered that he took nearly $10,000 from gambling interests opposed to slots at the Laurel Race Track. Franco took the funds under an entity called "Phalanx" while a sitting member of the Russett board. Regarding Franco, owners expressed concerns about self-dealing and collusion. Franco never disclosed receipt of the funds to Russett's attorney, his fellow board members, or to owners. Franco resigned from the Russett board after owners advised him that the matter would be referred to the Maryland State Attorney General's Office.
Franco also no longer lives in Laurel but was for reasons that are still both strange and unclear, recommended to serve as the "Laurel" representative for the Authority by state Senator Pam Beidle according to sources. Franco is an avowed political supporter of Beidle.
William Colquhoun, General Counsel for the Maryland State Ethics Commission, said that "the State Ethics Commission only recently at its June 15, 2023 meeting identified the Maryland Thoroughbred Racetrack Operating Authority as an executive unit subject to the Ethics Law." As a result, the Ethics Commission does not yet have financial disclosure forms from Mr. Franco. Colquhoun said that the Ethics Commission determination will be reviewed by the state's budget office. "The Department of Budget and Management has an opportunity after being notified of the Commission’s determination to provide advice as to whether or not it is the correct determination. The Department has not yet responded to the Commission."
It is a worrisome development that the Authority, charged with reviewing the future of the billion-dollar horse racing industry in Maryland, does not yet require financial disclosures. All Maryland elected officials and most political appointees are required by law to file financial disclosures. Financial disclosures encourage transparency and are used as a tool to identify potential conflicts of interest.
Russett Reader also requested an "ethics attestation or certification" for Franco. Colquhoun advised that his office does not have a "responsive record" to our request but that he would check with the Governor's office to determine if Franco filed a form with them.
Russett owners have expressed alarm about Franco's appointment and have noted in social media forums that Franco does not enjoy the trust of the community and lacks the integrity to effectively "represent" a community where he no longer lives. Others have highlighted that the appointment doesn't serve the best interest of the Governor and blamed Beidle for recommending her tarnished political ally.
This is a developing story.