The News Journal from Wilmington, Delaware • Page 12

A12 Sunday Newt Journal, Wilmington, Feb. 20, 1983 Former employees decry harness racing promoter Two trainers say Mazik owes them 1 wo trainers say Mazik owes them money, one alleges a racing violation By IZZY KATZMAN responsibility," Smith said: The persons involved must have far Staff reporter 1 i horse must be licensed in a state in which his horse races. While Martin and Beissinger are trying to get money from Mazik, Mazik is suing to get money from his ex-wife. Ramunno said Mazik could get $500,000 as a result of the suit filed in Court of Chancery in Wilmington against Claire Mazik. Claire Mazik is the lone director and officer of Au Clair Syndicate Inc.

The syndicate's property includes Silk Stockings, the broodmare Au Clair, and a share of Nero, one of the most prized harness stallions in the nation. Ramunno said of the suit, "A lot of money is involved. I suppose it's close to $1 million. My client owns 49 percent of Au Clair Syndicate, but he's being treated like he owns 1 percent." Allen M. Terrell, attorney for Claire Mazik, said "We feel the suit is without merit and intend to vigorously defend." In a property settlement at the time of their divorce in 1978, Claire Mazik was 51 percent of Au Clair Syndicate and became the president and sole director.

Kenneth Mazik was given 49 percent of the syndicate and majority interest in Au Clair School for autistic children at Bear. His former wife holds a 49 percent interest. Silk Stockings is now one of the most valuable broodmares in the harness-racing industry. In his suit, Mazik contends that the syndicate his wife controls has amassed large profits over the last three years and should have declared dividends or a distribution, but didn't. He charges that Claire Mazik has refused to hold stockholders meetings, open her books or supply specific information on finances or business dealings.

In her reply, Claire Mazik concedes that Howard Beissinger as the trainer-driver. Beissinger, a member of harness racing's Hall of Fame, parted company with Mazik last October. In telephone interviews, both men claimed Mazik owed them money. Martin said Mazik failed to pay him about $15,000 in commissions due him on what Temujin earned after he was fired as the trainer. In addition, the two men say Mazik owes them training and driving fees.

Mazik did not respond to telephone messages but his lawyer, L. Vincent Ramunno, spoke on his behalf. "Ken Mazik says he doesn't owe Martin anything," Ramunno said. "He said he was fired, and that's the reason probably that Martin is coming back with these things." In fact, Ramunno says Martin owes Mazik and Capano money stemming from the time they owned horses together. Beissinger has now been paid, Ramunno said.

Beissinger submitted his last bill in October, Ramunno said. A check to Beissinger was drawn "recently," Ramunno said on Thursday. On Friday, Beissinger said he still hadn't received his money. Ramunno also denied Martin's assertion that Joseph Capano was Mazik's "50-percent silent partner" in Temujin during the colt's 2-year-old season. The U.S.

Trotting and Pacing Guide, a publication of the U.S. Trotting Association, lists Mazik as the sole owner of Temujin in 1981 when he won $285,510. The Delaware Harness Racing Commission has no record of Mazik having a Delaware license in 1982, when Temujin raced twice at Brandywine Raceway, in the Battle of Brandywine eliminations and the Battle of Brandywine final. Under U.S. Trotting Association rules, each owner of a more demonstrable integrity than would be necessary for a normal business." Smith said last week that he was aware of the two trainers' assertions about Mazik but said he has reached no conclusion on whether Mazik meets the standard.

He said he still is waiting for Mazik to answer a questionnaire. Smith said all the investors will have to pass muster if they are to be permitted to participate. Many of the prospective investors come from Delaware. Mazik, who is executive director of the Au Clair School for autistic children at Bear, came to prominence when he and his then wife, Claire, bought Silk Stockings for $20,000 at a sale at Liberty Bell Park in Philadelphia in 1972. Since then, Silk Stockings has earned her owners more than $1 million in purses and proceeds from the sale of her foals.

In their divorce settlement, Claire Mazik won control of the syndicate that owns Silk Stockings and one other prized mare. Mazik, meanwhile, established his own stable. He purchased Temujin, the first foal of Silk Stockings. Temujin earned $633,284 during his racing career and was syndicated for $6.5 million. His stud fee is $10,000.

Trainer Clarence Martin, working for Mazik's stable, developed and raced Temujin as a 2-year-old in 1981 and during the first part of the colt's 3-year-old season. Mazik fired Martin in mid-1982 and hired Kenneth M. Mazik, the hero of one of harness racing's great Cinderella stories, now finds the track slow and littered with hazards. The task of raising $21 million for a new harness track in the state of Washington fell onto Mazik's shoulders alone when his fellow promoter was forced out because of what a state official described as a "lack of financial responsibility." Now, at a time when authorities in Washington are investigating Mazik's own personal and financial background, two of his former trainers step forward to claim he failed to pay them commissions and training and driving fees. Mazik, through his attorney, says he doesn't owe them money.

One of the trainers alleges that Mazik had a secret partner in the ownership of one of his horses. If true, this would be a violation of racing regulations. In the meantime, Mazik is suing his ex-wife for a share of profits in a syndicate built on the earnings of their famous filly, Silk Stockings. Through his lawyer, Mazik has denied most of the trainers' allegations, but Ralph R. Smith, the Washington state securities administrator, says he is pressing for more information.

In a letter recommending that Mazik's partner, Greenville builder Joseph L. Capano, be withdrawn as a promoter and investor in the Auburn Downs track near Seattle "because of lack of financial Kenneth M. Mazik she did not pay a dividend, but denies the other allegations. In attacking Mazik's operation of the Au Clair School, Claire Mazik makes similar charges to those Mazik made against her. She says Mazik has used money from the school for his own benefit while failing to declare any dividends and refusing to open the books or hold annual meetings.

Her suit says Mazik violated government regulations and she asks that the school be placed in the hands of a receiver. British Columbia Many of potential investors are from Wilmington area Builder is forced out of track deal i Seattle I n- I Auburn i Olympia i .1. Planned harness-racing track is to be located in Auburn, Wash. By IZZY KATZMAN Staff reporter Fourteen of the 16 potential investors in the proposed harness track at Auburn, are from the Wilmington area. Their names were submitted to the Washington State Securities Division by the Washington State Harness Club, the private organization that hopes to build the track.

The two who are not from the Wilmington area are Hall of Fame horsemen Stanley Dancer and Del Miller. Dancer said he's never been interested in investing money in the project, and Miller said he might be if he can get a group together to buy a share. Two Delawareans, Joseph L. Capano and Kenneth M. Mazik, were enlisted by the harness club to raise $21 million for construction of the harness plant through the sale of 35 limited partnerships at $600,000 each.

Capano has since been forced out of participation. Four potential investors said they planned to buy partnerships. Jack P. Stoltz, president of Stoltz Realty and his brother Morris L. "Skip" Stoltz II, the firm's general counsel, would buy one unit together, according to Morris Stoltz.

Michael J. DiSabatino, secretary of DiSabatino Brothers, contractors, and L. Vincent Ramunno, Capano's attorney, said they planned to buy partnerships. Said Morris Stoltz: "I don't know anything about horses, but it looks like a good investment. It looks like a good real estate proposition.

Demographically, it looks super." Michael A. Poppiti, a Wilmington attorney, said he was waiting to see the prospectus, but that he had "expressed an interest." Asked if that meant for $600,000, he replied, "I haven't said to what extent." Others on the list include William F. Brooks who family owns Brooks Armored Car Service Rene Dervaes, principal owner of the outstanding pacer Nero; Donald P. Magness, president of the Magness Construction and Charles F. Hill, a developer.

Brooks could not be contacted for comment, but his father, who said he was speaking for his son as well as himself, said, "We signed a paper stating that we would be really interested in having harness racing there and would be interested in racing our horses there. At this time, I wouldn't know whether we would invest or not." William F. Brooks Sr. became prominent in harness racing as the principal owner of Oil Burner, an outstanding pacer who later was syndicated Tor $2.7 million. He became the largest shareholder in the syndicate.

Dervaes, who held the principal ownership of Nero when that horse was syndicated for $3.6 million, said, "I'm interested, I'm taking a look at the track. But until my lawyers take a look at the prospectus and advise me, I'm making no decision. I usually go to the pros first." Magness, president of Magness Construction said, "It's an interesting proposition. I've made no decision, I'm not committed to anything." Hill said, "I'm looking into it with my people. It looks like a good deal." Asked if he would go in for $600,000, he said, "Not that much." Dancer said he never indicated a financial interest in the track.

"I told them I would go out there and drive and help them in that respect in any way that I could," he said. The others listed as possible investors are Frank E. Acierno, a developer; Ira M. Kupferman, a certified public accountant, and Gerald D. Profita, president of Benjamin F.

Shaw Co. Continued from Al time of his letter, cited four other allegations: Capano was involved in a morals case with a 17-year-old girl in 1973. His brother and business partner, Mario B. Capano, was convicted and imprisoned in 1976 on an obstruction of justice charge growing out of a federal investigation of corruption in county government. In a case involving another brother, stolen appliances were found on property owned by Joseph Capano in 1981.

A witness in a 1982 civil suit against Capano said a letter of credit issued on Capano's behalf had been forged. A check of available records on each point showed: The morals charge was dropped after Capano paid the girl's mother $10,000 in damages. After the settlement, Capano obtained a court order expunging the arrest record. Joseph Capano wasn't a target in the federal investigation of corruption in New Castle County. He was not a target of the Delaware State Police investigation of stolen household goods mentioned in Smith's letter.

State police said they never found any stolen goods on Joseph Capano's property. The dispute involving the letter of credit was settled out of court. Joseph Capano did not return calls to respond to the allegations in Smith's letter, but L. Vincent Ramunno, his lawyer and cousin by marriage, staunchly defended Capano. Bringing up the morals charge after 10 years "is disgraceful," Ramunno said, and mentioning Capano's brothers' difficulties is "guilt by association." Smith, the Washington state securities administrator, said he cited the cases in the letter to the Harness Club because the state was intent on keeping racing operations in Washington "squeaky clean." "We're provincial people; we want the real-square guys, nothing else," Smith said in a telephone interview.

In his letter to the Harness Club, Smith said, "Considering the nature of this business, the persons involved must have far more demonstrable integrity than would be necessary for a normal busi- PROPANE GAS ATTACKS SKY HIGH HOME HEATING BILLS. The letter of credit contained what purported to be the signature of Dino Tribuani, a friend of Joseph Capano and representative of VNB. In a deposition, Tribuani said the signature wasn't his. VNB said it never issues letters of credit. There are varying accounts of how Capano dropped out of the Auburn Downs project.

"He agreed to disassociate himself so as not to endanger the project," Ramunno said. Smith said he told James Going, president of the Harness Club, that "Mr. Capano would have to withdraw." Said Going: "After the information was made known to us by the state, I had a discussion with him. I said, 'Joe, you can't be involved in this for all these reasons. I have no other choice but to remove you from this He said Joseph Capano now has no association with the project.

That leaves Kenneth Mazik in charge. Mazik is a former school teacher who owned the celebrated filly, Silk Stockings. He now is executive director of Au Clair School for autistic children at Bear. It was Mazik who got Capano involved in the track in the first place. Mazik was an old friend of John Phillips, who now is general manager of Auburn Downs.

The Harness Club plans to sell 35 limited partnerships at $600,000 each, yielding $21 million. Another $4 million would come from loans. The original plan was to open the track in November. Smith said that now is unlikely. The deadline for raising money has been set for June 30, Smith said, adding that no money will be accepted close to the deadline because an investigation of all investors is necessary.

Smith said he was drawn into the investigation at the request of the Washington governor because of his experience in regulating securities. The track is being underwritten through the sale of limited partnerships. Since Smith wrote the letter in December, a HUD spokesman has verified Smith's report on the mortgage payments for the apartment project in which Capano was involved. The spokesman said a company in which Capano and his brother, Mario, were principals failed to make payments totaling $817,495 on the federal mortgage, resulting in foreclosure against what was once known as Golden Acres, 88 apartments near Philadelphia Pike in Holly Oak. Ramunno said the Capanos had an oral agreement with HUD officials to withhold the mortgage payments and use the money to repair the apartment.

The official who made the agreement has since died, he said. Mario Capano made the same argument in an affidavit during a foreclosure procedure in U.S. District Court in Wilmington in 1981. The assertion that the Capanos had any arrangement not to pay was denied by HUD and rejected by U.S. District Judge Murray M.

Schwartz. In the stolen goods probe, Capano's brother, Frank, was arrested but the charge was dropped when he turned state's evidence. Joseph Capano's lawyer denies that any stolen goods were in Joseph Capano's property and state police say they never found any stolen goods there. In the letter of credit case, Capano was accused of using a worthless letter of credit issued by VNB Mortgage Co. to invest in a California real estate syndicate.

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$900,000. Longacres handles from $950,000 to $1 million." Questioned about the effects of the depressed economy in the area, where the aircraft and lumber industries are at low ebb, Going replied, "We're not depressed any more than anyone else in the United States." Plans for the track are being taken from the Green Mountain track in Vermont, Going said. Auburn Downs is counting on getting many horses from Cloverdale Raceway in British Columbia, other western Canada tracks and from California, Going said. "And we have Joe DeFrank to help get us horses," the track president added. "He has a big following." DeFrank is the director of harness racing at the highly successful Meadowlands track in New Jersey.

Iny Katzman James Going, president of the Washington State Harness Club, which hopes to build and operate a harness track in Auburn, talked optimistically about the venture. "It will be a one-mile track just off the Seattle-Tacoma freeway," he said in a telephone interview. The 95-acre site is 22 miles south of Seattle and 15 miles north of Tacoma, in the center of a population of 3.5 million. "This isn't like the East. We'll be the only harness track in the state.

Longacres is the only thoroughbred track In our area. There are two others, but they're in the eastern part of the state. "Longacres has 131 days and we have 131 days. We won't be in competition with each other. We'll run from November through April.

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