Horse Racing/Industry fraud
I am new to US racetrack management and am looking to learn the common ways in which people that work in all areas of a racetrack perpetuate fraud, or conduct themselves in ways that management would want to identify and stop...there are some unique interdependencies and "traditions" that are only really known to people in the industry-- unlike most other industries HELP!
Where ever there are large amounts of cash there are people who will try to acquire it, by fair means or foul.
The racing industry in all countries is full of stories and anecdotes of great betting scams and all manner of deceptions. The rules surrounding racing have been tightened dramatically over recent years and most of the scams involving doping or the use of performance enhancing drugs have been shut down.
I do not have any particular knowledge of the racing industry in the USA as I live in New Zealand but I assume that you will face the same sort of problems we do in our industry.
Here are a couple of things worth keeping an eye out for.
Where the race dividends for all bet require that a fraction is created it has been known that corrupt administrators pocket the fraction as technically they become untraceable but over time can become a large sum of money.
Where subsidies or incentives are paid to owners or trainers of top horses be aware that corrupt administrators can 'do a deal' with the receiver to share the subsidy, thus defrauding the race club owners.
Always make sure that a paper trail is created where ever money is changing hands. All transactions must have either and invoice and or a receipt.
Liquor theft is a common target for staff and others with access to functions bars and catering facilities.
Always maintain very good security around sponsor functions as people will just walk in and join the crowd. Towards the end of the event when a large portion of the crowd are influenced by liquor , women become less careful about handbags etc and these can easily be stolen. Car keys are easily removed and then the car stolen or credit cards stolen for use later or on the course.
I have even seen cars being broken into and the garage door opener stolen, the thief then goes to the persons house knowing they have several hours to rob it before the owner returns from the races. With the garage door opener they don't even need to break in!
There are many books that have been written by racing industry people about crime in the industry. You will get some good pointers from them. Try the books of noted English author, Dick Francis. They are a series of great stories that entertaining reading and will highlight some of the great scams and schemes.
Thinking that all administrators and administrations are squeaky clean is a mistake. A fair number of the most serious crimes have happened in that area.
This is a huge subject however I hope I have helped you to start looking in the right places.
Set very high standards and maintain them at all costs. No one is above suspicion, even yourself so make sure you always operate in a transparent manner.