THE major inquiry into corruption in New South Wales harness racing, which threatens to be a bigger scandal than Fine Cotton, has spread to Queensland where the alleged activities of a media identity are being investigated.
The identity, well known in the harness media throughout the country, has close ties to prominent owners, trainers, drivers and some of the most high profile officials in the land, along with some big name political figures of the past.
His links to allegations of 'race fixing' are reportedly being investigated by the special unit, which includes two former Queensland chief gallops stewards in Ray Murrihy and Reid Sanders.
There was a major breakthrough in the corruption inquiry yesterday with arrests of a prominent NSW reinsman, a former steward and a trainer but those close to the action are tipping that this will be just the tip of the iceberg.
Here's how the Sydney media reported the events in today's press:
CHRIS ROOTS and LEN ASHWORTH report in the SYDNEY MORNING HERALD that a former harness racing steward allegedly received up to $400,000 in corrupt payments for his role in a wide-ranging race-fixing rort, a court heard yesterday.
Paul O'Toole, who worked for Harness Racing NSW, appeared in Lithgow Local Court charged with 38 offences relating to allowing certain horses to race without being tested for performance-enhancing drugs. It was alleged money was transferred into his wife's bank account.
Police also arrested 45-year-old Greg Bennett, who was the leading driver in the sport for the past decade, as well as a trainer, Michael Russo, 24, after searching properties in Woonona, Plumpton and Bossley Park yesterday morning.
Harness Racing NSW also announced Bennett had been stood down from the sport indefinitely. This prevents him driving in Saturday's $500,000 Miracle Mile, the biggest race of the year. Russo has already been banned from racing for unrelated offences.
The race-fixing scandal exploded in August when O'Toole and fellow steward Matthew Bentley resigned after being informed of allegations they had not taken pre- and post-race tests from required horses.
Since then, Harness Racing NSW and police have operated joint investigations and the governing body has demanded the phone records of more than 80 people involved in the sport. More than $2.2 billion is wagered on the sport each year.
Prosecutors listed 38 races between February 2010 and July 2011 they alleged were corrupt at court yesterday. They claimed drivers and trainers were being notified in advance their horses would not be drug tested at meetings at Bankstown, Menangle, Penrith, Parkes and Bathurst.
O'Toole's solicitor, Ken Lambeth, in applying for bail, said his client did not pose a flight risk. Magistrate Georgia Knight granted bail but ordered O'Toole to surrender his passport as part of the bail conditions.
Harness Racing NSW's regulatory manager, Reid Sanders, said the governing body investigation would continue, but any action would be on hold following yesterday's criminal charges.
''We were very close to laying charges under our rules but given the criminal charges our investigation will be held,'' Sanders told the Herald.
BRENT ZERAFA reports in the TELEGRAPH that SYDNEY'S biggest week of harness racing has been thrown into turmoil after the state's premier driver, Greg Bennett, and one of its former top stewards, Paul O'Toole, were yesterday arrested and charged over alleged corruption in the sport.
A third man from Plumpton, believed to be a trainer, was also arrested and charged over the scandal as police executed four search warrants around Sydney at 8am yesterday. The Daily Telegraph understands further charges against other harness racing identities are to be laid as early as today. The moves - the culmination of an investigation of more than three months into race fixing by harness racing officials - come two days before Harness Racing NSW's biggest night, Saturday's Miracle Mile at Menangle.
Bennett, 45, was due to drive Karloo Mick in the Miracle Mile, but was dramatically replaced yesterday by 20-year-old Robbie Morris after being stood down "indefinitely" by HRNSW.
Bennett will face Wollongong Local Court on December 20 facing eight corruption charges. Under Australian Harness Racing rules, a driver can be directed not to participate in a race "pending the outcome of an inquiry, investigation or objection, or where a person has been charged with an offence".
Bennett has been the dominant driver in harness racing for the past decade, and is one of the sport's highest-profile figures, having won multiple premierships.
HRNSW regulatory boss Reid Sanders, who is heading up the body's investigation, said yesterday: "Obviously one of the persons that has been charged today has been stood down by us. That person is entitled to the presumption of innocence. Given the position of our investigation and the nature of the charges and that they relate to the harness racing industry, HRNSW is exercising its powers under the rules to ensure we protect the integrity of the harness racing industry."
Calls to Bennett and his lawyers yesterday were not returned.
Meanwhile, former steward O'Toole appeared in Lithgow Local Court yesterday after he was charged on 38 counts related to corrupt benefits.
His lawyer, Jason Parkinson of Porters Lawyers, told the Telegraph a police statement of facts read out in court referred to listening device material. "I can confirm that my client has been before court today and granted bail," Parkinson said.
The scandal began in early August this year, when O'Toole and fellow steward Matthew Bentley stepped down after being confronted by HRNSW bosses with allegations they were not ordering swabs from certain races.
It is also alleged several participants in the sport were receiving the sensitive information and passing it on to gamblers for financial gain.
SOURCE OF STORIES: SYDNEY MORNING HERALD AND SYDNEY TELEGRAPH - NEWS LIMITED.
