Michael Nolan, at one time the second-in-command of Western Regional Off-Track Betting Corp., has settled a wrongful termination lawsuit with his former employer, related to his firing more than four years ago.
As a result, OTB will pay Nolan a $550,000 settlement.
In a statement saying the “long-standing litigation” had been resolved, OTB attorney John Owens said simply that “the parties are satisfied with the settlement.”
OTB spokesperson Mike DeGeorge declined to comment further. Steven Cohen, Nolan’s attorney, also declined to comment. Owens said OTB will pay $150,000 of the settlement and its insurance company will pay the rest.
Neither side admitted any fault in the settlement, which was approved by a federal judge March 17.
Nolan in December 2020 alleged that OTB fired him from his position as chief operating officer because he cooperated with federal authorities who had opened an investigation into the publicly-owned racetrack and casino. Nolan asserted that his cooperation with the Federal Bureau of Investigation was protected under laws that prevent retaliation against whistleblowers.
“Michael was in favor with everybody, and then, when he began answering questions honestly, as he is required to do, he was stepped on, he was squashed,” Cohen told Investigative Post at the time.
Investigative Post reported in April 2019 that the FBI was probing contracts OTB had entered into with politically-wired firms. Some of those companies had ties to Richard Bianchi, former chairman of the OTB board and head of the Monroe County Republican Party. Other vendors had ties to then-CEO Henry Wojtaszek, who previously headed the Niagara County GOP.
After cooperating with investigators, Nolan said he informed Bianchi and Wojtaszek that he had done so. Following that, he claimed he was subjected to a pattern of harassment. That included being denied a raise, having some of his job responsibilities stripped, losing his health insurance and being forced to work weekends.
Cohen at the time described the treatment as “a living hell” for Nolan.
The settlement follows a countersuit by OTB at the end of last year, which alleged Nolan had engaged in a “public smear campaign” to spread negative information about the corporation to reporters. Cohen claimed the move was meant to stifle his personal involvement in the case.
Former State Sen. George Maziarz, a frequent OTB critic, said he was happy for Nolan but said the settlement reflects poorly on OTB.
“This is less money that’s going to the counties because of their mismanagement,” he said. “Where are the county legislators upset about this?”