The promoter has been less than cooperative with other states, the report says.
By Glenn Adams
Associated Press Writer

AUGUSTA – A report about Maine racino promoter Shawn Scott released Thursday evening by order of Maine’s highest court raises questions about the Capital Seven owner’s business background.

A 32-page report by the Maine Harness Racing Commission director was made public after the state supreme court refused Scott’s request to block its release. Maine media companies, including The Associated Press, won the documents’ release under Maine’s Freedom of Information Act.

Scott is seeking state licensing to operate slot machines at the Bangor Historic Raceway, the city’s harness racing track.

The Las Vegas developer needs licenses from the harness racing commission in order to run the racino. The report on Scott was prepared in advance of hearings before the commission that are slated to begin Dec. 15.

The commission’s Henry Jackson of Oxford says in the report released Thursday that several matters raise concerns about Scott’s suitability for a license.

It says Scott’s Capital Seven LLC paid 96 percent of the purchase price for the Bangor track “but Mr. Scott continues to maintain that Capital Seven owns less than 50 percent” of the property.

It says Scott and his associated companies “have not provided materials requested during the course of this investigation.” It adds that Scott “demonstrated a similar lack of cooperation” during investigations conducted by authorities in New York and Louisiana, where Scott had other business interests.

The report says Scott’s chief executive officer at Capital Seven, Hoolae Paoa, has a history of arrests and convictions in Hawaii from 1978 through 1997. The offenses range from thefts to third-degree assault and criminal contempt of court.

It also says Scott has ownership in dozens of companies, which have demonstrated “sloppy, if not irresponsible, financial management and accounting practices over several years.”

A statement by Capital Seven says it has complied with state regulations and provided more records than are relevant in the review.

“There is no information in these records that would prevent Capital Seven from receiv(ing) any licenses,” the statement said. It also reiterated Scott’s desire to open a slot machine facility in Bangor on Jan. 3, 2004.

Gov. John Baldacci, who opposes the racino plan, had no comment on the commission report, which he was still reviewing. The governor wants to revamp Maine’s gambling regulatory structure and is urging the racing commission to move slowly on Scott’s application.

AP-ES-12-04-03 2001EST

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