With the resignation of Meyer 'Sandy' Frucher as chairman of New York City Off-Track Betting Corporation, Governor David A. Paterson has effectively taken over by appointing his top aide, Lawrence Schwartz, who holds the title of

secretary in the administration, to run NYCOTB.

Schwartz, described in the New York Times as “the office’s disciplinarian,” will continue to serve in his Albany position, indicating the decision of Paterson to keep a close hand on developments in New York.

The final blow to Frucher’s administration came when the state budget director, Robert Megna, refused his request for almost $300 million in tax-free municipal bonds to finance his restructuring of OTB.

Frucher referred to the letter of refusal in his resignation note to Paterson, saying it had made his position untenable.

The veteran political writer Tom Precious, writing in Albany, said Frucher had “created a laundry list of foes in the state capitol and within the racing industry over his ideas for salvaging the nation’s largest off-track betting enterprise.”

(Harness Tracks of America)