On Breeders’ Cup Day at Arlington Park on October 26, 2002, Davis placed a $12 Pick 6 ticket through the relatively lax Catskill Off-Track Betting Corporation, selecting one horse in each of the first four races. After those races were completed, Harn entered Autotote’s system from his office, altered Davis’s ticket to show the actual winners, and then purchased every possible horse combination in the Turf and Classic. The original $1,152 outlay was transformed into nearly $3.1 million: a $2.57 million Pick 6 jackpot plus roughly $498,000 in consolation awards for five of six winners. The plot might have remained less conspicuous had a heavily bet favorite won the Classic, but Volponi—a 43-to-1 outsider—won, leaving Davis as the sole jackpot winner. Investigators immediately noticed that the ticket’s first four selections were identical across the wagers and that the final two races suddenly covered every possible combination, all routed through one small betting operation. The New York State Police, FBI, U.S. Attorney’s Office, and racing authorities froze the payout, while Autotote discovered that Harn had accessed the system despite not being scheduled to work. Harn, Davis, and DaSilva were charged with wire fraud; Harn cooperated and disclosed both the Breeders’ Cup operation and the earlier duplicate-ticket theft, which had cost legitimate winners about $92,500. Harn pleaded guilty to conspiracy to commit wire and computer fraud and money laundering, receiving a year and a day in federal prison; Davis received 37 months, and DaSilva two years. Davis surrendered his claim to the money, and the jackpot was ultimately divided among 78 legitimate bettors who had selected five of the six winners. The scandal prompted the National Thoroughbred Racing Association to require immediate wager transmission after betting closed and to tighten rules for telephone and off-track wagering, exposing the largest U.S. betting scandal in roughly a century as an inside computer-security failure rather than a conventional racetrack fix.
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