Hawthorne creditors seek probe into racing funds amid bankruptcy dispute case
The owners of Hawthorne Race Course and the official committee representing unsecured creditors are asking a bankruptcy judge to authorize an investigation into Illinois Department of Agriculture Director Jerry Costello II over decisions involving horse racing funds. A motion filed May 20 in the Chapter 11 cases of Hawthorne Race Course and related entities seeks permission to examine Costello, the Illinois Department of Agriculture, Fairmount Park Casino & Racing, and lobbyist John P. Costello, who is Jerry Costello’s brother. Questions over allocation of Hawthorne racing funds According to the filing, Hawthorne traditionally received between 55% and 60% of distributions from the Illinois Thoroughbred Breeders Fund because it staged substantially more races than Fairmount Park. The debtors say that changed after the bankruptcy cases began in February. “Following the Petition Date, this allocation pattern shifted. Despite no material operational changes, Fairmount Park received disproportionately large allocations while the Debtors’ share was significantly reduced. Approximately $300,000 remains undistributed. The Movants have identified troubling connections.” According to the motion, “this allocation pattern shifted” and “Fairmount Park received disproportionately …







