Peter Karches resigned his position as co-chairman of the New York Racing Association at a board of trustees meeting in Manhattan Dec. 7. He will remain a member of the board.
In his letter to the Trustees, Karches expressed his regret at having to resign during this juncture for NYRA. "I regret having to abandon my role at this crucial time, but I have no choice. My time working with (co-chairman) Steve (Duncker), Charlie (Hayward, NYRA president) and members of this board as well as Neil Getnick makes this announcement even tougher."
During his tenure, Karches and Duncker guided NYRA through an 18-month federal monitorship of NYRA's business activities, which culminated this past August with a positive report from the monitor, the law firm of Getnick and Getnick, and the subsequent dismissal of the federal indictment against NYRA by the Federal District Court for the Eastern District of New York.
"Peter's daily hands-on involvement, his tremendous integrity, and incredible business sense helped NYRA emerge successfully from the federal indictment," said Duncker. "NYRA, the Thoroughbred racing industry, and the state of New York each owe Peter a debt of gratitude for his selfless efforts on their behalf."
However, NYRA still faces plenty of obstacles, including a potential bankruptcy as they face the expiration of their franchise with the State of New York at the end of 2007.
Karches and Duncker became co-chairman last December, replacing Barry Schwartz, who stepped down after serving as chairman for four years.
A breeder and owner, Karches is retired from Morgan Stanley, where he was on the management committee and was president and COO of the institutional securities and investment banking group.