More Resignations, Missing Purse Money Reported At Turf Paradise

More fallout at Turf Paradise was revealed on Thursday during the regularly scheduled monthly meeting of the Arizona Racing Commission, when Leroy Gessman, executive director of the Arizona Horsemen’s Benevolent and Protective Association, expressed concern that hundreds of thousands of dollars had gone missing from the horsemen’s purse account and that several key management positions at the Phoenix track were unfilled after recent resignations by former general manager Tom Ludt and others. Gessman said $360,000 of the missing funds had been returned by Gary Hartunian, majority owner of Skyfall 7, which owns the permit to operate Turf Paradise on a lease agreement with property owner Jerry Simms. However, Gessman said horsemen are still owed $182,000.

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Hartunian tried to assuage concerns that the track was a rudderless ship, saying he named longtime assistant general manager Dave Johnson to be the new GM. Commission chairman James Padish broke the news to Hartunian that the commission had received written notification that same morning that “your top management resigned, including Dave Johnson, the person you just identified as the general manager.”

“If he resigned, that’s news to me,” said Hartunian, who called in to the meeting and attempted to convince commissioners and others that everything was fine. “I have a list of people who want the job,” Hartunian said, “so it’ll be filled by the middle of next week. And, again, I’m very capable myself … of running a business.”

Hartunian repeatedly said negative publicity about Turf Paradise was caused by “disgruntled ex-employees that want to undermine the situation. It’s all coming from the old regime. Just making stories up, making stuff up.”

In addition to Ludt, a longtime Thoroughbred industry executive, the father-and-son team of Freddy and Dylon Alvarez, who maintained the two track surfaces, also resigned. The veterinarian who was expected to be the track vet also notified the track he wouldn’t be coming for the meet that is scheduled to start Nov. 27. Sources told the Paulick Report some bills had not been paid, including invoices for the track maintenance equipment, with threats from the vendor to repossess the equipment.

“All the bills are paid, the utilities are paid, so we’ve got a little dispute with the landlord (Simms) going forward,” Hartunian said. “But other than that, we can have a good, great meet.

“I don’t know what your concern is, but what do you do?” Hartunian told the commissioners. “I mean, I don’t get this. To me, it’s kind of getting annoying.”

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“We have statute responsibilities that have to be fulfilled,” commission chair Padish told Hartunian, “and so we will be asking in the future some pretty hard questions.”

Hartunian said the “disgruntled people” who he said are trying to undermine the situation “think they have an offer from somebody else to buy the track. Whatever that offer is, I’d be more than happy to look at it, but I haven’t seen any money or any offer in writing.”

Gessman said the HBPA met with Hartunian on Oct. 5 and has several concerns.

“Number one, there’s no general manager,” said Gessman. “Number two, there is no track vet. Number three, there is no track maintenance supervisor. As of yesterday, there was no concessionaire. He now indicates there may be one in place.

“Our main concern,” Gessman continued, “was that several hundred thousand dollars were missing from the purse fund account. Mr. Hartunian has put $360,000 of it back, but we, as of this morning, are still owed $182,000. We are working with our attorney to try and get that returned.”

As a result of the uncertainty, Gessman added, “Many of the trainers have expressed hesitance to travel here, with the fact that all the chaos that’s going on, and all the stuff that’s been in the press, and now we lost seven more people this morning. It’s quite concerning.”

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This story was originally published October 8, 2026 at 12:44 PM.

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