BANGOR – The law firm representing the Nevada businessman who wants to build a $30 million combination racetrack and casino at Bass Park filed an objection Friday over the Attorney General Office’s handling of a background investigation that state law requires of applicants for a harness-racing license.

The objection, submitted to the Maine Harness Racing Commission and state Department of Agriculture, Food and Natural Resources, was filed by Christopher Howard of the Portland law firm Pierce Atwood, legal counsel for Shawn Scott and his development company, Capital Seven LLC. Scott’s company currently operates the city-owned harness-racing track.

The objection involves Assistant Attorney General John Richards’ petition calling for a June 6 hearing in Augusta to consider Bangor Historic Track Inc.’s application to conduct live harness racing and the conditional license it received Jan. 31.

Richards is recommending that the application and license be denied “because of the information provided to date and BHT’s failure to comply with repeated requests to cooperate in an investigation of Shawn Scott.” He also recommends that remaining live racing dates for the 2003 season – which opened Friday – be given to some other individual or organization.

At issue is whether Scott complied with requests for releases Richards needed to obtain investigative records in Nevada, Louisiana and New York, where Scott has conducted business.

Richards alleged the releases, due May 5, still had not been provided. He claims Scott repeatedly has delayed and prevented an investigation into his suitability to own and license a racing venue in Bangor.

He also stated that Scott was deemed “unsuitable” for licensure and avoided a denial of his application for a gaming license in Nevada by withdrawing it; that Scott encountered similar problems in Louisiana and withdrew his application for a gaming license there; and that Scott applied for a gaming license in New York and only received a “valid receipt” pending a suitability investigation there.

Howard said this week that Scott did, in fact, provide the releases, though not in the form that Richards wanted. He said that Richards wanted Scott to promise indemnity, to agree not to pursue legal action against any of the officials in the three states over information they might provide Maine as part of the licensing process. Scott did not see that as necessary to the investigation.

Chuck Dow, an attorney and spokesman for the Attorney General’s Office, said Friday that the state needs the waiver in order to access information about Scott from the states of Nevada, New York and Louisiana, where Scott has conducted business.

He said that Richards asked Nevada authorities what they required before releasing information they had gathered about Scott and was sent a form, which he then forwarded to authorities in New York and Pennsylvania. Officials in those states said that Nevada’s form would suffice. According to Dow, indemnity “is a standard clause in a release like this.”

The purpose of the investigation is to comply with state law governing harness-racing licensing, which requires that applicants and their associates and creditors be of “good moral character” and that applicants be “financially responsible.”

“Really, without the information that we’re seeking, how is the commission to make that determination?” Dow asked. “This office is just trying to assist the commission staff and the Department of Agriculture in doing the things that they need to do under the statute.” He said investigators needed access to all of the information that’s available to “put rumors to rest and substantiate fact.”

He added, “It’s not our job to go fishing. If he wants a license, then he needs to [provide the indemnity]. … He’s got very competent counsel. There’s no reason that he ought not comply with this order.”

In the objection, Howard alleged that Richards’ petition contained inaccuracies pertaining to the conduct of Scott, Capital Seven and state staff concerning the releases, the status of Scott’s racing license in New York and his licensing history in Louisiana and Nevada.

Howard argued that the “misrepresentations evidence a clear and inappropriate bias against Bangor Historic Track, Capital Seven and Scott.” He said the manner in which the petition was filed and the hearing notice was issued, which he wrote occurred “virtually simultaneously,” may constitute a violation of BHT and Capital Seven’s due process rights.

He also wrote that the releases Scott was asked to sign essentially required him and his affiliates to allow access, copying and public disclosure of “literally all records of any nature … including such materials as medical records, personal checkbook ledgers and credit, investment and bank account information” without consideration of the need to maintain confidentiality of such information.

To that end, Howard asked that the investigation begin with a review of the records available from the three states, without the waiver of legal rights to sue. If that fails to yield the records the state requires, the waiver issue could then be revisited.

Howard also asked the investigation be concluded by July 15, that the results be reported by July 22 and that the licensing hearing now set for June 6 take place during the first week of August.

He asked that any further disputes regarding the probe be resolved by Assistant Attorney General Ruth McNiff, the harness racing commission’s legal counsel, and should that fail, that the disputes be presented to the commission for resolution.

Scott needs a pari-mutuel racing license to carry out his development plans.

Last fall, Capital Seven approached Bangor with a proposal to develop a “racino,” a racetrack with slot machines, to bolster harness racing, which has fallen on hard times, with revenue from slots.

Scott and his associates say the project would create hundreds of jobs and generate an estimated $75 million in annual revenue, one-fourth of which would go to the state for agricultural, social service and education programs.

Before that can occur, however, Capital Seven must strike a development deal with the city and voters in Bangor and statewide must approve the installation of the slots. Bangor will vote on the installation at Bass Park in a citywide referendum on June 10. A statewide referendum to place slots at racetracks in Bangor and Scarborough will take place on Nov. 4.

Howard said earlier this week that if the application and license are denied, Capital Seven would appeal the decision in Kennebec County Superior Court.