Month: September 2021

Yaupon Injured, Retired

Bill and Corinne Heiligbrodt's Yaupon (Uncle Mo–Modification, by Vindication), who became his sire's ninth Grade I winner with a tenacious victory in the Forego S. at Saratoga Aug. 28, suffered an injury while training towards the GI Breeders' Cup Sprint at Santa Anita Friday morning and has been retired from racing. It was previously announced that the 4-year-old would be entering stud at Spendthrift Farm for the 2022 breeding season.

Daily Racing Form was first to report the news.

Bred in Kentucky by the partnership of Betz, Lamantia, CoCo Equine, Magers and Burns and trained by Steve Asmussen, Yaupon ran the table through the first four starts of his career, including Saratoga's GII Amsterdam S., clocking 1:08.50 for the six furlongs. The dark bay colt added the GIII Chick Lang S. on the Preakness undercard last October, scoring by four lengths and cementing his status as the favorite for last year's GI Breeders' Cup Sprint at Keeneland. He endured a troubled trip and finished down the field.

Yaupon bounced back from an often-taxing trip to Dubai for the G1 Golden Shaheen in March with a 1 3/4-length success in Pimlico's Lite the Fuse S. July 4 prior to the Forego, his first try over seven furlongs, in which he got the better of a stirring final-furlong tussle with and an attempted savaging by the classy Firenze Fire (Poseidon's Warrior).

At Spendthrift, Yaupon is slated to stand alongside the Heiligbrodts' champion sprinter Mitole (Eskendereya).

“Aside from being extremely fast, Yaupon is one of the best-looking sons of Uncle Mo you will find anywhere,” Spendthrift General Manager Ned Toffey said when news of Yaupon's addition to the stallion barn was announced earlier this month. “When breeders come out to the farm and see a fast Saratoga Grade I winner by Uncle Mo that is as beautiful as he is on the end of a lead shank, we believe we will get a lot of 'yeses'.”

“Yaupon is an absolutely stunning physical with an unbelievable pedigree, and he might have been one of the fastest horses we have ever seen at a 2-year-old-in-training sales,” added Bill Heiligbrodt at the time of the announcement. “Corinne and I have been racing horses since the 1980s and have been lucky to be represented by a lot of nice horses. Yaupon is our best ever when you combine speed, pedigree and conformation.”

One of 75 black-type winners and 40 graded winners for his emerging sire of sires, Yaupon is out of a Grade I-placed mare who has also been responsible for MGSP turfer Sawyer's Hill (Spring At Last). Yaupon's 2-year-old half-sister Royal Flower (American Pharoah) was purchased by Mike Rutherford for $1.2 million at Keeneland September last fall, while his yearling relation, a Good Magic colt already named Limits of Power, was knocked down to Alan Quartucci, agent, for $575,000 on the opening day of this year's September sale.

Yaupon heads to the breeding shed with a stellar record of 8-6-0-0 and earnings of $703,264.

The post Yaupon Injured, Retired appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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New Fraud Allegations Against Zayat Over $400K Mortgage

In a bankruptcy case already brimming with fraud allegations that has languished in federal court for over a year, the trustee pouring over the finances of Ahmed Zayat filed a new complaint alleging wrongdoing Friday.

This latest court action in the twisted saga of the owner and breeder of Triple Crown champ American Pharoah alleges that Zayat and his wife, Joanne, secured a $400,000 mortgage on two back lots adjacent to their New Jersey home in 2018, then had the money wired to the bank account of Zayat's fiscally troubled racing stable in an alleged attempt to execute a “fraudulent transfer” that resulted in “unjust enrichment.”

According to a Sept. 24 filing by trustee Donald Biase in United States Bankruptcy Court (District of New Jersey), “The Defendant received payments on the Leicht Mortgage where collateral was against the Debtor's Properties as opposed to the party in receipt of the funds, Zayat Stables, LLC…. The Defendant's Leicht Mortgage placed a first lien on the assets of the Debtor's Properties and the equity in the Properties, thereby reducing the equity available to the Debtor's individual legitimate creditors.”

Many of those creditors to whom Zayat owes $19 million are Zayat's former Thoroughbred trainers, plus numerous breeding, boarding, horse transportation and veterinary entities.

When he first filed for Chapter 7 bankruptcy protection in September 2020, Zayat said he owned only $300 in cash and $14.22 in two checking accounts.

Yet he and his wife own and live in a 7,714-square-foot home in Teaneck, New Jersey, that is currently assessed at $2.6 million.

And the trustee assigned by the court to find out if Zayat is being truthful about his alleged state of impoverishment has repeatedly told the judge in the case that Zayat and his family members are refusing to cooperate in the trustee's attempt to trace millions of dollars in possibly fraudulent transfers.

In July, Blaise wrote in a court filing aimed at uncovering hidden assets that “Documents obtained by the trustee from third parties strongly suggest that the Debtor still possesses significant assets in Egypt.”

Zayat has repeatedly denied that he has engaged in any illegal activity or that he is hiding money. He has also insisted that neither he nor his family members are trying to hinder the trustee's work.

Beyond not having his bankruptcy protection granted by the court if he isn't being truthful, Zayat faces a possible federal investigation if the U.S. Department of Justice believes a crime has been committed.

The latest legal filing by the trustee lays out the new allegations like this:

“On July 2, 2018, the Debtor and his non-debtor spouse, Joanne Zayat, executed a Mortgage, Assignment of Leases And Rents, Security Agreement, Financing Statement, and Fixture Filing in favor of the Defendant in the amount of $400,000…

“The Leicht Mortgage was secured by two parcels of real property co-owned by the Debtor and Joanne Zayat…. The Properties comprise the back lots of the Debtor's and Spouse's primary residence…

“Documents obtained by the [trustee] indicate that the funds from the Leicht Mortgage, upon closing of the Leicht Mortgage, were deposited via wire transfer into the bank account of [Zayat] Stables. Neither the Debtor nor Joanne Zayat received funds from the Leicht Mortgage despite the Leicht Mortgage being secured by the Debtor's co-owned Properties.

“The Debtor and Joanne Zayat granted a lien on the co-owned Properties without reasonable compensation to same, granting a first position lien to the Defendant reducing the equity in the Properties to the detriment of his other creditors…. The Debtor received no value or less than reasonably equivalent value in exchange for the Leicht Mortgage.”

The filing summed up: “In consideration of the above allegations and counts, the [trustee] demands entry of judgment against the Defendant 1) Cancelling the obligation of the Leicht Mortgage as against the Debtor's Properties on the basis of Fraudulent Transfer; 2) Cancelling the obligation of the Leicht Mortgage based on the Defendant's unjust enrichment.”

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