Zayat’s Brother Ordered To Comply With Subpoena, Or Risk Contempt

Judge Vincent Papalia has ordered Ahmed Zayat's brother, Egyptian businessman Sherif El Zayat, to comply with the court's subpoena to turn over documents relating to the family's businesses and finances, reports the Thoroughbred Daily News.

Since Sherif El Zayat is not a U.S. resident or citizen, the order stipulates that if he does not comply with the subpoena, the court will hold him in contempt, requiring U.S. Marshalls to detain him upon U.S. arrival.

The trustee in the bankruptcy case, Donald V. Biase, believes that Ahmed Zayat has assets in Egypt being controlled by his brother. Biase wrote in a July filing: “Documents obtained by the trustee from third parties strongly suggest that the debtor still possesses significant assets in Egypt.”

Ahmed Zayat, best known in horse racing as the owner of 2015 Triple Crown winner American Pharoah through his Zayat Stables, filed for Chapter 7 bankruptcy protection on Sept. 8, 2020. Zayat and his racing operation were previously named in a civil lawsuit in Fayette County Circuit Court from New York investment firm MGG Investments, stemming from a $30 million loan he took out in 2016. MGG won a summary judgment in the amount of $24.5 million.

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Judge Orders Zayat Brother to Comply With Subpoena

The judge handling the Zayat Stables bankruptcy case has ordered Ahmed Zayat's brother, Egyptian businessman Sherif El Zayat, to comply with a subpoena that directed him to turn over documents relating to the family's businesses and finances.

This comes after Donald V. Biase, the trustee overseeing Zayat's bankruptcy case, charged last month that Zayat and members of his immediate family were engaged in “an exercise in gamesmanship, obstruction and delay” to prevent the trustee from having access to financial documents.

Blaise is clearly zeroing in on Sherif El Zayat because he suspects that Zayat has assets in Egypt that are being controlled by his brother. In his July filing, Blaise wrote: “Documents obtained by the trustee from third parties strongly suggest that the debtor still possesses significant assets in Egypt.”

Sherif El Zayat has been ordered to email all documents and information requested in the subpoena by Sept. 8. The brother has also been requested to take part in a video conference examination.

Blaise noted in June that the family members had made only “paltry productions in response to the subpoena directed to them.” Subpoenas seeking documents were issued to Zayat's wife, Joanne, three of his four children, and to JPZ Holdings, a company run by Zayat's son, Justin.

The attempt to subpoena Zayat's brother is trickier because he is not a U.S. resident or citizen and it appears that the court has only limited powers to enforce the subpoena. With that in mind, the judge, Vincent Papalia, wrote in his Aug. 25 filing that if Sherif El Zayat does not comply with the subpoena, the court will issue an order of contempt requiring a United States Marshal to detain Sherif El Zayat upon his arrival in the U.S.

Sherif El Zayat has been involved with a number of Egyptian businesses over the years. He is listed as the CEO of the investment firm Egypt Kuwait Holding. In his bio on the Egypt Kuwait Holding company website, it lists Sherif El Zayat as the founder and former CEO of Misr Glass.

Ahmed Zayat has said that he sold his assets in Misr Glass in 2010 or 2011 for about $2 million, but Blaise has questioned that. In July, he wrote that Zayat's affiliation with Misr Glass continued past 2011 and that in 2015 the company was sold to a third party for $93 million.

In the July memorandum, Blaise wrote that Zayat and family members had not provided information and documents regarding the sale of Misr Glass.

In April, MGG Investment Group, the company suing Zayat, charged that his brother loaned Zayat at least $1.5 million in 2020, which allowed him to maintain a “lavish personal lifestyle.”

Born in Cairo, Egypt, Ahmed Zayat formed an investment group that bought the Al-Ahram Beverages Company in 1997. His brother came on board as the managing director and deputy chairman of the beverage company.

Zayat filed for Chapter 7 Bankruptcy last September after Zayat and Zayat Stables were sued by MGG Capital Group for defaulting on a loan. The company won a $24.5-million summary judgment against Zayat in June 2020.

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It’s All About the Horses..And Their Trainers at HOF Induction Ceremony

SARATOGA SPRINGS, NY–To punctuate his acceptance speech that concluded the Hall of Fame induction ceremony Friday, trainer Todd Pletcher used a favorite line of the late Cot Campbell, the Thoroughbred owner and colorful racing personality who was one of his longtime patrons.

“It's not going to sound nearly as cool coming from me, he was a cool guy,” Pletcher said, “but most of all, I want to thank the horses, the horses and the horses.”

Campbell's words were a fitting coda for racing's annual feel-good day that salutes the best of the best in the America's oldest sport. The 2020 ceremony was cancelled because of the COVID-19 pandemic so the 65th and 66th Hall of Fame classes at the National Museum of Racing were welcomed into the shrine during a two-hour ceremony at the Fasig-Tipton's Humphrey S. Finney Sales Pavilion.

Pletcher, 2015 Triple Crown winner American Pharoah and steeplechase trainer Jack Fisher comprised this year's class. The 2020 inductees were trainer Mark Casse, jockey Darrell McHargue, the horses Wise Dan and Tom Bowling, and three honored as Pillars of the Turf: J. Keene Dangerfield Jr., George D. Widener, Jr. and Alice Headley Chandler. Pletcher and American Pharoah were elected in the first year they were eligible to be on the ballot: 25 years of service for a trainer and five calendar years after retirement for horses.

While Casse, with the help if his wife, Tina, delivered the most emotional speech of the event, Pletcher was typically precise and under control throughout. He was introduced by owner Mike Repole, who totally ignored the mandate to be brief and spoke for over 18 minutes. Repole served up a mix of praise and humor to salute his trainer and friend.

“I got into owning race horses 2004, and I watched this young trainer just keep winning races,” Repole said. “I sat there at Aqueuct, Belmont and Saratoga and I watched my horses in the same race as his. What consistently happened after the races, he would walk right by me and go to the winner's circle and I would sit there a loser. If you can't beat him, you join him.”

Repole said that Pletcher belonged in the Hall of Fame of Hall of Famers, the top 1% and predicted that at the age of 54, he would add to his long list of accomplishments.

“He's an icon. He's a legend,” Repole said. “He's going to go down as one of the greatest of all time.”

Pletcher already leads the way with $410 million in purse-money earned. He was the first to reach $300 million and has a $48 million lead over fellow Hall of Famer Steve Asmussen. Pletcher ranks seventh on the career list with 5,157 victories, which include two in the GI Kentucky Derby, three in GI Belmont S. and 11 in the Breeders' Cup.

After years working for Hall of Fame trainer D. Wayne Lukas, Pletcher took out his license in December 1995 and opened a seven-horse stable. He now trains 200 horses.

“I can't tell you how humbled I am to join this esteemed group,” Pletcher said. “So many of these guys were my childhood heroes, role models and mentors, competitors.”

Pletcher noted that Jerry Bailey rode his first winner and that Jose Santos–one of the 14 Hall of Fame members introduced at the ceremony–was up for his first loser.

“Jose, don't feel bad,” Pletcher said, smiling. “I've lost 17,458 more since then.”

Pletcher called Lukas a great mentor.

“After I went out on my own, the most common question I'd get is 'What is one thing that you've learned working for Wayne Lukas?'” Pletcher said. “The answer is: There's not one thing. It's everything. Everything matters. Every horse matters. Every horse owner matters.”

Fearful of forgetting to name and thank someone, and error he said he made in 2004 when accepting his first Eclipse Award, Pletcher called his election to the Hall of Fame a team event. But he made a point of saluting the late Jeff Lukas, his first boss in 1989, who suffered brain injuries when he was run over by a loose horse.

“I feel like no one has been more influential in the way that I try to conduct my business, than Wayne's son Jeff,” Pletcher said. “Jeff was a detail-oriented person. He was driven. He was motivated. He was a skilled horseman and he had the unique ability to make those around him better. There's no doubt in my mind, that if he didn't have a tragic accident that Jeff would have been inducted into the Hall of Fame years ago.”

Breeder-owner Ahmed Zayat and his son Justin accepted American Pharoah's plaque. Trainer Bob Baffert did not attend the event.

“Thank you very much for voting for American Pharoah to be in here,” Zayat said. “This is very, very humbling for us. When I was trying to think of what to talk about–I probably can talk for another two hours about what the American Pharoah meant for me–I realized this is not about the Zayat family. This is about American Pharoah and what American Pharoah achieved.” He said he wanted “to point out  American Pharoah as the people's horse, the horse that excited fans.”

Zayat said he had three distinct memories of the 2015 season: announcer Larry Collmus's call of the GI Belmont S. finish that made American Pharoah the first Triple Crown winner in 37 years followed by the reaction of the crowd; the reception that American Pharoah received at Saratoga, where he galloped on Friday before an estimated crowd of 15,000 the morning before his upset loss in the GI Travers; the hero's tribute upon his arrival at Keeneland where he won the GI Breeders' Cup Classic.

“These are memories that I will never forget about what American Pharoah meant for the sport and the public,” Zayat said.

Zayat congratulated the inductees from both classes, including Pletcher who trained some horses for his stable.

“One final thing,” Zayat said. “Thank you, Bob Baffert for just a brilliant training job and for opening your barn for every single person to come and visit American Pharoah.”

Casse had to wait a year for his induction ceremony and he relished the opportunity to thank the people who set him on the path to the Hall of Fame. At the top of the list was his late father, Norman, a trainer and an important figure in the development of Florida's breeding and bloodstock business. Casse took out his license as a teenager and developed into successful trainer. He left the day-to-day competition on the track in the early 1990s to manager Harry Mangurian's farm, but returned several years later to win multiple titles in Canada and become one of the premier trainers in the United States.

Confident, enthusiastic and outgoing, Casse promptly set the stage as he stepped to podium wearing his new Hall of Fame blazer.

“Let me start by saying, I have a better chance of winning the Kentucky Derby that getting through this speech without losing my composure,” he said.

Casse' voice wavered and cracked a bit, but he continued.

“I've been very fortunate in my life to win many big races and awards but nothing greater than this honor,” he said. “The last few weeks, I've spent much time reflecting on the various paths my life has taken. It amazes me that every experience, relationship, conversation with friends, families and clients has molded and shaped my career.  Who would have thought 50 years ago, as I slept over there in the parking lot, the Fasig-Tipton parking lot, with my dad, had breakfast every morning at the Saratoga Snack Shack that I would be standing here today?”

Casse said he would not have made it to the Hall of Fame without having great horses, but that the people who touched his life influenced him the most.

“Obviously, my dad, Norman, greatly encouraged me to follow my passion,” he said “My father was a huge part of my education with horses. And I inherited my love of racing from him. On this journey. Many family members have had to make sacrifices for me to pursue my career, but none greater than my mom.”

At that point, Casse, too emotional to continue, had his wife take over. She read the part describing how when his parents divorced when he was 13 his mother agreed to his request to stay in Florida with his father to be near horses.

Casse returned to the podium and thanked several of his major owners, John and Debby Oxley, Charlotte Weber, Robert Masterson and Gary Barber–all of whom were at the ceremony–for their support.

“In closing, my dad and I first visited the Hall of Fame in 1972 when I was 11,” Casse said. “I still remember walking around with my mouth open in amazement. At the end of the visit I confidently told my dad , 'I'm going to be in here some day.' As any good father would do, he said, 'Yes, Mark you will.'

“Well, we did it.”

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Voss: American Pharoah’s Hall Of Fame Induction Marks A Complicated Moment For Racing

To say the combined 2020/2021 Hall of Fame induction ceremony was surreal seems an understatement. The public gallery in the Fasig-Tipton pavilion was packed with people well before the 10:30 a.m. start time, as might be expected in a year that saw the first admission of a Triple Crown winner since 1981 when Seattle Slew was enshrined. Still spinning from the cancellation of last year's ceremony (and much else) due to COVID-19, people were “just happy to be here this year.”

It's appropriate that the ceremony is held with a day of racing at Saratoga as its backdrop – the pinnacle of achievement, recognized in one of the toughest places to win a horse race. It's supposed to be a pure moment each year to honor the very best accomplishments in our sport. This year, it was a cloudy one.

Indeed, the stretch run of the 2015 Belmont, which so many of us have seen over and over again, was played a few more times. The crowd stirred a little. Everyone remembered how they felt in the moments when Larry Collmus called those immortal words into his microphone: American Pharoah is finally the one.

According to the eligibility rules for the Hall of Fame, this is the first year American Phaorah was on the ballot to enter the Hall, and he got in on the first try, as he should have. But in the six years since his retirement, the men united by his accomplishments are no longer thought of as solely the engineers of racing's favorite history-making moment.

Bob Baffert saddled another Triple Crown winner, who was later discovered to have tested positive for scopolamine and had that test result buried by California regulators while he was on his way to winning the roses. He has had a slew of other therapeutic drug positives among his other graded stakes winners, followed by an apology, followed by the biggest scandal of all – a betamethasone overage in this year's Kentucky Derby winner.

The legal fallout from the Medina Spirit saga is still unrolling and probably will continue for many years to come. It's the public trust in racing that will suffer for far longer. In a sport that already had two black eyes from the 2018-19 California breakdowns and the 2020 federal indictments, Baffert has knocked us right in the kisser. Everywhere I've gone this year, non-horse people have asked me (with absolutely no prompting from me) about 'why the white-haired trainer doped that horse' or why he 'thinks he can get away with it' as Baffert and his lawyer went on a public relations blitz, making clear they would fight a disqualification. People who hadn't watched a race in years remember this one, and probably the last time you could say that about a horse race, it was the 2015 Belmont.

Ahmed and Justin Zayat look on as a highlight reel of American Pharoah's career plays on the monitors at this year's Hall of Fame induction ceremony. Photo by Joe Nevills

Ahmed Zayat ran through the money American Pharoah won him with dizzying speed and took out $23 million in loans barely a year after the horse crossed the wire in the Belmont. He had run out of money to prop up his racing operation, telling MGG Investments he was already in debt and wanted to buy more horses. At the start of last year, MGG took Zayat to civil court, claiming he had not only failed to pay back that loan, but also that he sold breeding rights to his Triple Crown winner in violation of contract. Zayat has since declared bankruptcy, with a bunch of trainers and other horse industry professionals listed as his creditors – hard-working people who endured early mornings and bad weather trying to take care of his animals, people who now may not see a dime for it.

There's a tendency in horse racing – among fans and journalists alike – to cringe away from discomfort. It's human. When a person in racing does something we don't like, I hear people say they prefer to focus on the horse and the horse's accomplishments, laying to one side the problematic connections they'd rather not think about.

It is true, after all, that the horse can't choose his or her connections, and I, like many people in this sport, am in this because of my fascination with the horse more so than the people.

But I'll just say the thing I'm not supposed to say: it wasn't American Pharoah accepting a bronze plaque acknowledging his immortality on Friday morning. It was Ahmed Zayat.

Just as horses have no say in what their owners or trainers do, they also have no use for the accolades we do or don't give them. Becoming an Eclipse Award winner or a Hall of Famer will not change a horse's day. While I believe horses are highly intelligent, I also think they live in the moment; they are not worried about human constructs, for better or for worse, but the people around them will add to their own net worth with such honors.

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In American Pharoah's case, we were fairly warned. Zayat was sued in 2009 by Fifth Third Bank for allegedly defaulting on $34 million in loans, and then filed for Chapter 11 bankruptcy protection for his Zayat Stables. Baffert's history of therapeutic violations prior to American Pharoah has been well-documented – so well-documented, in fact, that an animal rights activist who protested Friday's induction ceremony carried what I assume was supposed to be a poppyseed bagel. So was the 2013 investigation into the number of sudden deaths suffered by his horses in California, which were never completely explained but eventually blamed on thyroid medication Baffert was administering to horses who did not have a medical need for it.

The voting body (of which I am a member) could hardly have refused American Pharoah's enshrinement based on all this. His accomplishments were historic. But it's time to stop pretending that 2015 was a fairy tale, and that this moment isn't a complicated one.

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