Within weeks of that sale, the man who would become Crazy Beautiful's owner – Amer Abdulaziz of Phoenix Thoroughbred III – would be identified under sworn testimony in federal court as a conspirator to launder some of the estimated $4 billion scammed from people around the globe in a cryptocurrency ponzi scheme known as OneCoin.

Dubai-based Abdulaziz was named by Konstantin Ignatov, whose sister, Ruja Ignatova, is said to be the mastermind behind OneCoin (she has disappeared but the story of her and OneCoin is told in the BBC podcast The Missing CryptoQueen). Konstanin Ignatov pleaded guilty to charges of fraud and money laundering and is now cooperating with the U.S. attorney for the Southern District of New York that is prosecuting several cases related to OneCoin.

Ignatov said that not only was the Phoenix Thoroughbred founder laundering OneCoin funds, Abdulaziz stole 100 million euros from the operation and spent the money on racehorses, according to investigative journalist Matthew Russell Lee, who reports on courtroom activities at the Southern District of New York.

Ignatov testified in the trial of attorney Mark Scott, who was convicted of money laundering and bank fraud in connection with OneCoin and like Ignatov is awaiting sentencing.

When Scott was arrested and interviewed by the FBI in September 2018, he admitted to closing a OneCoin fund in Ireland and wiring the money to a “financial adviser” in Dubai named “Amar something” who ran the Phoenix Investment Fund.

The government showed that more than 185 million euros were transferred to Phoenix between February and April 2017. In a forfeiture letter to the judge in the Mark Scott trial in which the government is seeking $393 million in funds from Scott, acting U.S. Attorney Audrey Strauss could not have been more clear in her assessment of Abdulaziz.

She wrote: “Scott subsequently transferred approximately 185,000,000 euros from the Bank of Ireland to the accounts of another one of Ruja's money launderers named Aamer Abdulaziz.”

A government exhibit in the Mark Scott trial showed the various wire transfers involving OneCoin funds

Through an agent, Abdulaziz first starting buying high-priced horses in early 2017 at the Fasig-Tipton Florida Sale of 2-year-olds in training. By year's end he had spent more than $20 million and was building a massive worldwide portfolio of bloodstock holdings that included horses for both racing and breeding.

That spending continued into 2018 when Abdulaziz' profile was elevated beyond the insular world of bloodstock sales. Phoenix Thoroughbred struck a deal to have NFL star tight end Rob Gronkowski take part ownership of a namesake colt, Gronkowski, running in that year's Belmont Stakes won by Triple Crown winner Justify.

By now, nearly everyone in racing had heard of the big-spending Phoenix operation, which Abdulaziz had hailed as the “world's first regulated Thoroughbred fund” that was designed to show a profitable return to its investors. Except no one seemed to have any idea who the actual investors were or why they would put their trust in someone who was a relative unknown until he started spending tens of millions of dollars to buy horses.

The following March while in Dubai for the World Cup, British television host Nick Luck conducted an interview with Abdulaziz, who directed some comments to skeptics.

“People are always asking, 'Who are these guys? Are they serious? Are they going to be there next year?'” Abdulaziz said. “I can tell you now, on your show, we are here to stay.”

Luck responded: “The other question they always ask is, 'Where's the money coming from?'”

“It's a registered fund,” said Abdulaziz. “Transparency is very important. If anyone has any doubt we are more than happy to have them come and sit with us in our office. … There are third party regulators.”

It has since been reported that Phoenix was not regulated in Luxembourg, as Abdulaziz has said.

“Most of the people we have managed to bring to the fund so far are pension funds, insurance companies or high net worth individuals from Europe, America or Australia,” Abdulaziz told Luck. “We would like to give our investors the opportunity to come to the races, network with a lot of people, open doors for them.”

Yet those investors were never identified or seen at major racing events where Phoenix horses competed. When Crazy Beautiful won the Gulfstream Park Oaks, trainer McPeek confirmed, none of the people in the crowded winner's circle were affiliated with Phoenix Thoroughbred.

None of the people in the crowded winner's circle after Crazy Beautiful's Gulfstream Park Oaks victory was affiliated with Phoenix Thoroughbred, according to trainer Kenny McPeek

Abdulaziz told Luck in 2019 that Phoenix has a half dozen other funds, including a hospitality fund worth “about a billion dollars.” He said that he has another fund “where I have all the basketball players involved with me in the U.S.”

Since the initial revelations about Phoenix and Abdulaziz were first made in United States federal court proceedings, horse racing regulators around the world have begun to restrict the operation's activities. According to published reports, authorities in France, the United Kingdom and even his home country, the United Arab Emirates, have said Phoenix can not race horses there. Most recently, Australian authorities said they will freeze any prize money won by Phoenix out of concerns over where its funds came from. Sources have said several horse sales in Europe will no longer accept Abdulaziz' money.

No U.S. racing regulators or racetracks have yet banned Phoenix and major sales companies Fasig-Tipton and Keeneland have not said Abdulaziz and his money are not welcome.

The standard answer from these organizations is: Amer Abdulaziz has not been indicted or convicted of any crime.

And that is true. It is also true that Abdulaziz has vehemently denied any illegal activity and has threatened to take legal action against anyone who says otherwise.

It is also true that Amer Abdulaziz, who once was so prominent at American racetracks and sales grounds, has not traveled to the United States since these OneCoin money laundering revelations were made in federal court. He knows the fate that very likely awaits him. If federal charges were to be filed against Abdulaziz, there is no extradition treaty between the United Arab Emirates and the United States, so Dubai serves as a safe haven for him.

Class-action suits have been filed against OneCoin and more criminal cases are pending. This case is not going anywhere soon. Will Phoenix Thoroughbred assets get dragged into the case? That's anyone's guess.

American regulators and Thoroughbred industry businesses have been looking the other way ever since the money laundering allegations were first made against Abdulaziz and Phoenix in November 2019. It's not a good look for an industry that routinely seems to value money over ethics.

That's my view from the eighth pole.

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Aquis' decision is predicated by the fact that Phoenix did not disclose the actions of racing authorities to freeze prize money.

“That conduct of Phoenix has failed to meet our expectations,” a spokesman for Aquis told the AFR. “Any true co-owner should inform their partner of such action by authorities. Phoenix failed to be honest and transparent with us over the prize money freeze, which has rendered the relationship untenable.”

Phoenix reportedly is not permitted to race in France, United Arab Emirates or the United Kingdom. No state racing commissions in the United States have taken regulatory action against Phoenix.

Phoenix continues to be active at U.S. bloodstock sales, including the $1.2 million bid by Phoenix agent Gerard Butler to buy out a partner in stakes winner Lady Apple last November at Fasig-Tipton. Shannon Arvin, president and CEO of Keeneland, released the following statement concerning Phoenix being allowed to participate in sales after court documents filed by a federal prosecutor in a money laundering case involving the multi-billion-dollar OneCoin cryptocurrency scam, accused Abdulaziz of being a money launderer for OneCoin.

“Keeneland is aware of the allegations that may involve Phoenix Thoroughbreds and is monitoring the situation,” said Arvin. “However, it is our understanding that Phoenix Thoroughbred has not been indicted by a grand jury, let alone convicted on any allegations. Keeneland will continue to follow any developments in this matter, and certainly will comply with any regulatory or legal action or direction from a governing authority.”

Since the money laundering accusations were made in federal court against Abdulaziz, it is believed that he has not traveled to the United States from Dubai, where he resides.

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The Aquis Group and the Fung family have indicated they will end their Thoroughbred racing partnership with Phoenix Thoroughbreds after it was confirmed that Phoenix's prize money had been frozen in New South Wales and Victoria.

The Australian Financial Review has reported that Aquis had not been informed that Phoenix's prize money had been frozen in Australia's two biggest racing states and, having failed to get answers from the Dubai-based operation, will seek to end the relationship.

Aquis told the AFR that it was left in the dark by Phoenix over the move by racing authorities in Australia to prevent Phoenix from benefitting from its Thoroughbred ownership until legal investigations into the company were completed. It was only made aware of the situation by media reports last week.

“That conduct of Phoenix has failed to meet our expectations,” a spokesman for Aquis told the AFR.

“Any true co-owner should inform their partner of such action by authorities. Phoenix failed to be honest and transparent with us over the prize money freeze, which has rendered the relationship untenable.

“We have sought further clarification from Phoenix multiple times since late last week over matters of their relationship with racing regulatory bodies in Australia, but they completely failed to answer questions. The matter has been placed in the hands of our lawyers.”

The spokesman said Aquis and the Fung family planned to immediately terminate all co-ownership of racehorses with Phoenix.

Phoenix Thoroughbreds responded to Aquis' comments by saying it did not see the need to disclose the prize money freeze.

“Given the conditions placed on us by Racing NSW and Racing Victoria only affects our [Phoenix Thoroughbreds] prize money share, we regard this as an internal matter. Any money due to our partners and trainers remain unaffected, as does our ability to race,” it read.

“None of this impacts our professional relationship with Aquis or their revenue streams from racing horses in partnership with us. With this in mind, we felt there was no reason to inform them of this private situation and stand by that decision.”

A dissolution of the partnership between Aquis and the Fung family and Phoenix Thoroughbreds would have major ramifications for the Australian Thoroughbred industry, as they share ownership in a significant number of thoroughbreds, including the 19 yearlings they spent A$11.6 million on together at the Magic Millions Gold Coast Yearling Sale in January.

They are also part of the ownership of G1 Golden Slipper winner Farnan (Aus) (Not A Single Doubt {Aus}), along with Kia Ora Stud, where he will stand for the 2021 season. Farnan was bred by Phoenix and raced in partnership with Aquis before Kia Ora bought in ahead of his 3-year-old season.

Following the reported news of the upcoming Aquis/Phoenix partnership dissolution, the British Horseracing Authority (BHA) is now under pressure to examine lease agreements being used by trainers to race previously suspended horses that are still owned by Phoenix Thoroughbreds and the Phoenix Ladies Syndicate, the Racing Post reported on Wednesday. The leases were approved by the BHA and several horses that used to carry the Phoenix colours or Phoenix Ladies colours have been in action this month. The BHA did indicate that they can look into specific leasing arrangements if it was warranted.

“We cannot comment on the specifics of any leasing arrangements or possible leasing arrangements,” a BHA spokesperson told Racing Post. “When a horse is leased, it must be lodged with the BHA and the BHA has the ability to investigate if it has any concerns regarding a lease.”

Phoenix Thoroughbreds founder Amer Abdulaziz has been linked to money laundering allegations made in a U.S. court in a case involving the OneCoin cryptocurrency scam, allegations that he has repeatedly denied.

The fallout from those allegations led to Phoenix Thoroughbreds being banned from racing horses in England and France late last year and Dubai this January.

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Phoenix Founder Amer Abdulaziz was named in a U.S. federal court trial in November 2019 as allegedly being involved in a money laundering operation and as having stolen €100-million from OneCoin, a sham cryptocurrency he purportedly helped to run. Abdulaziz and Phoenix Thoroughbreds have denied the allegations.

A spokesperson for Racing Victoria told TDN AusNZ, “While these legal proceedings remain ongoing, RV has decided to place a freeze on Phoenix Thoroughbreds' portion of prizemoney earned by horses they own or part-own. Should any information come to light via these legal proceedings or other means that warrant further action being taken within our jurisdiction, then we will consider it at the time.”

Phoenix, which was leading buyer at this year's Magic Millions Gold Coast Yearling Sale in partnership with Tony Fung of Aquis with A$11.65-million spent, has been banned from racing in the UK, and reportedly in France. No action has yet been taken in the U.S.

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Abdulaziz was named in a U.S. federal court trial in November 2019 as allegedly being involved in a money laundering operation and as having stolen €100-million from OneCoin, a sham cryptocurrency he purportedly helped to run. Abdulaziz and Phoenix Thoroughbreds have denied the allegations.

Phoenix announced in August of 2020 that it would no longer race horses on the UK, and the following month was formally banned by the British Horseracing Authority. France Galop reportedly also placed a ban on Phoenix horses last August, though a formal announcement was never made. Around the same time, Australia's Racing NSW, Racing Victoria and Racing Queensland announced investigations were underway, with Racing NSW the first to take action. Phoenix Thoroughbreds is not banned from racing horses in NSW, but for now cannot collect prizemoney.

“Our decision to freeze prizemoney is on the basis that there is an allegation against them, and in those circumstances, until such time that it is resolved, the prudent course of action is to freeze prizemoney until it's resolved,” Van Gestel said. “Everyone is entitled to procedural fairness. We conducted an investigation on the matter, it doesn't happen in five minutes, it's something we've got to be diligent about, and once we had completed that, when we were in a position with the evidence that we had before us, we've made the decision to freeze prizemoney.”

Phoenix has enjoyed racecourse success in Australia with Group 1 winners like Loving Gaby (Aus) (I Am Invincible {Aus}) and Farnan (Aus) (Not A Single Doubt {Aus}), the latter of which it also bred. Phoenix purchased three seven-figure colts by Not A Single Doubt in partnership with Tony Fung at the Magic Millions Gold Coast Yearling Sale.

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A visit to be covered by Lane's End's super sire Quality Road lies in the immediate future for the daughter of Curlin, who signed off her racing career with a third-place finish in the Grade 3 Houston Ladies Classic on Sunday.

A winner of six of her 19 starts, she banked over $1 million in prize money thanks largely to her four successes at Grade 3 level.

Raced in partnership with KatieRich Farm for the early part of her career, she got off the mark at the fifth time of asking with victory in a maiden special weight at Oaklawn Park. From there, the Steve Asmussen trainee didn't look back, winning her next two starts culminating in the G3 Fantasy Stakes. That success qualified her for the Kentucky Oaks where she ran a stormer to finish in third.

She returned to winning ways on her very next outing by taking the G3 Iowa Oaks at Prairie Meadows before again bouncing back from defeat to claim the Remington Park Oaks, another Grade 3. Arguably her best win was her last as she beat Grade 1 winners Serengeti Empress and Street Band to win the 2020 running of Houston Ladies Classic. Although that proved to be her final trip to the winners' circle she placed twice more in stakes races before her owners called time on her career on Monday.

“She has been a fantastic race mare for us and she'll be an excellent addition to our breeding operation,” said Phoenix Thoroughbreds CEO Amer Abdulaziz. “She has a top-class pedigree with a race record to match while the cross with Quality Road looks very exciting. We are seeing some excellent results from our breeding operation around the globe and adding horses such as Lady Apple can only add to that.”

By Curlin, Lady Apple is the highest-profile of 10 winners produced by her dam Miss Mary Apples. The 5-year-old is also from the same family as Kentucky Derby winner Affirmed and Grade 1 winner Senor Pete.

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“We have the horses in the stable but we're not able to run them,” trainer Satish Seemar, who trains for Phoenix in Dubai, told Racing Post.

The post Phoenix Not Permitted to Race in UAE appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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Vaughan, 47, announced in July that he would be winding up his stable in Newmarket after 16 years, declaring that rising costs and declining prize money levels were making running a training business increasingly unviable.

The 47-year-old signed off when his final runner, Hackness Harry, won at Kempton – but, in an interview with The Owner Breeder, revealed he has set up a new base at Keeneland in Lexington. He hopes to have his first runners in the new year on the Tapeta all-weather surface at Turfway Park in northern Kentucky.

Among a team that could reach a dozen are three horses he was training for the controversial Phoenix Thoroughbreds team, who had separately announced they were quitting Britain amid intense media scrutiny over the organization's funding sources.

“Moving to the US had been on my mind for a long time,” Vaughan told Owner Breeder magazine. “I just needed to work the logistics out. Fortunately some horses that I trained in England have come over to Kentucky.

“It's obviously very exciting,” he went on. “It's a new chapter and it's like I'm starting all over again. I'm definitely not worried though. I've had good support from the right people and the move makes sense.

“With prize-money the way it is in Britain, it just became increasingly difficult to continue training. We'll be racing for some proper prize-money in Kentucky.”

Vaughan trained more than 200 winners in Britain, landing his biggest success this year when Dame Malliot won the Group 2 Princess Of Wales's Stakes in July.

His was one of 11 British stables to train for big-spending Phoenix, the self-styled “world's first regulated thoroughbred fund” which launched in 2017 with strings in the US and Australia as well as Europe.

However, by the time Vaughan handed in his licence, Phoenix had been barred from having runners in France and Britain over concerns about its funding which stemmed from allegations made in a New York court that CEO and founder Amer Abdulaziz was a key money-launderer for a fake $4 billion cryptocurrency scam. Abdulaziz has categorically denied the claims.

Phoenix said 3-year-old maiden War Cross, a $200,000 son of War Front, unraced Kingman filly Lady De Peron, a 275,000gns buy, and Miss Chess, owned by the affiliated Phoenix Ladies Syndicate, had been shipped to the U.S. from Newmarket. Other horses could follow.

“We are delighted that Ed will remain part of the Phoenix team,” Abdulaziz said. “He is an extremely talented trainer and valued advisor who we are sure will be a success in the US. It's doubly pleasing that we can give him some talented horses to work with that he already knows so well. We are very excited for Ed as he embarks on this next chapter of his career.”

This story originally appeared on Horse Racing Planet and is republished here with permission.

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As referenced in the statement, Phoenix announced last month that it would cease its operations in the UK on account of “unfair treatment from an industry media outlet.” Phoenix was reportedly barred from running horses in France just days later, a fact that has yet to be confirmed by France Galop. Phoenix Thoroughbreds and its Chief Executive Officer and Founder Amer Abdulaziz Salman have been embroiled in controversy since last November when Abdulaziz Salman was named in a United States federal court trial as being part of a money-laundering operation. He was also accused of stealing €100-million from a sham cryptocurrency he reportedly helped to run.

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Last November, Phoenix principal Amer Abdulaziz was named in a U.S. federal court trial as being involved in a money-laundering operation. Abdulaziz was also alleged to have stolen money from sham cryptocurrency OneCoin. Phoenix’s U.S. Head of Operations Tom Ludt left the company in August.

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