FBI Indictments | Horse Racing Free Tips

Argueta, Assistant To Trainer Servis, Sentenced To ‘Time Served’

Henry Argueta, formerly the assistant to the now-imprisoned trainer Jason Servis, was sentenced to a prison term of “time served” and two years of supervised release after working out a cooperative plea bargain with prosecutors in the wide-ranging 2020 racehorse doping conspiracy case that has already netted several dozen convictions.

The sentencing paperwork filed Dec. 21 for Argueta's final judgment in United States District Court (Southern District of New York) stated that he pleaded guilty to three felony charges listed in a superseding information document in exchange for other charges in a separate indictment being dropped.

The court records did not state how much time Argueta had already served.

The judgment also stated that Argueta must pay more than $28 million in restitution to an undisclosed list of victims. The documentation did not list a specific payment plan.

It is common for convicts of federal crimes who don't have the means to pay exorbitantly large restitutions to never pay more than a fraction of the court-ordered amount, although the penalty is never legally forgiven and the government can continue to try and collect it up to 20 years after a criminal's sentence expires.

Separately, Argueta's court filing stated that, “As a result of the offenses charged in Counts One and Two of the Information, to which the Defendant pled guilty, a money judgment in the amount of $311,760 [representing] the amount of forfeitable property involved in the offenses charged [is] jointly and severally liable with the Co-Defendants…”

But the documentation went on to state that because Servis, who got sentenced to four years in prison on July 26, has already paid that $311,760, “the Government shall credit the Servis Payment against the Money Judgment and the [Argueta] Money Judgment will be fully satisfied.”

Argueta's name surfaced on multiple occasions in a trove of wiretapped evidence that prosecutors had planned to introduce at trials.

But the feds didn't have to use the vast majority of those taped telephone phone conversations and intercepted text messages, because the highest-profile defendants in the case all ended up cutting guilty-plea deals instead of taking their chances facing a jury.

On July 10, 2019, Servis and Argueta were listed in a transcript allegedly discussing concerns about getting caught administering performance-enhancing drugs to Thoroughbreds.

Servis: Be careful man, Henry, with that. Really careful, because …
Argueta: Yes?
Servis: Because we are getting really good.
Argueta: Yeah, no.
Servis: All we need is a problem like that. Oh, with [Maximum Security crossing the finish wire first but getting disqualified for interference in the] Derby and [expletive]. Oh, my God!

Argueta and Servis then discussed the likelihood that authorities would be on the lookout for them to see if they were doping horses.

Argueta: Yeah, but what are they going to see? Nobody going to see nothing. What are they going to see? Nothing.
Servis: Right.
Argueta: We don't do nothing–ha, ha! They can look wherever they want to look.

The post Argueta, Assistant To Trainer Servis, Sentenced To ‘Time Served’ appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Jason Servis To Change Plea; Hearing Set for Friday

Trainer Jason Servis has been granted a change-of-plea hearing, which will be held Friday at 11 a.m. before Judge Mary Kay Vyskocil of United States District Court (Southern District of New York)., in which he is expected to plead guilty for his role in the highly publicized racehorse doping scandal.

Originally indicted in March of 2020, Servis represents the last domino to fall in the doping scandal that also involved trainer Jorge Navarro and more than two dozen others and sent shockwaves through the industry. Servis had appeared ready to fight the charges in court and had hired a high-profile attorney in Rita Glavin, who represented former New York Governor Andrew Cuomo when he faced allegations of sexual harassment. Servis's trial had been set to begin Jan. 9.

It was revealed last week that Servis and his attorney had begun the process of negotiating with prosecutors when a request was filed to the court asking for additional time to file motions prior to Servis's scheduled court date.

“The Government and counsel for defendant Jason Servis are currently in discussions regarding a potential pre-trial disposition, which may obviate the need for trial,” wrote United States Attorney Damian Williams in his letter to the court.

Servis was originally charged with three counts of felony drug misbranding. Some eight months after the original indictment was released, the charge of mail and wire fraud conspiracy was added in a superceding indictment. The maximum sentence under federal guidelines for that charge is 20 years.

It won't be known until Friday's hearing what charges Servis will plead guilty to. Like Servis, Navarro entered into a plea agreement with the government, pleading guilty to one count of conspiracy to commit drug adulteration or misbranding. He was sentenced to five years in prison. Unlike Servis, Navarro was never charged with conspiracy, which could mean that Servis will face more than five years.

In a related development, Alexander Chan, a veterinarian who had worked for Servis and was scheduled to be tried alongside the barred trainer in January, also changed his plea and plead guilty to one felony count of conspiracy to commit drug misbranding or adulteration. He will be sentenced April 13. Chan had also been facing three felony charges related to drug adulteration, misbranding, along with wire fraud conspiracies.

That Servis might be acquitted at trail always seemed like a longshot. The federal government had compiled numerous intercepted phone conversations between Servis and others in which he discussed his doping routines with Chan, Navarro and another vet, Kristian Rhein. When Rhein pled guilty in August of 2020 he implicated Servis. Rhein was sentenced to three years.

Servis's performance-enhancing drug of choice was allegedly SGF-1000, purported to be a performance-enhancing drug intended to promote tissue repair and increase a racehorse's stamina and endurance beyond its natural capability. The government charged that Servis administered SGF-1000 to “virtually all of the racehorses under his control.” The list includes Maximum Security (New Year's Day), who was first under the wire in the 2019 GI Kentucky Derby before being disqualified for interference.

The evidence included a conversation between Servis and Navarro in which Servis recommended SGF-1000 to his fellow trainer and said, “I've been using it on almost everything.”

In the original indictment it was charged that Servis and his co-conspirators “concealed the administration of PEDs from federal and state government agencies, racing officials, and the betting public by, among other things, concealing and covertly transporting PEDs between barns where Servis's racehorse were stabled, falsifying veterinary bills to conceal the administration of SGF-1000, and using fake prescriptions.”

Servis's sentencing may be the final chapter in a scandal that has hovered over the industry for nearly three years. With Chan having changed his plea and Servis about to do the same, the cases covering all the individuals originally indicted will have been adjudicated. Every person involved will have either pled guilty or been convicted in court.

The post Jason Servis To Change Plea; Hearing Set for Friday appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Chan Pleads Guilty to Single Felony Count in Plea Deal

The New York-based veterinarian Alexander Chan, facing three felony charges related to drug adulteration, misbranding, and wire fraud conspiracies for allegedly injecting purported performance-enhancing drugs (PEDs) into racehorses trained by co-defendant Jason Servis and then hiding the billing for his services, cut a plea bargain with the government Monday.

Chan's deal involved waiving indictment and pleading guilty to a single superseding information charge of drug adulteration and misbranding in exchange for the other charges against him being dropped, a format that is similar in substance to deals that other convicted defendants in the wide-ranging doping conspiracy case have agreed to with government prosecutors rather than face a trial by jury.

Chan had signaled his intention to plead guilty last Thursday, when he asked for and was swiftly granted a Dec. 5 change-of-plea hearing in United States District Court (Southern District of New York).

That decision seemingly left Servis as the lone remaining high-profile defendant in the case to go to trial as scheduled Jan. 9. But news broke Friday that Servis, too, is seeking a plea deal to adjudicate his own trio of felony drug misbranding and conspiracy to commit fraud charges. There was no update on the court docket with regard to Servis's case status as of early Monday evening.

As part of his plea deal, Chan will also have to pay the feds a forfeiture of $311,760. The money judgment represents the value of “any and all drugs that were adulterated or misbranded when introduced into or while in interstate commerce or while held for sale…” according to court documents filed Dec. 5.

Chan's sentencing will be Apr. 13.

The post Chan Pleads Guilty to Single Felony Count in Plea Deal appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Harness Trainer Guido Gets 20 Months in Prison for Doping

Thomas Guido, III, a 57-year-old former Standardbred trainer based in the Northeast, became the third defendant in related criminal racehorse doping cases this week to be sentenced to prison.

On Thursday, a federal judge put Guido behind bars for 20 months as part of an agreement with prosecutors in which Guido pleaded guilty to one felony count of substantive drug misbranding and adulteration with intent to defraud and mislead in exchange for three conspiracy charges against him being dropped.

Guido was also ordered to pay a $10,000 fine. Prior to his Nov. 17 sentencing, he already paid a $61,800 forfeiture that had been a condition of his plea bargain.

At two separate sentencings on Nov. 15, the same judge in in United States District Court (Southern District of New York) sent the former Standardbred trainer Rene Allard to prison for 27 months while the former racetrack veterinarian Louis Grasso got 50 months for his role in the same doping ring.

Had the case gone to trial, prosecutors had been prepared to prove how Guido and Grasso worked together to administer performance-enhancing drugs (PEDs) to Standardbreds.

“Critically, Guido sought to obtain some of the most potent PEDs in the industry-blood builders-to administer to racehorses for the purpose of corruptly improving their race performance,” prosecutors wrote in a pre-sentencing submission.

Among the evidence that the feds intended to present if the case had gone to rial was a 2019 intercepted phone call in which the trainer and veterinarian discussed the death of a horse named Reiki, presumably after the administration of a blood-clotting agent.

“Guido appreciated the dangers of illegally administering drugs to racehorses for no legitimate medical purpose,” the prosecution's filing continued. “One of Guido's racehorses unexpectedly died with no apparent cause, leading co-defendant Louis Grasso to speculate that the horse had died after receiving a mis-administered dose of N-butyl alcohol. Guido likewise appreciated that his conduct was prohibited: over the course of his career, Guido had received multiple prior positive drug tests and fines or suspensions as punishment.”

Prosecutors had sought a 30-month prison sentence. Guido's attorney had argued for a far more lenient punishment of 12 months of home confinement. Guido's lawyer also disputed that his client had a direct role in Reiki's death.

“The government suggests that Mr. Guido was directly responsible for the death of a horse under his care,” Guido's attorney wrote. “The basis of this allegation is a conversation between Dr. Grasso and Mr. Guido recorded on October 2, 2019, in which they discuss the death of a horse owned by a friend of Mr. Guido.

“Dr. Grasso, who did not examine the horse, opines that the horse died of an improperly administered N-Butyl injection. [Reiki] died the day before [after competing in] a race at Pocono Downs.”

“Mr. Guido was not present at that race, he did not transport that horse to the track, and it's not clear whether Reiki was stabled at [his farm]. Mr. Guido did not mis-deliver an injection of N-Butyl to Reiki on October 1, 2019…. The entire conversation is speculative [and] we don't know why the horse died,” the defense filing continued.

But yet, even Guido's own attorney conceded in the same paragraph that, “What is true, however, is that similar to his facilitating others in obtaining Epogen prescriptions, Mr. Guido may have supplied the N-Butyl that Dr. Grasso had prescribed for his barn. It is conduct that he deeply regrets.”

The post Harness Trainer Guido Gets 20 Months in Prison for Doping appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post