Documents Reveal Rhein, Servis Knew Law Enforcement Was Watching In August 2019

Prosecutors in the federal drug adulteration and misbranding case filed their sentencing recommendations for veterinarian Dr. Kristian Rhein late last week, and the documents revealed a couple of new details about the case they would have mounted against him.

Rhein has entered a plea of guilty to a charge of drug adulteration and misbranding for his role in what the government says was a broad conspiracy between veterinarians, drug manufacturers, and trainers to illegally dope racehorses. Rhein is specifically accused of giving horses clenbuterol without a valid prescription and peddling a substance called SGF-1000 to racetrack clients, including co-defendant Jason Servis.

It had previously been established that Rhein owned a stake in MediVet Equine, which sold SGF-1000, and that despite this, Rhein didn't seem totally clear on what was in the drug.

The prosecutors' sentencing documentation touched on excerpts from intercepted phone calls not previously revealed which captured Rhein musing about what SGF-1000 may or may not actually contain.

Read more about SGF-1000 in our previous reporting here and here.

In one call with an unidentified third party, Rhein said that he didn't even believe the substance contained growth hormone, despite being advertised that way for several years. Prosecutors said he “had not confirmed” this. Further, Rhein also seemed to have his own theories about regulatory testing.

“Just because they can test for it, it doesn't mean they will,” Rhein allegedly said. “Now if it has growth hormone, I mean, it costs them a lot of money to test. A lot of money. And the second thing is, how long is something in there. Well if we're giving it five to seven days out then we're fine. It's not gonna hang around. It's – nothing hangs around long. EPO doesn't hang around that long.”

Previous documents had revealed that Rhein became worried at one point that there could be federal scrutiny of SGF-1000 because it wasn't approved by the Food and Drug Administration (FDA), and that he was part of a brainstorming session on how to avoid detection. One of the things Rhein considered was whether the drug should be renamed to something more innocuous.

“What was the [expletive] name that somebody told me? It was a good name,” he said. “It was kinda cheesy, but shit it was good, it was a one-word name, like … you know like … like Encore, something like that … Repair … RepairRx. Like Repair Treatment.”

In fact, Rhein seemed to know back in August 2019 that there was more than a potential for law enforcement to become interested in SGF-1000. Rhein learned around mid-August that Servis had been approached and questioned by law enforcement. He then called Servis assistant Henry Argueta, who was included in the first round of indictments in March 2020 but absent from a superseding indictment in November 2020. Rhein asked Argueta whether the FBI or the “DA office from Manhattan” had approached Servis. It's not clear how he knew which agencies may be involved, but he also appeared to anticipate that his vehicle may become subject to searches. He also seemed to believe Servis' phone may be tapped, asking Argueta how he could “get in touch with Jason” without making anyone suspicious.

Rhein seems to have panicked at this time, calling an unidentified representative of an unnamed drug testing laboratory and explaining the situation with SGF-1000.

“Either cease and desist or you're gonna go to jail,” the person told Rhein. “One or the other. What do you want to do? … I'm saying if you want to stay out of jail don't use it.”

According to prosecutors, Rhein did not cease using the drug, which he often billed as acupuncture to conceal its use from owners.

Rhein later told fellow veterinarian and co-defendant Dr. Alexander Chan to “be careful” regarding his use of the drug and that “more than likely you are going to be watched.”

Prosecutors are advocating for a three-year sentence in federal prison.

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Zulueta Enters Guilty Plea, Oakes Asks To Change Plea In Federal Drugs Case

Trainer Marcos Zulueta changed his plea from not guilty to guilty to a charge of drug adulteration and misbranding with intent to defraud during a hearing on Oct. 15. U.S. District Judge Mary Kay Vyskocil presided over the hearing, and set a sentencing date for Feb. 24 for the trainer, whose operation was based in the Mid-Atlantic.

Zulueta faces a maximum of three years in federal prison and fines of up to $100,000, in addition to a forfeiture of more than $47,000. Forfeiture amounts in this federal case have typically been based on the amount of financial gain prosecutors believe a defendant accrued from a crime.

According to a report by The Blood-Horse's Bob Kieckhefer, Zulueta did not provide many details on his crimes beyond admitting to administering drugs to racehorses without prescriptions at Parx. Zulueta said he got the substances from co-defendant Ross Cohen.

Read more at The Blood-Horse

In other news related to the federal adulteration and misbranding case, former Standardbred trainer and co-defendant Christopher Oakes requested a plea change hearing this week, which seems likely to result in his changing his plea from not guilty to guilty.

The change would make Oakes the ninth of more than two dozen defendants named in the March 2020 indictments to switch from a not guilty to a guilty plea, according to the Thoroughbred Daily News.

Oakes was allegedly overheard on wire taps speaking to Jorge Navarro about the distribution and use of performance-enhancing drugs to Thoroughbreds. Specifically, the TDN reported that Oakes and Navarro were overheard making plans to administer performance-enhancing substances to X Y Jet, who later died suddenly.

Navarro changed his plea from not guilty to guilty this summer, but has not yet been sentenced.

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Jordan Fishman Enters Guilty Plea To Drug Adulteration And Misbranding In Federal Case

In a hearing before U.S. District Judge Mary Kay Vyskocil on Oct. 6, Jordan Fishman changed his plea from “not guilty” to “guilty” to one count of drug adulteration and misbranding in the March 2020 federal case that saw over two dozen trainers, veterinarians and others charged in connection with a racehorse doping ring.

Fishman, 63, said he is of no relation to veterinarian Dr. Seth Fishman, who is also under indictment and with whom he had a working relationship. Jordan Fishman said he has a PhD in carcinogenesis and toxicology.

According to his testimony on Oct. 6, Fishman said from 2017 to March 2020 he formulated misbranded and adulterated drugs per Seth Fishman's instructions. Seth Fishman provided the materials and the instructions, he said, and Jordan Fishman followed the instructions to compound what he said were vitamins, amino acids, nutraceuticals, steroids and anti-inflammatory drugs. Jordan Fishman admitted he shipped the finished products to Seth Fishman's base in Florida and sometimes overseas, although he did not specify where. (Seth Fishman is known to have business contacts in the United Arab Emirates, according to documents filed in court.) These products, he said, were sent to Seth Fishman in unlabeled containers as he said Seth preferred to handle the labelling himself.

Jordan Fishman said the products were distributed by Seth Fishman through his company called Equestology. He said he did not know initially that the products he made were specifically destined for Thoroughbred racehorses, although he did know that Seth Fishman's business involved racehorses.

Prosecutors revealed that had the case gone to trial, they would have presented wiretap evidence from Seth Fishman's phone, evidence from a Dropbox account used to store documents related to Equestology, as well as emails exchanged between the two men which acknowledged investigative interest in their activities from the Food and Drug Administration.

Jordan Fishman was based in Massachusetts, where he was president and majority shareholder in Twenty First Century Biochemicals. The company specialized in the production of customized “peptides and amino acids” according to documents filed in a civil suit by Seth Fishman against Jordan Fishman and Twenty First Century Biochemicals. In that suit, which was filed two months after the federal indictments, Seth Fishman accused Jordan Fishman of falsely inflating the value of stock in Twenty First Century, and of failing to repay loans or complete pre-paid work. That suit, filed in U.S. District Court for the Southern District of Florida, indicated that Seth Fishman had paid at least $1.25 million to Jordan Fishman's company since the start of their partnership in 2011. That case settled out of court in January 2021.

Jordan Fishman will face sentencing in February 2022. Per statute, the maximum prison sentence he may face is three years with up to one year of supervised release. Financial penalties by statute could include a fine of $10,000, twice the financial gain to Fishman or twice the cost to victims, whichever amount is greatest. Attorneys indicated that they have an agreement in place with Fishman that they will seek no more than 12 to 18 months in federal prison and a fine between $5,500 and $55,000, although that agreement does not bind the judge to confine her sentencing to those terms.

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At Long Last, We Know (Kind Of) What Was In Those Products Sold By The Indicted Pharmacist

For years, testing experts and regulators had looked at websites like RacehorseMeds and HorsePreRace and wondered about some of their most dramatically named products. Blood Building Explosion; White Lightning; Ice Explosion; Purple Pain – items with marketing as bright and attention-catching as the vibrant colors of the liquid inside the bottles had been a source of fascination for some time. Products that promised to “light one up” and that they “will not test” had no ingredients list, let alone a breakdown showing strengths of their active ingredients.

In her time at the Racing Medication and Testing Consortium, Dr. Mary Scollay said she had acquired bottles of these and other products from the two sites that later became part of the focus of FBI investigators. Rigorous testing had yielded mostly inactive ingredients, sugars, or harmless amino acids. Still, she had always wondered whether the makers of the substances were including some new, sinister form of performance enhancer that simply evaded even top-shelf testing.

Now, we know more about the instructions given to staff mixing up products at the direction of former pharmacist Scott Mangini, who had business involvement with both websites at various times. (Mangini was one of more than two dozen people indicted in March 2020 on drug adulteration and misbranding charges stemming from an alleged series of illegal doping rings in Thoroughbred and Standardbred racing.)

One of the final items filed by prosecutors just before Mangini's sentencing on Sept. 10 included a cache of documents seized in FBI searches related to the investigation of RacehorseMeds and HorsePreRace. Included in the public filing was a series of formulas for some of the products sold by RacehorseMeds, as well as a series of invoices for orders of product ingredients sent from a supplier based in Wuhan, China. (There was also a set of billing records for RacehorseMeds, but that was filed under seal so is inaccessible to media or the public.)

We asked Scollay and former HFL Sport Science laboratory director Dr. Rick Sams to take a look at those records and help us understand what they mean about the products sold on these sites.

Harmless, or not?

Many of the substances listed on these (and other, similar websites) were clearly intended to appear as cheaper, knock-off versions of prescription drugs already in FDA-approved mass manufacture. Usually, those shared the same names as the prescription products (clenbuterol, omeprazole, flunixin, etc.) but were offered to lay people with no requirement they be licensed veterinarians. Those substances had their own problems, but it was at least clear what was supposed to be in them.

The mysterious substances with proprietary names had been more intriguing for regulators. Formulas revealed that many of them contained nothing different from more innocuously-named oral supplements – vitamins like pyridoxine (B6) and thiamine (B1), minerals like iron and copper salts, and amino acids like L-tryptophan. Many of these things can be found naturally in feed or hay, and Scollay says there's no evidence that feeding extra of many of those ingredients produces any appreciable effect in a horse's health, let alone performance. A product named  Horse Power turns out to contain ATP, vitamins, amino acids, and di-isopropylamine dihydrochloride. It's true that they would not test, but it wouldn't be because they were magically hidden by masking agents; rather, they aren't usually tested for post-race because those substances are probably present in most horses being fed balanced diets.

Under the cloak of “proprietary formulas,” the websites managed to charge much more for those pedestrian ingredients than what they would have cost horsemen who knew what they were buying. Red Explosion Blood Builder, for example, is still listed for sale online for $35 for a 10-milliliter bottle, but according to its formulation it only contained .002 grams of B12, water, and a couple of stabilizers. The B12, according to shipping records, was purchased for $8 per gram. A mark-up is just good business of course, but injectable B12 is available from legitimate, FDA-approved mass manufacturers for less than $6 for a 100-milliliter bottle.

Besides being expensive, some of the products may not have actually been capable of being absorbed by horses' bodies, according to the formulas in the court filing. A product called TQ Explosion contained calcium levulinate, thiamine, tryptophan, and GABA.

“Calcium levulinate is a source of calcium,” said Sams. “Thiamine is a vitamin. Tryptophan is an essential amino acid. GABA is gamma aminobutyric acid and is prohibited. This product is made up in sterile water for injection instead of 0.9% sodium chloride so it may not be isotonic.”

The inclusion of salts is usually made in injectable formulas to ensure the solution is appropriately passed through the bloodstream. Blood cells are isotonic, meaning they naturally contain some salts. Pure water is naturally drawn in by salty solution, so exposure to pure water could make red blood cells swell and burst – that's why most IVs are run with saline and not sterile water. Leaving out any kind of salt probably didn't make the product risky to the horse, according to Sams, but it does mean it probably didn't get delivered throughout the body in any sort of useful way.

Sometimes, the proprietary formulas left our expert sources scratching their heads as to what the makers thought they were accomplishing. The frighteningly-named Allergy Explosion turns out to contain only formic acid.

“Formic acid is the substance that causes the stinging sensation in ant bites,” said Sams. “I don't think that injecting it in a horse is inhumane, but may lead the trainer to believe that it is doing something to excite the horse.”

Another product called Ozone contained nothing but food grade hydrogen peroxide in water. The “food grade” designation is unsettling to laboratory experts because it means the ingredient has not been created with sufficient purity to be safe for use in medication, let alone an injectable formula.

“Although hydrogen peroxide injections of people have been reported, it is not an approved therapy,” said Sams. “I wondered about the source of the hydrogen peroxide and its strength and purity as well as its stability in the injection vial and whether the peroxide interacted with the vial septum. All of these need to be addressed and answered before the product can be assumed to be safe for administration to horses. Mangini's company did not report conducting any of these studies.”

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A few of the proprietary products may have kicked up a few interesting results on Google had their ingredient lists been made available at the time of purchase, but were probably still bunk.

“As I recall, the Purple Pain was to be administered intravenously, so while there is evidence that ammonium sulfate will interrupt nerve conduction—when injected adjacent to a nerve—there's nothing to suggest that systemic administration would have any effect on pain,” said Scollay. “There is some speculative stuff about L-isoleucine and d-phenylalanine [both found in a formula called Adrenal Cortex] exerting analgesic effects, most of the credible sites said there was no legitimate evidence for that claim.”

Just because it seems like a lot of this stuff didn't work didn't mean it was a harmless waste of money for the trainers who may have been buying it. While it's not uncommon for legitimate pharmacies and pharmaceutical companies to import ingredients from China and elsewhere, there are varying standards to which those products can be held. Shipping receipts seized from Mangini showed that many of the ingredients he purchased were lacking a USP designation after their names. USP stands for United States Pharmacopeia, which is an organization that sets quality, purity, strength, and identity standards for raw ingredients. Imported ingredients with this designation have been verified to meet USP standards.

Several products were listed on shipping receipts as being less than 100% in purity – a no-no for reputable compounders to put in injectable products.

“The 98% pure claims make my skin crawl.  That other 2% can be a killer—literally,” said Scollay.

Not only were many ingredients lacking this seal of approval, Scollay and Sams point out there were a few which contained dyes or colorings to make them appear an appealing color that would match the marketing name given to them. Blast Off Yellow contained yellow food coloring which, of course, isn't intended to be injected into the veins of an animal. It remains unknown what, if any, side effects this could have.

There also isn't a lot of detail provided in the instruction sheets on filtration, which would be a key step in making an injectable formula, though it's possible there were additional instructions on filtration provided in documentation not attached to prosecutors' exhibits. We do know that sanitary conditions in Mangini's facility were lacking – state health inspectors discovered his pharmacy had no working sink for people to wash their hands before compounding drugs and the areas where drugs were made were filthy. They also found that there were no quality assurance tests taking place to check for sterility or endotoxin contamination of products like this one.

Read more about Mangini's pharmacy in this 2016 report.

Then there were the instructions to make ITTP, which is supposed to be expensive to produce, even for much more technically advanced laboratories than Scott Mangini's. Scollay couldn't decide whether the instructions for making that product were more “hilarious or horrifying.”

“Take a bottle of water under the hood, open it,” read the single page of instructions. “Pour 100 ml into one beaker, 100 ml into another. Put 10 g of calcium ball things in one beaker, put 37.5 ittp in the other. Ph the ittp to 7.5. Pour them back into the bottle that has remained under the hood. Shake, it's great. No filter. Yay we are done.”

“I'll say 'c'—all of the above,” said Scollay when considering how she viewed those instructions. “In case there would be any question about the credibility of the laboratory, or how seriously it undertook its tasks—this certainly doesn't read like the business model of a good guy just trying to make good medicine more affordable.  Unless the good guys were the writers at the National Lampoon.”

The heavy hitters

There were substances in the shipping receipts that gave Sams pause. There were some that were intended to be knockoffs of legitimate drugs, and others that were more sinister.

“The products containing dexamethasone, omeprazole, clenbuterol, flunixin, phenylbutazone, and toltrazuril are all generic knockoffs of prescription products,” Sams said. “The FDA requires generic products to be manufactured in FDA-approved facilities according to Good Manufacturing Practices standards. Mangini's operation could not have met these standards. Furthermore, the preparation of knockoff products in bulk as he was doing does not meet the definition of “compounding”.

“The remaining products contain clearly prohibited and performance-enhancing substances such as selective androgen receptor modulating drugs (SARMs) and others. I include injectable clenbuterol in this group because it is not an approved drug in the U.S. Although all of these substances are prohibited in horse racing, they are not DEA controlled substances so no DEA violations occurred.”

Given the manufacturing conditions in Mangini's lab, Sams said veterinarians and trainers could not have relied on the labeled concentrations to be accurate enough to comply with testing thresholds established by state commissions – because those thresholds were created based on the FDA approved versions of the drugs.

The SARMs that attracted the most attention from prosecutors went into a product called Ostarine MK-2866 Oral Solution. Its label promised “Ostarine MK-2866 is in the class of Selective Androgen Receptor Modulators or SARMs. SARMs offer the benefits of traditional anabolic adrogenic steroids such as testosterone, including increased muscle mass, fat loss, and bone density.”

The label also indicated the drug had a 24-hour half life, which would give a user information about how to evade testing.
“Ostarine is extensively metabolized so administration studies had to be performed in order to identify metabolites to facilitate its detection in blood and urine because orally administered ostarine is subject to substantial first-pass effects,” said Sams. “This is a drug of ongoing concern in racing and, in my opinion, is one of the more egregious violations in the Mangini document.”

Other invoices include “Cardanine,” which appears to be a misspelled version of cardarine and Antibolicum LGD4033, which is also a type of SARMs drug. They also reveal the shipment of ITPP, a prohibited substance believed to increase the oxygen-carrying ability of red blood cells. Di-isopropyl diacetate, or pangamic acid, is also among the orders and is also a prohibited substance.

Scollay thought it notable that several products – both knockoffs and proprietary formulas seemed to be reliant on the inclusion of a common thyroid drug.

“Interesting that the Light Explosion and Green Speed contain levothyroxine as their primary ingredient—just in case anyone didn't think it was being used to impact performance,” she said.

L-thyroxine is sold under various trade names, including Thyro-L and Levo-Powder, and was the subject of much concern several years ago, when California regulators discovered that trainer Bob Baffert was giving the substance to all his horses as a feed additive, whether or not they'd been diagnosed with thyroid problems. It remained a topic of concern due to its association with cobalt administration.

Read previous reporting about l-thyroxine here.

Mangini's response

To the extent Mangini responded to some of these issues in court, he maintained that the majority of his sales came from knockoffs of existing drugs like omeprazole (which he was warned by the FDA to stop mass manufacturing). Ostarine, he said, accounted for .5% of his overall sales. Blood Building Explosion, which contained cobalt, was .4% of sales, while Horse Power was .65% of sales.

At sentencing, prosecutors pointed out that the only reference they have to verify Mangini's account of his sales are the records he kept.

“This is not a company that has produced anything remotely like a wholesome breakdown of its finances,” remarked U.S. Attorney Andrew Adams.

Regardless of Mangini's assertion that he didn't actually sell many of the problematic products on offer, Adams pointed out that each bottle of Blood Building Explosion contained many doses, so even the sale of dozens of bottles really resulted in hundreds of doses going into horses pre-race.

For his part, Mangini and his attorney said the former pharmacist was mostly “hurt” by the suggestion that his products were intended to corrupt the industry he loved so much.

“It was wrong to have this internet site and run the pharmacy the way he ran it,” said Mangini's attorney, William Harrington. “He's pled guilty to that. But to suggest that what he's really been doing was to create dozens of products to abuse animals, I just don't support that.”

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