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The Jockey Club of Saudi Arabia Takes Steps to Disqualify Maximum Security

Nearly four years after Maximum Security (New Year's Day) crossed the wire first in the inaugural Saudi Cup and six months after his trainer Jason Servis was given a four-year prison sentence for doping horses under his care, the Jockey Club of Saudi Arabia (JCSA) announced Tuesday that it has concluded its own investigation into the matter and will recommend to a Stewards Committee that it should sanction Servis and disqualify Maximum Security.

The final decision will be made by the Stewards Committee, but in the press release it issued Tuesday the JCSA made a strong case that Maximum Security should be disqualified and Servis should be sanctioned. At stake is the $10 million that is paid out to the winner of the $20-million race. Should Maximum Security be disqualified, Midnight Bisou (Midnight Lute) would presumably be declared the winner.

Maximum Security did not test positive for a prohibited substance before or after the Saudi Cup, but Servis was caught on wiretapped phone calls bragging that he gave the banned substance SGF-1000 to nearly every horse in his barn. Racing officials from JCSA have maintained that it is within their power to strip Maximum Security of the win if it was proven that Servis had been illegally drugging Maximum Security in the months surrounding the race.

The statement from the JCSA read, in part: “Following the conclusion of that investigation and pursuant to the Racing Rules of the JCSA (Rules) [2] and the Horseman's Guide (Guide) [3], the JCSA has now authorised charges to be brought against Jason Servis, the former trainer of the horse Maximum Security.

“The Charges allege substantial breaches of the Rules and the Guide and relate to the administration of Prohibited Substances to Maximum Security and failures to comply with the entry requirements for the Race.

“The JCSA will contend that the Stewards Committee should sanction Jason Servis and disqualify Maximum Security.”

The statement said that the inquiry to be held by the Stewards Committee will take place “in due course.”

The inquiry will be held in private and members of the media will not be permitted to attend. The decision of the Stewards Committee will be published at the conclusion of the inquiry. Until the Stewards Committee has made its final decision, the JCSA will issue no further statements.

At deadline for this story, Jeff Bloom, who heads the syndicate that campaigned Midnight Bisou, was unavailable for comment.

Gary West, who owned Maximum Security with his wife Mary, also could not be reached for comment. However, in December, 2022, West issued a statement saying he would be supportive of a decision to disqualify Maximum Security and redistribute the purse money.

“We believe in the justice system and have patiently waited for the legal prosecution to take its course,” West said. “Now that Jason Servis has entered a guilty plea, we want to make it clear that if the Saudi Cup decides to redistribute the purse, we would support that decision. Hopefully, that action will prevent future conduct of this nature. We believe the decision to take the Saudi Cup purse from Maximum Security and redistribute it is the correct one.”

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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.

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Former Vet Chan Asks For Revision To 30-Month Doping Conspiracy Sentence

The former New York-based veterinarian Alexander Chan has filed a hand-written plea from prison asking for a reduction to his 30-month sentence that was handed down in May as punishment for his role in the wide-ranging 2020 racehorse doping conspiracy case.

In December 2022, Chan had cut a deal with prosecutors that involved pleading guilty to a single felony charge of drug adulteration and misbranding in exchange for two other felony counts against him being dropped.

Chan's filing with the court on Monday was submitted without an attorney acting on his behalf.

But the 10-page motion laid out a cogent case for reconsideration based on an amendment recently adopted by the United States Sentencing Commission that allows for downward revisions of sentencing levels for petitioners who have zero criminal history points on their records.

According to Chan's filing, the new sentencing commission guidelines allow, in certain cases, for retroactive recalculation of the “offense levels” that are used to determine prison terms, so long as the offenses didn't involve things like violent behavior, the use of weapons, sex crimes, or hate crimes.

Chan is arguing that a recalculated offense level in his instance would reduce his sentence to a 24-to-30 month prison term, and he is asking the court to revise his imprisonment to the lowest end of that tier because of his record of good behavior while jailed at Fort Dix, a low-security federal correctional institution in New Jersey.

Chan wrote in his motion that he has “pursued [computer] programming to a greater degree than any other similarly situated inmate and has been free from disciplinary actions.”

Chan was arrested in March 2020 as part of a series of coordinated law enforcement sweeps in the years-long federal investigation of a network of more than 30 horsemen, veterinarians, and equine pharmaceutical suppliers who ended up facing charges.

Jason Servis | The Jockey Club of Saudi Arabia

In the lead-up to sentencing, federal prosecutors had described Chan in court documents as “a former veterinarian for the New York Racing Association (NYRA), and a practicing veterinarian for over 15 years [who] abdicated his duty of responsibility to the horses under his care.”

The feds' portrayal of Chan continued: “After spending three years as a traveling veterinarian for NYRA, the defendant worked under convicted co-defendant Kristian Rhein at Empire Veterinary Group and soon after began providing and/or administering adulterated and misbranded drugs without valid prescriptions, knowing that their use violated New York's racing rules, medical ethics, and the law.”

Chan's own presentence report filed by his legal team had stated that, “Dr. Chan's sterling career and the beautiful young family it supported have since been destroyed because-at the direction of his boss and the owner of the veterinary practice in which he worked, Dr. Kristian Rhein-Dr. Chan participated in the distribution of misbranded substances for use on Thoroughbred racehorses.”

According to a trove of wiretap evidence, plus implicating testimony from plea-bargaining defendants, Klein and Chan's client list included the now-imprisoned former trainer Jason Servis, whom the feds alleged doped almost all the horses under his control in early 2019.

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60 Minutes Airs Expose On Horse Racing Doping

The CBS news program “60 Minutes,” which aired Sunday evening included a segment that covered horse racing's worst problems, horses breaking down and dying and the use of performance-enhancing drugs on horses. 60 Minutes often reaches as many as 12 million viewers. The segment was hosted by correspondent Cecilia Vega.

Though the program gave ample time to Jockey Club Chairman Stuart Janney III, Horseracing Integrity and Safety Authority CEO Lisa Lazarus, Meadowlands owner Jeff Gural, and others who have been working to solve the problems, it left no doubt that the sport has pressing issues that if left unsolved threaten its existence.

“Horse racing has reached its moment of reckoning and we wanted to know, `can the sport really be reformed or is it too late?'” Vega said.

What followed was a recantation of the rash of fatalities that surrounded the GI Kentucky Derby and other major events, which included graphic footage of horses dying on the track.

“People who are not in your world see this headline of more than a dozen dead horses and they think, `what is going on in that industry?'” Vega asked Lazarus.

“My response is that HISA is here now and we're going to address it,” she said.

She continued: “There's clearly a problem that needs to be addressed and now we have some tools to fight it. We really owe it to those trainers who have spent their lives in this sport who have an incredible amount of integrity to get rid of those who tarnish this sport.”

It was not hard to get industry leaders to admit that doping is a major issue that has yet to be brought under control.

“(Doping) is a big problem,” Janney said. “It strikes at the integrity of the sport. There's nothing about it that is acceptable.”

Asked how the sport can clean itself up, Janney replied: “You put people away. You send them out of the sport and some of them go to jail.”

That very process began in March of 2020 when more than 33 veterinarians, trainers and drug distributors were charged by the Justice Department for using and manufacturing performance-enhancing drugs.

“The FBI said this led to broken legs, cardiac issues and in some cases death,” Vega said.

The show played wiretaps of conversations between convicted trainer Jorge Navarro and a another trainer in which Navarro bragged about how the drugs he was using made his horses run faster.

“I (expletive) gave it to this horse and this horse (expletive) galloped. He galloped,” Navarro said to the unidentified trainer.

“Amino acids?” the other trainer asked.

“Yeah, some amino acid injectable. Small bottle,” Navarro replied.

They also played wiretaps from harness trainer Nick Surick in which he spoke of how he was put in charge of disposing of horses that Navarro had killed.

The FBI was assisted by 5 Stones Intelligence, which was hired by The Jockey Club and Meadowlands owner Jeff Gural. Janney said 5 Stones was told to not be afraid to go after the biggest names in the sport, like Navarro and Servis.

“I said I'm not interested in you going in an finding a relatively unimportant person working in someone's barn who has made a bet they shouldn't have made or has done something immaterial to what we're talking about,” he said. “I want you to go after the important people that I think are corrupting the sport.”

Before they were arrested, Servis and Navarro were clearly worried they could be caught and that the penalties could ruin their careers. A wiretap caught them saying the following:

Servis: We can't do it in broad daylight, we got to do it like…”

Navarro: “I know. I'll keep it at my…I'll keep…I'll keep it in my car. I ain't worried about that.”

Servis: What about, what I am-I don't want people to see that (expletive). We are dead. We are dead.”

Shaun Richards, who was the lead FBI agent on the case that nabbed Navarro, Jason Servis and others, spoke a hopeful note, that the progress made with the arrests has put investigators, HISA and others on the right trail.

” We're right where we need to be,” he said. “We have a really good subject identified and we are getting fantastic evidence.”

Vega asked Lazarus “How long will it take to clean this up?”

“It will probably take years to be truly confident that we've got a fully clean sport,” she said.

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