The Friday Show Presented By Monmouth Park: After Navarro’s Guilty Plea, What’s Next?

Following the guilty pleas over the last 10 days from veterinarian Kristian Rhein and trainer Jorge Navarro, the Paulick Report's three-time Eclipse Award-winning editor-in-chief Natalie Voss answers questions from readers and offers her own analysis of where the 18-month-old federal anti-doping criminal case stands and where it may be going.

Voss joins publisher Ray Paulick to explain Navarro's plea and the potential prison term and monetary consequences he faces.

Among the questions we've been asked are: What does Navarro's plea mean to some of the other individuals indicted, including trainer Jason Servis? Will any horses from the stables of convicted trainers or treated with performance-enhancing drugs by convicted veterinarians be disqualified from any victories? Will owners of horses who won purses through cheating trainers or veterinarians be on the hook for any monetary damages? Are more criminal indictments expected in the coming weeks or months?

Bloodstock editor Joe Nevills joins the show to review the Lake Huron Stakes win by the Woodbine Star of the Week, Forest Survivor, a 3-year-old Ontario-bred Old Forester colt who hung tough in the stretch after setting fast fractions under jockey Kazushi Kimura.

Watch this week's show, presented by Monmouth Park, below:

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Trainers React to Navarro Guilty Plea

On Wednesday, disgraced trainer Jorge Navarro pled guilty to one count of distribution of adulterated and misbranded drugs with the intent to defraud and mislead, a major development in the doping scandal that has rocked the sport since indictments were announced in March of 2020. Navarro will likely spend time in prison and has been ordered to pay restitution in the amount of $25,860,514. His career is over and he may be deported to his native Panama. But was this good day or bad day for the sport?  And what needs to be done from here to clean up the game? Those were among the questions we posed to some prominent trainers who are known not just for their abilities but for their integrity. Here's what they had to say:

Mark Casse: It's a start and I hope there are others out there who can't sleep at night. I bet that Jason Servis is seeing this and is starting to change some of his ideas so far as how to go forward. Servis has been trying to get the wiretaps thrown out. He's got bigger problems right now than just the wiretaps. Navarro is a very bad guy and he is getting what he deserves. He's a big bully and he thought he could get away with anything. He made his bed. I hope he like sleeping in it.

Bill Mott: I'm not happy about it and I'm not pleased that this happened in the first place. I am sorry to see that some of these guys got themselves involved in this kind of stuff. The bottom line is to be good. I don't think you have to do what these guys were doing. I don't know where this all ends. I hope that some time the sport will become proactive enough to stay in front of this problem. This is a great sport. The fact that they are on to some of this stuff is a good thing. But they can also go overboard on therapeutic medications. The testing of the therapeutic medications has become much better and they are picking things up in picograms. I'm not comfortable or confident that the penalties are in line with the testing, for the therapeutic medications. People are worrying more about that than they should be. They should be worried a lot more about the performance-enhancing drugs like EPO that probably do make a difference and are given illegally. That's the challenge. USADA is coming in and I hope they will be more focused on finding the illegal, performance-enhancing drugs.

Shug McGaughey: I'm glad this happened because it has cleared the air. Hopefully, this will be another step toward getting this problem straightened out. The biggest creep I've ever been around or seen in my whole life is Jason Servis. I hope they start getting after him. He is a horrible, horrible guy and had has been horrible for the game. I didn't really know Navarro. I saw that video they took at Monmouth and that was terrible. But the good news is that we won't have to ever worry about him ever again.

Graham Motion: Every trainer should be appalled by what this guy was doing. I don't understand how you couldn't be. Basically, he was cheating all of us. I don't see this as a good day. I feel about as down about the sport as I ever have been. We need to clean it up more. Servis and Navarro aren't the only two guys. Where are we going? What else is coming? Is this it? These guys were beating some of us all the time and I find it hard to believe they were the only ones doing this. It's incredibly disappointing that these tracks aren't more proactive and doing something about this situation. With Navarro, it was also his behavior. He was so in your face with this. It's so upsetting to know what happened to XY Jet. We can all have horses get hurt but to actually treat a horse with something that probably ended up causing his demise is pretty shocking to me. This whole thing is pretty sad.

Ken McPeek: I am disappointed that this industry has to deal with something like this. This should get the attention of those who want to stain the game, so that makes this a good thing. Navarro claimed some horses off of me over the years, but he never really did anything significant with any of them. I had heard other trainers complain about him and what he was doing. Maybe their experience was different than mine. I don't know what tricks he was up to. I think we're headed in the right direction. The threshold levels are so low that we are practically racing drug free. Good horsemen can handle that and good horsemen have shown they can play by the rules and prosper.

Christophe Clement: What I want to know is will my owners ever get paid back for every time they were beaten by Jorge Navarro over the last four of five years? What have the racetracks done to protect my owners? It's not about me, it's about my owners. People are supposed to regulate the sport and protect them from this sort of thing happening. I'm not sure how many times Navarro beat me, but I finished behind Servis a number of times and in some big races. Unfortunately, this is nothing new. It's the culture out there. The vet is in charge. We need more horsemanship and less medication. There is a great difference between how people train around the world versus how they train in the U.S. Here, the vet is so much more powerful.

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Feds Call Navarro A ‘Reckless Fraudster,’ Say Drugs Have ‘Corrupted Much Of The Horse Racing Industry’

It turns out Jorge Navarro really was “The Juiceman,” and contrary to remarks on a 2017 video captured by a horseplayer at New Jersey's Monmouth Park, it was anything but vegetable juice.

In federal court on Wednesday, Navarro acknowledged his role in a racehorse doping scheme that involved multiple performance-enhancing substances, including imported clenbuterol and blood-building drugs he both admitted giving to his horses and distributing to others.

As the Department of Justice stated in a press release, Navarro was a “reckless fraudster whose veneer of success relied on the systematic abuse of the animals under his control.”

Furthermore, Audrey Strauss, the U.S. Attorney for the Southern District of New York who is prosecuting the cases against more than two dozen trainers, veterinarians and suppliers, said performance-enhancing drugs “have corrupted much of the horse racing industry.”

The guilty plea by Navarro and last week's admission of guilt by veterinarian Kristian Rhein, Strauss said, “demonstrate the continued commitment of this office and our partners at the FBI to the investigation and prosecution of corruption, fraud and endangerment at every level of the horse racing industry.”

Navarro admitted to doping numerous horses, including Sharp Azteca, winner of eight of 17 races, including the Grade 1 Cigar Mile in 2017. He now stands at stud at Three Chimneys Farm.

Among the horses veterinarian Rhein admitted doping was Jason Servis-trained Maximum Security, who won four Grade 1 races and was disqualified from first place for interference in the 2019 Kentucky Derby. Transferred to Bob Baffert after Servis was indicted at the same time as Navarro (Servis has pleaded not guilty), Maximum Security won two of his final four starts before retiring to stud at Coolmore's Ashford Stud.

Just as Major League Baseball's record book is littered with the accomplishments of steroid cheaters like Barry Bonds, so too does horse racing now have a tainted database, with major races won by horses associated with convicted or indicted dopers. Even the Stud Book is polluted.

What happens next?

Can we really take Strauss at her word that the feds will continue their investigation? We know that the more guilty pleas there are, the greater likelihood that the convicted cheaters will cooperate with the government, widening the investigation and likely resulting in more trainers and veterinarians being charged. Prosecutors have collected massive amounts of information via computer and phone records, and cooperating witnesses can help connect some of the dots.

It probably comes down to how much more time and resources the Southern District of New York wants to commit to expose further corruption and cheating in this game.

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Racing has been exposed as a sport with weak or non-existent leadership at the racetrack and regulatory level when it comes to integrity issues. Track executives care more about filling the entry box than they do about the ethics or character of the trainers and owners who are supplying those entries.

Regulators concern themselves more with finding the cheapest testing laboratories than hiring the ones that have proven to be most effective at finding illicit drugs. And then they brag about how clean the game is because there are so few positive tests.

One example: In 2015, Truesdail Laboratories was found during a blind sample audit conducted by the Indiana Horse Racing Commission to have missed multiple positive tests, including a Class 1 drug – the most severe. Indiana fired Truesdail and moved their testing to another lab. It took years for a number of other racing commission to follow suit, even though Truesdail's failures were widely reported. Those racing commissions, from Maryland to New Jersey to Arkansas, simply didn't care.

Regulators also have known (or should know), based on the March 2020 indictments, that a representative for one of the owners of the Navarro-trained Nanoosh (according to Equibase, he was owned by Zayat Stables, Rockingham Ranch and David Bernsen) was on a conference call with the trainer discussing the horse's poor performances. According to the federal indictment, that person asked whether Navarro was “giving them all the shit,” and, “Is this horse jacked out? Is he on f – – king pills or what or are we just f – – king…” Navarro said, “Everything … he gets everything.”

Has a single racing commission or board of stewards – in California where the indictment said the stable is based or in any other state – called in the horse's owners to discuss this phone call with Navarro?

I doubt it. The last thing many commissions want to do – especially those rife with conflicts of interest – is hold owners accountable. To repeat: Racing commissions do not care.

There is a reason The Jockey Club – which has no official role in regulating horse racing – hired 5 Stones Intelligence, the private investigation firm that began the doping probe eventually turned over to the FBI and the U.S. Attorney for the Southern District of New York. There was plenty of smoke coming from certain stables: incredible form reversals off the claim or private purchase, win percentages that defied logic and runners that would routinely re-break at the eighth pole. Jockey Club officials assumed there was fire associated with that smoke, and they were right.

There is also a reason The Jockey Club has been so adamant in pushing for federal legislation that would turn over medication, integrity and safety issues to a group like the U.S. Anti-Doping Agency that oversees Olympic athletes and the UFC, among other sports. It is because state racing commissions are not capable of policing the sport adequately.

It remains to be seen whether the March 2020 round-up was just the tip of the iceberg of corruption and cheating in our game. Some people should be very nervous going forward. Others should be ashamed for letting it get to this point.

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Navarro Enters Guilty Plea To One Count Of Drug Adulteration And Misbranding Conspiracy

Disgraced trainer Jorge Navarro withdrew his plea of not guilty to two felony charges of drug adulteration and misbranding conspiracy on Aug. 11 and entered a guilty plea to one charge of the same offense. In a video conference before District Judge Mary Kay Vyskocil, Navarro admitted he administered and directed others to administer non-Food and Drug Administration approved misbranded and/or adulterated drugs to improve the performance of racehorses under his care. He also said he took specific actions to avoid detection of those drugs, including using drugs he believed were not testable and working with veterinarians to falsify bills sent to owners, hiding the administration of illegal drugs.

At Wednesday's hearing, Navarro admitted he administered illegal medications to racehorses between 2016 and March 2020, including top runners X Y Jet, War Story, Shancelot, Sharp Azteca, and Nanoosh. Specifically, he admitted that he gave X Y Jet “blood building” substances before an allowance optional claiming race on Feb. 13, 2019, at Gulfstream Park and the Group 1 Dubai Golden Shaheen.

X Y Jet died suddenly in January 2020, at which point he had earned over $3 million. Navarro said at the time the horse was “part of my family.”

Additionally, Navarro admitted he gave bronchodilators to co-defendant Jason Servis. Servis recently filed a motion seeking to have wiretaps taken by the FBI suppressed on the basis that the federal agency was misleading at the time of its application for those wiretaps.

Navarro said he shipped a blood doping agent from his home in Florida to co-defendant Michael Tannuzzo in New Jersey, and also that he gave drugs to co-defendant Marcos Zulueta. When asked whether he provided drugs to other trainers, Navarro paused and said, “I don't recall” before saying he had provided bronchodilators to Servis.

The misbranded or adulterated substances included blood doping agents, vasodilators, misbranded bronchodilators, “bleeder pills” and SGF-1000, according to Navarro. The blood doping agents were produced by Seth Fishman and Gregory Skelton, per Navarro. Some of the substances, he said, were shipped in from outside the United States, including Panama and the Dominican Republic. Navarro did not clarify which substances originated outside the U.S.

Had the case proceeded to trial, prosecutors revealed they had a recording of a phone conversation between Navarro and an unidentified owner of Nanoosh made in May 2019 in which Navarro and the owner agreed to continue giving the horse illegal drugs in hopes of improving his performance. Nanoosh, who was owned in partnership between Zayat Stables, Rockingham Ranch, and David A. Bernsen, was the winner of the Zia Park Derby. In May 2019 he finished sixth in the G3 Salvator Mile and would later be third in his final career start in an allowance optional claiming race.

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Vyskocil did not sentence Navarro at the Aug. 11 hearing but did outline the parameters of the sentencing guidelines that he agreed to in his plea deal with prosecutors. According to statute, the charge he pleaded guilty to comes with a maximum prison sentence of five years, and that was the maximum outlined in the sentencing guidelines. However, Vyskocil made it clear that she could choose to assign penalties beyond the sentencing guidelines and this would not empower Navarro to withdraw his plea.

Navarro could also face a period of supervised release after serving his prison sentence, and that release may come with a number of conditions. Violation of those conditions would result in Navarro going back to prison with no credit for time served on supervised release.

There are a number of elements to Navarro's crimes which had suggested a longer sentence in federal prison. The government uses a formula to help suggest a possible sentence depending on aggravating or mitigating factors, and the elements of Navarro's crime could have escalated his prison sentence to 14 to 17.5 years, but Vyskocil said the maximum allowed by statute was five, and that's what was written into the agreement Navarro signed with prosecutors. Aggravating factors or “enhancements” in Navarro's case included his use of “sophisticated means” to conceal his crimes, his abuse of public trust, and his role as an organizer of the conspiracy.

Federal prison sentences, according to Vyskocil, require that at least 85 percent of the sentence be served; although a prisoner may have the sentence shortened slightly for good behavior, they are not eligible for parole.

There are also likely to be financial penalties to Navarro as a result of his plea. He agreed he will be subject to a fine ranging from $40,000 to $400,000. He has also agreed to forfeit $70,000, and is further on the hook for $25,860,514 in restitution payments. The latter amount represents the amount of purse money won by Navarro's horses as a result of his crime. As with fellow defendant Dr. Kristian Rhein, prosecutors will provide a list of victims of the crime at the time of sentencing, which is scheduled to take place in December.

Vyskocil also noted that Navarro may face additional consequences to his guilty plea as a result of his immigration status. Navarro, 46, is not a citizen of the U.S. but is a citizen of Panama. Vyskocil said immigration authorities could choose to detain or deport him at the conclusion of his prison sentence.

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