NYRA, FOX Sports TV Analyst Acacia Courtney Joins Writers’ Room

One of the stars of the successful New York Racing Association and Fox Sports daily broadcast from Saratoga, Acacia Courtney joined the TDN Writers' Room podcast presented by Keeneland Wednesday morning. Calling in via Zoom as the Green Group Guest of the Week, Courtney gave her impressions on the early part of the Saratoga meet and talked strategy when it comes to analyzing the 2-year-old races that are so integral to the programs at the Spa.

Asked about the different feeling in the air at tracks this year with fans back in attendance, Courtney said, “One of the greatest things about horse racing is the swell of the crowd and people cheering. If there's a photo finish, you hear the groan one way or the other. I think that throughout the past year, we almost kind of got used to it being quiet. So opening day just felt so great. Everybody seemed happy, everybody was enjoying themselves, even if their tickets were losing, and getting a chance to see some of the fans, people coming over and saying that they had watched our show during quarantine and how much they appreciated what we had been doing really meant a lot because–and I always say you don't want to sound spoiled because I was one of the few people that got to be at Saratoga last summer. But you were drained at the end of the day because there was no crowd. There wasn't the same level of excitement as there is this year.”

Elsewhere in the show, which is also sponsored by West Point Thoroughbreds, Spendthrift Farm, Legacy Bloodstock, Woodford Thoroughbreds and the Minnesota Thoroughbred Association's 2021 Yearling Sale, the writers talked about what the latest developments in the FBI indictments case mean, remembered the great Bernardini and looked forward to a monster weekend of racing. Click here to watch the podcast; click here for the audio-only version or find it on Apple Podcasts or Spotify.

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Veterinarian Changes Plea, Agrees To Forfeit Over $1 Million Plus Restitution In Federal Case

Dr. Kristian Rhein, longtime racetrack veterinarian, entered a guilty plea Aug. 3 to one felony count of drug adulteration and misbranding in U.S. District Court. Rhein told Judge Mary Kay Vyskocil that he marketed and sold adulterated and misbranded drugs, specifically SGF-1000, to trainers for the purpose of enhancing performance. Rhein also admitted that he modified veterinary records to conceal administration of SGF-1000, as well as the administration of clenbuterol, which he said was not always given with a valid prescription.

As part of his plea agreement with prosecutors, Rhein has agreed to forfeit $1,021,800 of the proceeds he generated from the illegal drug sales, and to further pay over $700,000 in restitution to the victims of his crimes. Prosecutors did not specify who the victims would be for the purposes of restitution, only that a sealed list would be filed along with sentencing recommendations. Vyskocil also clarified with prosecutors that the restitution amount owed by Rhein could lessen if additional defendants are found or plead guilty.

Sentencing will take place at a later date, but the charge Rhein pleaded to carries a maximum recommended prison sentence of three years, with an additional possible sentence of one year of supervised probation. Vyskocil made clear to Rhein that she could decide to impose a higher sentence if she chose. Rhein could also face fines of $10,000, twice the gross gain of his scheme, or twice the losses to others as the result of his crimes, whichever amount is greatest.

Rhein specifically mentioned that he conspired with trainer Jason Servis to administer and conceal the administration of SGF-1000. Prosecutors revealed they had evidence collected from wire taps stating that SGF-1000 was untestable and demonstrating that trainers described anecdotal impacts of the drug on their horses' performance. Further, prosecutors had archived information showing that after drug makers realized there was regulatory scrutiny of SGF-1000, they changed their marketing to stop referring to it as a performance enhancer and vasodilator, and to begin referring to it as a homeopathic treatment. Prior to this change, the drug was also advertised to contain various growth factors, but that was also modified to evade scrutiny.

Read more about the evolution in the marketing of SGF-1000 in this Paulick Report feature published during the week of the indictments. 

Intercepted phone calls also allegedly contain discussions between Rhein and others about SGF-1000 being undetectable on post-race drug testing. Indeed, prosecutors say, based on the evidence they collected about the drug's use, it was not showing up on post-race tests.

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Prosecutors also revealed they had evidence showing the shipment of SGF-1000 from an overseas manufacturer to MediVet Equine, a Nicholasville, Ky.-based company which claimed to be the originator of SGF-1000. Michael Kegley, Jr., former director of sales for MediVet Equine, changed his plea to guilty in late July 2021.

Also during Tuesday's hearing, prosecutors revealed they believed between $26 and $65 million in purses was collected by Servis while using drugs given by Rhein on their horses. They did not specify which horses or which races they were referring to. Rhein stated that the dates of his drug adulteration and misbranding stretched from December 2016 until March 2020.

The post Veterinarian Changes Plea, Agrees To Forfeit Over $1 Million Plus Restitution In Federal Case appeared first on Horse Racing News | Paulick Report.

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Servis Seeks to Have Wiretaps Thrown Out

Lawyers representing Jason Servis filed a motion Monday to have evidence against him that was obtained through wiretaps thrown out. Attorneys Rita Glavin and Michael Considine charge that the government obtained authorization from a court to tap into Servis's phone based on a sworn affidavit from an FBI agent that, they contend, “contained deliberately or recklessly false statements and the material omission of statutorily and constitutionally required information.”

The Servis legal team argues that the wire taps evidence should be thrown out because using it represents a violation of Servis's Fourth Amendment rights. The Fourth Amendment reads, in part: “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.”

Servis has been charged with a long-running history of using performance-enhancing drugs on his horses, including the drug SGF-1000. The bulk of the evidence obtained against Servis comes from taps of his phone and the phones of others. The charges levied against him would be much more difficult to prove without the evidence from the tapped phones.

In an intercepted conversation with trainer Jorge Navarro, who is also under indictment, Servis said that he used SGF-1000 on “everything almost.”

Glavin and Considine are also seeking to have evidence obtained from wiretaps of the phones of Navarro, veterinarian Kristian Rhein and Alexander Chan, a veterinarian who worked with Rhein, suppressed.

“Mr. Servis's communications were unlawfully obtained as a result of those wiretaps, and he is an aggrieved party with standing to bring this motion,” his lawyers wrote. According to the original indictments release last year, Navarro is also heard admitting he used SGF-1000. On another intercepted call of note, Rhein tells Servis that, when it comes to SGF-1000, “They don't even have a test for it.”

The story was first reported by the Bloodhorse.

Servis's attorneys also charge that the government made “material misrepresentations” to the court about SGF-1000, stating that it is a performance-enhancing drug that contained “growth factors,” purposefully exaggerating the performance-enhancing qualities of SGF-1000 to obtain permission to tap the phone. The Servis lawyers write that SGF-1000 is not, in fact, a performance-enhancing drug. The filing reads: “SGF-1000 was tested on numerous occasions by independent laboratories and found to contain no growth factors. Instead, SGF-1000 tested as ovine (sheep) collagen, a substance which was unlikely to have any effect on a horse's performance at all.”

The motion also states that “SGF-1000 was repeatedly tested prior to the wiretap and found to contain no performance-enhancing substances.”

Whether or not SGF-1000 is a performance-enhancing drug could be a moot point. Throughout the case, the government has argued that even if a drug is not a performance-enhancer, it is illegal for a trainer to use it when their intent is to dope or “juice” a horse.

Despite the notoriety SGF-1000 has received because of the Servis-Navarro case, it is not hard to find it. It is available from the website vetpharmacystore.com, which is peddling a box of SGF-1000 for €170. The company describes SGF-1000 as an innovative formulation that includes “potent growth factors.”

The lawyers also charge that the government misled the courts about the urgency to use wiretaps at a time when it had not exhausted normal investigative procedures. “The Government failed to take even the most basic of investigative steps with respect to Mr. Servis, and instead ran to the district court for a wiretap as essentially its first investigative step,” they wrote.

In another attempt to bolster their case, the lawyers point out that Servis is “a trainer whose horses did not fail any post-race drug tests since the FBI's investigation in this case began in 2017 and through the date of the Mar. 9, 2020 Indictment.”

In Glavin, Servis has hired one of the top defense lawyers in the Northeast. It has been a busy few days for the attorney, who also represents New York Governor Andrew Cuomo, who is embroiled in a sexual harassment scandal. On Tuesday, New York State Attorney General Letitia James released a report alleging that Cuomo sexually harassed multiple women, including current and former government workers.

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Attorneys For Servis Say FBI Misled Court On Wiretaps, Want Evidence Suppressed

Attorneys for indicted trainer Jason Servis filed a motion on Monday in U.S. District Court for the Southern District of New York asking Judge Mary K. Vyskocil to suppress evidence obtained through Title III wiretaps on the telephones of Servis, trainer Jorge Navarro and veterinarian Kristian Rhein in connection with the March 2020 federal indictments of more than two dozen people alleged to be involved in a multi-state racehorse doping scheme.

Attorneys Rita Glavin and Michael Considine said in court filings that the FBI in seeking the wiretaps made “material misstatements and omissions” that were “deliberate or reckless” in seeking the wiretap on Servis authorized on April 30, 2019, and extended three times. The attorneys said the wiretap resulted in the “interception of thousands of communications” of Servis, one of several trainers indicted in the federal investigation that began in 2017.

First, the attorneys state, the FBI chose not to inform the court that no horses under Servis' care failed any post-race drug tests during the span of the investigation. “By contrast,” they wrote, “horses trained by Thoroughbred horse trainer Bob Baffert (who has never been criminally charged) have failed numerous post-race drug tests in the last several years, most recently failing a post-race drug test for the 2021 disqualified Kentucky Derby winner, 'Medina Spirit.'” (Editor's Note: A hearing has yet to be conducted on Medina Spirit's positive drug test and he has not been disqualified from the Derby.)

Secondly, the attorneys allege, FBI agents consistently misstated the nature of two drugs mentioned in connection with Servis: SGF-1000, a product marketed by Kentucky-based Medivet Equine, and the bronchodilator clenbuterol.

“SGF-1000 was repeatedly tested prior to the wiretap and found to contain no performance enhancing substances,” the attorneys claim, citing a number of emails between different parties and the Hong Kong Jockey Club, whose lab apparently tested the substance that is said to contain sheep collagen as a primary ingredient. Despite that, the attorneys wrote, an FBI agent seeking the original wiretap or extensions “repeatedly described SGF-1000 to the court as a 'growth factor' and 'performance enhancing substance.'”

The attorneys' memorandum in support of the motion to suppress also quotes from intercepted comments by Rhein (a part owner of Medivet) that SGF-1000 does not contain any illegal substances.  “Everything we've done is by the letter of the law,” Rhein told Servis in one conversation.

On Tuesday, Rhein pleaded guilty in federal court to administering and distributing adulterated and misbranded drugs and faces three years in prison.

“In its zeal to secure and maintain the wiretap,” the attorneys claim, “the government also misled the issuing courts about clenbuterol, wrongfully characterizing it as a performance-enhancing drug that was banned by various state regulators. In fact, clenbuterol was expressly permitted in the jurisdictions Mr. Servis' horses raced. “Although local rules of the relevant jurisdictions provide that a horse cannot race when clenbuterol is present within their system above a certain threshold at the time of a race, none of Mr. Servis' horses failed a single post-race test during the period of the government's investigation. The government withheld this fact from the issuing courts as well,” the attorneys wrote.

Their final argument claims that the FBI “misled the court about the necessity for a wiretap of Mr. Servis' phone in its requirement to explain that 'normal investigative procedures have been tried and have failed or reasonably appear to be unlikely to succeed if tried or to be too dangerous.' … The government failed to take even the most basic of investigative steps with respect to Mr. Servis, and instead ran to the District Court for a wiretap as essentially its first investigative step.”

The motion also seeks suppression of evidence from wiretaps on the phones of Rhein and Navarro, the latter of whom has asked the court for a hearing to change his “not guilty” plea.

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