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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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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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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