Horse-Doping Trial: Former Fishman Employee Cites Non-Testable Products

A New York jury heard a full day of testimony Jan. 21 in the federal horse doping trial of Dr. Seth Fishman and Lisa Giannelli.

The entire morning and most of the afternoon featured a second day of testimony from a woman who worked for Fishman at his Florida business Equestology for five years.

Courtney Adams, 34, testifying from Florida via video conference, told jurors that Fishman and Equestology were all about “testability.” That meant creating “product” that couldn't be detected in post-race testing by horse racing authorities, she said.

During her testimony in U.S. District Court in Manhattan, prosecutors showed an email in which a veterinarian who was a client of Equestology asked about one of the products, equine growth hormone, and whether it was testable.

“That was our biggest selling point, that he specialized in making product that wasn't testable,” Adams testified, referring to Fishman.

The witness, who had been an Equestology office manager and then a sales rep, said that Fishman told her there was a risk of regulators coming up with a test to detect the substance. If that happened, Fishman said he would have to create another product that would be undetectable, she said.

“That was the whole point of that product to be not testable,” Adams testified.

Fishman and Giannelli face conspiracy charges in a wide-ranging scheme to dope horses with performance-enhancing drugs to boost the treated horses' chances of winning races. Those charged include prominent trainer Jason Servis, who has maintained a not guilty plea and is awaiting trial. Others, such as trainer Jorge Navarro, have pled guilty and been sentenced.

Prosecutors say the accused were motivated by greed to win races and acted without regard to the welfare and safety of horses.

While on the stand, Adams admitted helping to mislabel products that Fishman created for clients around the country and in the United Arab Emirates. She said she also shipped vials of product without any labels.

Under questioning by prosecutor Andrew Adams, the witness said that she knew “in general terms” that some of those who purchased Fishman's drugs were horse trainers.

“He would discuss why they wanted them and why they were being used by them,” she testified.

“And did he say why they were being used by trainers?” the prosecutor asked.

“He said they were being used because they were untestable,” Adams replied.

The jury also heard the witness cite the names of some of the drugs Equestology sold.

Those products included Endurance, Bleeder, Hormone Therapy Pack, HP Bleeder Plus, and PSDS.

Adams testified that PSDS stood for Pain Shot Double Strength, describing it as a “double strength product for pain.”

She indicated she didn't know what the other substances were for.

Adams said she stopped working for Equestology in 2017.

“I was over it to be honest,” Adams testified. “I didn't want to do it anymore.”

As she left, Fishman asked her not to discuss their business with anyone, Adams noted.

“I said okay,” she said.

She said in 2018 investigators with the Food and Drug Administration approached her to ask about Fishman. She said she wasn't comfortable talking to them without a lawyer.

After Fishman, Giannelli, Servis, and about two dozen others connected to horse racing were indicted in March 2020 in the doping case, Adams said a friend sent her a link with a story about the arrests.

She said after reading it she contacted law enforcement.

“I read the story, and I realized they didn't have the whole story, and I felt obliged to give it to them,” Adams told the jury.

She said as a result of the information she provided, government lawyers offered her a non-prosecution agreement.

During cross-examination, Fishman's attorney Maurice Sercarz sought to suggest that Adams was motivated to contact law enforcement out of personal animosity against Fishman.

She admitted that before she left Equestology, Fishman had accused her of theft and using Equestology funds to purchase personal items.

She told Sercarz she was upset about those accusations “because they were false.”

During his cross-examination, Giannelli's attorney, Louis Fasulo, questioned Adams about whether she would work at a place that put horses in danger.

No was her response.

Adams also said she didn't think she was breaking the law when labeling products she said were mislabeled.

Toward the end of the day, Long Island retired Federal Bureau of Investigation agent Angela Jett took the stand to read from notes of an interview she conducted with Fishman in 2010.

Jett said she had interviewed Fishman as a potential government witness in a $190 million securities fraud case. That case involved a magnate named David Brooks and a body-armor company he owned on Long Island. Fishman worked for Brooks, an owner of Standardbred racehorses that competed in New York and elsewhere.

According to the notes, Fishman told Jett that he had supplied performance-enhancing drugs to Brooks, who administered them to horses before racing.

Brooks was found guilty in 2010 of charges connected to the fraud and died in prison while serving a 17-year prison sentence.

Under cross-examination by Sercarz, Jett acknowledged that her notes don't say whether Fishman learned of the doping at the time it occurred or “after the fact.”

He also pointed out that Jett's notes show that when Brooks asked Fishman to dope a horse, Fishman refused.

Fishman's admissions to Jett never led to charges.

The trial resumes Jan. 24.

The Thoroughbred industry's leading publications are working together to cover this key trial.

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‘Holy Grail’ Of Drugs: Horse Doping Trial Of Veterinarian Fishman, Associate Begins

A New York federal jury heard opening statements Jan. 20 as the horse doping conspiracy trial of Dr. Seth Fishman and Lisa Giannelli got under way.

Prosecutor Anden Chow began by telling jurors that the defendants had operated a black market drug conspiracy for two decades.

He said Fishman and Giannelli created hundreds of drugs that were used to secretly dope race horses.

The drugs they produced were undetectable in post-racing testing, Chow said, so that trainers who were their customers could increase their chances of winning races by committing fraud.

“For two decades they did their best to avoid getting caught,” the prosecutor said. “They were successful until today.”

Fishman and Giannelli went on trial on charges of conspiring to misbrand and adulterate drugs, including performance-enhancing drugs used to dope horses at tracks across the country.

The opening statements came after a jury of eight women and four men was seated in U.S. District Court in Manhattan.

Fishman and Giannelli were among more than two dozen trainers, veterinarians, and others busted in 2020 in what prosecutors say is the most far-reaching prosecution of racehorse doping in U.S. Justice Department history. Among those charged was prominent trainer Jason Servis, whose Maximum Security finished first in the 2019 Kentucky Derby (G1) but was disqualified for interference. Servis has maintained a not guilty plea and is awaiting trial.

Fishman and Giannelli listened attentively as Chow and their attorneys addressed the jury. Each is free on $100,000 bail.

Chow was the first to address the jury.

He said that the world of horse racing was a highly lucrative business, making it tempting for some to dope horses to get an edge. He said to guard against this regulators established rules on what substances can be administered to horses and when.

“Fishman and Giannelli sold drugs to get around these rules,” Chow said.

The prosecutor said Fishman and Giannelli, who was his associate, had “hundreds of clients” and were “paid millions of dollars.”

One of the drugs Fishman manufactured boosted red blood cells in horses to increase endurance, Chow said.

He said Fishman described this drug as “the Holy Grail” of drugs.

The prosecutor said Fishman was also obsessed with manufacturing drugs that would be undetectable in post-race testing.

Chow added one of Fishman's clients was trainer Jorge Navarro. He described Navarro as one of the sport's most successful trainers who ran a doping program that relied on Fishman and others.

Navarro has pleaded guilty for his role in the case and has been sentenced to five years in prison.

Chow told jurors that the government's case would include the testimony of trainers who bought Fishman's drugs, text messages, items seized as part of search warrants, and “the words of the defendants on wiretaps.”

During his opening statement, Fishman's attorney Maurice Sercarz said that when Fishman became a veterinarian, he swore an oath promising to always work for the benefit and health of horses.

“This is the calling he answered,” Sercarz said.

He added, “It will be for the government to prove that his intent and purpose was something other than limiting animal suffering.”

The defense attorney told jurors there is great beauty in racing, but there is an ugly side with too many owners and trainers willing to cheat.

Sercarz said it wasn't his client's intention to defraud or mislead anyone.

“The individuals who purchased substances and products from Dr. Fishman knew what they were getting,” he said.

Giannelli attorney Louis Fasulo said his client didn't do anything wrong. She believed the products Fishman manufactured were okay to deliver to others, he said.

He said Giannelli was a high school graduate dedicated to the well-being of horses.

“She went to work and fulfilled her responsibility,” Fasulo said.

After the opening statements, prosecutors called their first witness, Courtney Adams, for limited testimony before the trial's first day wrapped up. She worked for Fishman's business Equestology in South Florida from 2012-'16.

She said that during that time she saw Fishman treat animals “maybe once or twice.”

Prosecutors contend that Fishman's business was more about selling drugs than taking care of horses.

Her testimony resumes Jan. 21.

The Thoroughbred industry's leading publications are working together to cover this key trial.

 

The post ‘Holy Grail’ Of Drugs: Horse Doping Trial Of Veterinarian Fishman, Associate Begins appeared first on Horse Racing News | Paulick Report.

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Defense Request to Delay Doping Trial a No-Go

A request by defendants Seth Fishman and Lisa Giannelli to delay next week's start of their trial in the alleged nationwide horse doping conspiracy because of COVID-19 concerns was not granted on Thursday by the judge handling the case.

Although no specific court order answering the motion had been filed prior to deadline for this story, a summary entry on the court docket describing what happened at a Jan. 13 pre-trial conference contained the notation, “Trial to begin January 19, 2022,” which is the originally scheduled start date.

In two highly redacted letters filed Jan. 12 in the United States District Court (Southern District of New York), both Fishman's attorney, Maurice Sercarz, and Giannelli's lawyer, Louis Fasulo, had written that they feared not only the possibility of contagion, but also the chance that any pandemic-related delays that happened once the trial got underway might end up causing a mistrial.

Reading between the lines of the redactions in both court filings, it appears as if someone–quite possibly one of the defendants–has contracted the virus.

The letter written by Giannelli's attorney contained a redacted portion of a sentence followed by the words, “which counsel learned on Jan. 8, 2022. Although her defense team is fully vaccinated and have received boosters, this is not a shield to the current variant, and it is certainly not a shield to testing positive but being asymptomatic…. Of immediate concern are the heightened risks to members of Ms. Giannelli's team.”

In arguing for an adjournment of the trial, Giannelli's lawyer had pointed out to the judge that nearby federal district courts in Massachusetts, Connecticut, Pennsylvania and New Jersey “have all suspended trials in the month of January,” but that New York's federal courts remain on schedule despite “the highest rate of infection [that] continues to surge upward.”

Federal prosecutors did not consent to the adjournment of the trial, although they were aware that the request was being made by the defense.

Fishman, a Florida veterinarian, is charged with two felony counts related to drug alteration, misbranding, and conspiring to defraud the government. Giannelli, who allegedly worked under Fishman (her exact role is disputed) faces the same two charges.

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Fishman: Lab Employee Had ‘Little Choice But to Succumb’ to FBI Search

The legal team for Seth Fishman responded to allegations by federal prosecutors that the indicted Florida veterinarian is still selling purportedly performance-enhancing drugs (PEDs) while awaiting trial in the international racehorse doping conspiracy case by telling the court Monday that the government “cannot meet its burden in demonstrating that the defendant's bail should be revoked.”

In a Dec. 13 filing in United States District Court (Southern District of New York), Fishman's attorney, Maurice Sercarz, wrote that the administrative assistant who permitted Federal Bureau of Investigation (FBI) agents to search Fishman's place of business where drug evidence was seized Dec. 1 “had little choice but to succumb to the demand by agents that they be permitted to search the premises.”

That's because, “At the time that her consent to the search was sought and obtained, she had participated in [two previous interviews] in which she revealed her involvement, over a seven-year period, in the manufacture and distribution” of Fishman's products.

“In other words,” the filing continued, “at the time her consent to the search was obtained 1) she was at risk of prosecution for the very offenses with which Dr. Fishman was charged; and, (2) subject to a proffer agreement that allowed ample opportunity to use her statements against her both at trial and at sentencing.”

Fishman is charged with two felony counts related to drug alteration, misbranding, and conspiring to defraud the government. The employee, unnamed in court documents, is not known to be facing any charges. Fishman's trial is tentatively expected to start in mid-January.

On Dec. 6, federal prosecutors asked the judge overseeing the case to consider revoking the bail terms of Fishman's pretrial release.

The basis for that request was that “Employee-1 informed the Government, in substance and in part, that Fishman's business was creating 'energy drinks' for foreign distribution and that Employee-1 remained tasked, by Fishman, with continuing to create a 'bleeder' paste [that] Employee-1 also described as being for foreign distribution,” the Dec. 6 filing stated.

“The drugs found in Fishman's offices continue to be manufactured through the same unregistered, unlicensed business that forms the basis of the charged offense,

and include the drug 'HP Bleeder' previously obtained from multiple searches of premises controlled by Jorge Navarro, Lisa Giannelli, Christopher Oakes, as well as [other defendants],” the Dec. 6 filing stated.

The Dec. 13 reply by the defense alleged that the move by the feds to get Fishman's bail revoked was a ploy to undermine his legal preparation.

“[T]he Government now seeks to have the defendant detained four weeks before his trial is scheduled to begin, when his ongoing contact with defense counsel will be most necessary in order to prepare his defense for trial,” Monday's filing stated.

The defense filing also pointed out that, “Dr. Fishman has never made a secret of his intention, following his arrest, to continue exporting his products while redoubling his efforts to comport with the requirements of the export exemption to the adulteration and misbranding statutes. He expressly advised the Government of this fact as part of his application for a deferred prosecution agreement.”

The Dec. 13 filing also stated that the government's motion “glosses over” the “voluntariness” of Fishman's employee's consent to the Dec. 1 search of the workplace.

“The agents noted that upon arriving at the premises, the Administrative Assistant had to unlock the door to let the agents into the premises,” Fishman's filing stated. “The fact that the door was locked indicates that the premises did not function as an office, open to the public; but rather, as a location devoted to the manufacture and shipment of Dr. Fishman's products.

“The [FBI] report reflects that upon entering the premises, the agents and Administrative Assistant held a conference call with [federal prosecutor] Sarah Mortazavi and [the employee's] attorney to discuss the parameters of the search. No comparable effort was made to contact counsel for the defendant,” the filing stated.

A Dec. 20 hearing on the bail revocation request is the next step in the process.

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