Vet Who Allegedly Bragged About Selling PEDs to Change Plea

Kristian Rhein, a veterinarian formerly based at Belmont Park whom federal prosecutors allegedly have on tape bragging that he sold “assloads” of the illegal performance-enhancing drug SGF-1000, has been granted an Aug. 3 change-of-plea hearing at which he is expected to alter his initial “not guilty” plea in the highly publicized racehorse doping scandal.

Rhein was allegedly part of a “widespread, corrupt scheme” dating to at least 2017 that allegedly involved the now-barred trainers Jorge Navarro and Jason Servis, plus a vast network of co-conspirators who allegedly manufactured, mislabeled, rebranded, distributed and administered performance- enhancing drugs to racehorses all across America and in international races.

Rhein's desire to change his plea comes just days after co-defendant Michael Kegley Jr. entered a guilty plea to one count of drug adulteration and misbranding July 23 in United States District Court (Southern District of New York) as part of a plea bargain agreement. Kegley will be sentenced Nov. 22.

Kegley told a federal judge last Friday that, “Beginning in 2016, I was an independent contractor for a company, MediVet Equine. We sold a variety of products, including SGF-1000. I sold these products to veterinarians, horse trainers. When I did that I knew there was no medical prescription for those products. Also at the time, I knew that the product was not manufactured in an FDA approved facility, nor was it approved for sale by the FDA.”

According to the initial March 2020 indictment, Rhein was one of those veterinarians to whom Kegley routinely sold SGF-1000.

SGF-1000, according to the indictment, was allegedly a drug of choice administered to racehorses trained by Servis, including to the disqualified 2019 GI Kentucky Derby winner Maximum Security.

According to the indictment, on June 5, 2019, Maximum Security was subjected to out-of-competition drug testing. This was allegedly a short time after the colt had received a shot of SGF-1000. Servis called Rhein out of concerns the colt might test positive.

“They don't even have a test for it in America,” Rhein allegedly told Servis during a wiretapped conversation, adding that the presence of SGF-1000 could, however, return a false positive for “Dex.”

The indictment stated that later that same day, Servis received a promise from another veterinarian who agreed to falsify records to make it appear that Maximum Security was treated with “Dex” and not the illegal SGF-1000.

On July 16, 2019, on another recorded phone call, Rhein and Kegley allegedly discussed how Servis and his associates are “buying literally as much” SGF-1000 as Rhein was able to source from Kegley's firm.

The indictment stated that “Rhein bragged that he was selling 'assloads' of SGF-1000.”

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Kentucky Pharmacy, Owner Plead Guilty In Federal Charges Over Illegal Drug Distribution

Tailor Made Compounding, LLC and its founder, Jeremy Delk, pleaded guilty this week to federal charges of unlawful drug distribution, according to a press release from the U.S. Attorney's Office for the Eastern District of Kentucky. Tailor Made entered a guilty plea to one count of distributing unapproved new drugs in the United States between October 2018 and April 2020. Those drugs were selective androgen receptor modulators, more commonly known as SARMs, which are designed to mimic the effects of anabolic steroids. Tailor Made admitted to distributing a series of substances, including BPC 157, Cerebrolysin, CJC 1295, DSIP, Epitalon, GW 501516, Ipamorelin, LGD-4033, LL-37, Melanotan II, MK 677, PEG-MGF, Selank, and Semax. The pharmacy will forfeit the value of its 2019 sales of those products, which totals $1,788,906.82.

SARMs are best known as performance-enhancing drugs in human sport, but have also made their way into the horse racing world, as evidenced by a case from Quarter Horse racing earlier this year.

Delk, 40, entered a guilty plea for unlawfully distributing prescription drugs as a wholesaler despite Tailor Made not being licensed to operate as a wholesaler. According to federal prosecutors, he oversaw Tailor Made's distribution of methylcobalimin, or B-12, to physicians in California and Maryland. Prosecutors also say he tried to hide records of those and other sales when Tailor Made was visited by federal and state pharmacy inspectors in 2018.

Sentencing in the case will take place Feb. 24, 2021. Delk could face up to 10 years in prison and a fine of up to $250,000.

Tailor Made Compounding is not affiliated in any way with Taylor Made Farm or Taylor Made Sales Agency, also located in Nicholasville, Ky.

In March of this year, the FBI confirmed judicially-authorized activity at 200 Moore Drive in Nicholasville, the address of Tailor Made Compounding. That activity took place on the same day as the arrests of several trainers, veterinarians, and others on charges of drug adulteration and misbranding. In a statement provided to the Paulick Report later that week, a representative of Tailor Made stated federal authorities questioned Tailor Made employees in connection with “a highly publicized equine investigation in New York involving MediVet Equine.”

MediVet was the producer of SGF-1000, one of the substances referenced by indicted trainer Jason Servis in telephone conversations recorded by the FBI.

Read more about the marketing of SGF-1000 in this report from March 2020.

Tailor Made maintained that it “has no business affiliation whatsoever with MediVet Equine” and “is a separate business altogether which does not compound veterinary medication.”

Until the week of the arrests, MediVet Equine's website said it was located at 200 Moore Drive, and that it was “continuing research and development in partnership with Tailor Made Compounding.”

According to the Kentucky Secretary of State, MediVet Equine Associates LLC (one of several entities using the MediVet name in Kentucky) was then registered to a Michael Kegley, with Kristian S. Rhein as a member. Michael Kegley Jr. and Rhein were among the 27 indicted by the U.S. Attorney for the Southern District of New York in connection with a doping ring.

Besides their address, MediVet and Tailor Made did share something else — an important associate in Jeremy Delk. On his LinkedIn page, Delk lists himself as CEO of Tailor Made Compounding from December 2014 to the present and founder of MediVet Biologics from January 2008 to present. The registered agent for MediVet Biologics changed from Delk to Thomas Masterson in May 2019, according to a filing with the Kentucky Secretary of State.

Delk appeared on MediVet Equine's archived website as co-founder of the company alongside Michael Kegley Sr. Michael Kegley Jr. was listed as director of sales for MediVet Equine. That page vanished during the week of the arrests in connection with the Navarro/Servis indictments (which included Kegley Jr.) and the FBI's appearance at Tailor Made. As of this week, MediVet Biologics is listed under the heading “investments and portfolio companies” on the Delk Enterprises website.

Delk's biography on his LinkedIn page reads in part: “In addition to his businesses, Mr. Delk's other passion is horses and animals. Mr. Delk's family has owned race horses for more than four decades. In 1978 his grandfather's horse, Special Honor, competed in the Kentucky Derby against Affirmed and Alydar. Mr. Delk learned of MediVet Pty in 2008 when a trainer had remarkable success using some of the companies product ranges on one of Mr. Delk's racehorses. So impressed with the product and after further research formed a partnership with the principles of MediVet Pty, Ltd. to offer the company's leading edge all natural therapeutic products in North America.

Today, Delk Enterprises has crossed over into a more focused approach in human health care including OTC consumer products, small molecule drug development, peptides, and orthobiologics.”

The post Kentucky Pharmacy, Owner Plead Guilty In Federal Charges Over Illegal Drug Distribution appeared first on Horse Racing News | Paulick Report.

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