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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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Audrey Strauss, the United States Attorney for the Southern District of New York, announced that defendant Michael Kegley, Jr. pled guilty on Friday to his role in the distribution of adulterated and misbranded drugs with the intent to defraud and mislead, in connection with the charges filed in United States v. Navarro et al., 20 Cr. 160 (MKV). KEGLEY pled guilty before U.S. District Judge Mary Kay Vyskocil, and will be sentenced by Judge Vyskocil on Nov. 22, 2021.

Manhattan U.S. Attorney Audrey Strauss said: “Michael Kegley promoted and sold unregulated performance enhancing substances intended for use by those engaged in fraud and unconscionable animal abuse in the world of professional horseracing. This conviction underscores that our Office and our partners at the FBI are committed to the prosecution and investigation of corruption, fraud, and endangerment at every level of the horse racing industry.”

According to the allegations contained in the Superseding Information, the prior Indictments[1], other filings in this case, and statements during court proceedings:

The charges in the Navarro case arise from an investigation of widespread schemes by racehorse trainers, veterinarians, performance-enhancing drug (“PED”) distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Ohio, Kentucky, and the United Arab Emirates (“UAE”), all to the detriment and risk of the health and well-being of the racehorses. Trainers who participated in the schemes stood to profit from the success of racehorses under their control by earning a share of their horses' winnings, and by improving their horses' racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control. Veterinarians and drug distributors, such as Kegley, who worked as the director of sales for an unregistered distributor of equine drugs, profited from the sale and administration of these medically unnecessary, misbranded, and adulterated substances.

Among the misbranded and adulterated PEDs marketed and sold by Kegley was the drug “SGF-1000,” which was compounded and manufactured in unregistered facilities. SGF-1000 was an intravenous drug promoted as, among other things, a vasodilator capable of promoting stamina, endurance, and lower heart rates in horses through the purported action of “growth factors” supposedly derived from sheep placenta. Despite marketing, selling, and administering SGF-1000, Kegley acknowledged in intercepted calls that he, along with a co-defendant involved in the sale of SGF-1000, did not know the actual contents of SGF-1000. Nevertheless, Kegley's sales of that drug persisted, aided by the claim that SGF-1000 would be untestable in horses by law enforcement.

According to the Thoroughbred Daily News, Kegley's testimony during Friday's proceedings included the following statement: “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.”

U.S. Attorney Strauss praised the outstanding investigative work of the FBI New York Office's Eurasian Organized Crime Task Force and its support of the FBI's Integrity in Sports and Gaming Initiative.

This case is being handled by the Office's Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Sarah Mortazavi, Andrew C. Adams, Anden Chow, and Benet Kearney are in charge of the prosecution.

The post Drug Company Sales Director Michael Kegley Pleads Guilty In Federal Doping Case appeared first on Horse Racing News | Paulick Report.

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