A federal judge ordered that Poliseno, 72, must also pay a $2.26-million forfeiture as the result of a plea bargain that set aside felony charges related to conspiracy, drug alteration, and misbranding in exchange for pleading guilty to one count of a substantive violation of the Food Drug and Cosmetic Act.

In a sentencing submission, prosecutors wrote that “Poliseno so abused his position that he sought to use a deceased veterinarian's credentials to continue ordering prescription drugs.”

The filing from the feds continued: “Poliseno fraudulently used the veterinary licenses of complicit veterinarians to obtain and widely disseminate adulterated and misbranded drugs marketed to racehorse trainers, including drugs designed to have performance-enhancing effect….Poliseno distributed and offered for sale both bespoke drugs created by co-defendant Louis Grasso, and prescription drugs that could only be distributed pursuant to a valid prescription.”

The sentencing submission explained that for eight years Poliseno ran Equine Vet Supplies LLC, which served as “a conduit between bulk drug manufacturers and consumers, creating a pipeline for trainers to receive prescription drugs that would otherwise require issuance by a licensed veterinarian. In that manner, Poliseno armed trainers with the tools to abuse and misuse drugs at their discretion.”

The government had requested “a sentence to some term of imprisonment [that] is sufficient, but not greater than necessary.”

A separate sentencing submission filed by the defense asked for leniency in light of Poliseno's age, his history of poor cardiac health, and the fact that he and his severely ill wife are the sole caretakers of a 5-year-old grandson.

Poliseno's sentencing submission further stated that “he has loved horses since he was a young boy” and that his crime was the result of “a serious lapse in his better judgment.”

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Chan's deal involved waiving indictment and pleading guilty to a single superseding information charge of drug adulteration and misbranding in exchange for the other charges against him being dropped, a format that is similar in substance to deals that other convicted defendants in the wide-ranging doping conspiracy case have agreed to with government prosecutors rather than face a trial by jury.

Chan had signaled his intention to plead guilty last Thursday, when he asked for and was swiftly granted a Dec. 5 change-of-plea hearing in United States District Court (Southern District of New York).

That decision seemingly left Servis as the lone remaining high-profile defendant in the case to go to trial as scheduled Jan. 9. But news broke Friday that Servis, too, is seeking a plea deal to adjudicate his own trio of felony drug misbranding and conspiracy to commit fraud charges. There was no update on the court docket with regard to Servis's case status as of early Monday evening.

As part of his plea deal, Chan will also have to pay the feds a forfeiture of $311,760. The money judgment represents the value of “any and all drugs that were adulterated or misbranded when introduced into or while in interstate commerce or while held for sale…” according to court documents filed Dec. 5.

Chan's sentencing will be Apr. 13.

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The disclosure was revealed late Friday afternoon in an otherwise routine court filing asking for an extension of time to file motions in Servis's upcoming trial, which has a Jan. 9 start date.

“The Government and counsel for defendant Jason Servis are currently in discussions regarding a potential pre-trial disposition, which may obviate the need for trial,” wrote United States Attorney Damian Williams in his letter to the court.

The request for extra time was granted by Judge Mary Kay Vyskocil of United States District Court (Southern District of New York).

The Dec. 2 filing also referenced a change-of-plea hearing that same judge had granted the day before to the New York-based veterinarian Alexander Chan, who is accused of his own trio of felony charges related to injecting purported performance-enhancing drugs (PEDs) into Servis's horses and then hiding the charges from billing and veterinary records.

Chan, as part of his plea change, could very well implicate his former client, Servis, during his Dec. 5 hearing.

That's what another veterinarian who worked for Servis, Kristian Rhein, did in August 2021 when he changed his own plea to guilty on one felony count within the federal government's sprawling prosecution of an allegedly years-long conspiracy to dope racehorses. Rhein got the maximum sentence of three years imprisonment for his crimes.

Chan and Servis were scheduled to be tried together next month.

“In light of the foregoing, the parties respectfully contend that a brief adjournment of the upcoming deadline [to file motions] will facilitate the parties' ongoing efforts to reach a resolution short of trial,” Williams wrote to the judge.

The feds have already disclosed they have a trove of wiretapped evidence involving Servis speaking about his doping regimens to Rhein, Chan, and the now-imprisoned trainer Jorge Navarro, who in December 2021 was sentenced to five years behind bars for his rampant criminal usage of equine PEDs.

Some of those secretly recorded phone conversations involved the MGISW Maximum Security, who crossed the wire first in the GI Kentucky Derby, but was DQ'd for in-race interference.

One of the elixirs of choice for both Servis and Navarro was SGF-1000, a custom-made, purported PED intended to promote tissue repair and increase a racehorse's stamina and endurance beyond its natural capability. The two trainers discussed this PED in an intercepted call on March 5, 2019. The transcript reads as such:

Servis: I'll tell you what, Jorge. I'm using that [expletive] shot. What is it, SGF?

Navarro: Oh yeah, yeah, yeah. I got, uh, I got more than 12 horses on that so I'll let you know, okay?

Servis: I've been using it on everything, almost.

Navarro: Jay, we'll sit down and talk about this [expletive]. I don't want to talk about this [expletive] on the phone, okay?

Servis: All right. You're right.

On June 5, 2019, a call between Servis and Rhein went like this, according to the feds:

Servis: Are you by yourself?

Rhein: Yeah, yeah, yeah. I just walked out of the barn.

Servis: Hey. So they've been doing some out-of-competition testing, which I have no problem with. Um, they took Maximum Security Monday and they came back again today. But Monday he got the KS. I just want to make sure we are all good with that.

Rhein: Wait, what did he get?

Servis: I'm sorry, I said “KS.” The, you know, your shot. The…

Rhein: Oh, the SG.

Servis: Yeah, that stuff.

Rhein: Yeah-no, no, no. The Jockey Club tested it, and I met the guy who tested it way back when. It comes back as collagen. They don't even have a test for it.

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On Thursday, a federal judge put Guido behind bars for 20 months as part of an agreement with prosecutors in which Guido pleaded guilty to one felony count of substantive drug misbranding and adulteration with intent to defraud and mislead in exchange for three conspiracy charges against him being dropped.

Guido was also ordered to pay a $10,000 fine. Prior to his Nov. 17 sentencing, he already paid a $61,800 forfeiture that had been a condition of his plea bargain.

At two separate sentencings on Nov. 15, the same judge in in United States District Court (Southern District of New York) sent the former Standardbred trainer Rene Allard to prison for 27 months while the former racetrack veterinarian Louis Grasso got 50 months for his role in the same doping ring.

Had the case gone to trial, prosecutors had been prepared to prove how Guido and Grasso worked together to administer performance-enhancing drugs (PEDs) to Standardbreds.

“Critically, Guido sought to obtain some of the most potent PEDs in the industry-blood builders-to administer to racehorses for the purpose of corruptly improving their race performance,” prosecutors wrote in a pre-sentencing submission.

Among the evidence that the feds intended to present if the case had gone to rial was a 2019 intercepted phone call in which the trainer and veterinarian discussed the death of a horse named Reiki, presumably after the administration of a blood-clotting agent.

“Guido appreciated the dangers of illegally administering drugs to racehorses for no legitimate medical purpose,” the prosecution's filing continued. “One of Guido's racehorses unexpectedly died with no apparent cause, leading co-defendant Louis Grasso to speculate that the horse had died after receiving a mis-administered dose of N-butyl alcohol. Guido likewise appreciated that his conduct was prohibited: over the course of his career, Guido had received multiple prior positive drug tests and fines or suspensions as punishment.”

Prosecutors had sought a 30-month prison sentence. Guido's attorney had argued for a far more lenient punishment of 12 months of home confinement. Guido's lawyer also disputed that his client had a direct role in Reiki's death.

“The government suggests that Mr. Guido was directly responsible for the death of a horse under his care,” Guido's attorney wrote. “The basis of this allegation is a conversation between Dr. Grasso and Mr. Guido recorded on October 2, 2019, in which they discuss the death of a horse owned by a friend of Mr. Guido.

“Dr. Grasso, who did not examine the horse, opines that the horse died of an improperly administered N-Butyl injection. [Reiki] died the day before [after competing in] a race at Pocono Downs.”

“Mr. Guido was not present at that race, he did not transport that horse to the track, and it's not clear whether Reiki was stabled at [his farm]. Mr. Guido did not mis-deliver an injection of N-Butyl to Reiki on October 1, 2019…. The entire conversation is speculative [and] we don't know why the horse died,” the defense filing continued.

But yet, even Guido's own attorney conceded in the same paragraph that, “What is true, however, is that similar to his facilitating others in obtaining Epogen prescriptions, Mr. Guido may have supplied the N-Butyl that Dr. Grasso had prescribed for his barn. It is conduct that he deeply regrets.”

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Grasso was also ordered to pay a forfeiture totaling $412,442.62 and restitution in the amount of $47,656,576. He must surrender to authorities on January 24, 2023, at which time he will enter prison.

Grasso was charged with one count of drug adulteration and misbranding conspiracy, a felony. He faced a maximum sentence of five years. Several other defendants in the doping case that have pled guilty received sentences in the neighborhood of three years.  That Castel gave Grasso more than four years seems to reflect the severity of the charges against him.

The prosecution had maintained that Grasso's doping led to corrupt trainers collecting over $47 million in ill-gotten purse winnings.

In May, when Grasso entered a guilty plea, the U.S. Attorney's Office for the Southern District Court issued a press release in which U.S. Attorney Damian Williams commented on the Grasso plea as well as the guilty plea entered by harness trainer Richard Banca. Banca was sentenced to 30 months.

“Grasso and Banca represent the corruption and greed of those in the racehorse industry looking to win at any cost,” Williams said. “In peddling illegal drugs and selling prescriptions to corrupt trainers, Louis Grasso abdicated his responsibilities as a medical professional to ensure the safety and health of the racehorses he 'treated.' By injecting horses with unnecessary and, at times, unknown drugs, Grasso risked the lives and welfare of the animals under his care, all in service of helping corrupt racehorse trainers like Banca line their pockets through fraud. These latest convictions demonstrate the commitment of this Office and of our partners at the FBI to hold accountable individuals seeking to profit from animal abuse and deceit.”

In the indictment of Grasso, the government portrayed him as a central figure in a scheme to manufacture, distribute and receive adulterated and misbranded PEDs which were administered to horses. The government charged that Grasso and others delivered and received “at least thousands” of units of PEDs issued by pharmacies pursuant to invalid prescriptions. Banca was among his customers.

According to the indictment, Grasso was also manufacturing and/or selling “epogen,” pain shots of joint blocks, bronchodilators and a substance called “red acid.” Red acid is believed to reduce inflammation in joints.

It appears that Grasso's doping may have been restricted to harness racing as the indictment does not mention any illegal activities that involved Thoroughbred racing.

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Giannelli, 56, was found guilty of peddling illegal performance-enhancing drugs to trainers to dope horses and faced a maximum of five years in prison. Her lawyers appealed for a no-jail sentence of probation.

“This was not a one-time thing,” Judge Mary Kay Vyskocil said in U.S. District Court in New York. “For 18 years, Ms. Giannelli marketed and sold what she knew were illegal and powerful performance-enhancing drugs.”

Vyskocil said that with its verdict, the jury had rejected Giannelli's argument that she didn't know that what she was doing was illegal when she worked for Equestology, a Florida company owned by veterinarian Seth Fishman.

Giannelli, of Dalton, DE, was also sentenced to two years of supervised release after she gets out of prison. She was also ordered to pay a fine of $100,000 and to forfeit $900,000.

The government's investigation into the illegal use of PEDs to dope horses led to charges against 31 individuals. Since the charges were announced 30 months ago, Giannelli and Fishman have been convicted by juries, and 22 others have pleaded guilty. Fishman was sentenced in July to an 11-year prison sentence.

Those who have pleaded guilty include trainer Jorge Navarro. He was sentenced to five years in prison.

Trainer Jason Servis was also charged and is awaiting a trial scheduled to begin in New York in January.

Prosecutors said Fishman had designed PED to increase a horse's performance and endurance by building red blood cells and masking pain. The substances were designed to avoid showing up in post-race tests conducted by racing regulators.

At the sentencing, Prosecutor Sarah Mortazavi said Giannelli's actions on behalf of Fishman's company warranted the maximum sentence.

“Her criminal conduct touched hundreds of trainers and led to the doping of thousands of horses,” she said.

She said Giannelli has yet to really accept responsibility for her actions and that it was only after the jury's verdict that Giannell offered a “mealy-mouthed explanation for her conduct.”

Giannelli came to court with 13 supporters. Among them was a man she married while under indictment and his mother.

“It was never my intention to break the law,” Giannelli said.

She said that her arrest and conviction have left her life shattered.

“It was never my intention to hurt anyone or to hurt any animal,” Giannelli said. “Everything in my world now is upside down.”

“At this point I wish I had never met Fishman,” she said.

“I thought I was doing good,” she added. “I never knew it was not legal.”

Defense lawyers pleaded for a sentence of probation in court papers that detailed Giannelli's troubled upbringing and her abusive relationships with men. She said she obtained a license to train horses at harness tracks. She said she met Fishman in 2004 and became his sales representative.

Lawyer Alex Huot said Giannelli was not doing anything she wasn't instructed to do by the doctor.

“She took Dr. Fishman at his word,” Huot said.

But Vyskocil told Giannelli she should have known better because the conduct she engaged in occurred when she was an adult.

The judge said Equestology's PEDs were powerful substances that she believed could have and did kill horses.

Vyskocil said that in fashioning her sentence took into account Giannelli's background, her character, and more than 50 letters from Giannelli's family and friends.

“The letters all reflect that you are a kind person, and have a passion to make things better,” the judge said.

At the end, she told Giannelli that she was sorry for her, for the situation that brought her to court.

“I do believe you are a good person,” the judge said. “You have your whole life ahead of you.”

Giannelli's surrender date is Jan. 9, 2023.

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

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So when federal investigators began compiling evidence that led to a nationwide series of arrests in a widespread racehorse drugging crackdown in March 2020, Garcia was considered fair game for her alleged role in the pipeline of purportedly performance-enhancing drugs.

Charged with two felony counts involving conspiracies to commit drug alteration and misbranding and defrauding the United States government, in Garcia tried in 2021 to get a federal judge to suppress the evidence obtained from searches of her car and phone. It didn't work.

Now Garcia, 43, wants to join many of the 30 other defendants in the case who have either already changed their pleas or been found guilty by trial. On July 29 she requested a hearing before the judge to do explain why she wants to flip from “not guilty,” and that request was swiftly accommodated with an Aug. 1 court date.

Judge Mary Kay Vyskocil will preside over the hearing. She's the same judge who wrote the order that denied the suppression of evidence.

“Garcia argues that the physical search of her car, pursuant to a search warrant, was invalid because the application for the warrant contained 'stale' evidence,” Vyskocil wrote last year. “The Court rejects this argument because the affidavit for the warrant presented evidence that Garcia was long involved in an ongoing conspiracy.”

“The affidavit in support of the warrant for Garcia's car detailed her long-term relationship with Navarro and ongoing involvement with members of his doping scheme. It described at least six instances over the span of four months in which Garcia discussed with Navarro administering prohibited substances to racehorses,” Vyskocil wrote.

“The affidavit acknowledged that Garcia's relationship with Navarro deteriorated in early 2019,” Vyskocil wrote. “It explained that, nevertheless, Garcia remained in touch with other members of Navarro's network, including his assistant trainer.

“In the light of the evidence of Garcia's longstanding and continuing involvement in a doping operation, there was probable cause to search her vehicle, notwithstanding her personal break with Navarro,” Vyskocil wrote.

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But is this the end of his story or a precursor to what's to come? Are the arrests of Fishman, Jason Servis, Jorge Navarro and some 25 others just the first chapter in scandal that will bring down dozens, maybe even hundreds, of others? Some say that is inevitable.

“I have no doubt there are many arrests pending,” Jockey Club Chairman Stuart Janney III said at the 2020 Jockey Club Round Table. “Fortunately they will happen, just not as soon as we would like.”

Despite Janney's assurances, nothing is certain here. Nothing is clear cut.

Fishman is a key figure. Surely, he was dealing performance-enhancing drugs to far more people than those who were targeted, indicted and convicted of doping horses by the federal government. It can't just be Servis, Navarro and a handful of others.

In February, a list of Fishman's clients was released. But that raised more questions than it answered. There were more than 2,000 individuals on the list, and virtually all of them were from the Standardbred industry. The list included hundreds of people whose integrity has never been questioned and who have spotless records. That may be because some of those whose names were on the list purchased legal medications from Fishman. We just don't know.

So the list did not answer the key question: who was buying performance-enhancing drugs from Dr. Fishman? Fishman may decide to answer that question, to tell all. Maybe he already has. Then again, maybe that's not necessary. Is there a paper trail of not only who he sold drugs to but which drugs? One would think that would be the case. There's also the case of Louis Grasso. Another veterinarian who dealt primarily with Standardbreds, he entered a guilty plea in May on the charges of one count of drug adulteration and misbranding conspiracy. What does he know? Who, beyond those already caught up in the scandal, was he dealing his drugs to? Will we ever find out? Nailing a bunch of other cheats would seem to be a case of low-hanging fruit.

“I hope there will be more arrests and indictments,” said Meadowlands owner Jeff Gural, who has played a large part in the effort to catch the worst of the worst when it came to racing's cheats. “I would hope we will be able to find out who bought what from Fishman and Grasso. Because, clearly, they know who bought what. I am sure people bought legitimate medications, but I'm also sure others bought performance-enhancing drugs. I don't think this is the end of it at all.”

One school of thought is that the government is waiting, that it wants to first resolve all the cases against all the alleged cheaters from the original March, 2020 indictments. That includes Servis, who is set to go on trial in January. After Servis' trial is over and, if he is found guilty, and his sentence has been announced, maybe that's when there will be a fresh and lengthy list of additional horsemen, trainers and vets that have been indicted.

But here's another scenario, one that I believe is most likely.

The government probably already has a laundry list of people who bought PEDs from Fishman and Grasso. It wouldn't be hard to come up with one. And maybe Fishman and Grasso, in hopes of getting a lighter sentence, have cooperated with the authorities and named names. That's entirely possible, if not plausible. But that doesn't mean that the government has to act on that.

Does the government really want to use up even more resources on something, that in the grand scheme of things, isn't that big of a deal? Every minute they spend trying going after people who may have cheated in what is not a major sport is one less minute they can devote to going after drug dealers, money launderers, gang leaders and the likes of Ghislaine Maxwell. As much as we care about our sport and as much as we want to rid ourselves of the cheats, we really are small potatoes.

The hope is that there are a bunch more bad guys out there who are going to face the consequences for doping horses. I just don't think that's going to happen. Sure hope I am wrong.

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The feds also recommended that the judge not use convicted trainer Jorge Navarro's five-year sentence-the most severe among prison terms meted out so far in this conspiracy-as a measuring stick, because Fishman's criminal actions had a multiplying effect that caused exponential harm to racehorses, and he continued to peddle alleged performance-enhancing drugs (PEDs) “until practically the eve” of his trial.

“[U]nlike the trainer-defendants charged and sentenced in this matter, Fishman's reach extended far beyond a single barn,” prosecutors stated in a July 5 sentencing submission filed in U.S. District Court (Southern District of New York).

“He supplied at least hundreds of trainers with his unsafe and illegal drugs. The breadth of the drugs the defendant offered for sale is unmatched by any other charged defendant in this action. The defendant was thus responsible for amplifying the disastrous effects of doping on racehorses in the industry. The defendant, under the guise of providing medically necessary veterinary care, enabled scores of corrupt trainers by selling unnecessary PEDs to enrich himself,” the filing stated.

Fishman undoubtedly tried to paint a different picture in his own sentencing submission that got filed June 27. But the public can't access that document, because his legal team asked for and received permission from the court to file it under seal.

Three days prior, on June 24, TDN reported that Fishman had to be hospitalized for psychiatric reasons during his trial earlier this year, thus explaining his cryptic absence during closing arguments. The presence of records related to his health could have been a reason the judge okayed shielding what is normally a public document.

The July 5 filing by the feds, however, shed some light on what Fishman wrote in his pre-sentencing filing, which is a convict's final chance to impress upon a judge that he doesn't deserve harsh punishment.

“It is unsurprising that the defendant's sentencing submission contains no expression of remorse or contrition,” the feds stated. “He likewise expresses no desire to reform. Even on the verge of sentencing, the defendant is entirely unrepentant for his crimes, and, absent a significant term of imprisonment, is at a high risk of recidivism.”

The government's report continued: “For almost two decades, including two years after his arrest in this matter, Seth Fishman cravenly pumped hundreds of thousands of illegal PEDs into the marketplace, and was dissuaded by no one–not state racing commissions, racetracks, the Food and Drug Administration, Customs and Border Protection, state drug regulators, the Federal Bureau of Investigation, the U.S. Attorney's Office for the Southern District of New York, nor this Court-to comply with the law.

“The defendant earned millions of dollars. He did so on the backs of racehorses that were doped by corrupt trainers. The defendant and his convicted co-conspirator, Lisa Giannelli, armed trainers motivated by greed with the means to corruptly win races by injecting and drenching racehorses with unsafe, medically unnecessary, prohibited PEDs.

“Fishman was not naïve or ignorant of the law. He did not 'exercise very poor judgment.' His crimes were not the product of a momentary lapse. Fishman was at the helm of a sophisticated, years-long, cross-border scheme to profit from the creation, marketing, sale, and distribution of illegal PEDs that he shipped across the country and around the world to unscrupulous trainers and others in the racehorse industry that sought to gain a competitive edge…” the filing stated.

“Over approximately 20 years, Fishman perpetuated the myth that he was operating as a legitimate veterinarian, conducting examinations, reaching diagnoses, and prescribing necessary medications for the treatment and prevention of bona fide medical issues.

“Yet Fishman did no such thing. He instead concocted novel PEDs, mass-produced his creations, and marketed and sold them to trainers across the country and around the world, resulting in millions of dollars of sales. He ran an illegal wholesale drug distribution business.

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I sincerely hope the aptly-named Ms. Lazarus can bring racing back from the dead and I applaud the new transparency of publication of test results along with the accelerated hearing and adjudication timelines. A great step forward.

However, I can't see the advantage of reducing possible sanctions for controlled therapeutic medication offences to make a distinction between such offences and those concerning banned substances.

This is a bit like reducing the penalties for DUI Alcohol, simply to highlight the difference between driving drunk as opposed to driving whilst stoned or under the influence of other Class A narcotics…Such a law would hardly decrease DUI Alcohol cases and the related traffic accidents!

Furthermore, in racing circles, the proposed reduced therapeutic medication sanctions would certainly increase the use of barrel-bottom-scraping excuses like the ones trotted out by certain individuals over the last few years. And that's without even considering the 'cocktail' masking effect that certain PMs might have on administered PEDs.

Eric Ward

Gaillac, France

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