Feds Want Those Navarro Cheated to Collect $25M Restitution

Federal prosecutors recommended Friday that the barred trainer Jorge Navarro be sentenced to the five-year maximum prison sentence for his admitted role in a years-long horse doping conspiracy, and they want the judge to make him pay $25.8 million in restitution to victims who were cheated out of purse money.

“Navarro's aggressive pursuit of performance-enhancing drugs (PEDs)–and his eagerness to use racehorses under his care to test the potency of novel PEDs–displayed a particularly callous disregard for the well-being of the horses under his care and control,” government attorneys wrote in a Dec. 10 sentencing submission filed in United States District Court (Southern District of New York).

“[T]he defendant considered his prolific doping a badge of honor,” prosecutors alleged. Navarro, 46, is to be sentenced Dec. 17. Although the recommendation for the maximum prison sentence for one of the highest-profile defendants in the alleged international doping scandal is not a shock, the fact that entities “from whom purse winnings were obtained through the immediate effect of Navarro's fraud” were described as victims is a significant turn of events.

But there could be three looming roadblocks to the collection of that $25.8 million in restitution that aren't made any clearer by Friday's submission. The first is that prosecutors filed the schedule of victims under seal, so exact names of who is eligible to collect weren't made public.

The second is which entities (owners, trainers, jockeys, etc…) have been determined to be eligible for payback, and in exactly which races? Theoretically, the list spans nearly a decade of Navarro's racing across multiple jurisdictions. The third is that the judge doesn't have to approve the recommendation. But all of those points could end up being trumped by practicality: Even if the judge holds him to it, whether or not Navarro will ever be able to pay such a daunting amount of restitution is the obvious question. It is common in multi-million dollar fraud convictions for victims never to see even a penny of restitution decisions that get hammered out in a plea agreement, like Navarro's did. And if Navarro ends up getting deported back to his native Panama as the result of his pleading guilty to one felony drug conspiracy count, the prospect of him ever paying up could vanish entirely the moment he's banished from America.

(Separately, Navarro's deal also includes a fine of $70,000 payable to the government that is due at the time of his sentencing. It is not counted as part of the restitution.)

“Throughout Navarro's years-long conspiracy, Navarro was the critical component in a network of fraud–the individual who amplified the corruption of horse owners and encouraged the corruption of his underlings,” the Dec. 10 filing stated.

“Navarro earned tens of millions of dollars in purse winnings by training and racing Thoroughbred horses that Navarro had 'doped' using a plethora of adulterated and misbranded PEDs, including (among others) blood builders, vasodilators, SGF-1000, baking soda 'drenches,' 'bleeder' pills, and other drugs not approved by the Food and Drug Administration…

“There was no question that, throughout the charged conspiracy, Navarro understood what he was doing was wrong. Navarro often warned, and was warned by, trainers to ensure that no one would be caught 'doping' their horses,” the filing stated. Back in August, Navarro admitted to administering illicit substances to horses under his care, including to many of the stakes stars of his stable during the 2010s decade. He specifically cited War Story, Shancelot, Sharp Azteca and X Y Jet as examples. That latter horse–an elite-level international stakes sprinter–died suddenly in January 2020, within months of having been repeatedly drugged by Navarro.

On Dec. 3, in a presentencing report in his own defense, Navarro had asked the federal judge for a variance to bring the most time he would spend behind bars down to about 3 1/2 years. Navarro–plus friends and family members who wrote numerous character-reference letters to the judge begging for leniency of his behalf–also professed to have “loved” the very horses he injected and force-fed with purported PEDs. The feds took umbrage at both of those assertions in Friday's filing.

“Notwithstanding his hypocritical and self-serving claim to have 'loved' the horse, Navarro's course of conduct with X Y Jet merely exemplifies his aggressive pursuit of new drugs with which to dope his horses,” the court document stated.

“Navarro's frantic efforts to dope X Y Jet in advance of a Feb. 13, 2019, precursor race to the $2.5 million Golden Shaheen race were emblematic of his approach to racing, and indicative of the nature of Navarro's discussions when speaking with complicit third parties, in contrast to how Navarro apparently comported himself around others.”

The filing continued: “In his sentencing submission, Navarro blatantly breaches the plain terms of the parties' plea agreement. Despite agreeing to the [five-year max] calculation…and despite further agreeing that 'neither party will seek any departure or adjustment'…Navarro asks the Court to depart and adjust the stipulated Guidelines sentence on the basis of out-of-circuit precedent never adopted in this Circuit, and contrary to the Guidelines calculations in the plea agreement and pre-sentencing report.”

Prosecutors cited three specific reasons why the five-year imprisonment as per federal sentencing guidelines is appropriate in Navarro's case.

“First, the nature and scope of Navarro's offense conduct merits a Guidelines sentence. Navarro participated in the conspiracy for years, and in the course of the conspiracy, pursued many different PEDs from multiple different suppliers–both veterinarians and laypeople–in efforts to gain a competitive advantage. Navarro's criminality was motivated by his cynical efforts to boost his own profile and profits.

“Second, a Guidelines sentence is necessary to provide just punishment and reflect the nature and seriousness of the offense given Navarro's casual attitude regarding his years-long 'doping' conspiracy.

“It is not the case that Navarro's crime was the result of a single lapse in judgment, confined in time and scope,” the filing continued. “To the contrary, Navarro engaged in repeated and persistent efforts to cheat over the course of years, cycling through various sources of supply, and pursuing aggressively new means to illegally dope horses. Yet Navarro never acknowledged the seriousness of his crimes. Navarro's flippancy towards his dangerous and illegal conduct is exemplified by calls, text messages, and other evidence…”

The government's third point has to do with deterring other trainers from committing the same crimes.

“Racehorse trainers, who are entrusted with the care and custody of racehorses, have unfettered access to these animals, and by extension are entrusted to ensure those horses' care and health,” the filing stated. “Like veterinarians, trainers are afforded a certain latitude under the assumption that they are acting in good faith as competitors and as custodians of racehorses. Navarro exploited that good faith.

“He, like many actors in the racehorse industry, had grown indifferent to, and dismissive of, the notion of obtaining illegal drugs to dope racehorses for profit. Racehorse trainers, in particular, assume that even if caught doping, they will have the means and wherewithal to obfuscate, litigate, and intimidate others into overlooking or justifying a violation, and thus continue their doping practices unencumbered.”

The filing continued: “A Guidelines sentence of 60 months' imprisonment will send a strong signal to racehorse trainers and others in the industry that there will be serious consequences if they abuse their position of trust by engaging in the callous and dangerous practice of doping racehorses for profit.

“A significant sentence will counter the pervasive view in the racehorse industry that selling and administering adulterated and misbranded drugs is inconsequential and that the consequences of criminal activity will never amount to significant criminal penalties.”

In conclusion, prosecutors wrote that, “Jorge Navarro's case reflects failings, greed, and corruption at virtually every level of the world of professional horse racing.

“For money and fame, corrupt trainers went to increasing extremes to dope horses under their care. Unscrupulous owners, who stood to profit directly, encouraged and pressured trainers to win at any cost. Veterinarians sworn to the care and protection of their patients routinely violated their oaths in service of corrupt trainers and to line their own pockets.

Assistants and grooms all witnessed animal abuse in the service of greed, but did little to stop such conduct, and engaged in myriad ways to support notoriously corrupt trainers.

“Structures designed for the protection of the horses abused in this case failed repeatedly; fixtures of the industry–owners, veterinarians, and trainers–flouted rules and disregarded their animals' health while hypocritically incanting a love for the horses under their control and ostensible protection.

“Standing as the keystone for this structure of abuse, corruption, and duplicity was Jorge Navarro, a trainer who treated his animals as expendable commodities in the service of

his 'sport,'” the filing summed up.

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Judge: ‘Wiretapping Is Appropriate to Investigate Conspiracies’

The judge in the federal doping conspiracy case used words like “frivolous” and “weak” to swat away motions made by seven defendants to suppress wiretap and other electronic evidence in trails that are expected to commence in 2022.

The opinion and order filed Dec. 8 by Judge Mary Kay Vyskocil in United States District Court (Southern District of New York) follows a verbal ruling she made Nov. 4 during a status conference that denied all of the related motions made during the late summer by Jason Servis, Seth Fishman, Lisa Giannelli, Erica Garcia, Michael Tannuzzo, Alexander Chan and Rick Dane, Jr.

“The Court has considered all of the arguments raised in all of the suppression motions filed in this case and has concluded that none warrants the suppression of evidence or a hearing,” Vyskocil wrote. “To the contrary, based on the Court's careful review of the application for each challenged wiretap order and search warrant, there is no question that the issuing judicial officer in each instance had a substantial basis for the finding of probable cause.”

Some of the challenged evidence included conversations recorded off the phone of now-barred trainer Jorge Navarro, who has since pleaded guilty to one count in the years-long Thoroughbred drugging conspiracy.

Intercepted calls included statements about Navarro obtaining and/or using purported performance-enhancing equine drugs, such as an unregulated version of clenbuterol, “trays of red acid,” and “24 bottles” of a substance. Other evidence included Navarro discussing the “doping and hiding” of a horse, the use of a “shock machine,” and even the now-infamous Monmouth Park video recorded by a bar patron in which Navarro celebrated a 2017 win by boasting about “juicing” horses.

“In challenging the Navarro wiretaps, the defendants unpersuasively attempt to 'dissect' the affidavits and argue that individual pieces of evidence did not establish probable cause,” Vyskocil wrote. “Garcia, joined by Tannuzzo and Servis, argues that the government did not establish that the aforementioned '24 bottles' were a prohibited substance. The government was not required to prove, in an application for a wiretap, that when Navarro said, 'Grab me…24 bottles,' he conspired to purchase and use a prohibited substance. Rather, it was required to offer evidence that, in a 'totality-of-circumstances' analysis, there was a 'fair probability' that Navarro was involved in a horse doping fraud scheme.”

Vyskocil also noted the extensive review process that was required before numerous other judges originally signed off on those wiretaps, which occurred over the course of 18 months prior to the March 2020 arrests of several dozen alleged conspirators.

“At least 13 judges independently found probable cause to authorize 15 different applications to begin or renew wiretaps,” Vyskocil wrote. “At least 10 magistrate judges found probable cause for search warrants.”

The order continued: “The defendants also challenge the Navarro wiretaps and other wiretaps that incriminated them on the ground that the government had failed to exhaust alternative investigative techniques. Their arguments are wholly unpersuasive…. The law in this Circuit is clear that wiretapping is appropriate to investigate conspiracies where 'the clandestine nature of alleged conspiracies makes them relatively less susceptible to normal investigative techniques'…

“Moreover, the government explained, none of the confidential sources had gotten close to Navarro and approaching him at that point was more likely to raise his suspicions than yield information. Affidavits in support of other wiretap applications cited this and additional evidence that the conspirators were cognizant of the need to maintain secrecy.”

Vyskocil summed up: “Certain defendants insist that the government should have been required to do more drug testing or more extensively investigate financial records. However, the government is not required to exhaust any particular avenue of investigation before seeking a wiretap. Moreover, as various affidavits made clear, the conspirators were using drugs that were designed to be undetectable by racing industry drug tests and went to great lengths to avoid creating financial or other records.”

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Feds: Fishman Still Selling PEDs Even as Trial Date Looms

An employee of Florida veterinarian Seth Fishman last week permitted Federal Bureau of Investigation (FBI) agents to search her workplace, and the inside tip has allegedly yielded evidence that Fishman is still selling purportedly performance-enhancing drugs (PEDs) while awaiting an expected January start to his trail in the international racehorse doping conspiracy case.

“Remarkably, despite having been arrested in October 2019 and indicted in 2020 in connection with his sale of misbranded and adulterated drugs designed to be 'untestable' by various antidoping authorities, Fishman apparently persists in touting the efficacy of his drugs in evading antidoping testing regimes, labeling his new batches of HP Bleeder so as to indicate to his clientele that they contain no known 'testable' ingredients,'” stated a Dec. 6 court filing by the prosecution that asked a judge to consider revoking the bail terms of Fishman's pretrial release.

Fishman is charged with two felony counts related to drug alteration, misbranding, and conspiring to defraud the government. His case is being heard in United States District Court (Southern District of New York).

According to the filing, in the course of proffering an unnamed potential trial witness who has been a “long-time employee of Fishman's illegal drug distribution business” (variously operating under the names Equestology, Camelology, Equi-Tech and other monikers), the government was informed on Nov. 9 by “Employee-1” that Fishman's business “continued to operate in a purportedly limited” capacity.

“More specifically, 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 (itself a drug containing active pharmaceutical ingredients), which Employee-1 also described as being for foreign distribution,” the filing stated.

“As charged in the Indictment, Fishman's drug operation is not registered or licensed with the Food and Drug Administration (FDA) to create, manufacture, and distribute drugs, including the 'bleeder' paste reportedly in continued production,” the filing stated.

After initially providing this information, Employee-1 and her attorney consented for FBI agents to accompany her to where she works for Fishman on Dec. 3.

“At that time, the FBI agents (accompanied throughout by Employee-1) discovered that Fishman is continuing to produce and distribute not only the paste identified by Employee-1 and the purported 'energy drinks,' but additional injectable, misbranded and adulterated PEDs, including the injectable drugs 'HP Bleeder' and 'PSDS: Pain Shot DS.'

“Labeling on certain of the vials discovered during this consent search reflect that Fishman continues to create and distribute these drugs today, including 'date of manufacture' markings reflecting activity even into 2021,” the filing stated.

The filing stated that “shipping material for 'E.G.H.' appears to be recently created packaging for equine growth hormone, a substance that, like HP Bleeder and various pain shots, were also sold by Fishman during and as part of the charged conspiracies.”

In asking the judge to consider revoking Fishman's bail, the filing stated that, “In addition to constituting evidence of the charged offenses and reflecting continued violation of federal law, the recent search reflects Fishman's failure to comply with the most basic term of his pretrial release, namely that he not 'violate federal, state, or local law while on release.'

“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 filing stated.

“As such, there is ample basis for a finding of probable cause that Fishman has flagrantly violated the terms of his pretrial release by committing an ongoing federal crime,” the filing stated.

The judge in the case immediately ordered a Dec. 20 hearing on the bail revocation request.

Fishman's attorney, Maurice Sercarz, told TDN in an email that “We will vigorously oppose any effort by the Government to modify Dr. Fishman's bail on the theory that he has engaged in continuing criminal conduct.”

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Harness Trainer, Alleged Navarro Co-Conspirator Oakes Pleads Guilty To PED Charges

Harness trainer Christopher Oakes pled guilty to one count of misbranding and drug adulteration with intent to defraud or deceive on Wednesday, when he appeared before federal judge Mary Kay Vyskocil via teleconference. According to the Thoroughbred Daily News, Oakes is the 10th of the original 27 indicted in March 2020 to plead guilty in a scheme to use performance-enhancing drugs in racehorses.

Oakes was allegedly overheard on wire taps speaking to Jorge Navarro (who was also indicted and pled guilty) about the distribution and use of performance-enhancing drugs to Thoroughbreds. Specifically, the TDN reported that Oakes and Navarro were overheard making plans to administer performance-enhancing substances to X Y Jet, who later died suddenly.

Navarro changed his plea from not guilty to guilty this summer, but has not yet been sentenced.

Oakes told Vyskocil on Wednesday: “I purchased medications from Dr. Seth Fishman and Dr. Gregor Skelton and his assistant Ross Cohen and administered the medications to the horses in my care to gain an unfair advantage.”

Oakes will be sentenced on Feb. 17, and faces up to three years in prison.

Read more at the Thoroughbred Daily News.

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