Baggage Handler To Horse Racing Millionaire: Industry Regulators Not Able To Keep Criminals Out?

Australian horse racing authorities have come under fire for allowing alleged cocaine kingpin Damion Flower to operate at the sport's highest level, according to an investigation printed by abc.net.au.

The former airline baggage handler was denied a license as a groom in August of 2013 because of his history of violence and bankruptcy, but four years later regulators accepted Flower's check for $1.8 million to help create one of the world's richest horse races, The Everest.

It was apparently Flower's part-ownership of Australian Group 1 winner and leading sire Snitzel that helped convince the regulatory body, Racing New South Wales.

“In the circumstances, it could not be reasonably suggested that a person who made many millions of dollars from selling shares in a horse that cost him $260,000, while retaining an ongoing revenue stream in Australia's No.1 performing stallion, is not a person of considerable means,” Racing NSW general counsel Pete Sweney said in a statement to abc.net.au.

Flower was arrested in May of 2019, and eventually pleaded guilty to importing 228 kilograms of pure cocaine from South Africa on 12 flights since 2016. At his sentencing hearing last Friday, Flower's attorney told the court Flower was “weak but not beyond redemption.”

“Mr Flower failed to have the fortitude to withdraw from the enterprise,” Francis said, according to news.com.au. “This was an isolated breach in criminality.”

Flower and his co-conspirator John Mafiti are due to be sentenced in February 2022.

According to Nick McTaggart, Australia's most senior operational officer investigating money laundering until he retired in 2016, organized crime has a long history with horse racing.

“The criminals are able to operate in plain sight,” McTaggart told abc.net.au. “The beauty about the horseracing game is that you can either buy such assets individually, or you can buy them with a group of other people, which doesn't diminish your wealth, but doesn't allow asset confiscation groups to make a complete claim on your assets.

Between 2013 and 2019, Flower purchased over $30 million of Thoroughbreds between Australia's auction houses, Inglis and Magic Millions. He would follow those purchases by selling off shares to investors.

McTaggart also said that racing's regulators are not in a position to be able to stop criminals like Flower.

“It's not within Racing NSW's bailiwick or charter to be doing background checks on the individuals involved in horseracing, unless they have a suspicion that these individuals are actually doing something by way of illegal activity with a horse or fixing races or issues like that,” McTaggart told abc.net.au. “So, their ability to be able to scrutinize activity is fairly limited in its terms.”

Read more at abc.net.au and news.com.au.

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Messara Elected Chair Of Racing Australia After Appointment As Independent Director

John Messara was unanimously appointed by the Directors of Racing Australia as an Independent Director and elected as Chair of Racing Australia, replacing Greg Nichols whose term as Chair concluded in April 2021.

The Constitution of Racing Australia allows for the appointment of an Independent Director in addition to the Directors nominated by each of the Principal Racing Authorities. This is the first time that an Independent Director has been appointed since the establishment of Racing Australia.

John Messara brings to the role a long record of dynamic leadership in Australian Thoroughbred breeding, racing and administration. Earlier this month he was inducted into the Australian Racing Hall of Fame as an Associate, recognizing his achievements as the founder and owner of Arrowfield Stud, and his industry service in several roles, including as the Chairman of Racing New South Wales from 2011–16, and as the inaugural Chair of Racing Australia from 2014–16.

Speaking upon his appointment, John Messara thanked the Directors for the opportunity and responsibility to continue the work of Racing Australia as Chair, and paid tribute to Greg Nichols, who remains on the Board as a Director. “Greg has made an outstanding contribution as Chairman, particularly over the last 16 months dealing with the many challenges our industry has faced due to the direct and indirect impacts of COVID-19.

“After more than four years away from administration, I can see how much more our industry can achieve with strong interstate relationships and collaboration,” he added. “I look forward to working with all the Principal Racing Authorities, the Directors and Racing Australia's Executive for the benefit of everyone who works and invests in the Australian thoroughbred industry.”

The Racing Australia Board will meet in mid-July and in the meantime will continue to deliver key industry services and leadership across its Breeding and Racing operations.

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NSW: Prize Money For Owner Phoenix Thoroughbreds Frozen Over Money Laundering Allegations

Racing New South Wales has frozen the prize money of owner Phoenix Thoroughbreds, reports Just Horse Racing, over allegations the founder Amer Abdulaziz is involved in money laundering.

“Racing NSW has investigated the matter and any allegation made in respect to legal proceedings internationally is denied by Mr. Abdulaziz,” said Racing NSW chairman of stewards Marc Van Gestel. “Pending the outcome of those matters Racing NSW is freezing the prizemoney of horses raced by Phoenix Thoroughbreds.”

Just Horse Racing reports: “In January, Phoenix and Canberra casino owner Tony Fung were the top buyers at the Magic Millions yearlings sale having spent $11.6 million on 19 horses.”

Phoenix also campaigned 2020 Golden Slipper winner Farnan.

Phoenix reportedly is not permitted to race in France, United Arab Emirates or the United Kingdom. No state racing commissions in the United States have taken regulatory action against Phoenix.

Phoenix continues to be active at U.S. bloodstock sales, including the $1.2 million bid by Phoenix agent Gerard Butler to buy out a partner in stakes winner Lady Apple last November at Fasig-Tipton. Shannon Arvin, president and CEO of Keeneland, released the following statement concerning Phoenix being allowed to participate in sales after court documents filed by a federal prosecutor in a money laundering case involving the multi-billion-dollar OneCoin cryptocurrency scam, accused Abdulaziz of being a money launderer for OneCoin.

“Keeneland is aware of the allegations that may involve Phoenix Thoroughbreds and is monitoring the situation,” said Arvin. “However, it is our understanding that Phoenix Thoroughbred has not been indicted by a grand jury, let alone convicted on any allegations. Keeneland will continue to follow any developments in this matter, and certainly will comply with any regulatory or legal action or direction from a governing authority.”

Since the money laundering accusations were made in federal court against Abdulaziz, it is believed that he has not traveled to the United States from Dubai, where he resides.

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