The Biz | Horse Racing Free Tips

Trustee In Zayat Bankruptcy Cites Potential Assets in Egypt

The bankruptcy trustee entrusted with sorting through the assets and liabilities of Ahmed Zayat, the Eclipse Award-winning owner of 2015 Triple Crown champion American Pharoah, charged in court documents filed on Tuesday that Zayat and members of his immediate family are engaged in “an exercise in gamesmanship, obstruction and delay” to prevent the trustee from having access to financial documents.

Trustee Donald V. Biase made those accusations in a memorandum in opposition to a motion by Zayat family members to block subpoenas for records from a number of financial institutions, credit card companies and even wagering accounts with TVG. The motions to quash were filed by Justin Zayat, Joanne Zayat, Emma Zayat, Benjamin Zayat and JPZ Holdings LLC.

Zayat filed for Chapter 7 Bankruptcy last September after Zayat and Zayat Stables were sued by a lender, MGG Capital Group, for defaulting on a loan. The company won a $24.5 million summary judgment against Zayat in June 2020.

Even without many of the documents requested, Biase was able to trace a number of financial transactions he found questionable between Zayat Stables and Ahmed Zayat's wife, Joanne, son Justin and other family members.

“The trustee's investigation reveals that the debtor (Zayat) and his family members have engaged in a pattern of intermingling of assets and ongoing financial transactions among themselves, Zayat Stables, LLC, and the creditors of the debtor,” the memorandum from Biase states.

Biase also raises questions about whether Zayat may have assets in his native Egypt. He cited statements from Zayat that he had sold Egypt-based Misr Glass company in 2010 or 2011 for approximately $2 million and no longer had any interest in the company. “Yet despite the trustee's request for records of this transaction, no such records have been produced to date,” the trustee wrote.

“Notably, in 2015, press reports show that Misr Glass was acquired by a third party for $93 million,” Biase wrote. “Furthermore, documents produced by Cedarview Capital Management LP … indicated that the debtor's affiliation and/or ownership of Misr Glass continued well past 2011.

“Documents obtained by the trustee from third parties strongly suggest that the debtor still possesses significant assets in Egypt,” Biase continued.

The trustee obtained a Dec. 23, 2019, communication from Zayat to a creditor stating: “Maybe it is our turn that things turn back to normalcy, and I will have the liquidity and right funds I need to manage Zayat Stables without relying on our income and ownerships on companies in Egypt that have been supporting this business.”

Another note from Zayat to a creditor on Jan. 12, 2020, stated: “I have pushed myself to the brink of bankruptcy personally by using every dollar I have in America to fund the company until I find an investor to pay you in full.”

Biase observed: “Given the foregoing facts, there is reason to believe the debtor still has assets in Egypt, some of which are the funds being funneled to him from the debtor's brother Sherif through accounts held in the name of JPZ Holdings (Justin Zayat's company) and Joanne Zayat.”

The post Trustee In Zayat Bankruptcy Cites Potential Assets in Egypt appeared first on Horse Racing News | Paulick Report.

Source of original post

Maker Files New Motion In Civil Case Against Ramseys, Alleges Payments Have Stopped

Trainer Mike Maker filed a motion for summary judgment against multiple Eclipse Award-winning owner/breeders Ken and Sarah Ramsey in Kentucky's Fayette Circuit Court on July 14, alleging that the couple have once again stopped paying their training bills.

Maker brought suit against the Ramseys in March 2021, alleging he was owed $905,357.29, which at the time was an improvement on the $1.25 million he had been owed in summer 2020. Ken Ramsey told this and other publications at the time of the filing that he expected to reach an agreement with Maker to finish paying off the bills and convince the trainer to drop the suit.

According to an affidavit filed by attorney Tyler Powell, Maker said Ramsey offered to pay $100,000 or more to him on or before the 15th of each month — and for a while, he did. Maker notes payments of $127,531.70 in March, $131, 290 in April, and $160,000 in May. After that, however, Maker said the payments stopped. In the meantime, the horses the Ramseys still had in Maker's barn continued running up bills in March and April, eroding some of his progress on the outstanding balance. Maker says the Ramseys now owe $505,385.92, and that figure doesn't include attorneys' fees associated with pursuing the outstanding balance.

Maker had filed UCC-1 financing statements with the Kentucky Secretary of State around the time he filed his civil suit, placing liens on the 27 horses he still had in his care at the time. His July 14 motion states he no longer has Ramsey horses in his barn.

The motion filed this week points out that Ken Ramsey hasn't contested that he owes the money.

“It's not that I'm not paying, it's just that I guess I'm not paying fast enough,” Ken Ramsey told the Paulick Report in March 2021. “I have never beaten anybody out of a dime.”

Maker requests a summary judgment from the court against the couple, and that motion is scheduled to be heard at the end of the month.

Trainer Wesley Ward also filed suit against the couple in March 2021, claiming he was owed $974,790.40 in unpaid training bills, his portion of purses, and interest. Ward placed liens on 44 horses in his care at the time he brought his civil suit. That case also remains open in Jessamine Circuit Court.

The Ramseys have won the Eclipse Award for Outstanding Owner four times (2004, 2011, 2013, and 2014) and the award for Outstanding Breeder twice (2013 and 2014). Since 2000, Equibase reports the couple has won 2,223 races from 9,814 starts for total earnings of more than $98 million. Their annual earnings have fallen from their peak in 2013 of over $12 million, and last year the stable brought in $2.3 million from 274 starts. Their Ramsey Farm in Nicholasville, Ky., was the longtime base for the operation's homebred and centerpiece stallion, Kitten's Joy, who relocated to Hill 'n' Dale in 2018.

The post Maker Files New Motion In Civil Case Against Ramseys, Alleges Payments Have Stopped appeared first on Horse Racing News | Paulick Report.

Source of original post

Baffert Prevails In Suit Over NYRA Suspension

After hearing attorney arguments on July 12, a U.S. District judge has ruled in favor of trainer Bob Baffert's motion for a preliminary injunction against the New York Racing Association. Judge Carol Bagley Amon of the Eastern District of New York determined on July 14 that NYRA's suspension of Baffert should not have taken place without some sort of hearing allowing him to address the organization's accusations against him.

NYRA notified Baffert ahead of the Belmont Stakes that it was suspending his ability to enter horses in races or have stall space at its racetracks due to his recent history of medication violations, the conflicting statements he provided to media around the Media Spirit scandal, and Churchill Downs' suspension of the trainer.

Amon determined that the exclusion of Baffert from the Saratoga meet caused him significant harm, particularly as he was able to demonstrate several owners had withdrawn horses from his stable or planned to, based on the inability to start them in races there. She pointed out that the organization's suspension of Baffert had no time limit on it and was left open-ended with a final suspension length potentially coming some time after Aug. 11.

Although NYRA was asserting its private property rights in the case, Amon said the organization is closely entwined enough with the state that its suspension of Baffert constituted a state action, thereby requiring due process.

As to Baffert's history of recent drug violations in other states, Amon pointed out that NYRA has not taken similar actions against other trainers with similar records.

“…As uncontested data show, NYRA has permitted numerous trainers to race at NYRA this season who have medication violation histories comparable or more serious than Baffert's,” the ruling read. “These data belie NYRA's claim that integrity or safety demand the exclusion of someone with a violation record like Baffert's.”

Amon concluded that Baffert was entitled to notice and a pre-suspension hearing from NYRA or, in lieu of that, a prompt post-suspension hearing, although the organization did suggest it would allow the trainer to submit written arguments after informing him of the suspension.

“Numerous rules and regulations already safeguard the interests NYRA argues for here, and enjoining this suspension of Baffert will not prevent the continued enforcement of those rules,” Amon wrote. “The hardships that Baffert would suffer absent an injunction weigh heavily on the other side of the scale. The suspension is indefinite, and NYRA concedes at most that Baffert's claims might 'be decided within the year.' But the 2021 Saratoga meet is a one-time opportunity.

“…I am sensitive to NYRA's concerns about Baffert's involvement in the events surrounding Medina Spirit's Kentucky Derby performance, and the fear that history might repeat itself in New York. But for the reasons stated, the actual and substantial harm that Baffert will suffer absent an injunction outweighs the speculative harms that NYRA raises.”

Read the ruling here.

The post Baffert Prevails In Suit Over NYRA Suspension appeared first on Horse Racing News | Paulick Report.

Source of original post

Oregon’s Grants Pass Downs Completes Record-Breaking Season

Continuing its upward trajectory as Oregon's premier horse racing track, Grants Pass Downs established a new record for total handle during the 17-day spring/summer meeting that concluded Monday, July 6.

Total handle for the spring/summer meeting was a record $6,919,434, with a daily average handle of $407,026. The meet, which featured 138 total races, paid out $1,130,916 in purses and a $66,524 daily average. Average field size was 7.34.

Grants Pass Downs President Randy Evers cited the support of horsemen, the return of fans, and the nationwide support of horseplayers as highlights.

“I am so grateful for the support of our fans both locally and across the country as Grants Pass Downs continues to grow and set wagering records,” Evers said. “It was very special to welcome back all of our great fans at Grants Pass Downs as Covid restrictions were relaxed.

“To hear the roar of the crowd as the horses left the starting gate, well it was something I really missed and brought a huge smile to my face. Our entire team is working hard to prepare for our fall race meet. I have every confidence it will be another giant step forward on our incredible adventure!”

There were numerous on-track achievements during the 17-day spring/summer season:

• Joree Scriver with 23 wins and Quinn Howey with 13 wins each captured their second straight riding and training crowns at Grants Pass Downs.

• 6-year-old gelding El Alto Hombre reeled off four consecutive wins including three stakes triumphs for trainer Liz Kowalski and owner Anthony Hoover; 4-year-old filly Jaded Tiger also won four races including two stakes for owner/trainer Jaqueline Smith.

• 2-year-old gelding Five Bars Blazin scored a $34.80 upset in the $90,000 Firecracker Futurity—the richest race in the history of Grants Pass Downs—before a season-high 3,130 fans.

• 7-year-old gelding Capes Hot Rocket swept all three legs of the inaugural O B Harbor Sprint Series sponsored by Jody Peetz and the Oregon HBPA.

Grants Pass Downs resumes live racing Monday, Sept. 20, with opening day of the 18-day Fall meeting.

The post Oregon’s Grants Pass Downs Completes Record-Breaking Season appeared first on Horse Racing News | Paulick Report.

Source of original post