The Senate passed the measure on Thursday by a 68-29 margin.

The amendment became necessary after the Fifth Circuit Court of Appeals reversed a lower court ruling and found the Horseracing Integrity and Safety Act – the law creating the Authority – unconstitutional on the grounds that it delegated rule-making authority to a non-governmental agency.

The ruling by the Fifth Circuit Court of Appeals effectively delayed implementation of the Authority's Anti-Doping and Medication Control program, that was scheduled to go into effect Jan. 1, 2023. In the wake of the ruling finding the law unconstitutional, the FTC – citing the legal uncertainty – did not approve the regulations submitted by the Authority. It's unclear at this time how quickly those rules may be re-submitted, and, pending approval, put in place. Racetrack Safety Program rules and enforcement are still in place.

The 2020 law said the FTC could accept or reject regulations proposed by the Authority, but the newly approved amendment broadens that power. It states that the government agency may “abrogate, add to, and modify the rules of the Authority promulgated in accordance with this Act as the Commission finds necessary or appropriate to ensure the fair administration of the Authority, to conform the rules of the Authority to requirements of this Act and Applicable rules approved by the Commission, or otherwise in furtherance of the purposes of this Act.”

Several lawsuits have been filed by horsemen's organizations and state racing commissions against HISA calling into question the law's constitutionality. One of them, filed in Kentucky, is currently awaiting a ruling from the Sixth Circuit Court of Appeals after a lower court found in HISA's favor.

Lisa Lazarus, CEO of the Authority, issued the following statement in the wake of“We are grateful to Congress for their ongoing, bi-partisan efforts to affirm their support for HISA in order to advance safety and integrity in Thoroughbred racing. We at HISA look forward to engaging with all racing participants so that we can work collaboratively towards the smooth and effective implementation of the Racetrack Safety and the Anti-Doping and Medication Control (ADMC) Programs.”

Shortly after the House voted to approve the government spending bill, the National Thoroughbred Racing Association distributed the following press release in support of HISA: 

The National Thoroughbred Racing Association (NTRA) is joined by leaders throughout the Thoroughbred breeding and racing industry in expressing its strong support for Congress's reinforcement of the Horseracing Integrity and Safety Act (HISA) in the omnibus appropriations bill that was passed by the House today and now heads to President Biden's desk to be signed.

“On behalf of NTRA members, which include broad representation of every aspect of the Thoroughbred industry, we welcome the successful bipartisan efforts of Congress to reaffirm Congressional support for HISA's mission,” said NTRA President and CEO Tom Rooney. “HISA is critical to our sport and we look forward to working collaboratively with every industry constituency to continue to support the essential role of HISA going forward. We especially want to thank Congressional leadership in Leader McConnell, Leader Schumer, and Speaker Pelosi, committee leadership in Chairman Pallone, Chairwoman Cantwell, and Rep. Schakowsky, and our longtime champions Reps. Tonko and Barr and Senators Feinstein and Gillibrand. Finally, I thank the many people from far and wide across the industry who advocated for this law with their elected officials.”

Signed into law by President Trump in December 2020, HISA has long had bipartisan support in Congress. The law recognized the Horseracing Integrity and Safety Authority, under the supervision and control of the Federal Trade Commission, to develop and implement national, uniform medication control, anti-doping and racetrack safety programs.

The NTRA, based in Lexington, Ky., and Washington, D.C., is a broad-based coalition of more than 100 horse racing interests and thousands of individual stakeholders consisting of horseplayers, racetrack operators representing nearly 80 percent of the U.S. pari-mutuel handle, more than 30,000 owners, breeders and trainers, and other affiliated horse racing associations, charged with increasing the popularity, welfare and integrity of Thoroughbred racing through consensus-based leadership, legislative advocacy, safety and integrity initiatives, fan engagement and corporate partner development.

Other key leaders and stakeholders in the Thoroughbred industry have issued statements of support:

Craig Fravel, Executive Vice-Chairman, 1/ST  

“The process of ensuring the integrity of our sport and the safety of its participants is an ongoing one and we are grateful to legislative leadership in the House and Senate for agreeing to important clarifications to HISA. Uniform rules, effective and fair enforcement, and public confidence go hand-in-hand and we look forward to full implementation of HISA medication and safety rules and the continued improvement of our sport that is sure to follow.”

Drew Fleming, President & CEO, Breeders' Cup Limited 

“We very much appreciate the successful bipartisan Congressional efforts to support HISA. Hopefully, this will provide an opportunity for all industry participants to come together and continue to enhance and grow our sport through consistent, balanced, and effective regulation and enforcement.”

Bill Carstanjen, CEO, Churchill Downs Incorporated 

“Churchill Downs Incorporated is grateful for Senator McConnell's continued commitment to the success of Thoroughbred racing and we appreciate the resulting bipartisan support to pass clarifying language to HISA. CDI believes HISA is a critical vehicle for establishing a comprehensive and consistent regulatory framework to protect the integrity of our sport and the safety and wellbeing of our equine and human athletes. We also believe that HISA's ultimate success will depend on the Authority working collaboratively and in good faith with various industry groups to ensure widely accepted regulatory principles and an effective implementation.”

Josh Rubinstein, President and COO, Del Mar Thoroughbred Club 

“For many years Del Mar and California's Thoroughbred racing stakeholders have supported uniform standards and reforms that ensure the integrity of our competition and enhance the safety and wellbeing of both our human and equine athletes. We appreciate the bipartisan support of this measure and want to thank especially the members of our California delegation for their continued support of HISA and our industry.”

John Velazquez, Hall of Fame Jockey, HISA Racetrack Safety Committee Member 

“As a member of HISA's Racetrack Safety Committee, I want to thank Congress for reaffirming HISA as there is still a lot of work to be done to improve safety for horses and riders. HISA has committed to working closely with the Jockey's Guild on revisions to the Racetrack Safety rules and I am optimistic that we can make great progress working together.”

Shannon Arvin, President & CEO, Keeneland Association 

“Keeneland has always operated according to what is best for our horses, riders and the sport, which is why we've supported the Horseracing Integrity and Safety Act (the Act) from day one. We appreciate Congress reaffirming its support for a cleaner, safer sport via the uniform rules and enforcement mechanisms brought forth by the Horseracing Integrity and Safety Authority.”

Chauncey Morris, Executive Director, Kentucky Thoroughbred Association 

“Kentucky has over 60,000 people tied to horses and racing. Meaningful and responsible reform that stands the scrutiny of Americans who are largely outside of horse racing is the best way to safeguard the Thoroughbred industry in Kentucky. HISA must accomplish its mission.”

Chris Larmey, Chairman, National Horseplayers Championship Players' Committee that represents 5,500 NHC Tour Members 

“We thank Congress for its ongoing support of the Horseracing Integrity and Safety Act (HISA), which we believe will lead to a higher degree of safety and welfare for our equine and human athletes and a more level and uniform playing field to wager on a product we can trust.”

David O'Rourke, President & CEO, New York Racing Association, Inc. (NYRA)

“HISA will achieve the reforms long supported and advanced by NYRA, including a national approach to medication control and the strongest anti-doping authority the sport has ever seen. Horse racing is an engine for economic opportunity that creates and sustains good jobs in every corner of New York State, and the successful implementation of HISA will secure its future in New York and across the country.”

James L. Gagliano, President and COO, The Jockey Club 

“The Jockey Club is extremely appreciative of the efforts Congress is making in support of the Horseracing Integrity and Safety Act. The Jockey Club has supported nationwide, uniform rules and regulations for Thoroughbred racing for decades through numerous initiatives. HISA is Thoroughbred racing's best solution to greatly improve regulation of the sport and to help ensure our sport is clean and is safe for our athletes – both equine and human.”

Dan Metzger, President, Thoroughbred Owners and Breeders Association

“TOBA is grateful to see Congress reiterate its support for HISA in the omnibus appropriations bill. HISA is very important to Thoroughbred owners and breeders to ensure fairness and uniform standards across the country. We remain hopeful the industry will come together to continue to improve Thoroughbred racing and work in collaboration with HISA for future success.”

Trainers, attributable to the following group: Mark Casse, Christophe Clement, Shug McGaughey, Kenny McPeek, Graham Motion, Todd Pletcher, Eric Reed, Dale Romans, John Sadler, Jonathan Thomas, Nick Zito

“As trainers who work and compete across our country, we applaud Congress for their bipartisan affirmation of HISA and the importance of uniform, national rules. The consistency, fairness and efficiencies of uniform rules and enforcement are desperately needed, and we call on our fellow trainers to come together in support of a safer, fairer sport.”

Veterinarians

Dr. Jeff Berk, Equine Veterinarian and AAEP Past President  

“I'd like to thank the efforts of Congress for their continued support of the Horseracing Integrity and Safety Act. Thoroughbred racing has needed uniform rules and a national safety program to guarantee the sport's sustainability. As a veterinarian, I'm keenly aware that the Thoroughbred – and human athletes – depend on us to keep them safe and HISA shares that mission.”

L.R. Bramlage DVM MS, Equine Surgeon, Former President AAEP and ACVS

“I practice every day caring for the stars of Thoroughbred racing. I want to thank Congress for reaffirming HISA and recognizing its importance in protecting the safety and welfare of Thoroughbred racehorses. For years we have been quarreling among ourselves trying to find a way to assure integrity in horse racing for our benefit and for the benefit of our fans, with little effect. To not finish this real effort for integrity and uniformity would move us back to square one, again! Many of the loudest voices for fairness, who would benefit the most from uniformity, are sounding off against this effort. It is time we all begin singing from the same hymnal and get this done!”

Sara Langsam VMD, TFB Equine, Belmont/Aqueduct Division

“As a Veterinarian who is at the racetrack daily caring for Thoroughbred racehorses, I want to thank Congress for reaffirming its commitment to HISA so that we can continue the important work of strengthening the industry's safety and integrity protocols. We have long needed uniformity and a national regulator to harmonize anti-doping and medication control testing. I have been going to racetracks all my life as a fan and now as a Veterinarian and I believe HISA gives us the best opportunity for horseracing to reach its potential and secure its future.”

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Churchill Downs Inc. CEO Bill Carstanjen banned Baffert for over two years from all of the company's properties in May 2021, citing private property rights. The ban also prevents Baffert-trained horses from earning qualifying points for the Kentucky Oaks and Kentucky Derby.

The action came after Baffert-trained Medina Spirit tested positive for betamethasone after finishing first in the 2021 Kentucky Derby. It was the second betamethasone positive for a Baffert runner in a major Churchill Downs race, following Gamine's failed drug test after a third-place finish as the odds-on favorite in the Kentucky Oaks in 2020. Baffert runners failed three other drug tests outside of Kentucky in 2020, including Charlatan in the G1 Arkansas Derby.

Medina Spirit was subsequently disqualified from his Derby win and Baffert was handed a 90-day suspension by the Kentucky Horse Racing Commission that he served earlier this year. Amr Zedan, the owner of Medina Spirit, has appealed the disqualification. Medina Spirit died following a workout in December 2021.

The complaint, filed in February 2022 in U.S. District Court for the Western District of Kentucky, is against Churchill Downs Inc., its CEO William Carstanjen, and CDI chairman Alex Rankin. A motion for injunctive relief came soon thereafter. A second motion for a preliminary injunction was filed Dec. 15, and on Tuesday the judge in the case ordered the Jan. 18 hearing at 1 p.m. at the Gene Snyder Courthouse in Louisville, Ky. Defendants have until Jan. 3 to respond to the renewed motion for a preliminary injunction.

“Bob was not afforded a simple conversation before Carstanjen announced a penalthy and lengthy suspension,” said Clark Brewster, attorney for Baffert. “It was unprecedented and from his announcement it was clear he had no basic knowledge of the KHRC rules or the facts which led to the report 21 picogram Beta report.”

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The omnibus bill, which exited the Senate and House Appropriations Committees early Tuesday morning, is designed to avert a federal government shutdown at midnight Friday.

The HISA clean-up language is intended to satisfy constitutional challenges stating the federal government may not delegate rule-making authority to a private entity. In the original language, the FTC could accept or reject proposed rules from the Authority, but not amend them.

The proposed amendment to Section 1204(e) of the Horseracing Integrity and Safety Act of 2020 (15 U.S.C. 30534(e) states that the Federal Trade Commission, “by rule in accordance with section 553 of title 5, United States Code, may abrogate, add to, and modify the rules of the Authority promulgated in accordance with this Act as the Commission finds necessary or appropriate to ensure the fair administration of the Authority, to conform the rules of the Authority to requirements of this Act and applicable rules approved by the Commission, or otherwise in furtherance of the purposes of this Act.”

Opponents of HISA have stated they will file additional lawsuits challenging the law in the event amendments are added to the 2020 law.

Senate Minority Leader Mitch McConnell (R-Ky) championed the original legislation, which was part of a 2020 government spending bill signed into law by then-President Donald Trump, and pushed for the amendment to be included in the 2022 omnibus bill. A number of other extenders, technical corrections, or proposals unrelated to government spending are in the bill. They include language as diverse as protecting lobster fishing in the North Atlantic,  banning the Chinese-owned TikTok app from government devices, and clarification of the vice president's role in counting electoral votes.

The bill's funding of the Department of Agriculture stipulates that the government will not fund inspection of horse meat facilities, essentially continuing the ban on horse slaughter in the U.S.

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Garcia was ordered to pay a fine of $2,000 and is ordered to surrender to begin her sentence in March 2023. She will serve her time at a facility in Florida. She is also subject to one year supervised release after her sentence is complete.

Garcia entered a guilty plea to two counts of introducing into interstate commerce adulterated and misbranded drugs.

According to documents filed by attorneys for both sides ahead of the sentencing hearing, Garcia worked for Navarro during Florida winters for 11 years until they ceased their professional affiliation in April 2019. She admitted she administered non-FDA approved substances to Navarro's horses at the behest of Navarro and an unnamed veterinarian from up north.

“He had six or seven horses when I met him,” Garcia wrote in her letter to U.S. District Judge Mary Kay Vyskocil. “At first impression, I found him to be an ambitious young man hell bent on trying to prove himself. He used to flirt with me while I was tending to my clients in other barns, but I never took him seriously. Then one day I started working for the vet who worked for Jorge which therefore, by default, made me Jorge's vet too. We got along pretty well. He was very focused and you could tell he really cared. One day he left for a couple of years to try his luck at some of the other tracks.”

Garcia administered red acid, which she purchased from RacehorseMeds, a drug called “monkey” (which she said she thought was a vitamin shot), compounded clenbuterol, and SGF-1000.

Garcia's defense team summarized the results of testing on some of the substances Garcia admitted to giving to horses.

“Based on information and belief, red acid is an anti-inflammatory containing hyaluronic acid,” read the defense's pre-sentencing report.

The report also said a test on the substance called “monkey” contained “trace amounts of cobalt.”

Read our previous reporting on cobalt as a performance-enhancer here and here.

In her letter, Garcia summarized the rise and fall of her former client as she saw it.

“He never cut corners on the care of his animals,” Garcia wrote of Navarro. “He studied other leading trainers and tried to incorporate some of their methods into his own training style.

“Then, after a couple of years, things started to change. I think the pressure got to him. He used to say he was going to fire all his clients and go back to training only 20 horses, then 15 new horses would show up in the following week. Around this time, someone introduced him to the standarbred[sic] trainers. They began telling him what to do and tried to convince him to manage his business the way they did. He stopped listening to me as his vet and I could see things were not going in the right direction. I probably should have left then. Stupidly, I stayed.”

“….Time went on and Jorge was no longer the person I had first met. The pressures of the industry were unyielding. The expectation to be the best and to keep improving, growing and winning became very taxing on him.”

Garcia admitted in her letter to the judge that she used SGF-1000 on “another trainer's horse” but did not name the trainer and also that she continued using red acid after she left Navarro's employment in April 2019.

Attorneys for both sides attribute the professional split between Garcia and Navarro to a decision by Garcia or someone on her team to report a suspected case of strangles from Navarro's barn. According to Garcia, Navarro didn't want the scrutiny this could bring from state animal health officials and did not want to be subjected to a quarantine that would limit training.

There were no strangles outbreaks reported in Florida in April 2019, according to the Equine Disease Communication Center.

Since her arrest, Garcia has been working with small animals, exotic animals, and injured wildlife. She still has her veterinary license in Florida although she is precluded as a condition of bail from working on racehorses and has had her track license revoked.

Prosecutors, who had sought a 24-month prison sentence, concede that their decision to allow her to plead guilty to misdemeanors rather than felony charges means the state veterinary board may use its discretion when it decides whether to revoke her veterinary license.

State licensing boards typically do not consider a licensee's status until a criminal case against them has fully resolved.

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The Commission's Order explains that its disapproval arises from the legal uncertainty arising from a recent decision by the U.S. Court of Appeals for the Fifth Circuit, which declared the Horseracing Integrity and Safety Act unconstitutional. Because the next steps in the litigation could render the proposed rule unenforceable in the states that make up the circuit and in those that are plaintiffs in litigation, approving the proposed rule would be inconsistent with the Act's foundational principle that horseracing rules be uniform across the nation. Accordingly, the Commission did not reach the merits of the proposed rule, which the Authority may re-submit if the legal uncertainty is resolved.

The Commission vote to approve the rule modification was 3-0-1, with Commissioner Christine S. Wilson abstaining.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov. Follow the FTC on social media, read our blogs and subscribe to press releases for the latest FTC news and resources.

Statement from HISA

“HISA appreciates the Federal Trade Commission's (FTC) decision to deny HISA's draft Anti-Doping and Medication Control (ADMC) rules without prejudice as we actively seek to resolve current legal uncertainties. HISA is eager to launch Thoroughbred racing's first and long-awaited national, uniform ADMC program and stands ready to do so. We will re-submit the draft ADMC rules to the FTC for their review as soon as these legal uncertainties are resolved, and once approved, we will implement the program through the Horseracing Integrity and Welfare Unit (HIWU). In the meantime, HIWU will continue to work toward the implementation of a uniform, independent anti-doping and medication control program that is administered consistently and fairly across the United States.”

Statement from Horseracing Integrity & Welfare Unit Executive Director Ben Mosier

“As the designated independent enforcement agency of the Horseracing Integrity and Safety Authority's (HISA) Anti-Doping and Medication Control (ADMC) Program, the Horseracing Integrity & Welfare Unit (HIWU) has spent the past seven months preparing for the Program's implementation on January 1, 2023, and stood ready to enforce this national, uniform program on that date pending approval from the Federal Trade Commission (FTC). Following today's decision by the FTC to deny HISA's draft ADMC rules without prejudice due to current legal uncertainties, HIWU will continue its education and outreach efforts to all stakeholders in the Thoroughbred industry. As HISA re-submits the draft ADMC rules for the FTC's approval, HIWU will use any additional time before implementation as an opportunity to ensure the industry is even more prepared for an efficient rollout of this Program, which will promote fair competition in the sport of Thoroughbred racing and the safety and welfare of our human and equine athletes.”

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Observers will have to continue waiting for a final conclusion, according to a statement released by the Saudi racing authority's Twitter account on Dec. 12.

“The Jockey Club of Saudi Arabia continues to monitor developments in the USA with the ultimate aim of concluding an investigation related to the running of the 2020 Saudi Cup.

“Over the coming weeks we will assess our ability to conclude this investigation, which began in March 2020, in a robust and comprehensive fashion.”

After the arrest of Servis and two dozen others in an explosive indictment in March, Saudi officials announced they were withholding the purse from that year's race, which has been run Feb. 29.

Servis had initially entered a plea of not guilty to the charges against him but last week changed his plea to guilty on two charges — one of misbranding and adulterating a substance similar to clenbuterol, and another of misbranding and adulterating a drug called SGF-1000. He was the last remaining defendant from that original indictment who had yet to go to trial, enter a plea of not guilty, or make a deal with prosecutors. Servis had been set to go to trial in January.

Read our previous reporting on SGF-1000 here and here.

Servis was asked last week by U.S. District Judge Mary Kay Vyskocil about the doping of Maximum Security and admitted that the colt received SGF-1000, as did most horses in his barn, but did not specify when it was administered.

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Surick, 34, was one of more than two dozen trainers, veterinarians, drug manufacturers and distributors arrested in March 2020 on charges of drug misbranding and adulteration that was the focus of an FBI probe into illegal horse doping in several states, including New York, New Jersey, Pennsylvania, Kentucky, and Florida.

Surick, whose 367 victories in 2019 placed him second among all North American trainers, according to the United States Trotting Association, also owned or co-owned Thoroughbreds that were trained by two other confessed horse dopers, Jorge Navarro and Michael Tannuzzo. Navarro is serving five years in federal prison. Tannuzzo was sentenced last month to 27 months in prison.

A third Thoroughbred trainer employed by Surick, Aparna Batula, is serving a 2 ½-year license suspension handed to her by the New Jersey Racing Commission for possession of 83 injectable vials and 36 hypodermic needles discovered in her Monmouth Park tack room. A search was conducted after Sassy Chub, a horse co-owned by Surick, tested positive for dexamethasone after finishing second in a Monmouth Park race on May 19, 2019. An attorney for Batula said the trainer was framed by a disgruntled former employee.

One of the first defendants to cooperate with prosecutors, Surick pleaded guilty in October 2020 to two counts of conspiracy and one count of obstruction. According to his attorney, Timothy M. Donohue, Surick provided “first-hand information” on performance enhancing drug use or distribution by, among others, Navarro, Marcos Zulueta, Michael Tannuzzo, Ross Cohen, Christopher Oakes, Seth Fishman, and Erica Garcia. According to the memorandum,  Surick provided information on potentially illegal conduct by others who had not been charged in the federal indictments.

A cooperation agreement often leads to a reduced sentencing recommendation from the U.S. attorney. However, in a memorandum to Judge Mary Kay Vyskocil, the attorney for Surick said prosecutors have determined that their client is not entitled to a “downward departure,” a legal term for a sentencing that is lower than the minimum suggested by federal guidelines.

Under the original charges, Surick faced up to 20 years in prison. His attorney has asked Vyskocil for a “downward variance” and sentence Surick to 12 months home confinement so that “he will be able to continue operating his fledgling, new business so as to provide a living for himself and his employees.”  The attorney said Surick started a landscaping business that has six employees.

The reason for the government's decision not to ask Vyskocil for a reduced sentence for Surick isn't certain, but the sentencing memorandum from his attorney brings up a discrepancy in one element of the information Surick provided the government concerning a Standardbred named Northern Virgin. This was the horse that Surick admitted attempting to hide from racing officials seeking an out-of-competition test sample after it was given an injection of the blood-doping agent EPO. Surick told the government that veterinarian Rebecca Linke administered the EPO shot while he held the horse's head.

“Critically, it turned out later that Surick's recollection was wrong,” his attorney wrote. Linke, it turns out, was not present when the EPO injection was given and apparently produced records to prove it. Linke has entered into a deferred prosecution agreement with the government, meaning charges will be dismissed if she complies with the terms of the agreement.

Surick's government file also includes what appears to be an anonymous submission mailed from Trenton, N.J.,  to Vyskocil attempting to show that Surick is not living up to a statement in the sentencing memorandum that he “immediately surrendered his horse racing licenses and no longer participating in the sport.” Along with a copy of that page of the memorandum is a screenshot from the website theblackbook.com showing that Nicholas K. Surick, agent, paid $60,000 for a standardbred filly named Jag Out.

The consignor of the horse purchased by Surick was Preferred Equine, operated by David Reid, recipient of this year's USTA President Award. Jag Out was purchased in November 2022 at the Harrisburg Sale operated by USTA president Russell Williams.

Sources have provided the Paulick Report other instances alleging additional bloodstock purchases by Surick since his March 2020 arrest.

A racing license is not required to purchase horses at auction.

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Mary Scollay, Chief of Science for the Horseracing Integrity and Welfare Unit, will be in person on Wednesday, Dec. 14 at NOON ET in the Belmont Cafe in the Belmont Park grandstand.

HIWU, part of Drug Free Sport International, is responsible for administering the ADMC program. Dr. Scollay will make a presentation and then remain for a question-and-answer session that will also be streamed online.

Even though the question of the constitutionality of the Horseracing Integrity and Safety Act remains unresolved and is making its way through the courts, it is important to prepare for the ADMC, which includes changes in medication policy and testing procedures.

Horsemen who are not able to attend in person are encouraged to participate in the Zoom session and ask questions via ZOOM.

It is expected the seminar can be used for Continuing Education credits.

Please click here to register for the webinar. Join-in instructions will then be emailed.

The post THA Schedules Webinar On HISA’s Anti-Doping And Medication Control Program For Dec. 14 appeared first on Horse Racing News | Paulick Report.

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Servis, 65, faces four years in prison when he is sentenced May 18, 2023, in U.S. District Court in Manhattan. Servis was one of 31 defendants in the case, which garnered national headlines when prosecutors announced indictments nearly three years ago and cast a black eye on the racing industry.

They had been charged with doping horses with various performance-enhancing drugs that were undetectable by racing regulators. Prosecutors said the use of PEDs by greedy trainers corrupted the sport, cheated the betting public, and endangered horses who were asked to perform beyond their natural capabilities.

Servis was the last defendant facing charges.

He pleaded guilty in connection with his role in the distribution of adulterated and misbranded drugs intended for administration on racehorses he trained.

“Servis' conduct represents corruption at the highest levels of the racehorse industry,” Damian Williams, U.S. Attorney for the Southern District of New York, said in a release. “As a licensed racehorse trainer, Servis was bound to protect the horses under his care and to comply with racing rules designed to ensure the safety and well-being of horses and protect the integrity of the sport.”

Williams added: “Servis abdicated his responsibilities to the animals, to regulators, and to the public. This latest conviction demonstrates the commitment of this Office and of our partners at the FBI to the prosecution and investigation of corruption, fraud, deceit, and endangerment in the racehorse industry.”

“Guilty,” Servis said, as he admitted to a new felony charge of misbranding and adulterating a chemical substance described by prosecutors as similar to the bronchodilator clenbuterol but stronger.

“Guilty,” he said, admitting to another new charge, a misdemeanor, of misbranding and adulterating a compound chemical called SGF-1000.

Servis had been scheduled to go on trial next month on two counts–conspiracy to misbrand and adulterate performance-enhancing drugs and conspiracy to commit mail and wire fraud. He would have faced 25 years in prison on those two counts if convicted.

As part of the plea deal, prosecutors agreed to dismiss those charges and bring new ones.

Also, as part of the plea deal, Servis agreed to forfeit $311,760 and to pay restitution in the amount of $163,932.

Servis showed up in court in a sports jacket and tie. Racing authorities suspended his trainer's license after his arrest in March 2020.

At the time of his arrest, prosecutors accused Servis of administering adulterated and misbranded PEDS, including SGF-1000, to “virtually all of the racehorses under his control.”

Those horses included Maximum Security, who finished first in the 2019 Kentucky Derby Presented by Woodford Reserve (G1) but was disqualified for interference during the running of the race.

Judge Mary Kay Vyskocil brought up Maximum Security's name during a portion of the proceeding that required Servis to admit his guilt by allocuting to the charges. 

At that point, Servis attorney Rita Glavin interjected to say that, yes, her client would admit that Maximum Security had been administered SGF-1000 by a veterinarian for his barn.

Glavin also objected when Vyskocil asked Servis if he was challenging the fact that Maximum Security finished first in the overseas $20 million Saudi Cup in the Middle East in February 2020, a month before his arrest.

After a brief back and forth, Servis conceded that fact.

He also told Vyskocil that he would not challenge other statements to other facts in the plea agreement. 

For instance, he conceded that he continued using SGF-1000 after New York regulators put out an advisory in September 2019 saying that SGF-1000 was a prohibited substance.

He also conceded that SGF-1000 cost $300 a bottle and that vet bills sent to owners disguised the use of SGF-1000 on his horses as “acupuncture and chiropractic.”

In the case of the clenbuterol-like substance, Servis admitted that on May 8, 2019, he shipped it from his barn at Monmouth to Belmont and hid it in a soda bottle concealed in a bucket of poultice, an herbal anti-inflammatory paste.

In court papers, Glavin argued that Servis was not guilty of the charges against him because prosecutors lacked evidence that SGF-1000 was performance-enhancing or contained growth factors. These considerations would make it a PED.

She also argued that none of Servis' horses ever tested positive for clenbuterol misuse.

On Friday, Glavin told Vyskocil that she planned to argue before the sentencing that Servis had been repeatedly told by his vet that SGF-1000 was legal to use.

The plea agreement states that Servis' vet repeatedly assured the trainer that SGF-1000 was “legal and not violative of racing rules as reflected in intercepted calls in June and August of 2019.”

Prosecutors argued in court papers that those who marketed SGF-1000 didn't understand what it was other than that it was undetectable in tests conducted by racing regulators.

They also contend that SGF-1000 does contain growth factors of a variety that were intentionally difficult to detect.

Williams said Servis ordered hundreds of bottles of the drug “SGF-1000,” which was compounded and manufactured in unregistered facilities.

He said Servis obtained the misbranded version of clenbuterol from convicted co-defendant New Jersey trainer Jorge Navarro. He is serving a five-year prison sentence after pleading guilty a year ago.

With Servis' plea, 23 of the 31 individuals charged have pleaded guilty. Two were convicted after trial, and two were offered deferred prosecution agreements.

The defendants included 11 Thoroughbred and Standardbred trainers and seven veterinarians.

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

The post Jason Servis Enters Guilty Plea, Faces Four Years In Prison appeared first on Horse Racing News | Paulick Report.

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Servis, 65, had been scheduled to go on trial Jan. 9, 2023, at U.S. District Court for the Southern District of New York. A grand jury indicted Servis with drug adulteration and misbranding conspiracy, along with mail and wire fraud. He is the last of those indicted in a multi-state investigation to have their cases resolved. The U.S. attorney for the Southern District of New York prosecuted the cases, securing guilty pleas or jury convictions from the others, with the exception of one deferred prosecution agreement and several who had their charges dropped in a superseding indictment..

Specifically, prosecutors alleged Servis and others – from December 2016 through March 2020 – were “engaged in a corrupt scheme to secretly procure and distribute adulterated and misbranded PEDs and administer them to racehorses in a systematic effort to improve race performance.” The indictment said Servis worked with veterinarians Kristian Rhein and Alexander Chan to have SGF-1000 and clenbuterol illegally administered to his horses, including Grade 1 winners Maximum Security and World of Trouble. (Read about SGF-1000 here.)

The indictment included details of an intercepted phone call between Rhein and Servis after Maximum Security had been tested out of competition prior to a June 16, 2019, race at Monmouth Park. Servis was concerned the horse would test positive for SGF-1000, which had been administered shortly before the drug test sample was taken. Rhein assured Servis he had nothing to worry about, saying “They don't even have a test for it … There's no test for it in America.”

Rhein added that SGF-1000 could trigger a false positive for the permitted anti-inflammatory dexamethasone, so Servis arranged to have another veterinarian falsify records to indicate that drug had been administered to Maximum Security.

Rhein was sentenced to three years in federal prison after pleading guilty. Chan, who was scheduled to go on trial with Servis, changed his plea to guilty on Dec. 5 and is awaiting sentencing.

Servis and Navarro discussed their illegal drug use in intercepted telephone conversations and text messages that were included in the federal indictment.

On Feb. 18, 2019, Servis warned Navarro via text message that a racing official was in an area where both men allegedly stored and administered PEDs. If he not been warned by Servis, Navarro said later that day, “He would've caught our asses f–king pumping and pumping and fuming every f–king horse (that) runs today.”

On March 5, 2019, Servis told Navarro during an intercepted phone call that “I've been using it (SGF-1000) on everything almost.” Navarro responded, “Jay, we'll sit down and talk about this shit. I don't want to talk about this shit on the phone, OK?”

Navarro was sentenced to five years in prison.

The son of a jockey and brother of Kentucky Derby-winning trainer John Servis, Jason Servis worked as an exercise rider and jockey valet at Charles Town before taking out his trainer's license in 2001. His first graded stakes win came in 2008 and Firenze Fire became his first Grade 1 winner when he took the 2017 Champagne. Servis added five additional Grade 1 wins – three of them by Maximum Security, who finished first in the Grade 1 Kentucky Derby but was disqualified for interference. Maximum Security also won the $20-million Saudi Cup less than two weeks before Servis and the others were indicted. Saudi officials withheld the first-place purse from that race.

In the years prior to his indictment, Servis won races at eye-opening rates: 45 percent during Gulfstream Park's 2018-19 championship meet and 41% at Monmouth Park in 2018. Navarro had similar strike rates at Gulfstream and Monmouth.

Horseplayers and many of his fellow trainers were skeptical of the successes enjoyed by Servis and Navarro, wondering how they did it.

Now they know.

The post Jason Servis Expected To Plead Guilty On Friday appeared first on Horse Racing News | Paulick Report.

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