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‘A Small Pharmacy’s Worth of Drugs’: Harness Trainer Allard Gets 27 Months

The former Standardbred trainer Rene Allard, 35, who was third in North America in both wins and purse earnings in the year before he was arrested and indicted in the March 2020 international doping conspiracy investigation, on Tuesday got sentenced to 27 months in a federal prison after having previously pleaded guilty to one felony count of misbranding and altering drugs.

Allard's sentence was handed down Nov. 15, shortly after the same judge in United States District Court (Southern District of New York) sent the racetrack veterinarian Louis Grasso to prison for 50 months for his role in the doping ring.

Prosecutors had been prepared to go to trial with evidence proving that Allard and Grasso conspired in tandem to drug harness horses.

“Allard, for years, trained and raced horses through use of a covert 'doping' scheme intended to corruptly gain a competitive advantage in races through the administration of performance-enhancing drugs (PEDs),” the feds wrote in a sentencing submission. “Allard obtained from co-defendant Louis Grasso and others unapproved, untested, novel PEDs that he caused to be administered to his horses, despite the inherent risks of administering unnecessary medications to the animals under his control. Allard was motivated by greed, fraudulently earning tens of millions of dollars in purse winnings through his craven efforts to manipulate races.

“As a reflection of Allard's commitment to his doping regimen, Allard maintained in his barn a small pharmacy's worth of drugs, including the ingredients he used to mix his own 'drenches,' and a 'shockwave' machine, which only licensed veterinarians may own. Many of Allard's drugs were stored in a room that had been misleadingly marked as if it belonged to Grasso, in a calculated effort by Allard to divert scrutiny if Allard's barn was ever inspected, by making it appear that the drugs and veterinary equipment belonged to, and were used by, a licensed veterinarian, rather than by Allard,” the sentencing submission stated.

As part of his plea agreement back on June 2, Allard had agreed to pay a $628,553 money judgment, which represents the value of the forfeited drugs. Grasso, by contrast, was ordered to pay a forfeiture totaling $412,442.62 and restitution in the amount of $47,656,576.

Allard faced up to five years in prison. The government had argued for a sentence of 30 months, based on the term that another Standardbred trainer in the same conspiracy, Richard Banca, received back on Sept. 20. Allard's own attorney had lobbied for an 18-month term.

“For most of his adult life, Mr. Allard has made a living training horses to compete in harness races. Part of his job was to treat horses with vitamins, drugs, or other substances to ensure that they recovered from injuries and remained in good health,” Allard's lawyer wrote in the defendant's sentencing submission.

The defense filing continued: “During the period of time charged in the Superseding Information, in order to maintain a competitive edge, [Allard] did something that was wrong and that he never should have done: he obtained prescription drugs for horses in bulk, rather than on an individually prescribed basis, with the understanding that the way he was obtaining the drugs would mislead regulators.

“Although Mr. Allard always purchased drugs from licensed veterinarians, he knew that what he was doing was wrong, and he was motivated in part by a desire to improve the performance of the horses he was training and thus to win more races. By engaging in this conduct, he compromised the…potential well-being of the animals that he loves and around whom he has lived his entire life. He is deeply sorry for what he has done [and] bears total responsibility,” his lawyer wrote.

During its investigation of Allard prior to the nationwide sweep 2 1/2 years ago, the Federal Bureau of Investigation intercepted a phone conversation in which two other alleged conspirators in the harness industry discussed the deaths of horses trained by Allard after they had been given illegal drugs. One reference caught on wiretap callously described the trainer's operation as the “Allard death camp.”

Allard, a citizen of Canada, may face immigration issues that affect his sentence. His lawyer wrote that Allard could be precluded from serving his sentence at a minimum-security prison, and that he will likely be ineligible for “earned-time credits” that would reduce the practical length of time he must serve.

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Fishman Wants Court to Merge Two Convictions

Thirty-four days after being found guilty by jury trial on two felony counts of conspiring to violate adulteration and misbranding laws in the nationwide racehorse doping case, the Florida-based veterinarian Seth Fishman made a motion in federal court asking for the first of those counts to be dismissed on the basis that it is allegedly “multiplicitous of” (already contained within) the second, much broader conspiracy.

Fishman's Mar. 8 filing in United States District Court (Southern District of New York) is likely the first of several legal steps leading to a formal appeal of his convictions. He faces 20 years in prison upon sentencing May 5.

“As relevant here, a multiplicitous indictment 'charges the same crime in two counts,'” Fishman's letter motion stated, “when 'only one crime has been committed' in 'law and fact.'”

Fishman's filing–almost two years to the date of his Mar. 9, 2020, arrest–argued that the dual counts could lead to “multiple sentences for the same offense,” and that the two counts might have “improperly prejudice[d] a jury by suggesting that a defendant has committed not one but several crimes.”

Fishman, along with six other veterinarians, 11 trainers, and nine others, was charged with being a key figure in an international network of purported performance-enhancing drug (PED) suppliers who allegedly conspired to dope racehorses in New York, New Jersey, Florida, Ohio, Kentucky, and the United Arab Emirates.

“The indictment in this case accused Dr. Fishman of participating in overlapping but ostensibly independent conspiracies to illegally distribute a variety of customized PEDs–untestable, adulterated and misbranded–to racehorse owners and trainers in America and abroad,” Fishman's motion stated.

“Count Two alleged a broad, 18-year conspiracy–lasting from 2002 through 2020–with Lisa Giannelli, Jordan Fishman, Rick Dane Jr. and unnamed others. Count One alleged a subsidiary, four-year conspiracy–lasting from 2016 through 2020–with Jorge Navarro, Erica Garcia, Marcos Zulueta, Michael Tannuzzo, Christopher Oakes and unnamed others…

“Yet throughout the trial–from the start of the prosecutor's opening to summation–the government framed the case as one involving 'a single, ongoing conspiratorial' agreement: namely, an encompassing 18-year arrangement among Dr. Fishman, his employees, suppliers and customers to manufacture, buy and sell the same menu of adulterated and misbranded PEDs through Dr. Fishman's company, Equestology LLC, rather than 'two separate schemes operating independently…'

“The government thus presented an integrated, 'overall' agreement with one primary object–trafficking in prohibited substances designed to boost racehorse performance and avoid regulatory detection–that violated a 'single statute' over a lengthy period.”

The filing continued: “Perhaps most significant, the government's summations graphically confirmed its mixing and matching the charged conspiracies–its blending their vague contours, blurring their fuzzy boundaries and otherwise presenting the two as an interwoven, indivisible whole…

“Even more striking, the prosecutors opted to address the charges in 'reverse,' starting with the sprawling conspiracy alleged in Count Two [before finally getting around to] Count One…

“On this record–even when construed most favorably to the government and drawing all inferences in its favor–the only plausible conclusion is that the lesser conspiracy charged in Count One was 'simply a species' or subset of the greater one alleged in Count Two.”

Fishman's multiplicity motion suggested a remedy of merging his two convictions so that only a single sentence will be imposed.

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Trial Date for Servis Pushed Back to Early ’23

The trial of alleged doping conspirator Jason Servis got pushed back to early 2023 at a status conference in federal court on Thursday.

Robert Gearty of the Blood-Horse first broke the Feb. 24 story from United States District Court (Southern District of New York).

Gearty reported that the former trainer's trial will take place in the first quarter of 2023 along with that of veterinarian Alexander Chan.

Previously, Judge Mary Kay Vyskocil had been aiming for a mid-2022 trial for Servis, the most prominent name among the remaining defendants asserting innocence.

“Vyskocil blamed the postponement on the courthouse's coronavirus restrictions that have made it more difficult to schedule trials in a timely manner,” Gearty wrote. “When scheduling criminal trials preference goes to defendants awaiting trial behind bars. Servis and Chan are free on bond.”

Servis amassed gaudily high win percentages during the 2010s decade prior to getting arrested on three felony drug misbranding and conspiracy to commit fraud charges in March 2020.

According to a trove of wiretaps the government has produced as evidence against him (and other defendants), Servis allegedly doped almost all the horses under his control in early 2019, including MGISW Maximum Security, who crossed the wire first in the GI Kentucky Derby but was DQ'd for in-race interference.

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Zulueta Gets 33 Months in Prison

Marcos Zulueta, the former mid-Atlantic-based trainer with an abnormally high win percentage who was caught on wiretaps procuring drugs for and boasting about Thoroughbred performance-enhancing regimens with the convicted horse doper Jorge Navarro, was sentenced to 33 months in federal prison on Thursday.

Zulueta, 53, had pleaded guilty in October to one felony count of adulterating and misbranding drugs with the intent to defraud or mislead.

As part of a plea agreement, he had previously agreed to forfeit $47,525.

At his Feb. 24 sentencing, the remaining two open felony charges against him were dropped, which was also part of the agreement.

At the time of his guilty plea in in United States District Court (Southern District of New York), it was announced that Zulueta faced up to five years in prison. But because the statutory maximum for his crime was three years, prosecutors and the defense ended up agreeing that based on federal sentencing guidelines, his actual range called for 30 to 36 months.

However, subsequent to that agreement, when a routine presentence investigation report revealed (unbeknownst to prosecutors) that Zulueta got convicted in 2018 for driving while intoxicated while already on probation for another offense, it triggered an increase in his criminal history calculation for the doping offense, so his minimum sentence based on the guidelines got bumped up to 33 months instead of 30.

The feds had advocated for a sentence within that range; the defense argued for a variance that would allow for a sentence below the guidelines. Judge Mary Kay Vyskocil gave the minimum allowable sentence.

'I got creative'

A separate presentencing report issued by the feds included snippets of secretly recorded phone conversations between Zulueta and Navarro.

In some of those starkly candid discussions, Zulueta admitted to fears that he was admitting purportedly performance-enhancing drugs (PEDs) so recklessly that he was afraid he was going to kill his own horses, either by injecting medications improperly or performing nasogastric tubing that went into the lungs instead of the stomach.

“I didn't want to tell you because you were going to [expletive] scold me,” Zulueta admitted to Navarro in an intercepted May 5, 2019, phone call. “I got creative, I gave them more medicine but I drown them–I drown them instead…. I didn't tell you about it because I knew you were going to get on my back…. I lost [expletive] lots [of] money. But, well, forget it–that's done.”

According to the government, Navarro had already warned Zulueta at least once to tone down his doping.

“Marcos, we need to clean up things because they are going to [expletive] us up. They are going to kick us out of the business if we keep up with the craziness,” Navarro said in a Mar. 10, 2019, call.

Zulueta agreed with Navarro, and Navarro persisted, “You have already made money…. Stop inventing [new ways to drug horses].”

Yet on other occasions, it was Zulueta who cautioned Navarro about keeping a lower profile.

“Yeah, you should be happy–happy–happy that you are not winning all of them,” Zulueta said, according to a wiretap transcript. “Otherwise, you will be arrested.”

Zulueta's words ended up being prophetic: On March 9, 2020, both trainers, plus several dozen others, were taken into federal custody in a coordinated series of arrests related to an international racehorse doping conspiracy. Listed below are the Thoroughbred-related guilty pleas and convictions that have resulted so far:

In March 2021, the guilty-pleading Scott Robinson, a veterinarian, got 18 months in prison and had to forfeit $3.8 million in profits.

In June, Sarah Izhaki was sentenced to time already served for selling misbranded versions of Epogen.

In September, Scott Mangini, a pharmacist who had pleaded guilty to one felony count related to creating custom drugs for racehorses, got sentenced to 18 months in prison and a forfeiture of $8.1 million.

In December, Navarro wept in court after getting the maximum sentence of five years imprisonment. Navarro had pleaded guilty to one count of conspiring to administer non-FDA-approved, misbranded and adulterated drugs, including PEDs. Navarro was also ordered to pay $25.8 million in restitution (an amount he will likely never be able to pay) and could face deportation to Panama.

On Jan. 5, 2022, Kristian Rhein, a veterinarian formerly based at Belmont Park, got sentenced to the maximum three years in prison after pleading guilty to one felony drug charge. Rhein must forfeit $1.02 million and pay $729,716 in victims' restitution.

On Jan. 6, Rhein's brother-in-law, Michael Kegley Jr., the former sales director for a Kentucky-based company that marketed and sold the alleged PED known as SGF-1000, got sentenced to 30 months in prison and a $3.3 million forfeiture.

The Florida-based veterinarian Seth Fishman faces 20 years in prison after being found guilty Feb. 2 on two counts of conspiring to violate adulteration and misbranding laws.

'Success story' gone wrong

Although not a “headline” trainer like the graded stakes-winning conditioners Navarro or Jason Servis (who maintains he is not guilty and has a trial date looming), Zulueta won an outsized number of races on smaller circuits. In early 2020, just prior to his arrest, Zulueta's horses were winning at a gaudy 31% clip, primarily at Parx.

“Until the time of his involvement in the activity charged in the Indictment, Marcos Zulueta was an American success story,” his legal team wrote in a presentencing report.

“Born in Cuba in 1968, he experienced a very difficult and impoverished childhood,” the defense report continued. “His father left his family when Marcos was one. As the oldest of his brothers and sisters, it fell on Marcos' shoulders to work to support his family. He engaged in all forms of manual labor and finally became proficient in working with horses, with the money he earned going straight back to his family.

“With the goal of escaping the restrictions and deprivation of freedom in Cuba, Marcos emigrated to the United States in 1994 [and in 2011] became a successful horse trainer. Aside from a DUI and two summary offenses committed in a brief time frame, Marcos led a crime free life…”

The feds framed Zulueta's story differently in their own presentencing report:

“Although Zulueta did not earn as much in purse winnings as other defendants in this matter, including his co-conspirator Jorge Navarro, he nonetheless engaged in precisely the same conduct as Navarro: (1) procuring a variety of PEDs with which to dope his racehorses, including blood builders; (2) redistributing certain PEDs to other trainers, such as Navarro; (3) experimenting with novel PEDs by administering them to the horses under his care; (4) 'cleaning' the livers of horses he had doped to counteract the deleterious effects of his doping; and (5) using dangerous methods of administration, such as 'drenching.'”

The prosecution's report continued: “Zulueta was so attuned to the dangers of his conduct that he was reluctant to tell even Navarro–his co-conspirator, a trusted friend, and a prolific doper–that he had over-medicated his horses. Zulueta's private conversations underscore the callousness he displayed to the horses under his care…”

The feds further argued that “As with other defendants in this matter, it is not the case that the defendant's crime was the result of a single lapse in judgment, nor is it the case that he ceased his criminal conduct of his own volition. Zulueta continued to order and receive PEDs up until shortly before his arrest, and there is no indication that he would have otherwise stopped.”

Zulueta reports to prison May 24. The judge has recommended he be incarcerated at Fairton, a medium-security facility in New Jersey.

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