By John T. Wendt, J.D., M.A., Professor Emeritus, Ethics and Business Law, University of St. Thomas
The fight against doping in horseracing just got very serious. On December 17, 2021, well known horse trainer Jorge Navarro was sentenced to five years in prison for his role in a performance-enhancing drug scandal in the horse racing industry. U.S. District Judge Mary Kay Vyskocil also ordered Navarro pay $26,860,514 in restitution for the fraud perpetrated through his doping program.[1]
This was the culmination of a years long investigation into the use and abuse of performance enhancing drugs in horse racing. On March 9, 2020, federal officials in New York announced sweeping indictments against 27 individuals alleging “the shipment and administration of adulterated and misbranded drugs designed to secretly and dangerously enhance the racing performance of horses beyond their natural ability, a dishonest practice that places the lives of affected animals at risk.”[2] The charges alleged that there was a widespread even international scheme “by trainers, veterinarians, PED distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing.”[3] The scheme involved racetracks throughout the United States and the United Arab Emirates (“UAE”). About the indictment, Manhattan U.S. Attorney Geoffrey S. Berman said, “Today’s unsealing of four indictments for widespread doping of racehorses is the largest ever of its kind from the Department of Justice. These defendants engaged in this conduct not for the love of the sport, and certainly not out of concern for the horses, but for money.”[4]
Navarro was one of the key trainers involved in the scheme. As a trainer Navarro was very successful, winning a record seven straight training titles at Monmouth Park. From January 1, 2016, through March 8, 2020, his horses won 741 races from 2,468 starts equaling a remarkable 30% of the time and bringing in $24,360,514 in winnings.[5] But his wins were marred by his rampant use of banned performance enhancing drugs. Navarro would use a cocktail of drugs including “blood building” drugs, which, when administered before intense physical exertion, can lead to cardiac issues.[6] It appears that his drug of choice was clenbuterol, a bronchodilator which also has a significant anabolic effect for lean muscle building. Navarro imported misbranded clenbuterol that he used on his horses and distributed to other trainers and veterinarians to use. He did it so secretly, so that racing officials would not detect his cheating. But to insiders, his efforts were so well known that he was called “Juice Man” and even had a pair of custom Crocs with that title emblazoned on them.
Then on August 11, 2021, Navarro entered into a plea agreement with the federal authorities and changed his plea from not guilty to guilty. In his allocution statement Navarro acknowledged that, among others, he personally administered drugs to a number of horses, and that injected various adulterated and misbranded performance-enhancing drugs to XY Jet, who won the 2019 Dubai Golden Shaheen Stakes, earned over $3 million and who died suddenly of a heart attack at only 8 years old.[7] Navarro is a citizen of Panama even though he has no connections with the country his guilty plea may have an effect on his U.S. immigration status after he serves his time.
At sentencing U.S. Attorney Sarah Mortazavi specifically focused on a horse named XY Jet who Navarro drugged before a race at Gulfstream and also before his victory in the G1 Dubai Golden Shaheen in Dubai. XY Jet died just two weeks after his final career start which Navarro claimed at the time was due to a heart attack. Mortazavi said, “It was tragic what happened to XY Jet, but not surprising…He was dead of a heart attack two weeks after his last race. That was a potent reminder of Navarro’s hypocrisy.”[8]
Judge Vyskocil listed by name of the horses, including XY Jet, who won major races while presumably racing on illegal performance enhancing drugs. She publicly castigated Navarro stating, “For years, Mr. Navarro, you effectively stole millions, cheating other trainers, owners and jockeys you competed against…You also demonstrated, Mr. Navarro, a collective, callous disregard for the well-being of the horses. The bottom line is you likely killed or endangered the horses in your care.” [9] The five-year sentence is the maximum allowed though Vyskocil said that she would have “imposed a harsher sentence if the law allowed.”[10] Vyskocil also noted that she hopes that Navarro’s sentence “sends a strong message to people in the horse racing industry that abuse of animals entered in your care will not be tolerated and will result in serious consequences.”[11]
U.S. Attorney Damian Williams said, “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.”[12]
As mentioned, Navarro was just one of 27 individuals named in the indictments. 10 pleaded guilty. Veterinarian Kristian Rhein was sentenced to three years in prison and must pay $1,021,800 in forfeitures, was fined $10,000, and $729,716 in restitution. Judge Vyskocil said, “This is a serious offense and was not an isolated or one-time offense…It was a long-term and ongoing offense. Once he became aware of the investigation, he and his co-conspirators took steps to hide their offenses from regulators and the public. He has been depicted as someone who wants to help others, but he had that chance as a veterinarian and he abused that trust by betraying those he was supposed to help.”[13]
Michael Kegley Jr. was director of sales at the now shuttered Medivet Equine which claimed that the company “specializes in regenerative medicines that help the body heal itself and get stronger naturally. Our products are designed to activate naturally occurring stem cells and growth factors within the horses to encourage growth.”[14] Kegley, the brother-in-law of Rhein pled guilty to the distribution of adulterated and misbranded drugs including “SGF-1000,” which was compounded and manufactured and allegedly would be untestable in horses by authorities. Kegley also admitted that he did not know the actual contents of SGF-1000.[15] Kegley was sentenced to 30 months and was required to forfeit $3,310,490, which is a sum equal to the amount of the illegal substances seized but will only have to pay $192,615 if Kegley does so within two years of his release from prison. If he does not, Kegley will be required to pay the entire amount.[16]
Scott Mangini, a former pharmacist whose license was suspended in 2016, pled guilty to conspiring to unlawfully distribute adulterated and misbranded drugs with the intent to defraud and mislead. Mangini sold these illegal drugs through several websites including, among others, “horseprerace.com” and “racehorsemeds.com” and assured buyers that the drugs “WILL NOT TEST.”[17] U.S. District Judge J. Paul Oetken sentenced Mangini to 18 months in prison and ordered to pay a forfeiture penalty of $8,108,141.65. Mangini’s partner, veterinarian Scott Robinson who had also pled guilty was sentenced by Judge Oetken to 18 months in prison and forfeiture of $3,832,318.90.[18]
Trials of other defendants are divided into three groups and starting as soon as the week of January 17, 2022. Veterinarian Dr. Seth Fishman and Lisa Giannelli’s trials are set to begin on January 19, 2022. Trainer Rick Dane Jr. and Dr. Rebecca Linke could start in March, however Dr. Linke made an agreement in December 2021 to defer prosecution. The third group most notably includes Jason Servis the trainer of disqualified 2019 Kentucky Derby winner Maximum Security.[19] In their guilty plea agreements both Navarro and Rhein implicated Servis.[20]
Horseracing is a $100 billion dollar industry. For the vast majority of owners, veterinarians, and trainers it is a way of life. They are dedicated to their horses. In the fight again doping Congress made a major investment in passing the Horseracing Integrity and Safety Act to harmonize anti-doping regulations in the United States. HISA is just starting to develop and hopefully will be able to solve its issues with USADA as a testing agent. The partnership holds great promise for the future.
United States v. Navarro et al.; S.D. New York; 20 Cr. 160 (MKV)
[1] United States Attorney’s Office, Southern District of New York, Prolific Thoroughbred Trainer Sentenced To Five Years In Federal Doping Case (2021), https://www.justice.gov/usao-sdny/pr/prolific-thoroughbred-trainer-sentenced-five-years-federal-doping-case (last visited Dec 20, 2021).
[2] United States Attorney’s Office, Southern District of New York, Manhattan U.S. Attorney Charges 27 Defendants In Racehorse Doping Rings (2020), https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-charges-27-defendants-racehorse-doping-rings (last visited Dec 20, 2021).
[3] Id.
[4] Id.
[5] Ray Paulick, View From The Eighth Pole: Soul Searching, Restitution In Order For Owners Who Supported Jorge Navarro’s Stable, Horse Racing News (2021), https://www.paulickreport.com/news/ray-s-paddock/view-from-the-eighth-pole-soul-searching-restitution-in-order-for-owners-who-supported-jorge-navarros-stable/ (last visited Dec 20, 2021).
[6] United States Attorney’s Office, Southern District of New York, Thoroughbred Trainer Jorge Navarro And Head Of New York Veterinary Clinic Plead Guilty In Federal Doping Case (2021), https://www.justice.gov/usao-sdny/pr/thoroughbred-trainer-jorge-navarro-and-head-new-york-veterinary-clinic-plead-guilty (last visited Dec 20, 2021).
[7] Claire Crosby, Top Sprinter X Y Jet Dies From Heart Attack, BloodHorse.com (2020), https://www.bloodhorse.com/horse-racing/articles/237813/top-sprinter-x-y-jet-dies-from-heart-attack (last visited Dec 30, 2021).
[8] Bill Finley, Navarro Gets Maximum Prison Sentence of Five Years, TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions (2021), https://www.thoroughbreddailynews.com/navarro-gets-maximum-five-years/ (last visited Jan 10, 2022).
[9] Id.
[10] David Grening, Navarro sentenced to five years in prison (2021), https://www.drf.com/news/navarro-sentenced-five-years-prison, https://www.drf.com/news/navarro-sentenced-five-years-prison (last visited Dec 30, 2021).
[11] Id.
[12] United States Attorney’s Office, Southern District of New York, supra note 1.
[13] Bob Ehalt, Rhein Sentenced to Three Years in Prison in Doping Case, BloodHorse.com (2022), https://www.bloodhorse.com/horse-racing/articles/255937/rhein-sentenced-to-three-years-in-prison-in-doping-case (last visited Jan 13, 2022).
[14] MediVet Equine, MediVet Equine, Regenerative Medicine Now (2020), https://www.regenerativemedicinenow.com/clinic/kentucky/medivet-equine/ (last visited Jan 14, 2022).
[15] United States Attorney’s Office, Southern District of New York, Horse Doping Drug Company’s Sales Director Pleads Guilty In Manhattan Federal Court (2021), https://www.justice.gov/usao-sdny/pr/horse-doping-drug-company-s-sales-director-pleads-guilty-manhattan-federal-court (last visited Jan 14, 2022).
[16] T.D. Thorton, SGF-1000 Salesman Kegley Gets 30 Months in Prison, TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions (2022), https://www.thoroughbreddailynews.com/sgf-1000-salesman-kegley-gets-30-months-in-prison/ (last visited Jan 14, 2022).
[17] United States Attorney’s Office, Southern District of New York, Owner Of Illegal Racehorse Doping Websites Sentenced To 18 Months In Prison (2021), https://www.justice.gov/usao-sdny/pr/owner-illegal-racehorse-doping-websites-sentenced-18-months-prison (last visited Jan 14, 2022).
[18] United States Attorney’s Office, Southern District of New York, Operator Of Racehorse Doping Websites Sentenced To 18 Months In Prison (2021), https://www.justice.gov/usao-sdny/pr/operator-racehorse-doping-websites-sentenced-18-months-prison (last visited Jan 14, 2022).
[19] Natalie Voss, First Trial In Federal Drug Misbranding Case To Begin Jan. 19, Horse Racing News | Paulick Report (2022), https://www.paulickreport.com/news/the-biz/first-trial-in-federal-drug-misbranding-case-to-begin-jan-19/ (last visited Jan 16, 2022).
[20] T.D. Thornton, Rhein Implicates Servis When Switching Doping Plea to “Guilty”, TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions (2021), https://www.thoroughbreddailynews.com/rhein-implicates-servis-when-switching-doping-plea-to-guilty/ (last visited Jan 14, 2022).
