Four Indictments Allege Systematic, International Scheme
Among Trainers, Vets, and Others to Cheat Using Misbranded and Adulterated
Drugs
Geoffrey S. Berman, the United States Attorney for the
Southern District of New York, and William F. Sweeney Jr., Assistant
Director-in-Charge of the New York Office of the Federal Bureau of
Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police
Department (“NYPD”), Catherine A. Hermsen, U.S. Food and Drug Administration Assistant
Commissioner for Criminal Investigations (“FDA-OCI”), and Troy Miller, Director
of Field Operations for U.S. Customs and Border Protection in New York (“CBP”),
announced the unsealing of four indictments charging 27 individuals with
offenses relating to the systematic and covert administration of illegal
performance-enhancing drugs (“PEDs”) to racehorses competing across the United
States and abroad. The Indictments unsealed today each allege 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.
Of the 27 defendants, 19 – including trainers JORGE NAVARRO
and JASON SERVIS – are charged in an indictment detailing four conspiracies to
manufacture, distribute, and administer adulterated or misbranded drugs as set
forth in United States v. Jorge Navarro, et al., 20 Cr. 160 (the “Navarro
Indictment”), which has been assigned to U.S. District Judge Mary Kay
Vyskocil. Of those defendants, 13 were
taken into federal custody and are expected to be presented in the Southern
District of New York today before U.S. Magistrate Judge Ona T. Wang. Defendant SETH FISHMAN was previously charged
by complaint in United States v. Seth Fishman, 19 Mag. 10120, and arrested on
October 28, 2019, in Miami, Florida, and was presented in U.S. District Court
for the Southern District of Florida. The remaining defendants were arrested today
outside of the Southern District of New York and adjacent districts, and will
be presented today before the appropriate District Courts.
Four additional defendants are charged in United States v.
Louis Grasso, et al., 20 Cr. 163 (the “Grasso Indictment”), which has been
assigned to U.S. District Judge P. Kevin Castel. Two defendants are charged in United States
v. Scott Robinson and Scott Mangini, 20 Cr. 162 (the “Robinson Indictment”),
assigned to U.S. District Judge J. Paul Oetken; and two defendants are charged
in United States v. Sarah Izhaki and Ashley Lebowitz, 20 Cr. 161 (the “Izhaki
Indictment”), assigned to U.S. District Judge Mary Kay Vyskocil.
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.
And it was the racehorses that paid the price for the defendants’
greed. The care and respect due to the
animals competing, as well as the integrity of racing, are matters of deep
concern to the people of this District and to this Office.”
FBI Assistant Director William F. Sweeney Jr. said: “These men allegedly saw the $100 billion
dollar global horse racing industry as their way to get rich at the expense of
the animals that were doing all the hard work.
Our investigation reveals the cruelty and inhumane treatment these
horses suffered all to win a race. The
FBI New York Joint Eurasian Organized Crime Task Force worked along with our
law enforcement partners at the New York State Police, FDA, and DEA to stop
this ring of criminals from abusing helpless animals simply so they could cheat
the odds and rake in millions of dollars.”
Police Commissioner Dermot Shea said: “I want to commend our NYPD investigators,
working with our federal partners, for carrying out a meticulous and important
investigation. Putting the lives of horses at the center of an alleged plot to
cheat professional horseracing around the world can never be accepted.”
FDA Assistant Commissioner for Criminal Investigations
Catherine A. Hermsen said: “The FDA is
responsible for protecting not only the health of humans, but also of
animals. The manufacturing and
trafficking of misbranded and unapproved animal drugs, and the administering of
such drugs to racehorses to enhance their performance at the track, seriously
endangers the health of these animals in pursuit of financial gain. Today’s announcement should serve as a
reminder of our continued focus on those individuals and companies that put
profits ahead of the public health.”
CBP Director of Field Operations Troy Miller said: “U.S. Customs and Border Protection is proud
to have collaborated with our fellow law enforcement partners during this
investigation. We value our partnerships and the arrests today demonstrate that
together, no matter how complex the case, we will do what it takes to bring
those who violate the law to justice.”
According to the allegations contained in the
Indictments,[1] other filings in this case, and statements during court
proceedings:
The charges in these four Indictments arise from an
investigation of widespread schemes by racehorse 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. By evading Food and Drug Administration
(“FDA”) rules and regulations, as well as prohibitions against the use of PEDs,
and by deceiving regulators and horse racing officials, participants in these
schemes sought to improve race performance and obtain prize money from
racetracks throughout the United States and other countries, including in New
York, New Jersey, Florida, Ohio, Kentucky, and the United Arab Emirates
(“UAE”), notwithstanding the detriment and risk of the health and well-being of
the racehorses. Trainers who
participated in the schemes stood to profit from the success of racehorses
under their control by earning a share of their horses’ winnings, and by
improving their horses’ racing records, thereby yielding higher trainer fees
and increasing the number of racehorses under their control. Veterinarians and drug distributors simply
profited from the callous sale and administration of these medically
unnecessary substances.
The Navarro Indictment
The Navarro Indictment charges 19 individuals representing a
cross-section of corruption throughout the Thoroughbred and Standardbred racing
industries. As alleged, JORGE NAVARRO, a
racehorse trainer, has participated in the doping of horses under his control
using a variety of PEDs, including customized PEDs designed in part to evade
normal anti-doping tests administered by racing regulators. NAVARRO operated his doping scheme covertly,
using a straw man to receive certain products designed to mask the presence of
PEDs, avoiding explicit discussion of PEDs during certain telephone calls, and
working with others to coordinate the administration of PEDs at times that
racing officials would not detect such cheating.
NAVARRO trained and doped XY Jet, a thoroughbred horse that
won the 2019 Golden Shaheen race in Dubai.
As alleged, NAVARRO was intercepted during telephone conversations
discussing his doping practices, and administered PEDs to XY Jet. Among NAVARRO’s preferred PEDs were various
“blood building” drugs, which, when administered before intense physical
exertion, can lead to cardiac issues or death.
NAVARRO announced XY Jet’s death, as the result of an apparent heart
attack, in January of this year.
Investigation of the circumstances of that death remains ongoing.
NAVARRO was assisted by many of the charged defendants in
the Navarro Indictment, and also assisted others, including JASON SERVIS, in
obtaining adulterated and misbranded drugs to dope racehorses.
As alleged, SERVIS doped virtually all horses under his
control, including Maximum Security, the horse that crossed the finish line
first in the 2019 Kentucky Derby before being disqualified for
interference. Among the misbranded and
adulterated PEDs used by SERVIS was the drug “SGF-1000,” marketed and sold by
defendant MICHAEL KEGLEY JR., among others, and which is compounded and manufactured
in unregistered facilities. SGF-1000,
like many other customized PEDs, may cause racehorses to perform beyond their
natural abilities, thereby increasing the risk of injuries. SERVIS and others working with him, including
veterinarians KRISTIAN RHEIN and ALEXANDER CHAN, attempted to conceal SERVIS’s
doping practices through the use of falsified veterinary bills and fake
prescriptions. SERVIS also tipped off NAVARRO to the presence of racing
officials searching for signs of illegal doping. NAVARRO expressed his relief
regarding SERVIS’ “tip”: “[The track
official] would’ve caught our asses fucking pumping and pumping and fuming
every fucking horse [that] runs today.”
The Navarro Indictment also includes charges against
veterinarian SETH FISHMAN who also created and shipped adulterated and
misbranded drugs. As alleged, SETH FISHMAN, along with LISA GIANNELLI, JORDAN
FISHMAN, and others, developed and distributed multiple illegal PEDs. Those included “blood building” drugs
specifically designed to evade anti-doping testing regimes. On one occasion, SETH FISHMAN touted
precisely this deceptive aspect of his illegal PEDs: “[D]on’t kid yourself: if you’re giving
something to a horse to make it better, and you’re not supposed to do that. . .
. That’s doping. You know, whether or not it’s testable,
that’s a different story.”
Finally, the Navarro Indictment includes charges against
trainer NICHOLAS SURICK who, among other things, distributed the adulterated
and misbranded PED “red acid” (an anti-inflammatory drug) to NAVARRO. SURICK also obtained and administered other
adulterated and misbranded PEDs to horses under his care, including
administering the blood building drug Epogen to the racehorse Northern Virgin. SURICK and others then took extraordinary
steps to physically conceal Northern Virgin from New Jersey state regulators
seeking to test horses under SURICK’s control, for which SURICK is also charged
with obstruction.
The Grasso Indictment
The Grasso Indictment charges four defendants, including
veterinarian LOUIS GRASSO, with conspiring to violate the misbranding laws of
the United States. As alleged, GRASSO
manufactured, sold, and distributed adulterated and misbranded PEDs for use on
racehorses. GRASSO also obtained and
distributed other PEDs, including snake venom, a type of pain blocking
substance. GRASSO worked with DONATO
POLISENO, a Delaware-based distributor of PEDs manufactured by GRASSO and
others. The Grasso Indictment also
charges two horse trainers, THOMAS GUIDO III and CONOR FLYNN, with, among other
things, causing the shipment of adulterated and misbranded PEDs prior to
administering those drugs to horses under their control. The dangers of that practice are reflected in
the death of a horse doped by GUIDO in or about October 2019, about which
GRASSO commented: “I’ve seen that happen
20 times.”
The Robinson Indictment
SCOTT ROBINSON and SCOTT MANGINI are each charged with
misbranding and adulteration conspiracies in the Robinson Indictment. As alleged, the two defendants previously
collaborated in running online marketplaces selling adulterated and misbranded
PEDs for racehorses. The drugs
distributed through the defendants’ websites were manufactured in non-FDA
registered facilities and carried significant risks to the animals affected
through the administration of those illicit PEDs. In one instance, on January 2, 2016, ROBINSON
forwarded a customer complaint to MANGINI:
“I [i.e., a customer contacting ROBINSON] ordered some [PED-1] . . .
starting bout 8 hours after I give the injection and for about 36 hours
afterwards both my horses act like they are heavily sedated, can barely
walk. Could I have a bad bottle of
medicine, I’m afraid to give it anymore since this has happened three
times.” Commenting on this complaint,
ROBINSON wrote, “here is another one.”
The Izhaki Indictment
The fourth Indictment unsealed today, the Izhaki Indictment,
charges SARAH IZKAHI and ASHLEY LEBOWITZ in connection with their distribution
of an adulterated and misbranded blood builder sourced illegally from a
Mexico-based pharmaceutical company. As
alleged, IZHAKI has obtained this substance by smuggling the drug into the
United States, where IZHAKI and LEBOWITZ distribute the drug to horse trainers
in and around the New York City area.
*
* *
A chart containing the names, charges, and maximum penalties
for the defendants in each of the four Indictments is set forth below. The maximum potential sentences in this case
are prescribed by Congress and are provided here for informational purposes
only, as any sentencing of the defendants will be determined by the judge
assigned to each case.
Mr. Berman praised the outstanding investigative work of the
FBI and the FBI’s Integrity in Sports and Gaming Initiative. Mr. Berman also thanked the New Jersey
Attorney General’s Office, the New York State Police, and the New York City
Police Department for their support of this investigation, and Customs and
Border Protection, the Food and Drug Administration and Drug Enforcement
Administration for their assistance and expertise.
This case is being handled by the Office’s Money Laundering
and Transnational Criminal Enterprises Unit.
Assistant United States Attorneys Sarah Mortazavi, Benet J. Kearney, and
Andrew C. Adams are in charge of the prosecution.
The charges contained in these Indictments are merely
accusations and the defendants are presumed innocent unless and until proven
guilty.
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