Manhattan U.S. Attorney Charges 27 Defendants In Racehorse Doping Rings

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  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 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 outside of the Southern District of New York and adjacent districts, and will be presented 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:  “The 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 horse racing 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.

The Indictments are posted on our website under the heading "Indictments in Horse Doping Case."

Navarro Indictment

Count		Charge	Defendants	Max. Penalty
Count One		Misbranding Conspiracy  18 U.S.C. § 371	JORGE NAVARRO  ERICA GARCIA  MARCOS ZULUETA  MICHAEL TANNUZZO  GREGORY SKELTON  ROSS COHEN  SETH FISHMAN  CHRISTOPHER OAKES  NICHOLAS SURICK	5 years’ imprisonment.
Count Two		Misbranding Conspiracy  18 U.S.C. § 371	SETH FISHMAN  LISA GIANNELLI  JORDAN FISHMAN  RICK DANE JR.	5 years’ imprisonment.
Count Three		Misbranding Conspiracy  18 U.S.C. § 371	JASON SERVIS  KRISTIAN RHEIN  MICHAEL KEGLEY JR.  ALEXANDER CHAN  HENRY ARGUETA  JORGE NAVARRO	5 years’ imprisonment.
Count Four		Misbranding Conspiracy  18 U.S.C. § 371	NICHOLAS SURICK  REBECCA LINKE  CHRISTOPHER MARINO	5 years’ imprisonment.
Count Five		Obstruction  18 U.S.C. §§ 1512(b)(3) & 2	NICHOLAS SURICK	20 years’ imprisonment.
Count Six		Obstruction  18 U.S.C. §§ 1512(c) & 2	NICHOLAS SURICK	20 years’ imprisonment.

Grasso Indictment 

Count	Charge	Defendants	Max. Penalty
Count One	Misbranding Conspiracy  18 U.S.C. § 371	LOUIS GRASSO  DONATO POLISENO  CONOR FLYNN  THOMAS GUIDO III	5 years’ imprisonment.

  

Robinson Indictment 

Count	Charge	Defendants	Max. Penalty
Count One	Misbranding Conspiracy  18 U.S.C. § 371	SCOTT ROBINSON  SCOTT MANGINI	5 years’ imprisonment.
Count Two	Misbranding Conspiracy  18 U.S.C. § 371	SCOTT ROBINSON	5 years’ imprisonment.
Count One	Misbranding Conspiracy  18 U.S.C. § 371	SCOTT MANGINI	5 years’ imprisonment.

  

Izhaki Indictment 

Count	Charge	Defendants	Max. Penalty
Count One	Misbranding Conspiracy  18 U.S.C. § 371	SARAH IZHAKI  ASHLEY LEBOWITZ	5 years’ imprisonment.
Count Two	Smuggling  18 U.S.C. §§ 545 & 2	SARAH IZHAKI	20 years’ imprisonment.

[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth herein constitute only allegations and every fact described should be treated as an allegation.

AG James: Price Gouging Will Not Be Tolerated

Issues Cease and Desist Letters to Manhattan and Queens Merchants for Charging Exorbitant Prices for Hand Sanitizer and Disinfectant Spray

Manhattan Case Referred to OAG by NYC

•   New York Attorney General Letitia James ordered two New York City merchants to cease and desist charging customers excessive prices for hand sanitizers and disinfectant sprays. After a referral from the City of New York, Office of the Attorney General (OAG) investigators confirmed on March 7 that Scheman & Grant Hardware, d/b/a Ace Hardware, in Midtown Manhattan was charging customers $79.99 for 1200mL of hand sanitizer during a period of market disruption. On March 9, OAG investigators found that City Fresh Market in Astoria, Queens was charging customers $14.99 for a 19oz bottle of disinfectant spray during the same period of market disruption.
• “On my watch, we will not tolerate schemes or frauds designed to turn large profits by exploiting people’s health concerns,” said Attorney General James. “While there remains no cause for widespread panic, some people are looking to prey on others’ anxiety and line their own pockets. My office will remain vigilant in ensuring that we find and stop such unlawful activity and continue to ask the public to report suspected fraud, scams, or price gouging to my office.”
• While city officials issued fines this weekend to Scheman & Grant Hardware for price gouging on face masks, the OAG is tasked with enforcing New York’s price gouging statute, Section 396-R of the New York General Business Law, which prohibits the sale of goods and services necessary for the health, safety, and welfare of consumers at unconscionably excessive prices during any abnormal disruption of the market. The OAG continues to surveil and monitor businesses across the state for potential scams and price gouging schemes designed to exploit public concern related to the spread of Coronavirus Disease 2019 (COVID-19).
• “I want to thank New York City Mayor de Blasio’s office for referring the Manhattan price gouging incident to us,” said Attorney General James. “It is imperative that all levels of government work in very close coordination during all coronavirus response efforts, and I am grateful that we have such a dedicated group of local and state officials, healthcare workers, and emergency responders working around the clock to protect New Yorkers.”
• “We are in the middle of a crisis, and we need to help our fellow New Yorkers. Now is not the time to try and profit,” said Mayor Bill de Blasio. “Not only is price gouging immoral, it is also illegal. I thank the Attorney General for working with us to stop this practice in its tracks.”
• The OAG also continues to warn New Yorkers that scammers commonly exploit real public health concerns and use heightened public fear to prey on consumers and profit from frauds related to those health fears. People should beware of fundraising solicitations and offers of goods and services related to COVID-19. There is currently no FDA-approved vaccine to prevent COVID-19, but scammers may still offer fake vaccines and other bogus medical products claiming to offer “cures” for the virus. They may also offer “get rich quick” investment schemes for unproven virus treatments.
• Additionally, scammers may set up sham charity websites and crowd-funding sites that request donations for virus-relief efforts for victims. Scammers may use emails, texts, and social media posts that appear to give virus updates but have malicious links that can steal sensitive personal identity information.
• Attorney General James offers the following COVID-19 scam prevention tips:

• Beware of scammers selling bogus medical treatments and learn the facts about the coronavirus. There is currently no FDA-approved vaccine to prevent the disease, so ignore offers promising otherwise. Stay informed about the disease by visiting the websites of the:
  • U.S. Centers for Disease Control and Prevention: www.cdc.gov
  • New York State Department of Health: www.health.ny.gov, or by calling a special COVID-19 hotline: 1-888-364-3065
• Report retailers that appear to take unfair advantage of consumers by selling goods or services that are vital to the health, safety, or welfare of consumers for an unconscionably excessive price. Report such incidents to the OAG. 
• Use caution when making charitable donations. You should never feel rushed or pressured to donate, and never make donations in cash, by gift card, or by money wire. If you receive a charitable solicitation, do some research to determine whether the charity is legitimate. Here are some helpful resources:
  • Charity Navigator offers a listing of reputable charities: www.charitynavigator.org
  • The Better Business Bureau offers a website that allows users to look up charities and see whether they meet various standards of accountability: www.give.org
  • You can report suspicious charitable solicitations and scams to the OAG’s Charities Bureau.
• Beware of coronavirus-related investment scams. The U.S. Securities and Exchange Commission recently warned investors about coronavirus investment frauds. If investors are aware of or suspect securities fraud or wrongdoing, they can contact the OAG’s Investor Protection Bureau online.
• If you have questions or concerns about health insurance costs related to COVID-19 tests or care, please call the OAG’s Health Care hotline: 1-800-428-9071.

BRONX MAN INDICTED FOR CRIMINALLY NEGLIGENT HOMICIDE IN VEHICULAR DEATH OF TODDLER GIRL

Defendant Struck Child With SUV That Jumped a Curb

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been indicted on Criminally Negligent Homicide and additional charges in the vehicular crash that killed a 20-month-old girl. 

 District Attorney Clark said, “The vehicle the defendant was driving jumped on a sidewalk where a mother had stopped to feed her daughter, who was in a stroller. The defendant’s actions caused the death of the baby. My condolences to the mother who saw her child die in such a tragic way.” 

 District Attorney Clark said the defendant, Kier Boneparte, 22, of East 215 Street, was arraigned today on Criminally Negligent Homicide, Leaving the Scene of an Incident Without Reporting and Violations of the Vehicle and Traffic Law before Bronx Supreme Court Justice George Villegas. The defendant was released on his own recognizance and is due back in court on March 31, 2020.

 According to the investigation, in the afternoon of September 17, 2019, the defendant was allegedly driving a 2002 BMW SUV without a driver’s license, while the car’s owner sat in the passenger seat. At White Plains Road and East 215 Street, the defendant attempted to make a right turn and lost control. The vehicle jumped the curb, going directly towards a woman who was standing on the sidewalk while her daughter, Djeneba Magassa, sat in a stroller. The child was pinned between the vehicle and a wall. Witnesses helped free the child and she was taken to Montefiore Medical Center. Djeneba sustained blunt force injuries to her head and torso and was pronounced dead shortly after arriving at the hospital.

 According to the investigation, the defendant left the crash scene and walked down the street. Police Officers stopped him and took him into custody.

 District Attorney Clark thanked Detectives Frank Cardamone and Jose Diaz of the Collision Investigation Division for their assistance in the investigation. District Attorney Clark also thanked NYPD Police Officers Felix Tejada and Alexis Almanzar of the 47th Precinct.

 An indictment is an accusatory instrument and not proof of a defendant’s guilt.

BRONX MAN SENTENCED TO 25 YEARS IN PRISON FOR FATALLY SHOOTING MAN AFTER A DISPUTE

Defendant Pleaded Guilty to First-Degree Manslaughter 

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 25 years in prison for fatally shooting a man on a Williamsbridge street after lying in wait for him. 

 District Attorney Clark said, “The defendant, who knew the victim, hid behind a car, waited for the victim to get closer, then ran up and shot him three times. The senseless gun violence left a 22-year-old man dead.” 

 District Attorney Clark said the defendant, Travis Proctor, 28, of 732 East 217 Street, was sentenced today to 25 years in prison and five years’ post-release supervision by Bronx Supreme Court Justice Ethan Greenberg. The defendant pleaded guilty to first-degree Manslaughter on February 20, 2020.

 According to the investigation, the victim, Zhala Davenport, 22, was walking near 729 East 213 Street at approximately 6:30 a.m. on July 5, 2017. The defendant, who had had an earlier dispute with the victim, was in the area and hid behind a vehicle. When Davenport got closer, Proctor rushed up to him and shot him multiple times. The victim sustained injuries to his torso and hand. He was pronounced dead at the scene.

 The entire incident was captured on surveillance video.

 District Attorney Clark thanked Detective Mark Moccia of the 47th Precinct and Detective Robert Klein of the Bronx Homicide Squad for their assistance in the investigation.