Federal Fraud Case

[TWF]

Fraud Law Champion takes the Preakness Title /w Curlin ~ More Kendall Jackson Please

Fraud in the equine industry isn’t the only thing on the radar for Jess…

Curlin

Consigned to 2005 Keeneland September yearling sale by Eaton Sales, agent. Purchased for $57,000 by Ken McPeek, agent.
After his first start, a 12 3/4-length victory at Gulfstream Park, owner Midnight Cry Stable sold a majority interest to a partnership that included Jess Jackson’s Stonestreet Stables, Satish Sanan’s Padua Stable, and George Bolton with Midnight Cry retaining a piece of the horse.

Jockey Robby Albarado, after riding the colt to victory in the Rebel Stakes (G3):

[INDENT]“He still has things to learn, but when the lights go on there’s no telling how good he could be.” [/INDENT]
Congrats to everyone on “Team Curlin”

RNB…Do you have the article on Jess…regarding his work on the legislation in Kentucky? How about your take on this kind of news?

[RNB]

Yes TWF, I do have the article…just have to find it then will post.

As for my take on this kind of news…I’m THRILLED!!! Not just because I like Curlin, or Jess or Kevin but also for the fact this win will highlight what Jess has been trying to do for the last 2 years. The same thing we have been trying to do…exposing the vast amount of fraud in the industry and educating horse folks that it is a crime!!

[TWF]

In the course of this discussion…
Fraud in this case boils down to deception and horses being traded without the knowledge of the owner. In criminal law, fraud is the crime or offense of deliberately deceiving another in order to damage them – usually, to obtain property or services unjustly

On any given day on this forum… there is yet another request to “re-name” a horse. Some of the horses in this case, suspended by the USEF, have not been identified. No horse, breeder or owner for that matter can be tracked! The impact of this lack of uniform identification is lost breeding and performance records (losing revenues and history of US performance lines), fraud and slaughter deaths for horse that simply don’t seem to have a history. Without an identifying lifetime number for horses; wide open gaps in our industry INVITE fraud.

Just as prepsterlb; many of us here and many more reading this thread know that they have an uphill battle to locate, prosecute the case and recover their property. Unfortunately, fraud is not uniformly recognized or treated as a criminal act . We got lucky with this case…working hard didn’t hurt either! It bothers me that SOME cases are treated one way and others ignored…why? Perhaps the horse should have title and ID such as a Car. Just think if we had a “VIN” on a stolen or missing horse? The chances are …a recovery would involve a police report and a criminal charge. Most troubling…those who defraud unsuspecting owners are pretty sure nothing will come of their deception…suing in civil court sometimes cost more than the horse!

What if fraud were treated as a FELONY across the board in the US? Less Fraud…YOU bet! If horses were recognized across the country as titled property, complete with USDA tracking and uniform trade practices including disclosure of commissions; the incidence of equine fraud would drop… Those guilty of fraud would face uniform felony charges, fines and Federal Jail time…and with a bit of USEF influence…denied membership in our industry’s governing body.

[equinelaw]

Bump. What ever happened to these guys? Really good mystery novel here:)

[RNB]

@equinelaw;2546331

Bump. What ever happened to these guys? Really good mystery novel here:)

Just read your post, equine law. About to run out but will answer your question later this evening!!

[Blueshadow]

Hi, and thanks to those on off couse for alerting me to this thread re. fraud.

I also was subject to fraud in CA (I posted a thread on this on off-course); different sort of case, but two women basically deceived and lied to me in order to have me sign away a horse to them that I was looking to place in a good home, for free. I have no interest in the money they made from their sale of the horse (reportedly, they sold her for $400 within a couple of weeks of taking her from me) but I have reason to believe that she was sold through a local killer sale, and had expressely stated that I did NOT want any horse of mine to end up in such a situation. (This possibility has made this an incredibly painful experience for me. Just a personal aside…) I was willing to let the horse go because one of the women is a long-time friend of my SO, and the other is a licensed owner of racehorses in CA…figured, they had the right incentives NOT to s**** me over…

I talked to contract lawyers at USC, who told me that the absence of written terms on the bill of sale did not prohibit me litigating on the basis of verbal terms agreed upon, since the bill of sale did not incorporate an “integration clause”. I was also advised to contact the Riverside Co. DA’s office (consumer fraud department) and did make a report, but noone ever responded to it. In my case, I was told that since the two women CONSPIRED to defraud me, that it was clearly a felony. Presumably, since the DA’s office has a consumer fraud department, consumer fraud is a felony per se (that is what I am reading here). I also tried to report the incident to the police, and was told this was not worth pursuing since I had no “proof” (it is my word against the words of the two women involved). I did retain a lawyer, and was able to afford exactly 2 hours’ worth of his time - which involved making a couple of phonecalls to the women involved in order to try to identify the location of the horse, and writing one of them a letter. Zero response. And I have no more money to spend pursuing it.

No to mention, CA’s horse slaughter prevention law specifically references this type of fraud…but is not enforced in any way.

I did receive a bunch of feedback on this back in May on off-course. Any from those on this thread would be greatly appreciated. If there are others in CA suffering from equine fraud cases - maybe we can get together and do something more concrete? It’s been suggested to me that the only way to get the DA’s office to respond is to threaten bad publicity. The more the better?

[RNB]

Blueshadow…first let me say I am sorry! No matter what the circumstance, loosing a horse and/or money is not fun!!! And I know how hard it is to get any help from local authorities. What I always believed was there needed to be laws addressing issues surrounding horse sales. The new law in KY address some of the concerns as does the new law in FL. Should you like copies I will be more than happy to send them to you. I also have a copy of the current law in CA which deals only with TB’s and the racing industry. There is a group working to make amendments to the law to include all horse sales…I will gladly send you contact information…just let me know.

If you can find more victims, the better. There is strength in numbers. You are obviously not the only victim!! I need to contact prepsterlb as I promised him information as well. He was a victim of fraud so perhaps you two can start compiling a list of folks in CA. If you do contact the folks working on legislation I would strongly suggest you contact your representatives via email or snail mail letting them know you would appreciate their support of a bill. Be specific…tell them what happened to you…get other horse folks to do the same. They are YOUR representatives…they will not know what the horse community is thinking if you do not contact them. Most are not horse people so your voice needs to be heard.

[kfildes]

Or
[I]I suspect there is really no $$$ to be found to pursue a civil case in the instance of J & K. I wonder where all those ill gotten funds went? Wanna bet they never declared those sales to the IRS!!

[B]Josh and Keg had help from “friends”. I was one who was also defraud by these two with the help of an elderly couple that were supposed “clients” of his (in my opinion they were JUST as guilty because they knowingly went along with it). When we sued we also had to sue them because K & J managed to have their names on everything so they could wash their hands of it. They were professional con-men and knew what they were doing.

I have no doubt that they are still using their “friends” to stay involved in things. What else do they know how to do? I am also convinced they hid the money they made.[/B]
[/I]

[TWF]

What happened in the VA Horse Show Association?

…the VA Horse Show Association was suppose to send a letter to Josh and Keg telling them they could not participate in the associate level (local) shows. Since they have had a 5 year suspension from the USEF…the VA Horse show were also to follow directive and conclusion of the USEF…Soooo what happened??

Any body know if the boys are chasing local points in good Ol’ Virginia after getting the USEF suspension …after the Federal conviction Richmond for FRAUD???

:eek: Funny how that doesn’t seem right huh? :no: :no: :no:

[Hunter_Rider]

I heard that Josh was at Warrenton on Thursday spectating. Did anyone else see him?

[LaBonnieBon]

@Hunter_Rider;2661663

I heard that Josh was at Warrenton on Thursday spectating. Did anyone else see him?

Oh bummer… and I was looking for a date that night, too…

[abbydp]

I have seen Keg recently. He is still involved with horses but as far as I can tell, in no way involved in showing, selling or training. For whoever said he had an elderly couple involved with him - can you please pm me? I am worried about something and someone.

[RNB]

@abbydp;2663265

I have seen Keg recently. He is still involved with horses but as far as I can tell, in no way involved in showing, selling or training. For whoever said he had an elderly couple involved with him - can you please pm me? I am worried about something and someone.

abbydp - please feel free to pm me if you wish …if you are truly concerned about a situation. However, I must tell you, that since this is your first post people on the bb may be skeptical of giving out information unless you’re willing to identify yourself. I look forward to hearing from you.

[RNB]

@TWF;2661532

…the VA Horse Show Association was suppose to send a letter to Josh and Keg telling them they could not participate in the associate level (local) shows. Since they have had a 5 year suspension from the USEF…the VA Horse show were also to follow directive and conclusion of the USEF…Soooo what happened??

Any body know if the boys are chasing local points in good Ol’ Virginia after getting the USEF suspension …after the Federal conviction Richmond for FRAUD???

:eek: Funny how that doesn’t seem right huh? :no: :no: :no:

I must say I too am quite disappointed in the VHSA’s foot dragging regarding this issue all along. I am a firm believer in “actions speak louder than words” and in this case there has been no action. What kind of message is this sending to every other member? Does anyone know if the VHSA has a “Mission Statement” or something similar?

Direct from the 2007 Rule Book…

Virginia Horse Shows Association, Incorporated
BY-LAWS

ARTICLE I
The Virginia Horse Shows Association in its status as an affiliate of the US Equestrian Federation (USEF) is bound by the nature of that affiliation to abide by the rules of the USEF. In case of a conflict, the USEF rules take precedence. Likewise, in the case of Associations affiliated with the VHSA and not the USEF, the VHSA rules take precedence in shows held in Virginia. As hereinafter employed in these by-laws the term “Horse Show” shall include any recognized horse show, whether functioning as a corporation, an unincorporated association, or under individual sponsorship.

[abbydp]

Hi RNB. I understand any reluctance. I have no problem identifying myself to individuals. There are rumors locally of Keg threatening other people that have seen him, so I would rather not put myself out there on a public board. I live in SE Va, have run a farm here, show hunters locally, and know the people he is living with now. I will PM you.

[TWF]

FYI…The Court Order regarding Keg’s release from Federal Prision

@RNB;1018534

Here is a copy of Judge Williams ruling…

The defendant is prohibited from any employment – self-employment or employment through legitimate employer – in the equestrian/horse industry. This includes but is not limited to the buying and selling of horses, the breeding of horses, acting as an agent during the sale of horses, acting as a horse trainer, or acting as an instructor for riding lessons to any individual. The defendant is permitted to aid his mother in the care of one (1) horse only – the horse located in Chesapeake, Virginia at the date of this hearing. Further, the defendant is only permitted to care for said horse at the Chesapeake location where the horse is currently kept.

WONDER EXACTLY WHAT HE IS DOING???

By the way…does anyone know if he has made full restitution to ALL the victims in this case?

[LaBonnieBon]

Maybe he’s selling mortgages for that company that just got a lot of bad press…??

[Anyplace_Farm]

@LaBonnieBon;2662421

Oh bummer… and I was looking for a date that night, too…

Ohhhhhhhhhhhh, my – now THAT is a scarey thought.

[abbydp]

Judging by the shirt he had on when I saw him, he is working at a gas station.

[LaBonnieBon]

@abbydp;2666496

Judging by the shirt he had on when I saw him, he is working at a gas station.

After all that time in prison, I’d be willing to bet he’s pretty good at checking people’s oil…