Ahmed Zayat

MGG Claim to Solomini, Others, Thrown Out

Judge Kimberly Bunnell has dismissed the New York-based lending firm MGG's attempt to place a lien on the stud fees and progeny of Solomini, to claim nine breeding rights to American Pharoah and the broodmare American Cleopatra, according to Gregory Parsons of States & Harbison, who represented the owners of Solomini in MGG's suit. The ruling was issued June 10 in Fayette, Kentucky Circuit Court. Solomini stands at McMahon of Saratoga Thoroughbreds, where he has bred 127 mares in his initial season at stud. In January, MGG filed a $23...

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Zayat Receiver’s Report Cites `Unorthodox, Possibly Fraudulent’ Billing Practices

The court-appointed receiver for Zayat Stables has "identified unorthodox, possibly fraudulent billing practices and billing errors in which trainers and other care providers effectively over-billed costs as a means of increasing the Receiver's statutory lien obligations," according to a report filed in Fayette, Kentucky, Circuit Court May 5. No trainers or other care providers were identified, and no further detail was provided, only that the identification of these practices is now "resulting in a significant savings to the Receivership." The report was the third such monthly report submitted by Elizabeth...

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Zayats Move to Dismiss Lawsuits Based on Jurisdiction

Defendants Ahmed Zayat, his family members, and the financially troubled Zayat Stables, LLC, are collectively asking a Kentucky court to dismiss a "fraudulent scheme" contract breach lawsuit by New York investment firm MGG Investment Group, LP, on the basis that the complaint has not been brought in the correct legal jurisdiction. Eric Mitchell of the Blood-Horse first reported the story Friday, citing Apr. 21 court documents. The January civil suit claimed that financially strapped Zayat family members allegedly orchestrated a years-long scheme "to sell at a steep discount several millions...

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Judge Grants Yeomanstown’s Move To Dismiss MGG Claim

Judge Kim Bunnell ruled to dismiss the claims brought by the MGG Investment Group against Yeomanstown Stud in which they sought the return of the stallion El Kabeir in Fayette County (Ky.) Circuit Court Friday morning. Yeomanstown purchased the stallion from Ahmed Zayat's Zayat Stables Sept. 20, 2017, for $500,000. MGG was attempting to acquire the horse as part of its suits seeking the return of horses and breeding shares sold by the Zayats which had been pledged as collateral for $30 million in loans. Yeomanstown had moved to discuss...

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Zayat Receiver Argues Powers Not Broad Enough

A Friday hearing could bring much-needed clarity to the $23 million lawsuit against Ahmed Zayat and his financially troubled Zayat Stables, LLC, regarding whether or not the court-appointed receiver in the Kentucky case should be allowed to have broadly expanded legal powers over racing and breeding stock. But instead of categorically fighting the receiver's Feb. 18 motion for more control over his horse business, lawyers for Zayat on Feb. 20 filed a response that asked a Fayette Circuit Court judge to grant that motion in part and to deny it...

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MGG Drops Complaint Against Thomas Clark Bloodstock

After filing a civil complaint against numerous individuals and entities that had purchased horses or other assets from Ahmed Zayat, MGG Investments has given up the portion of its complaint that aims to collect money from Thomas Clark Bloodstock. Clark's attorney Tom Miller received a notice Tuesday from lawyers representing MGG notifying him that the complaint against Clark had been voluntarily dismissed. Last week, MGG amended its civil complaint against Zayat to include several breeding farms and individuals, including Coolmore Stud, Hill 'n' Dale and LNJ Foxwoods. MGG has sued...

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Zayat Camp Releases Statement

The New York lending firm that last month initiated a $23-million lawsuit against Ahmed Zayat and his financially troubled Zayat Stables, LLC, broadly amended its civil complaint in a Kentucky court earlier this week (click here). Zayat Stables issued the following statement Thursday regarding the amended complaint: "We are disappointed but not surprised at MGG and Kevin Griffin's aggressive attack on the horse industry. Zayat Stables said from the beginning that it wanted to liquidate certain assets to generate enough proceeds to pay off all of its creditors. Motivated purely...

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Zayat Lawsuit Broadens to Include Prominent Bloodstock Business Partners

The New York lending firm that last month initiated a $23-million lawsuit against Ahmed Zayat and his financially troubled Zayat Stables, LLC, has broadly amended its civil complaint in a Kentucky court. As of Tuesday, the suit now additionally targets 10 prominent bloodstock individuals and entities that the plaintiff alleges played a role in the "fraudulent scheme" orchestrated by Zayat family members "to sell at a steep discount several millions of dollars of Zayat Stables' assets" that had been pledged as collateral for $30 million in loans. The wide-ranging updated...

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Zayat’s Motion to Dissolve Appointment of Receiver Denied

Ahmed Zayat has lost the latest round in the courts. Fayette County (Ky) Judge Kim Bunnel has denied Zayat's motion to have the court dissolve an order that appointed a receiver to take control of and sell off the assets of his Zayat Stables. The original order to appoint a receiver came after MGG Investment Group sued Zayat for $23 million, alleging that he had defaulted on loans. "We are pleased that the court has recognized the need for a receiver in this case," said MGG lawyer Craig Robertson. "Zayat...

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Receiver Alleges Zayat is Stonewalling Her Efforts

Submitting an initial report to the Fayette County (Ky) Circuit Court, lawyers for Elizabeth Woodward, who was appointed the receiver for Zayat Stable, claimed that Zayat has not turned over financial information necessary for her to catalogue the assets of the stable. "The Receiver has made considerable progress, but initial set-up of the receivership accounts and the collection and sales process was hampered by the Receiver's lack of accounting information," the filing read. "Despite the language of the Order granting the Receiver possession and control of the Property, her personal...

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Zayat Addresses Maker Complaint

Jay Ingle, an attorney with the Lexington, Kentucky-based law firm Jackson Kelly PLLC, released a statement on behalf of owner Ahmed Zayat Saturday morning addressing the complaint filed by trainer Mike Maker in Jefferson County Court this past Thursday seeking better than $120,000 in alleged unpaid training bills. "This lawsuit from Mike Maker is absurd," the statement read. "Ahmed Zayat made all payments required under his prior settlement with Mr. Maker until MGG seized control of Zayat Stables' bank account last month. It is outrageous for Mr. Maker to cry...

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Maker Files Complaint Against Zayat; Diodoro May Be Next

Ahmed Zayat's legal problems continue to grow. Trainer Mike Maker filed a complaint in Jefferson County (Kentucky) Court Thursday seeking $120,921 over what he alleged are unpaid training bills. Maker's complaint was filed less than two weeks after a Kentucky court ordered Zayat's assets into receivership, the result of claims by an investment group that says Zayat owes it $23 million. Maker's complaint was first reported by BloodHorse. According to the complaint, Maker trained as many as eight horses for Zayat Stables, which was falling behind on paying its training...

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