MGG Investment Group

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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For Buyers of Zayat Horses, What is the Law?

When the MGG Investment Group filed a complaint in Fayette Circuit Court on Tuesday seeking the return of horses previously owned by Zayat Stables which had been sold privately and at public auction, it raised the question: is it the responsibility of a buyer at auction or a sales company to run a search prior to the transaction to determine if the horse is being sold free of liens and encumbrances? And are private buyers of horses required to do so? In short: might the buyers of those horses at...

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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 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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Zayat Asks Court to Dissolve Order Appointing Receiver

Ahmed Zayat has filed a motion asking the same court that appointed a receiver to oversee the assets of his Zayat Stables to dissolve that order and instead allow the stable to resolve its dispute with MGG Investment Group in some other matter. The filing came five days after a Fayette County (Ky) Circuit Court judge ordered Zayat's assets into receivership, a response to a $23-million civil lawsuit lodged by the investment firm, MGG Investment Group, LP. MGG had alleged that Zayat had defaulted on his loans and had improperly...

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Alleged Zayat Fraud: Years In the Making, Four Months to Unravel

The $23-million lawsuit by a lender against Ahmed Zayat and his financially troubled Zayat Stables, LLC, was nearly four years in the making. But a series of red-flag events over the last four months put the alleged fraud more alarmingly into focus, sparking frantic efforts by the plaintiff to get the troubled racing and bloodstock business into court-mandated receivership before the equine assets used to secure $30 million in loans were potentially sold off and hidden. Although the major allegations in the civil lawsuit filed by MGG Investment Group, LP,...

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Report: Zayat Sued for $23 Million; Stable Placed in Receivership

A Fayette County, Kentucky judge granted a motion at an emergency hearing Wednesday to put Zayat Stables and its horses into receivership, reports the Lexington Herald-Leader. The ruling follows a lawsuit filed by New York-based MGG Investment Group alleging that owner Ahmed Zayat had sold shares in Triple Crown-winning stallion American Pharoah that were being used as collateral against loans made by MGG to Zayat. MGG's lawsuit alleges that Zayat defaulted on his loans in September, and seeks at least $23 million from Zayat. According to the Herald-Leader, Zayat sent...

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