Zayat Stables

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’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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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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Drew Mollica on the TDN Podcast

Drew Mollica started his career in racing as a jockey agent, but had an epiphany at the age of 47: he was miserable. While keeping his day job, Mollica enrolled in law school, and today, is the most popular and affable lawyer on the New York Racing circuit. Mollica joins Joe Bianca, Bill Finley, Brian DiDonato and Jon Green to talk about Ahmed Zayat and other legal issues in this edition of the Writers' Room. Listen to this week's TDN Writers' Room Podcast here. 

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TDN Writers’ Room Podcast for January 29, 2020, with Drew Mollica

Drew Mollica started his career in racing as a jockey agent, but had an epiphany at the age of 47: he was miserable. While keeping his day job, Mollica enrolled in law school, and today, is the most popular and affable lawyer on the New York Racing circuit. Mollica joins Joe Bianca, Bill Finley, Brian DiDonato and Jon Green to talk about Ahmed Zayat and other legal issues in this edition of the Writers' Room.

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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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Zayat Stables in Receivership: What Exactly Does That Mean?

Additional reporting by Lucas Marquardt When the assets of Zayat Stables, LLC, were ordered into receivership by a Fayette Circuit Court judge in Kentucky on Wednesday as part of a $23 million lawsuit by a lender alleging fraud and loan defaults, the judgment caused reverberations within the Thoroughbred bloodstock and racing world beyond those felt by Ahmed Zayat and his family. (Click here to read the TDN story.) Specifically, questions began to swirl about what would happen to the Zayat horses either at farms or currently in training in New...

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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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