Zayat Stables

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...

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...

A March 20 court hearing in Kentucky will determine if Hill 'n' Dale Farms can have a claim dismissed that involves a New York lending firm wanting to take possession of equine assets that were allegedly sold in 2017 at under-market value by financially troubled Zayat Stables, LLC, which is the chief defendant in the same $23 million lawsuit alleging loan default and fraud. The equine asset in question in this case is the broodmare American Cleopatra, a full sister to 2015 Triple Crown winner American Pharoah. The Blood-Horse first...

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...

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...

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...

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...

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...

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...

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...

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...

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.