BREAKING: CURLIN BANNED IN NEW YORK - A PAULICK REPORT SPECIAL REPORT
A spokesman for the New York State Racing and Wagering Board said Wednesday that 2007 Horse of the Year Curlin would not be allowed to race in New York until all of his owners are licensed in the state. The license for one of the partners in the Midnight Cry Stable that owns 20% of Curlin, jailed attorney Shirley Cunningham, expired last August. Cunningham has been in custody since August while being tried on charges of conspiracy to commit wire fraud in a case involving a class-action lawsuit over a diet drug. One of the other defendents in the case is William Gallion, another partner in Midnight Cry.
The case is expected to go to the jury on Friday.
The licensing issue came to light days before the Belmont Stakes, when Einstein, one of the top runners in the grass division this year, was pointed for the Manhattan Handicap on the Belmont undercard June 7. The New York board told Einstein’s connections Cunningham’s license had expired and that the horse would not be able to enter the race. Andre Regard, attorney for Midnight Cry, said efforts were made to renew Cunningham’s license in New York but was told by an attorney representing the New York board the application would be denied “in the best interests of racing.”
The application was withdrawn, because an official denial by the board would have jeopardized the horse from running in states with licensing reciprocity rules. Einstein ran one week later on the dirt, finishing second to Curlin in the Stephen Foster at Churchill Downs. Cunningham is still licensed in Kentucky.
Under the current circumstances, Curlin would be denied entry in any race in New York, according to Dan Toomey, a spokesperson for the New York board. In his last start in New York, Curlin won the Jockey Club Gold Cup Sept. 30, more than a month after Cunningham’s license had expired.
Another horse in the race, Proudinsky, is owned by Gary Tanaka, who has been under house arrest in New York since 2005 after being arrested on charges of securities fraud with his partner in Amerindo Investment Advisors, Alberto Vilar.
The Manhattan was won by the Phipps Stable’s Dancing Forever, who was beaten a neck by Einstein in the Gulfstream Park Turf earlier this year.
By Ray Paulick
Copyright ©2008, The Paulick Report
Tags: Curlin, jess jackson, midnight cry stable, new york state racing and wagering board, Paulick Report, Ray Paulick, shirley cunningham

June 18th, 2008 at 4:25 pm
NY seems destined to not only shoot itself in the foot when it comes to thoroughbred racing, but probably will blow both of their own legs off! Idiots.
June 18th, 2008 at 4:27 pm
I have wondered all along why the horse was allowed to race in Kentucky. As far as I interpret KHRA rules, minority owners - Midnight Cry - would disqualify Curlin AND other horses they own and run here.
June 18th, 2008 at 4:38 pm
I agree that New York is a disaster case. Interesting — and perhaps only a coincidence (but you have to wonder) — that the horse that won the race on the Belmont undercard (for which Einstein was banned from running) was owned by the Phipps.
June 18th, 2008 at 5:14 pm
Licensing reciprocity? I was always told owners had to be licensed in every state they wanted to race. At least that’s what the shady operator of a partnership I unfortunately got invloved recently added to the monthly statement.
What’s the correct answer?
June 18th, 2008 at 5:35 pm
If Cunningham’s license was already expired at the time of the JCGC, why was no issue made of this back then? Should Curlin have been able to enter that race under the circumstances?
June 18th, 2008 at 6:57 pm
All good questions. Logic suggests that Curlin should NOT have been able to enter the Jockey Club race last year and that Gary Tanaka should NOT have been able to race Proudinsky…………..
June 19th, 2008 at 7:47 am
Kentucky’s licensing rules are asinine if the lessor doesn’t require licensing. What’s the point of licensing at all if the beneficial owners of an animal are not looked at?
From what I read, Tanaka has a license recognized in New York, thus Proudinsky can race. Cunningham let his license expire. Big difference. Maybe New York should take Tanaka’s license, but that’s a different story.
Looks like Curlin shouldn’t have run in the Gold Cup. Who’s responsibility is it to check owner licensing? NYSRWB? the trainer? NYRA? the owner? Someone is apparently at fault.
June 19th, 2008 at 8:55 am
Yet another reason one hopes that the judge in the Kentucky case forces the sale of their remaining assets sooner rather than later — and that Einstein gets a good owner who keeps him with Helen Pitts. One presumes Jess Jackson is simply waiting (and none too happy about that) to pick up the remaining share in Curlin.
June 19th, 2008 at 10:25 am
Curlin I think ran in the Jockey Club Gold Cup because the rules state that you can run once without a licence-but that’s it.
June 20th, 2008 at 2:57 am
gotta love the net…i can see there are some real Horsepeople here not that the others aren’t welcome to our party…come one come all & watch the greatest game on HOOF climb back to the top of the sports world where it rightfully belongs. ..ALL (one or one thousand Horses) .OWNER’S must form a powerful voice in this game NOW…Long Live The King!!!
June 20th, 2008 at 9:40 am
Ray, The Paulick Report is great…I read it between tours and horsekeeping chores. Congratulations…Michael Blowen
June 21st, 2008 at 5:13 pm
The reality is that most owner licencing laws are just silly. They keep the bureaucracy in jobs. Among typical questions is : “What are the names of horses you own? Who is your trainer?” Without any doubt, they know that in 12 months an owner might change many horses and possibly trainers, but they still insist on an answer.
Some have the nerve to ask for your Social Security number! I refuse. When they begin mumbling “can’t issue”, I ask: “Did you get a number for Sheikh Mohammed?” Then the licence is issued quickly.
Anyway, the Kentucky rule for multiple owners of a horse is a person with 5% or greater interest in the horse, must be licenced. Stupid requirement when so many horses are controlled by syndicate managers who may not own any part of the horse.