Posts Tagged ‘bernard madoff’

PAULICK REPORT 2009: THE YEAR THAT WAS

Wednesday, December 23rd, 2009

By Bradford Cummings
It is amazing what a difference a year makes at the Paulick Report. Traffic has more than doubled, debate is livelier than ever and Ray has pledged to stop talking about jet lag. (I’ll believe it when I see it…or don’t see it) We made a cross-country trip to the Breeders’ Cup at Santa Anita and raised $75,000 for two great causes in the process. Ray flew to South Africa on the premise that some horse people actually wanted to hear what he had to say, then later to Japan (where apparently he and David Hasselhoff are quite well known), where he took in some very exciting racing. And we have been blessed to have such a strong stable of supportive advertisers who believe in the mission we set off to accomplish in June of 2008. Perhaps most remarkably, we started a business two months before the largest recession since FDR and we are still kicking.

In what is turning into a tradition (if you can call twice a tradition) we are looking back at the year that was and rehashing the top ten stories based on reader interest. Basically, the more you clicked on these stories, the higher up the list they traveled. So take a trip down memory lane with us and let us know which stories still resonate with you today. Or let us know about a story that touched you we don’t have here. Because sometimes even 1.5 million user sessions can be wrong.

10. McLaughlin Horses Allegedly Test for Banned Substance in KY

In a year where horse racing started to admit it has a drug problem, it was disheartening to learn that Kiaran McLaughlin was a new member on the list of medication violators. A trainer that featured prominently on our American Graded Stakes Standings brought to you by Keeneland, McLaughlin had become a bit of a Paulick Report favorite as a successful trainer who found himself a bit under the national radar. Unfortunately for him, if his standing in Graded Stakes wins didn’t do it, our tenth most popular story of the year did.

9. Equibase Strikes Out

Perhaps no organization has had the upward trend on the Paulick Report that Equibase has experienced. In what was the most popular story on the Thoroughbred Racing Associations/Jockey Club-owned statistics company, we compared what Equibase provides versus what other major sports give their fans in the way of data. Unfortunately, the comparisons were not favorable as this industry seems content to charge its loyal customers for everything from parking to the very data Major League Baseball, the NFL and the NBA make readily available for its fans.

But whether it was the Paulick Report or an internal struggle that finally made its way to the light of day, Equibase started to get it right and quickly saw their headlines become more favorable. Equibase Takes Step in Right Direction and Equibase Gets It Right is more along the lines of what we’d like to write about. Keep up the momentum.

8. When It Comes to Douglas, Racing Stewards Share the Blame

Any time a jockey is paralyzed, it is an unspeakable tragedy. We saw it first hand on several occasions during our Breeders’ Cup or Bust fundraising tour when we had the opportunity to spend time with several permanently disabled riders. In a precursor to our decision to take on such a trip, Rene Douglas, the top rider at Arlington Park, was severely injured in a spill at the Chicago track when a horse ridden by Jamie Theriot brushed his mount in a move that stewards rarely penalize a rider for. Ray’s point was that stewards should keep a tighter rein on the race riding that goes on and far too often can lead to clipped heels and spills. By doing the best job they can do, stewards can help protect jockeys from serious injury.

7. Ziadie Blames Drug Violations on ‘Chaos’

What do you get when you combine a 60-day suspension for your 13th medication violation in Florida since 2004 with a rich stakes program at Calder? An opportunity to start four horses if you are legacy trainer Kirk Ziadie. One of several stories this year that were out there for the picking but ignored by the mainstream Thoroughbred media, people seemed to be drawn to the laundry list of infractions by this trainer who piles up the wins and medication violations in uncommon numbers.

6. Cullen: Sales Ban Only the Beginning

Know and Trust. That’s the ironic mantra of this Kentucky-based journalist turned bloodstock agent (hey, he’s giving journalism a bad name, if that’s possible!). It’s also the name of one of the horses that Jim Cullen consigned for his overflowing book of clients who have felt taken advantage of over the last several years. The evidence is too large to encapsulate in this brief recap but judging from the amount of people who read this story, you don’t really need a point-by-point description.

The only thing more disturbing than his previous actions was his personal defense, a convoluted web of seemingly nonsensical explanations that never really came close to exonerating him.

We aren’t saying he is the Bernard Madoff the horse industry, but there are some folks plenty mad at him. Oh, and Jim, the fact that Know and Trust ran a good race after this story came out is not newsworthy. It only proves that even a blind squirrel can find an acorn from time to time.

5. Indian Charlie: Racing’s Court Jester

It was a rough year for racing’s court jester, the sometimes funny and consistently offensive Indian Charlie aka Eddie Musselman. While his legal troubles were probably the most noteworthy news to come out of his newsletter in years, the readers of the Paulick Report really enjoyed reading the Indian Charlie parody being distributed on the grounds of the Keeneland September sale.

Who did the parody? We honestly have no idea. But at least it helped give what was a torturous sale a bit of levity.

4. Live Blogging: Kentucky Senate Committee Slots Hearing

The biggest news in Kentucky racing this year was by far the unsuccessful push for slots at racetracks through the state House and Senate. While it got narrow approval in the House, Gov. Steve Beshear’s slots bill stalled in the Senate’s Appropriations and Revenue Committee, stonewalled by David "Blackjack" Williams and his crew of Republican merry men.

Of course, Ray was there to watch the whole thing happen and reported live from Frankfort. Real time blogging, it’s the greatest thing since slots at the racetra…er…never mind.

3. Van Driver: Paraneck Horses Were ‘Walking Skeletons’

Not the way any website wants to experience a spike in traffic, but Ray was the first to uncover the absolute travesty that was the lice-infested and under-nourished stable of horses at Paraneck Stables in upstate New York. The pictures are gruesome and the effects of this tragedy are still being felt as horse welfare groups from around the country are trying to find homes for these truly victimized animals.

2. Live Blog: Mr. Paulick Goes to the Eclipse Awards

A man of many talents, Ray Paulick pulled off a feat of unprecedented magnitude…he live blogged the Eclipse Awards without a computer! Transmitting his thoughts and some appetizing pictures (we’re all still craving that dessert with the chocolate sticks on top) via his cell phone, Ray was able to give moment by moment updates to all of those people on the "tubes" who weren’t able to watch the TVG telecast. And looking at the number of comments and readers, that was no trivial number.

For those of you wondering, Barbara and I have since made up after she took offense to my comment about the shininess of Steve Asmussen. Love it or hate it, we call them like we see them here at the Paulick Report.

1. Hollywood Park Past-Posting Incident Under Investigation

At first blush, we were a little shocked that this story was number one. A past-posting incident, while surely problematic, is not the sexiest of topics. But when you consider it potentially hurt the pocketbooks of thousands of horseplayers across the country and the fact that we were first out of the gate with the story, it makes a whole lot more sense. Wouldn’t it be nice if the propeller heads at the tote companies were able to figure out how to stop betting when a race begins?

Copyright © 2009, The Paulick Report

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Tags: American Graded Stakes Standings, Arlington Park, bernard madoff, bradford cummings, Breeders' Cup, breeders' cup or bust, David Hasselhoff, david williams, eclipse awards, Eddie Musselman, equibase, ernie paragallo, Hollywood Park, indian charlie, jamie theriot, Japan, Jockey Club, Keeneland, kiaran mclaughlin, know and trust, major league baseball, NBA, nfl, paraneck stables, past-posting, Paulick Report, Ray Paulick, rene douglas, Republican Party of Kentucky, santa anita, South Africa, steve beshear, thoroughbred racing associations
Posted in Paulick Report, Year In Review | 16 Comments »

CHRB UNCONFIDENTIAL

Wednesday, February 4th, 2009

By Ray Paulick
December was a cruel month for Richard Shapiro, who stepped down as chairman of the California Horse Racing Board on Dec. 15, only a few days after learning that a significant portion of his life savings and pension was lost in the $50-billion Ponzi scheme allegedly perpetrated by Bernard Madoff.

January wasn’t much better.

Shapiro on Jan. 12 sent a letter asking for help from his Congressman, Brad Sherman, a Democrat representing the San Fernando Valley near Los Angeles. He suggested, among other things, that Sherman push for the Internal Revenue Service to relax time restrictions for victims to recover taxes they paid on false income reported to them by Madoff. Shapiro sent the letter to some other members of Congress and to another Madoff victim he knew, asking that he consider writing similar letters to elected officials. He also suggested his friend contact others who lost their investments, urging them to write members of Congress for help.

Shortly thereafter, the letter Shapiro thought was private was being widely distributed by California-based Thoroughbred owner Jerry Jamgotchian, who for the past few years has been a relentless critic of Shapiro and many of the policies he influenced as CHRB chairman. Shapiro’s personal tragedy became a very public matter.

How Jamgotchian got a copy of Shapiro’s letter, however, is in dispute.

Shapiro insists Jamgotchian was forwarded a copy of the letter by Los Angeles attorney Roger Licht, whose CHRB seat Shapiro filled when he was appointed to the board by Republican Gov. Arnold Schwarzenegger in October 2004. Licht, an appointee of Democrat Gray Davis, served from February 2001 through July 2004, including one year as chairman, in 2003. Shapiro was chairman from January 2006 until his resignation from the board last December.

Both Licht and Jamgotchian deny Shapiro’s charge that Licht sent Jamgotchian a copy of the letter.

The other Madoff victim contacted by Shapiro forwarded a copy of the letter to Los Angeles entrepreneur Steve Weston, who also was victimized in the investment scam. When rumors about Shapiro being stung by Madoff began circulating in horse racing circles, Shapiro contacted Weston to find out whether he had forwarded the letter to anyone else, and Weston confirmed he had sent it on Jan. 13 to Licht, who was representing him in the Madoff case.

On Jan. 15, when the first published reports of Shapiro’s letter to Rep. Sherman appeared, Weston sent an email to Shapiro saying he had “queried Licht as to whether or not he had sent it to anyone. It was at that point,” Weston continued, “that he told me that he had faxed it to some guy I had never heard of named Jamgotchian. When you and I spoke later that same morning you asked me to call Licht and confirm who he had sent it to and ask them to stop sending it out, I did as you asked. I called Licht again and he confirmed it was Jamgotchian he had sent it to. He placed the phone down so that I could hear him call this guy and I heard him ask Jamgotchian to please stop sending the letter out to anyone else. When he got back on the phone with me he told me that Jamgotchian had told him that he would stop.”

Licht was asked by the Paulick Report if he had sent a copy of the letter to Jamgotchian. “No,” he said. “What’s this all about? You’re the third reporter who’s called about this.”

When Weston’s email to Shapiro was read to Licht, he responded, “I don’t know what Steve Weston is talking about.”

“He told you that?” Weston said, when informed by the Paulick Report of Licht’s comments. “I have emails from him to me apologizing for what he did. I was also on the phone with him when he called Jamgotchian and asked him to stop sending it around. Did he actually deny it? I’m surprised to hear he would lie like that.”

Weston went on to say it would be “ludicrous” to criticize Shapiro or anyone else who invested money with Madoff. “Look at the people who got burned,” he added, “people like Mort Zuckerman and Steven Spielberg. Some of the smartest people in the financial world were victims. This was a failing of the SEC. No investor’s judgment should be called into question.”

“I question the ethics, morals and purpose for Mr. Licht in turn forwarding a copy of the letter to Jerry Jamgotchian,” Shapiro said in a statement. “Clearly doing so was not related to the services he was asked to perform as an attorney representing a client, and his dissemination of my letter to an unrelated third party was done with the sole purpose of malicious intent towards me at the minimum.” Shapiro now questions if it’s possible “much of what Jamgotchian has claimed for years has in fact been fed to him by Licht since he was a prior member of the CHRB.”

Jamgotchian readily admits distributing Shapiro’s letter but categorically denies receiving it from Licht.

“Shapiro is nothing but a blatant and pathological liar,” Jamgotchian said. “Put that in red letters and bold. Somebody faxed it to me. I got it two days after the fact, and I immediately started blasting it out (Jan. 14). I got it from somebody in the press. Why would I get anything from Roger Licht? That’s like saying I got it from (CHRB acting chairman) John Harris. They’re (CHRB) not going to help me with this.”

Jamgotchian’s public criticism of the CHRB and Shapiro began in 2005, after Licht had left the board. Jamgotchian has filed several complaints against the CHRB since then and has been a constant thorn in Shapiro’s side. The Paulick Report asked Jamgotchian why he has been so critical of Shapiro, who is best known for pushing the mandate that California tracks install synthetic surfaces.

“The destruction of California racing,” Jamgotchian said. “My inability to race in California. The destruction of the California breeding industry. The inability to race on dirt tracks. Millions of dollars he’s cost me as an owner. Loss of purses in California. The ADW mess. Reduced track attendance. Closing of racetracks in California. Increased training and vet fees. When I sold all my horses at a huge loss at Barretts. He’s solely responsible for it. He and his stupid decisions with synthetic racetracks, heel nerving and other mistakes he’s made. The last thing he did was get the CHRB budget thrown out in front of the GO (Governmental Organization) Committee.”

In a later email, Jamgotchian wrote: “Shapiro vacuous decisions has put track employees, tote sellers and many horseracing people out of work and took away their dreams!”

After feeling his personal life had been invaded, Shapiro contacted Bloodhorse magazine and Thoroughbred Times to tell his side of the story and express his belief that Licht was responsible for sending a copy of the letter to Jamgotchian. Neither publication, Shapiro told the Paulick Report, would publish the story.

For his part, Shapiro said he has “endured for years the insults and ridiculous claims” from Jamgotchian. “It is beyond the bounds of decency that (Licht and Jamgotchian) would find joy in someone else’s difficulties,” he said.

Shapiro also said his resignation from the board was unrelated to the financial problems resulting from his Madoff investments. Shapiro, in fact, did tell the Paulick Report during a visit to Lexington for the Keeneland September yearling sale that he was contemplating leaving the CHRB and pursuing a non-regulatory industry position. He has been widely rumored to be a leading candidate to head up the Sacramento-based Federation of California Racing Associations.

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Tags: bernard madoff, brad sherman, California Horse Racing Board, jerry jamgotchian, john harris, mort zuckerman, Paulick Report, Ray Paulick, richard shapiro, roger licht, steve weston, steven spielberg
Posted in California, California Horse Racing Board, People | 12 Comments »

Posts Tagged ‘bernard madoff’

PAULICK REPORT 2009: THE YEAR THAT WAS

CHRB UNCONFIDENTIAL

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