Posts Tagged ‘jerry jamgotchian’

Fermin’s tenure as head of the state agency, which lasted three years, ended in 2007  when she said she did not want to relocate to Sacramento, home of the CHRB’s headquarters, as required by the board. There were several controversies and internal turmoil during her time as executive director, and some critics reportedly accused her of showing favoritism in appointments and contracts.

Foremost among those critics is owner Jerry Jamgotchian, who has filed several lawsuits against the CHRB, sent hundreds if not thousands of e-mails critical of Fermin, former CHRB chairman Richard Shapiro and others, and recently told the Paulick Report Fermin was “the most corrupt” executive director and steward in CHRB history.

When Fermin (pictured, left) was named one of three stewards for the Del Mar meeting, resuming a career she began in 1981 as the first female steward in California history, Jamgotchian requested a hearing with the CHRB to stop the appointment, saying that Fermin was biased against certain trainers and owners. The furor over the appointment ramped up when several trainers, including Mike Mitchell, Jeff Mullins, Art Sherman and Doug O’Neill, appealed to have Fermin recuse herself from judging races in which they have horses. There have been accusations that Fermin specifically targeted certain trainers in post-race drug testing while she was CHRB executive director. Fermin told the San Diego Union-Tribune the accuslations were “baseless” and “twisted.”

Jamgotchian’s complaint against Fermin stemmed from an incident in 2005 involving a horse owned by Jamgotchian that he wanted to scratch from a race at Del Mar. After a steward refused to allow the horse to be scratched, the horse ran and suffered an injury. UPDATE: While Jamgotchian has alleged that the horse, John’s Kinda Girl, was injured in that Aug. 14, 2005, race, the filly subsequently worked out three times over the next six weeks, and raced Oct. 7, 2005, and 12 more times in the next year, winning two of those races.

Jamgotchian’s request for a hearing before the Del Mar meet opened was denied when Fermin declined to attend. After the board met privately in executive session on Thursday, CHRB chairman John Harris said during the public portion of the regularly-scheduled monthly meeting that the stewards named for the Del Mar meeting would be retained. Harris also was board chairman when Fermin was appointed CHRB executive director in 2004.

Things appeared to change somewhat on Friday, however, when owner Martin Wygod, a member of the Del Mar Thoroughbred Club’s board of directors and one of the most influential owners in California racing, reportedly asked Fermin to recuse herself from presiding over a race in which one of his horses was running. According to a report in the North County Times, former jockey Luis Jaurequi, now a “safety steward,” would have substituted for Fermin in judging any inquiry or claim of foul involving one of Wygod’s horses in that race. Does that mean Fermin would have judged foul claims in the same race if they didn’t involve Wygod’s horse?

Wygod is believed to have been upset with Fermin ever since an incident involving 2-year-old champion Sweet Catomine at Santa Anita three years ago when the filly left the grounds for medical treatment prior to the Santa Anita Derby. Wygod was charged, following an investigation led by Fermin, with having the filly falsely identified when she was vanned out of the stable area and exhibiting conduct detrimental to racing. The charges, which could have resulted in Wygod having his owner’s license suspended, were dismissed following a hearing.

Jamgotchian went on to say that Wygod threatened to scratch his horse from the race if Fermin failed to recuse herself as a steward in that race. “Fermin agreed,” Jamgotchian wrote, “and her recusal was made in front of fellow Stewards Scott Chaney, Tom Ward and in the presence of other parties in the room, including Wygod.”

Jamgotchian said he called Wygod’s attorney, Roger Licht, “to confirm the above facts regarding their recusal agreement with Fermin” and that Licht told him “there was an ‘oral’ confidentiality agreement in place with Fermin and that he could not discuss Fermin’s recusal.”

Jamgotchian said he also tried unsuccessfully to speak with Fermin by telephone before the first race and said he intends to file a complaint with the CHRB regarding the “Wygod recusal” and demand an investigation by the CHRB because of what he called a “unilateral” decision and one that was not publicly disclosed.

If the North County Times article and Jamgotchian’s assertions are accurate, it appears either the CHRB or Fermin are applying a double standard when it comes to Fermin recusing herself from races in which the principals involved feel as though there is a bias by her against them. If she recused herself in a race involving Wygod, shouldn’t she do the same in races involving the trainers who have made similar appeals?

Copyright © 2009, The Paulick Report

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Click here to read CHRB rule 1663. Click here for a copy of Jamgotchian’s lawsuit and attached exhibits.

The CHRB has issued fines and suspensions against horsemen violating rule 1663. In a 2007 case, CHRB licensee Edgar Clarke was fined $6,000 and suspended 60 days for violating rule 1663. Other CHRB licensees have also had their horses scratched by CHRB officials in other states for violation of this rule.

Jamgotchian says he claimed a filly named Look Closely at Del Mar on Sept. 3, 2006, three days before the end of that track’s meeting, and entered her within the 60-day “jail time” in a race at Turf Paradise in Arizona on Oct. 27. Following a call to a Turf Paradise steward from Ingrid Fermin, then the executive director of the CHRB, Jamgotchian alleges, the filly was scratched because of the 60-day clause in rule 1663.

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.

“I remain committed and hopeful of helping the sport in any way possible,” he said.

Copyright © 2009, The Paulick Report

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