03/14/2006 12:00AM

Jackson sues three more in fraud case

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LEXINGTON, Ky. - Jess Jackson has added three more defendants to a lawsuit he filed in Southern California alleging that his early bloodstock advisers defrauded him in a number of transactions for horses and land in Kentucky.

Jackson's motion for an amended complaint, filed in San Diego on March 9 and first reported by The Blood-Horse, adds bloodstock agents Frederic Sauque and Fernando Diaz-Valdez and the Buckram Oak Holdings company to the list of defendants.

The original lawsuit, filed last fall, accused agent Emmauel de Seroux of Narvick International, trainer Bruce Headley, and their associate Brad Martin of defrauding him in a number of private and auction transactions for bloodstock, including his $750,000 purchase of Afleet Alex's dam, Maggy Hawk.

"The allegations are outrageous and false and have been, and continue to be, denied by Mr. de Seroux and Narvick," said de Seroux's attorney, Dan Platt. "Jackson can take his case to the public all he wants, but at the end of the day, my clients will tell the truth to a jury. They will be vindicated, and justice will be served."

Platt also said Narvick had provided Jackson with transaction information "to show Mr. Jackson that they had followed the terms of their agreement with him and that they had kept accurate and complete records of each transaction," a release issued by Platt said. "Mr. Jackson now labels that exchange of information as a 'confession' of fraud."

Among the new allegations is that Sauque and the Buckram Oak Holdings company conspired with the three original defendants to defraud Jackson in his $17.5 million purchase of the late Mahmoud Fustok's Buckram Oak Farm in Lexington in February 2005. The complaint alleges that the farm had been listed for $16 million and that Fustok had said he would take $15 million. The complaint alleges that, after the sale, Fustok and Sauque arranged a wire transfer forbidden under the sale's terms and totaling $500,000 to an overseas account of Narvick's. The complaint alleges that de Seroux, Headley, and Martin attempted to gain another $500,000 kickback from Jackson's purchase of Adena Springs that July.

Jackson and Narvick had been in settlement talks that now appear to have broken down.

"Mr. Jackson and Kentucky counsel for de Seroux have participated in settlement discussions for some period of time, and Mr. Jackson made the conditions that he would require as part of any settlement absolutely clear to Mr. de Seroux," Richard Getty, an attorney representing Jackson, said in a statement. "We have not been able to reach agreement thus far, and because of that process being attenuated, we've chosen to move forward vigorously in the litigation."