Canani faces long suspension for sales fraud

ARCADIA, Calif. - Trainer Julio Canani, who has won three Breeders’ Cup races in his career, has been suspended for at least 13 months by Santa Anita stewards for his role in a 2012 civil court decision in which a jury found him liable for fraud in the sale of California-based horses owned by Jeff Nielsen in 2008.

According to a ruling issued on Sunday by Santa Anita stewards Scott Chaney, Kim Sawyer, and Tom Ward, Canani’s suspension will run from Oct. 26 through the term of his existing license, Nov. 30, 2016. At that point, Canani must participate in a fitness for license hearing before a potential reinstatement.

During the term of the suspension, Canani cannot attend the races or be in the stables. Sunday, Canani indicated that he plans to appeal. The stewards said they delayed the start date of the suspension anticipating that Canani would take additional legal action.

In June 2012, a California jury awarded $48,750 in actual damages and $50,000 in punitive damages to Nielsen, of Minnesota, stemming from a 2009 lawsuit against Canani and horse owner Roger Licht for the sale of some of Nielsen’s California-based horses in 2008.

The suit alleged that Canani convinced Nielsen to sell horses at low prices, and that Canani later resold them for higher values. The case was heard by a mediator, but an agreement between the parties was not reached, leading to the jury trial.

The jury ruled that Canani misrepresented details of the physical condition and values of the horses and told Nielsen that the horses were being sold to another party when Canani bought them himself and then sold them to others for a profit. The suit alleged that Licht was a partner with Canani on the sale of some horses.

The jury ruled that Canani must pay $47,188 of the actual damages.

In a statement that accompanied Sunday’s ruling, the stewards wrote there was a delay in legal action by the racing board until all appeals were completed. In their decision, the stewards cited the jury’s findings and ruled that Canani violated racing board rules “for fraud, breach of fiduciary duty, conspiracy and unjust enrichment involving the sale of racehorses in his care.”

Canani, 77, won the 1999 BC Mile with Silic and the same race two years later with Val Royal. In 2004, he won the Juvenile Fillies with Sweet Catomine, who was later named champion 2-year-old filly for that season. Canani won the $1 million Santa Anita Handicap with Martial Law in 1989.

Canani’s stable has not been as prominent in recent years. This year through Sunday, his stable has won eight races with 52 starters who have earned $300,101. His most recent stakes win was Rosengold in the Tsunami Slew Stakes at Hollywood Park in June 2013.