New York regulators suspend indicted license holders

The New York Gaming Commission on Tuesday afternoon became the first racing regulatory body in the United States to issue summary suspensions to the racing individuals named in indictments unsealed Monday, a decision that will likely trigger suspensions in other jurisdictions.

On Tuesday, the commission said it had suspended the occupational licenses of the Thoroughbred trainers Jason Servis, Jorge Navarro, Henry Argueta, and Michael Tannuzzo, along with the harness trainers Nicholas Surick, Christopher Oakes, and Rick Dane Jr. The commission also suspended the licenses of several veterinarians named in the indictments. All will be denied access to the grounds of all licensed racing and training facilities in the state.

The individuals suspended Tuesday were named to varying degrees in four indictments unsealed Monday by the U.S. Attorney for the Southern District of New York alleging a conspiracy related to the manufacture, acquisition, distribution, and administration of illegal substances. A total of 27 individuals were indicted and arrested, though not all were licensed in New York.

The New York Gaming Commission said in its order that it has scheduled hearings for the suspended licensees next week “at which time you may be represented by counsel and present evidence and arguments on your own behalf.” The order said the suspensions will remain in effect “until such time as the commission in its discretion takes further action, including but not limited to license suspension or revocation and the imposition of a fine not to exceed $25,000 for each incident.”

Racing commissions across the United States practice a system known as reciprocity in which one racing commission honors suspensions issued in another jurisdiction. Ed Martin, president of the Association of Racing Commissioners International, an umbrella group for racing commissions, said Tuesday that summary suspensions are expected to be honored by other racing commissions.

Given the gravity of the charges in the indictments, one or more racing commissions were expected to seek summary suspensions after the indictments were released Monday. The drafting of the suspensions can take time and is subject to review by the commission’s legal department.

Some racing commissions are hesitant to issue summary suspensions because the decisions are often challenged in court, according to racing regulators who spoke on condition of anonymity Monday and Tuesday.

Prior to the decision by the New York commission, the New York Racing Association, The Stronach Group, and the Keeneland Association had already indicated that they planned to bar any of the individuals named in the indictment from their grounds. While NYRA and The Stronach Group own and operate racetracks and training centers, Keeneland also operates the largest auction house in North America, and the company said the individuals would be barred at its sales as well.