Thoroughbred owner Paolucci pleads guilty in federal fraud case

Ron Paolucci, the outspoken Thoroughbred owner who started hundreds of horses a year at the height of his involvement in racing in the late 2010s, has pleaded guilty to counts of defrauding the federal government and filing a false tax return, according to court records.

The Jan. 9 plea agreement, which was first reported by The Paulick Report, includes an admission by Paolucci that he failed to pay federal income taxes and did not send payroll taxes and other mandatory withholdings to the IRS from employees of a company he controlled, American Management Staffing, from 2014 to 2020. Paolucci is facing a maximum sentence of eight years in prison on the two counts and will be required to pay $13 million in restitution to the government.

Operating as Loooch Racing Stables, and striking dozens of partnerships, Paolucci dominated Ohio racing in the late 2010s. He was second in the United States by total wins in both 2017 and 2018. As a partner, he co-campaigned two Grade 1 winners, including Ria Antonia, who was elevated to first in the 2013 Breeders’ Cup Juvenile Fillies via disqualification.

Paolucci disbanded Loooch Racing Stables after 2018, but he continued running under his own name up until last year, though with dwindling starts. In 2019, horses campaigned by the stable made 799 starts, with total earnings of $4.85 million, but the next year that number dropped to 240. The stable made 31 starts in 2021 and 10 starts in 2022.

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