The complaint explains that the nine American Pharoah breeding rights, which had been moved from family members to Zayat Stables as collateral when the MGG loan was executed, were later sold by Zayat's wife and children. [5][10] Zayat described Wolfson as "the toughest guy I ever worked for such a perfectionist. This story was posted in Top News and tagged Ahmed Zayat, American Pharoah, fraud, MGG, MGG Investment Group, Triple Crown, Zayat bankruptcy. With having a decade of . Justin Zayat, 23, is the racing and stallion manager at Zayat Stables . The Debtor has responded with voluminous documents in satisfaction of the Trustee's three very extensive document requests, and temporarily withheld only a small portion of those documents for legitimate, good faith, objectively supportable reasonsThe Debtor [eventually] provided the Trustee with the temporarily withheld documents, and the Trustee has been in possession of all the requested documents for more than 60 days., MGG wrote in its Mar. [2] While residing primarily in New Jersey, the Zayats also have residences in New York, Egypt and London. She is jointly named on every material bank account used by the Debtor,. Eskendereya's estimated value at the time was between $6 and $8 million. MGG contends the breeding rights were included in collateral to secure its loans and is seeking $14 million in damages for alleged interference of its loan agreements. [9] His motivation to return to the US was, in part, to commute less and be more involved with his family and children. Especially me, as a younger individual in a sport where its mostly older people, I dont want to look as if Im dressed like a kid. While residing primarily in New Jersey, the Zayats also have residences in New York, Egypt and London. [4], Zayat's bankruptcy revealed other problems. I look forward to wearing it to the races! Justin Zayat. The long wait is now at arm's length for Justin Zayat. Zayat's wife, Joanne Zayat, and his children, Justin Zayat, Ashley Zayat, Benjamin Zayat, and Emma Zayat, also signed the Zayat AP Breeding Rights Transfer Document. Regarding the allegations of fraud in addition to breach of contract, the Zayats' attorney argues that all of MGG's allegations of fraud are actually purported misconduct related to the loan agreements. Although New York also stated that they were investigating,[46] there were no news reports of any adverse action. Solomini stands at stud in New York for $6,500 for a live foal. Ahmed Zayat was born in Egypt in 1962 to an affluent family and grew up in an ethnically diverse neighborhood in the Cairo suburb of Maadi. Kulina, the president of Darby Development LLC, Justin Zayat, racing manager of Triple Crown winner American Pharoah, has kept a periodic diary with The Post since Pharoahs Kentucky Derby win. Four of six horses sold for a total of $366,000, in stark contrast to the $1.9 million valuation Zayat had provided to MGG in December for that same group of horses. Less than three months remain until the 149th running of the Kentucky Derby. Part of MGG's complaint has been that first the investment group, and later the receiver, have struggled to extract from Zayat an accurate list of horses owned by Zayat Stables. Click Here to sign up for a free subscription. Zayat has been described as "controversial,"[3] and "one of the most successful and flamboyant owners in thoroughbred racing" by Joe Drape of the New York Times; his success accompanied by a number of legal controversies. According to the Paulick Report, six of the Zayat horses were entered in the Fasig-Tipton Winter Mixed Sale in Lexington on Tuesday; four sold for a combined $366,000, well below the $1.9 million that Zayat had estimated their worth to be in a liquidation plan submitted to MGG in December. He is the CEO of Zayat Stables, LLC, a Thoroughbred horse racing business which bred and owns the 2015 Triple Crown winner American Pharoah. The Zayats led the entourage that greeted the Triple Crown winner at Blue Grass Airport and then followed him on the quick . I wanted it to be pro-peace, and about loving your neighbor." Three separate memorandums filed April 21 outline why claims made against Ahmed Zayat, his son Justin Zayat, and the entire Zayat family by MGG Investment Group, which loaned tens of millions of dollars to Zayat Stables, should not be settled by a Kentucky court. These include: 2013 Breeders' Cup runner and 2012 Haskell Invitational winner Paynter; 2013 Alfred G. Vanderbilt Handicap winner Justin Phillip; 2012 Arkansas Derby winner Bodemeister; Pioneerof the Nile who won the 2008 CashCall Futurity and 2009 Santa Anita Derby; three-time Grade I winner Zensational. Its been a wild ride since Zayat first joined his father in the horse racing business. In short, if the Trustee is to understand the conduct and financial transactions of the Debtor, he must necessarily obtain financial information relating to these third parties, the filing contended. Bunnell has not yet entered an order. "MGG's fraud allegations primarily concern the allegedly fraudulent scheme whereby defendants sold 'collateral pledged to secure the loans, including equine collateral, without obtaining MGG's consent or otherwise notifying MGG as required by loan documents or paying MGG the proceeds of these Collateral sales.' [35] He had also paid Fifth Third $4.3 million from the proceeds of the sale of breeding rights to Zensational, all of which left him low on cash when the bank called in its loans. In 2015, in the midst of taking his final exams at New York University, Zayat found himself juggling his college graduation with American Pharoahs incredible run at Belmont Stakes. [12][13] Zayat Stables owns approximately 200 horses at any one time. [24] Switching horses in the 2012 Belmont Stakes, Zayat's colt Paynter also finished second. The company won a $24.5 million summary judgment against Zayat in June 2020. Subscribe for FREE to the Daily PDF or the News Alerts. Attorneys for MGG Investment Group, which is suing Zayat Stables for allegedly defaulting on a $23 million loan, filed paperwork Feb. 11 naming a slew of additional defendants, many of whom purchased horses or breeding rights privately from Zayat Stables. That same ongoing pattern of delay, obstruction, and gamesmanship requires that the Motion be denied in its entirety, the filing stated. Although he has since worked his way up to the role ofpresident and CEO of Racing and Bloodstock at Zayat Stables,the young business owner said it wasnt always easy to prove his worth in the racing world. Justin Zayat was one of three entrepreneurs custom-outfitted in Jos. [4] Zayat owed about $2.4 million to the Keeneland Association, and $1.2 million to other creditors[38] including clinics, horse transport companies, boarding farms, and trainersamong them Bob Baffert. I think of this is as my sports team. Model wife of XFL QB celebrates 'meaningful' win after NFL exile This story has been shared 22,274 times . High school basketball playoffs: Predictions for every region as the Boys Sweet 16 nears, New faces joining WKYT, The CW Lexington at anchor, weather desks, Saturdays Kentucky Derby preps: Points on line in Holy Bull but not in Baffert Stakes. El Kabeir was valued for $4.25 million in the July 2017 appraisal and $2.5 million in Zayat Stables liquidation proposal. It is this ongoing pattern of obstructive activity, coupled with the Debtor's shifting and highly questionable statements in his schedulesthat more than justified the Trustee's issuance of the subpoenas at issue. With only three days until the race, Zayat is trying Justin Zayat, racing manager of American Pharoah, will be keeping a periodic diary leading up to the Belmont Stakes on Saturday. [8], The business base for the horse racing operation is Hackensack, New Jersey, but Zayat's horses live in different locations across the US. Justin Zayat, racing manager of American Pharoah, will be keeping a periodic diary leading up to the Belmont Stakes on Saturday. Such purported failure to notify MGG of the disposition of collateral is allegedly a breach of the loan documents," the memorandum filed on behalf of Ahmed Zayat states. Download Today's Edition For Zayat, its all part of the thrill of competition and the sweet taste of victory. "[43] On June 4, 2015, a federal judge in Newark, New Jersey, dismissed Rubinsky's lawsuit, citing both Rubinsky's difficulty in proving his case and the expired statute of limitations. I did not disclose to you why we had to sell some assets in order for us to fund and continue to operate Zayat Stables and allowing myself the time to find the capital to get you paid in full. [5][9][10], Zayat continued to run Al-Ahram until 2007,[12] but periodically returned to the United States, where he started buying racehorses and formed Zayat Stables in 2005. . CLICK HERE TO SUBSCRIBE TO THE TDN FOR FREE! "The contracts at issue in this action were negotiated and executed in New York and New Jerseyand provide for the application of New York law. According to the amended complaint, Ashford Stud and Coolmore, also known as Orpendale, knew that MGG had a security interest on all of the breeding shares as well as Zayat Stables horses. Hill N Dale Farm, which the complaint alleges bought American Cleopatra in a private sale for $1.3 million from Justin Zayat, on behalf of Zayat Stables. Three times Zayat's horses placed second in the Kentucky Derby. They have watched from the Churchill Downs stands as their horse opened a lead 2023 NYP Holdings, Inc. All Rights Reserved, American Pharoah is now permanently hitched to the '21' Club, American Pharoah's run in the Haskell is all about the people, Justin Zayat's amazing ride carries on beyond Belmont glory, For relaxed Bob Baffert, this Triple Crown shot is much different, How American Pharoah will spend the biggest day of his life, Justin Zayat: One tip is helping me enjoy this Triple Crown ride, American Pharoah acting like his powerful self in final workout, Justin Zayat: American Pharoah's Preakness has me on 'Cloud 99', American Pharoah feeling like 'a billion bucks' before Preakness, Justin Zayat: American Pharoah will 'earn' Preakness from rail, American Pharoah has given Justin Zayat a 'surreal' week, This racing family has big shot to finally capture elusive Ky. Derby, King Charles evicting Harry, Meghan from Frogmore Cottage, giving to Andrew, Hoda Kotbs lengthy Today show absence caused by family health matter, Ed Sheerans wife, Cherry Seaborn, was diagnosed with tumor during pregnancy, Meghan Markle, Prince Harry have first night out since bombshell Spare released, Savannah Guthrie Rushed Out Of Today After Testing Positive For COVID-19 During Live Broadcast. Emails from Zayat in mid-January indicate there remained confusion on this point. MGG is a Delaware limited partnership based in New York. Suite 100 . [34] When he thought the bank was willing to restructure its loans, Zayat withdrew 67 horses he intended to sell at Keeneland's 2009 September and November sales and instead purchased 24 more yearlings. New Jersey Sports and Exposition Authority, United States District Court for the District of New Jersey, "American Pharoah is Unanimous 2015 Horse of the Year", "Local Orthodox family wins the Kentucky Derby. [10] His daughters were the inspiration for the names of two race horses, stakes-winner Point Ashley, who in turn inspired daughter Ashley's costume jewelry business name; and Littleprincessemma, dam of American Pharoah. A judge can also deny the discharge of a particular debt. In receiver Elizabeth Woodwards initial report, filed Feb. 5, she and bloodstock consultant Gatewood Bell noted that through checking on horses listed on Zayat Stables collateral list, she had found several horses were previously sold, apparently without notice to MGG. Other horses apparently have been traded in exchange for a write-off of board bills, which the filing said apparently was a common practice of Zayat Stables. Motivated purely by self-interest and greed, MGG, however, was more interested in litigating this dispute at the expense of other creditors. Zayat Bankruptcy Trustee Alleges 'Ongoing Pattern of Delay, Obstruction, and Gamesmanship'. "[11], Zayat returned to Egypt in 1995 and formed an investment group,[9] which purchased the Al-Ahram Beverages Company in 1997, outbidding Anheuser-Busch and Heineken International. Red Bank, NJ 07701, p: (732) 747-8060 The primary role of a trustee in bankruptcy cases is to ensure that a debtor who files for federal bankruptcy protection is not hiding assets that could instead be used to pay creditors. [T]he Trustee's investigation reveals that the Debtor and his family members have engaged in a pattern of intermingling of assets and ongoing financial transactions among themselves, the attorney bankruptcy trustee Donald Biase wrote in a July 13 filing in United States Bankruptcy Court (District of New Jersey). The Circuit Court's Order appointing the Receiver directs her to take possession of the collateral and maximize its value, which is the work she is doing. 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