The trustee's investigation reveals that the debtor (Zayat) and his family members have engaged in a pattern of intermingling of assets and ongoing financial transactions among themselves, Zayat Stables, LLC, and the creditors of the debtor, the memorandum from Biase states. All rights reserved. That was the longest three-week lead-up ever. [5], In 2012, Zayat Stables' horses Bodemeister and then Paynter ran second in each of the three legs of the Triple Crown. Ahmed Zayat and his wife, Joanne, live in New Jersey; Justin Zayat lives in New Jersey, where Zayat Stables is based; the Zayats' daughter Ashley lives and operates a jewelry company in. On the Sunday prior to the Derby, Eskendereya was withdrawn from the race and subsequently retired to stud due to a soft tissue injury that would have taken at least a year to heal. 23 filing that Ahmed Zayat has attempted to create a record based on false and misleading assertions.. With race day now here, Zayat is Justin Zayat, racing manager of American Pharoah, is keeping a periodic diary leading up to the Belmont Stakes on Saturday. Even without many of the documents requested, Biase was able to trace a number of financial transactions he found questionable between Zayat Stables and Ahmed Zayat's wife, Joanne, son Justin and other family members. MGG's filing continues: Far from being the 'honest but unfortunate debtor' that the Chapter 7 process aims to protect, Ahmed Zayat has demonstrated time and again that his ultimate goal is to manipulate the bankruptcy process to shield himself at the expenses of the Trustee and creditors.. "Im managing assetsthough in our case, the assets are horses.. [5] In 2010, Zayat campaigned Eskendereya, winner of the Wood Memorial and considered the favorite for the Kentucky Derby. It was from Bob Baffert, the trainer of a record seven Haskell Invitational winners. She is an award-winning business reporter who also has covered agriculture, gambling, horses and hemp. john mcinerney wife; texas volleyball roster 2022; charcuterie board delivery california; stella may . Model wife of XFL QB celebrates 'meaningful' win after NFL exile This story has been shared 22,274 times . MGG's filing contained excerpts from email exchanges between Ahmed Zayat and MGG that date to Jan. 12, 2020, which was 10 days before MGG filed its bombshell lawsuit against him in a Kentucky court. Back on June 4, the trustee issued a Rule 2004 subpoena to Zayat's wife, Joanne Zayat, and three of their four children, Emma, Benjamin and Justin Zayat. These memorandums assert two other positionsas well: that Zayat family members did not interfere with the terms of the loan agreements with MGG when they sold nine breeding rights to American Pharoah, andthat separate allegations of fraud are not valid because the charges merely repeat what has been alleged as breaches of the contract. Really! Also added to the lawsuit: LNJ Foxwoods, the Long Island-based stable of Marchon eyewear principle Larry Roth, his wife Nanci and daughter Jaime Roth. Worse, their counsel has engaged in extensive redactions of the bank account statements they did produce based upon nothing but their own unilateral determinations of relevance, and has also simply omitted bank records for important periods, the filing continued. 60 Broad St. In a previous statement, Zayat called Makers lawsuit absurd, and said he fully expects this lawsuit will be dismissed and intends to seek appropriate sanctions against Mr. Maker for pursuing this malicious action.. 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. Your TDN download has begun. The trustee further argued that the subpoenas at issue are not only fully justified, but many are made necessary because the Debtor himself refused to produce records from a number of the financial institutions at which he has accounts., Biase explained the convoluted process by which Zayat, during the course of his bankruptcy plea, even directed the Trustee to serve his own financial institutions with subpoenas, only to then have the Debtor's family members then move to quash those very subpoenas.. If alleged fraud is uncovered in a bankruptcy filing, the Federal Bureau of Investigation can investigate, and the U.S. Department of Justice can prosecute if it believes a crime has been committed. Foxwoods could not be reached immediately for comment. This story was posted in Top News and tagged Ahmed Zayat, American Pharoah, Chapter 7, Donald Biase, Justin Zaya, Zayat bankruptcy, Zayat Stables. Copyright 2023 Blenheim Publishing, LLC. A motion by Zayat's attorneys to remove the receiver was denied last week. A statement from Dean Dorton said Woodward was not aware an amended complaint was being filed by MGG Investment Group. Not a subscriber? MGG has gone as far as filing baseless claims against reputable horse farms and bloodstock agents. I agreed to give him money because he told me he was ill and broke. Zayat Stables successfully completed its Chapter 11 reorganization, but Zayat was next plagued by legal issues related to his penchant for betting large sums of money on horse racing. [49] The plaintiff, Howard Rubinsky, was an associate of the Jelinskys who had also pleaded guilty in the illegal betting operation. Now, one week later, MGG Investment Group, LP, the lender who is separately suing Zayat and his family members for allegedly obtaining a $24 million loan by fraud and then not repaying it, told the same court that the trustee's probe must be allowed to go forward because Zayat's attempt to put an end to the discovery process does nothing more than establish that Ahmed Zayat is a perpetual liar determined to hinder and obstruct the Trustee, the Court and creditors at every turn.. Aside from Justin, his youngest son, 16-year-old Benjamin, and daughters Ashley and Emma are also involved in stable decisions, and Justin said, "My dad and I call Benjamin the real boss. "[32] Zayat was not a party to the lawsuit and he paid off all debts owed to the Sports Authority. AP Photo/Benoit Photo [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. [19] Zayat Stables keeps about 30 broodmares and their foals in Kentucky along with roughly 20 yearlings. This story was originally published February 12, 2020, 3:13 PM. Zayat later got into the beer distribution business and owned the. 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. All rights reserved. [9], Zayat filed for Chapter 11 Bankruptcy protection in February 2010. 25 Feb/23. Specifically, MGG alleged, documents pertaining to bank accounts in the names of Zayat's wife (Joanne Zayat) and son (Justin Zayat) are now "indisputably relevant to the Trustee's. [24] Switching horses in the 2012 Belmont Stakes, Zayat's colt Paynter also finished second. [15], Zayat has experienced significant highs and lows in his quest for Triple Crown classic wins. 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. Zayat, 52, moved to the U.S. at the age of 18. And hes a clean-cut, good, smart individual., The suit feels great! "Here, Kentucky has, at absolute best, only a tangential relationship to this action," the memorandum filed on behalf of Ahmed Zayat states. None of the new defendants has had an opportunity to file their responses to the allegations. Zayat's lawyer described the suit as "a meritless claim",[32] filed a motion to dismiss in 2015 alleging lack of evidence,[43] and argued that the statute of limitations of six years had run. The trustee obtained a Dec. 23, 2019, communication from Zayat to a creditor stating: Maybe it is our turn that things turn back to normalcy, and I will have the liquidity and right funds I need to manage Zayat Stables without relying on our income and ownerships on companies in Egypt that have been supporting this business., Another note from Zayat to a creditor on Jan. 12, 2020, stated: I have pushed myself to the brink of bankruptcy personally by using every dollar I have in America to fund the company until I find an investor to pay you in full., Biase observed: Given the foregoing facts, there is reason to believe the debtor still has assets in Egypt, some of which are the funds being funneled to him from the debtor's brother Sherif through accounts held in the name of JPZ Holdings (Justin Zayat's company) and Joanne Zayat.. MyRacehorse.com, which the complaint alleges bought a 55 percent stake in Amandrea in October 2019 for $115,000. Remember Ben with a gift to Thoroughbred aftercare, Subscribe for FREE to the Daily PDF or the News Alerts, Home Archive Top News MGG to Bankruptcy Judge: 'Zayat Is a Perpetual Liar Determined to Hinder and Obstruct'. 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. Racing has been a family affair for Ahmed Zayat, wife Joanne, and children Ashley, Emma, Justin, and Benjamin. He was breathing fire. Motivated purely by self-interest and greed, MGG, however, was more interested in litigating this dispute at the expense of other creditors. The amended complaint also alleges improper sales relating to Bodemeister, Eskendereya, Zensational, Justin Phillip, Grammajo, Danyelli, Lezendary, Old Glory, Ash n Em, Majid, and Prayer for Relief. On Wednesday, John Sikura, president of Hill n Dale Farm, said he was unaware of any lawsuit regarding American Cleopatra. Justin Zayat was also the beneficiary of nearly $1 million in transfers at a time when the financial condition of the Debtor and Zayat Stables were deeply troubled. She is jointly named on every material bank account used by the Debtor,. Click Here to sign up for a free subscription. racing came on June 22nd, when Justin Zayat, resplendent in top hat and a morning suit, joined his wife, Michelle, to watch their USbased three-year-old colt Gidu finish sixth in the 500,000. Eskendereya's estimated value at the time was between $6 and $8 million. As a senior at NYU, Ahmed and Justin Zayat have lived the dream. Biase also raises questions about whether Zayat may have assets in his native Egypt. His bankruptcy documents listed four loans he had made to members of the Jelinsky family. Zayat Stables has argued a receiver is unnecessary. According to a document filed with the lawsuit, American Cleopatra sold at Fasig-Tipton in a private sale agreement but at the November auction. MGG's Mar. 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. If the download does not complete, Click Here. [e] Zayat stated that he had been visited by federal agents who played tapes where the Jelinsky brothers discussed how they had cheated Zayat out of money by giving him bad betting advice. Download Today's Edition Ahmed and Justin Zayat have lived the dream. global Irish breeding conglomerate Coolmore and Ashford Stud in Versailles, stallion now stands at stud for a reported $200,000. The motions to quash were filed by Justin Zayat, Joanne Zayat, Emma Zayat, Benjamin Zayat and JPZ Holdings LLC. "[3] Under Zayat's leadership, additional brands of beer were introduced, and he developed a non-alcoholic beer, Fayrouz,[b] designed specifically for the Muslim market. [5] Bodemeister finished a narrow second place in both the Kentucky Derby and Preakness Stakes to I'll Have Another. CLICK HERE TO SUBSCRIBE TO THE TDN FOR FREE! But documents filed by MGG in support of the receivership show that the stables owe more than $900,000, much of it to trainers, stables and farms, many more than 60 days past due. Justin Zayat was one of three entrepreneurs custom-outfitted in Jos. [4] In 2015 the operation stood 13 breeding stallions at stud. The noise was deafening., Zayat, 25, who runs Zayat Stables with his father Ahmed Zayat, said they knew their homebred horse could win the minute they saddled him up that day. She takes no position on the issues raised in the original Complaint or the amendments to it and does not intend to do so. Ahmed Zayat (/zjt/; Arabic: ), (born August 31, 1962) is an Egyptian American businessman and owner of Thoroughbred race horses. He handled the logistics of any injuries and helped manage the business side of the stables, including the scouting and purchasing of new horses. His horse breeding stock live mostly in Kentucky, young horses are started in Florida. p: (800) 647-6571 [34] He stated that the problem was that the Lexington branch of the bank worked with the Thoroughbred industry and was willing to restructure his loans, while the bank's corporate headquarters in Cincinnati wanted to get out of the equine lending business altogether. "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.' justin zayat net worth. shaka wear graphic tees is candy digital publicly traded ellen lawson wife of ted lawson justin zayat wife. ", Photo: Skip DicksteinAhmed Zayat (blue suit) hoists the Belmont Stakes trophy surrounded by family and other connections after American Pharoahs 2015 Triple Crown victory. It was a moment watched by millions across the country: American Pharoah, the horse with the misspelled name, had already won both the 2015 Kentucky Derby and Preakness, and he was closing in on the Triple Crown. [2] While residing primarily in New Jersey, the Zayats also have residences in New York, Egypt and London. The document also seeks the return of horses or breeding rights to a court-appointed receiver who now controls Zayat Stables and aims to block the sale of any offspring of mares foaled while they are in the possession of their purchasers. [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. The complaint alleges that the nine shares, which were sold for a collective $3.3 million, did not reflect their fair market value and represents a deep discount from Zayat Stables own $14 million valuation of the Zayat AP Breeding Rights as reflected in the proposed Liquidation Plan as well as an independently appraised value commissioned by Zayat Stables in July 2019 that determined the Zayat AP Breeding Rights to be worth a total of $12.6 million.. Ahmed Zayat and family celebrating American Pharoahs big night at the Eclipse Awards in 2016. This conduct demonstrates MGGs fundamental lack of knowledge of the horse industry and complete lack of respect for the parties essential to its success. Ahmed Zayat and his wife, Joanne, live in New Jersey; Justin Zayat lives in New Jersey, where Zayat Stables is based; the Zayats' daughterAshleylives and operates a jewelry company in Miami; son Benjamin goes to college in New York; and daughter Emma resides in New Jersey and will attend college in New York in the fall. [21], As of 2015[update], Zayat's horses include American Pharoah and 13 other Grade I winners. Its exactly like a portfolio manager," he said. Justin Zayat had a front-row seat. The amended lawsuit comes after a hearing last week before Judge Bunnell on a request to remove Zayat Stables from the hands of a court-appointed receiver. "Because each of the allegations underpinning MGG's fraud claim necessarily relies upon, and would not exist without, the loan documents, and there is no distinction provided whatsoever between the fraud and breach of contract claims, the fraud cause of action must be dismissed as duplicative," the memorandum continued. 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. I want to be dressed as a man and look professional. Lexington, KY 40513. Bunnell has not yet entered an order. After months of legal skirmishes over the ownership of property associated with a breach of contract and fraud lawsuit brought by a New York investment firm, the Zayat family is seeking to have the entire case dismissed due to a lack of jurisdiction. Zayat was born in Cairo, Egypt to a wealthy family, and grew up in an ethnically-diverse neighborhood where he learned to ride horses. 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