Thoroughbred horse trainer Jorge Navarro changed his not guilty plea to guilty on charges of distributing performance-enhancing drugs (PED) in a case that could be just the proverbial tip of the iceberg in the widespread corruption that seems to permeate much of the $100 billion global horse-racing world.

Navarro and fellow defendant veterinarian Kristian Rhein were charged with “distribution of adulterated and misbranded drugs with the intent to defraud and mislead” by the U.S. Attorney for the Southern District of New York. Navarro admitted to doping several horses, including “Sharp Azteca,” who won eight of his 17 races, including the 2017 “Cigar Mile” at New York’s Aqueduct Racetrack. As part of his plea agreement on a felony count, the U.S. Attorney agreed to drop additional charges.

Both Navarro and Rhein will be sentenced by U.S. District Judge Mary Kay Vyskocil in December. On August 11, the day of his guilty plea, Vyskocil explained that Navarro was charged with “participation in a conspiracy to commit drug adulteration and misbranding of drugs in violation of (federal law).” She said he ”administered and directed others…to administer non-FDA-approved, misbranded, and adulterated drugs, including drugs intended to increase the performance of thoroughbred race horses under his custody and care.”

Navarro agreed to pay over $25 million in restitution, and Rhein will pay over $729,000 for his role in the false billing scheme that hid his drug administration practices. In addition to his fine, the judge told Navarro that sentencing guidelines call for up to five years in prison, 85% of which must be served. The prison term is to be followed by up to three years of probation. The Judge also told him that, as a citizen of Panama, his sentence may also have adverse effects on his immigration status.

Bloodhorse, a hundred-year-old thoroughbred industry publication, calls Navarro’s indictment and plea “a stunning fall from grace of one of racing's top-level trainers.” It points out that, among other achievements, Navarro won seven straight training titles at Monmouth Park Racetrack in New Jersey and that he led the 2018-19 Championship Meet at Gulfstream Park in Florida.

Rhein, who admitted to disregarding his oath as a veterinarian, was one of the vets for “Maximum Security,” the horse that was disqualified from first place for interference after his 2019 Kentucky Derby win. The horse was later transferred to Bob Baffert when his trainer, Jason Servis, was indicted the same day as Navarro. Baffert was suspended from racing after claims against him related to this year’s Kentucky Derby win by “Medina Spirit,“ who tested positive for drugs.

Baffert’s suspension was nullified by a New York federal judge in July, to give him time to respond to claims made against him by the New York Racing Association. Baffert is not involved in the Navarro case, but his troubles are another indication of the alleged corruption and cheating now under investigation by multiple law enforcement entities.

How did the illegal operations work? The Paulick Report says Navarro would obtain misbranded or adulterated blood doping drugs, vasodilators, bronchodilators, “bleeder pills,” clenbuterol, and SGF-1000. These drugs purportedly contain growth factors that are undetectable by routine drug screens. He and his vet would either import the drugs or obtain them from unregistered manufacturers. These drugs are not approved by the federal Food and Drug Administration, are dangerous, and can cause heart problems or death when given to horses before races that require ”intense physical exertion.”

In an August 11 press release from the Manhattan U.S Attorney’s Office, Audrey Strauss explained that the two defendants, Navarro and Rhein, “represent the supply side and customer side of the market in performance-enhancing substances that have corrupted much of the horse racing industry.” She said that her office is working with the FBI to “investigate and prosecute the corruption, fraud, and endangerment at every level.” Indictments related to the case include FBI wiretaps that show Navarro and Servis discussing their PED conspiracy.

The Washington Post reported last March that Navarro was one of 27 indicted “ruthless cheats who gamed the system to administer performance-enhancing drugs to their horses.” The Paulick Report, an independent horse-racing publication, said that Navarro admitted shipping a blood doping agent to co-defendants Michael Tannuzzo and giving drugs to another co-defendant, Marcos Zulueta. He also admitted to giving bronchodilators to co-defendant Servis, who recently filed a motion to suppress some FBI wiretaps. Servis has not changed his not guilty plea.

U.S. Attorney Strauss said that the case against Navarro grew out of not only an investigation of trainers and vets but of many others who “manufacture, distribute and receive adulterated and misbranded PEDs” at every level of professional horse-racing. She explained that the participants’ goals were to “improve performance and receive prize money” and that the illegal activities took place at tracks in at least six U.S. states and the United Arab Emirates.

One of Navarro’s horses, “XY Jet,” won the 2019 Golden Shaheen race in Dubai. He admitted giving “XY Jet” what he called “blood building substances” before the Dubai race and another race at Gulfstream Park. “XY Jet” died in January 2020 after winning over $3 million. The Paulick Report quotes Navarro calling the horse “part of his family.” At sentencing, Navarro also admitted to doping multiple graded stakes winner “War Story”; “Shancelot,” a Saratoga, Gulfstream and Monmouth Park Winner of over $600,000; and “Nanoosh,” a 12-to-1 winner at Zia Park in New Mexico.

The motivation of those involved is clearly money. Trainers and vets routinely receive a share of the money awarded to winning horses. And the more money trainers and vets win, the more they can charge, and the more likely they are to be hired by additional owners. Until they get caught.