Thorn Song dead?
 

The Lexington Herald-Leader is reporting that Thorn Song died on August 2,2009. This is the claim of 5/3 Bank, that Zayat hid the insurance payment from them. Better yet, the registrar at the Jockey Club says no one told him either.

As evidence, the bank said that Zayat diverted $2.75 million in insurance paid on the death of miler Thorn Song.

Zayat has not publicly said that the horse is dead. Jockey Club registrar Rick Bailey said no death report has been filed.

-- http://www.kentucky.com/latest_news/story/1130600.html

Did a quick search on this here site and turn up this exchange from July 29th as the last mention of the boy:

Quote:

Originally Posted by TejanoRun Thorn Song now shows up on the CHRB Vet's List as "Injured." Anybody know what this is about? He wouldn't be on the list for just bolting or an equipment change.

-- http://www.paceadvantage.com/forum/s...3&postcount=12

-- http://www.paceadvantage.com/forum/s...5&postcount=13

How can a multiple G1 winning horse die in California w/ it's equine postmortem program and word not get out (even to the Jockey Club) that said horse is dead?

Well obviously the insurance company checked to make sure he was dead before paying $2.7m. I don't believe Zayat has any obligation to alert the jockey club that his horse died.

There is nothing illegal here, just a classless move by a guy that has proven repeatedly he has no class.

Not illegal? Hiding the fact that collateral for a loan has been destroyed, and the insurance on that collateral paid and spent while the borrower is neglecting to make payments on the loan, as alleged in this case, is not illegal?

Under the rules of the Jockey Club, he does have an obligation to report the death.

16. DEATH REPORTS The death of a registered Thoroughbred, or foal for which registration is pending, should be reported to The Jockey Club Registry Office within 30 days after the death by submitting a completed Report of Deaths form, or through Interactive RegistrationTM at registry.jockeyclub.com, and returning the Certificate of Foal Registration, if issued.
-- http://www.thejockeyclub.com/registry.asp?section=3

Mitchell said he couldn't stand on his front feet when he was sent off to the clinic, but he appears to have been holding back information as well.
His foot abcesses must have been pretty bad as it seems he was put down right away. Had to be bad for the insurance to pay off.
Makes me sick , no respect for the horse who was to be a contender for the BC.
Shame on Zayat , he needs to be run out of the sport completely.
RIP Thorn Song .

No, it is not illegal. That is why he is not under any criminal investigation. He didn't hide anything. He just didn't respond to inquiries from the bank. If they dragged him into court and he lied then it would be illegal.

As for the jockey club, it says deaths should be reported, but there is no legal requirement.

Zayat is in financial trouble, but certainly not legal trouble.

I'm not a lawyer but it seems to me that if you have judgements pending after being sued by a creditor and have come into a substantial amount of money via an insurance settlement that not disclosing those funds is in fact an attempt to defraud the creditor. All the more so if TS was used as collateral on the debt.

He didn't hide it when he filed for bankruptcy, and that is all that matters.

What he did to his creditor is dodge their questions, but he never lied. He obviously knew he was going to file for bankruptcy, which basically means the bank has to deal with the bankruptcy court, not Zayat.

You certainly have a different view of fraud.


Oh, you want to hide behind "legal" on this one? The rules say it should be reported. In the case of a horse in training I think they're going to frown on the oversight a little bit more than the retiree in your back yard. Add to that this 'oversight' was part of an alleged effort to defraud a bank, and it's more likely, though not certain, that they may start section 19 proceedings against him.

19. DECEPTIVE PRACTICES
A. Any person or entity (collectively "Person") may be denied any or all of the privileges of The American Stud Book in the event:

• 1. That Person either knowingly misrepresents or aids or abets the misrepresentation of the identity, name, age, appearance, pedigree, genetic type, eligibility for registration or any other information in, or in connection with, any communication to The Jockey Club;
• 2. That Person steals, counterfeits, forges or alters a certificate or document issued by The Jockey Club or knowingly receives a stolen, counterfeited, forged or altered certificate or document issued by The Jockey Club;
• 3. That Person intentionally violates any of the Principal Rules and Requirements of The American Stud Book; or
• 4. There is a final determination by a court (whether civil, criminal or administrative), an official tribunal or an official racing body that such Person: (a) knowingly misrepresented or aided or abetted the misrepresentation of a horse's identity, name, age, appearance, pedigree, genetic type or any other information in connection with either entry in a race or the racing of any horse; (b) knowingly misrepresented or aided or abetted the misrepresentation of a horse's eligibility for registration or any other matter related to The American Stud Book; (c) stole, counterfeited, forged or altered a certificate or document issued by The Jockey Club or knowingly received a stolen, counterfeited, forged or altered certificate or document issued by The Jockey Club; or (d) killed, abandoned, mistreated, neglected or abused, or otherwise committed an act of cruelty to a horse.

B. In the event the Registrar has a reasonable basis upon which to conclude that any of the circumstances identified in subparagraphs (1) through (4) above may apply, the Registrar shall notify such Person in writing (the "Rule 19 Notification"): (i) of the specific subpart(s) of this rule which apply; (ii) of the basis upon which the Registrar believes that the subparts apply; (iii) of the Registrar's proposed action; and (iv) that the Person has the right, within 30 days following the date that Person receives the Rule 19 Notification, either to submit to the Board of Stewards of The Jockey Club ("Stewards") written information to be considered in their determination of the matter or to request a hearing by submitting to the Stewards a written request for a hearing, briefly stating the reasons why that Person asserts that this rule does not apply and/or that the proposed action is not appropriate ("Rule 19 Hearing Request").


-- http://www.thejockeyclub.com/registry.asp?section=3

Yet.

Zayat didn't deceive anyone. He was filing for bankruptcy and probably was advised by lawyers to just let the bankruptcy court deal with everything.

He had a horse that died that was insured. He was paid and he mentioned this in his bankruptcy filing. Banks make tons of loans and unless the bank drags them into court the owner is not being deceptive simply by not responding to their inquiries. Usually the bank drags them into court when they are unresponsive, but in this case Zayat dragged himself into bankruptcy court.

The bank had every right to require any insurance payments on their collateral be made directly to the bank, but obviously they didn't when they made the loan. The bank made a risky loan. Shocking.

Fifth Third claims Zayat concealed death of Thorn Song - Thoroughbred Times
http://www.thoroughbredtimes.com/nat...horn-Song.aspx

Excerpt:

Fifth Third opposed that motion. The bank also said Zayat now has only $7.75-million in mortality insurance for his horses, and that the amount is less than 8% of the required insurance under the loan agreements.

“Fifth Third’s interest in its cash collateral is not adequately protected if the collateral that produces the cash—the equine collateral—is not adequately protected,” Fifth Third said in a filing to the court. “The debtor must provide for the equine collateral to be insured at the full value of each horse, with Fifth Third named as a loss payee, before this court can determine that Fifth Third is adequately protected.”

No, Zayat filed for bankruptcy because the bank was taking him to court.

(Dec. 17) Ahmed Zayat, the leading Thoroughbred racehorse owner in North America last year and breeder of this year's Kentucky Derby second-place finisher, has been sued in Lexington by Fifth Third Bank. The bank alleges Zayat owes more than $34 million.
-- http://www.kentucky.com/302/story/1062835.html

(Feb 4) Ahmed Zayat, the top Thoroughbred racehorse owner in North America just two years ago, filed for bankruptcy in Newark, N.J., on Wednesday (Feb 3) to block a possible bank takeover of his racing stable.
-- http://www.kentucky.com/latest_news/story/1123110.html

"Fifth Third said it made multiple inquiries into the whereabouts and well-being of the Unbridled’s Song horse and Zayat never responded."

Idiots. What did they give him a phone call? :D That is why you drag people into court, so they can't avoid you.

The bank screwed up by not requiring any insurance payments be made directly to the bank. It is no different if there is a mortgage on your home and it burns down. The bank requires the insurance company to pay them the balance on the mortage directly, not the owner. These idiots at the bank didn't make this a requirement of the loan.

No, people don't file for bankruptcy because somebody is taking them to court, they file for bankruptcy because it is an available option to them. He doesn't want the bank taking over his stable, and bankruptcy protects him if the court agrees. You can't just decide to file for bankruptcy, the court has to agree that it is a necessity.

The bank made a risky loan, and now they are screwed. That is what is going on all over the country right now with home mortgages.

J.T.Lundy thought the banks were idiots too. Who got the last laugh on that one?

The bank made a risky loan? How 'bout this long list of creditors, they ALL made risky loans too I suppose? HA HA HA and all that. Everybody was stupid, huh?
Trainers, farms, feed suppliers, bloodstock agents, transporters, . . . . you name it.

http://media.kentucky.com/smedia/201...filiate.79.pdf

Its lengthy, keep scrolling.

The list of creditors indicated in this PDF file could reach across Egypt. I doubt the following statement he submitted in his own behalf includes any of the listed industry folk this fella owes.

"He has submitted statements from trainers, stallion operations and horse farms in Kentucky, Florida, Pennsylvania, California and Canada stating that the horses are being properly cared for and are available for inspection by the bank."

MP, as far as the bank goes, what is it about commercial lending you don't understand in regard to loan documentation requirements and collateral for such promissory notes? No one's discussing mortgage lending, not at all. A completely different game, this is business lending that one's collateral stands for, and has been presented as having the ability to repay the notes in question. The man is already screwed by allowing the insurance to lapse on his horses. That alone being, only one of, the bank's first requirements. He's violated his loan agreement right there.

How often have you lent commercial money on the bank's behalf, or sitting on the other side of the desk, how often have you applied for such funds?

This man knows, well, this process. Seems he's been here before, dating back to 1993. Another tidbit he omitted from telling the lender. They probably did a bang up job of checking his credit too. Again, their mistake.

http://www.kentucky.com/181/story/1110798.html

Fifth Third also claimed that Zayat failed to disclose on his loan applications a 1993 personal bankruptcy in New Jersey under the name "Ephraim David Zayat."

In Zayat's response Monday, he said that "Ephraim David" is not a pseudonym that (he) has used to avoid legal obligations; it is his Hebrew name from birth," and he claimed the name appears as an alternative name on credit agency reports.

You and I have different moral, ethical, and legal standards. Other than that, we agree completely. :ThmbDown: