Zayat Says claim He Owes Offshore Bookmaker $1.65 Million Meritless
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Zayat Says Lawsuit Claiming He Owes Offshore Bookmaker $1.65 Million Meritless
Ahmed Zayat, owner of Kentucky Derby and Preakness winner American Pharoah, is fighting a lawsuit filed last year by a former recruiter for offshore bookmakers who says Zayat failed to pay a $1.65 million gambling debt from 2003, leaving the recruiter on the hook for the money.
The suit was filed March 11, 2014, in U.S. District Court in New Jersey where Zayat resides by Howard Rubinsky, who said he was paid commissions from gambling operators on the betting volume and/or losses of people he recruited to wager on sports or horses.
Rubinsky was associated with brothers Michael and Jeffrey Jelinsky described by Zayat as family friends when they pleaded guilty in 2009 to illegal bookmaking felony charges in Las Vegas, eventually serving time in jail. Rubinsky pleaded guilty to felony charges of illegal transmission of wagering information, money laundering and abetting. He was put on three years probation for his role in the case.
The lawsuit is based on what Rubinsky and his attorneys say was breach of a personal services contract and unjust enrichment, the personal service being to provide Zayat a place to wager, Rubinsky said during a Nov. 19, 2014, deposition. One of those places to wager, Rubinsky said, was a Costa Rica-based sports book named Tradewinds, where he said he helped Zayat get a $3-million line of credit to bet on sports. He earlier set Zayat up to wager at Pinnacle Sports in Curacao, Rubinsky said in his sworn deposition, adding that Zayat won $1.4 million in a short time and was banned by the owner of the sports book because hes too sharp, I dont want this kind of business.
Rubinsky said Zayat lost $2 million at Tradewinds in 2003, paid approximately $350,000 to the casino, then refused to pay the remaining balance. In 2008, after Rubinsky said he pursued Zayat for what he alleged was the outstanding balance to Tradewinds, Zayat paid Rubinsky $25,000 via a check from the Zayat Foundation to Rubinskys sister. Zayat said in his deposition the payment was made to help Rubinsky get through a health problem. I said I was going to help him to make payment toward his medical care, and if he needs money to eat I am happy to help him every week with money to eat, he said in his deposition.
Zayat, both in interrogatories filed with the court and in a Nov. 11, 2014, deposition, denied all of the allegations. I never placed sports bets through the Internet or telephone (or any other means) at Pinnacle or Tradewinds, or any other online-telephone sports betting venue, either directly or through the Jelinskys, Zayat said in a sworn declaration.
Zayat admitted that he bet with the Jelinskys in 2007 or 2008 while in California, and in his Zayat Stables bankruptcy filing in 2010 there are payments to the Jelinskys listed as personal loans to them.
His relationship with the Jelinsky brothers was a red flag to several racing commissions, which in 2010 investigated and ultimately cleared Zayat for fitness to be a licensed owner. He was under scrutiny again in 2013 when the owners of a New Jersey harness track alleged Zayat was improperly extended up to $286,000 in credit by the states advance-deposit wagering system.
In a written statement about the Rubinsky lawsuit, Zayat said: As my family and the racing world awaits watching the brilliant American Pharoah attempt to make history in the Belmont Stakes, there are some who are attempting to cause a distraction with mention of the Zayat Stables reorganization in 2009 as well as bringing up fictitious stories from 11 years ago.
Some media outlets conveniently fail to report that when Zayat Stables filed for bankruptcy protection, it was a defense against predatory lending practices and broken promises made by a bank. These same members of the media also fail to recognize that Zayat Stables paid 100 percent of its creditors in full and that the bankruptcy had nothing to do with me personally.
The rhetoric accusing me of owing monies over gambling debts is a pathetic attempt to extort me and we are expecting this meritless lawsuit from a convicted felon to be dismissed.
My family and I thoroughly enjoy interacting with the thousands of loyal fans who reach out to us in many ways including through social media and will continue to do so. We recognize that there will be people who attempt, often through false, desperate measures, to take attention away from American Pharoah, his Hall of Fame trainer Bob Baffert, and brilliant jockey Victor Espinoza. Our family is grateful for this incredible expeeience and will continue to enjoy the ride along with the colts legion of fans.
The Rubinsky lawsuit has received considerable media exposure over the last 24 hours, including this piece in the New York Times that goes into the matter in further detail.
Ahmed Zayat, owner of Kentucky Derby and Preakness winner American Pharoah, is fighting a lawsuit filed last year by a former recruiter for offshore bookmakers who says Zayat failed to pay a $1.65 million gambling debt from 2003, leaving the recruiter on the hook for the money.
The suit was filed March 11, 2014, in U.S. District Court in New Jersey where Zayat resides by Howard Rubinsky, who said he was paid commissions from gambling operators on the betting volume and/or losses of people he recruited to wager on sports or horses.
Rubinsky was associated with brothers Michael and Jeffrey Jelinsky described by Zayat as family friends when they pleaded guilty in 2009 to illegal bookmaking felony charges in Las Vegas, eventually serving time in jail. Rubinsky pleaded guilty to felony charges of illegal transmission of wagering information, money laundering and abetting. He was put on three years probation for his role in the case.
The lawsuit is based on what Rubinsky and his attorneys say was breach of a personal services contract and unjust enrichment, the personal service being to provide Zayat a place to wager, Rubinsky said during a Nov. 19, 2014, deposition. One of those places to wager, Rubinsky said, was a Costa Rica-based sports book named Tradewinds, where he said he helped Zayat get a $3-million line of credit to bet on sports. He earlier set Zayat up to wager at Pinnacle Sports in Curacao, Rubinsky said in his sworn deposition, adding that Zayat won $1.4 million in a short time and was banned by the owner of the sports book because hes too sharp, I dont want this kind of business.
Rubinsky said Zayat lost $2 million at Tradewinds in 2003, paid approximately $350,000 to the casino, then refused to pay the remaining balance. In 2008, after Rubinsky said he pursued Zayat for what he alleged was the outstanding balance to Tradewinds, Zayat paid Rubinsky $25,000 via a check from the Zayat Foundation to Rubinskys sister. Zayat said in his deposition the payment was made to help Rubinsky get through a health problem. I said I was going to help him to make payment toward his medical care, and if he needs money to eat I am happy to help him every week with money to eat, he said in his deposition.
Zayat, both in interrogatories filed with the court and in a Nov. 11, 2014, deposition, denied all of the allegations. I never placed sports bets through the Internet or telephone (or any other means) at Pinnacle or Tradewinds, or any other online-telephone sports betting venue, either directly or through the Jelinskys, Zayat said in a sworn declaration.
Zayat admitted that he bet with the Jelinskys in 2007 or 2008 while in California, and in his Zayat Stables bankruptcy filing in 2010 there are payments to the Jelinskys listed as personal loans to them.
His relationship with the Jelinsky brothers was a red flag to several racing commissions, which in 2010 investigated and ultimately cleared Zayat for fitness to be a licensed owner. He was under scrutiny again in 2013 when the owners of a New Jersey harness track alleged Zayat was improperly extended up to $286,000 in credit by the states advance-deposit wagering system.
In a written statement about the Rubinsky lawsuit, Zayat said: As my family and the racing world awaits watching the brilliant American Pharoah attempt to make history in the Belmont Stakes, there are some who are attempting to cause a distraction with mention of the Zayat Stables reorganization in 2009 as well as bringing up fictitious stories from 11 years ago.
Some media outlets conveniently fail to report that when Zayat Stables filed for bankruptcy protection, it was a defense against predatory lending practices and broken promises made by a bank. These same members of the media also fail to recognize that Zayat Stables paid 100 percent of its creditors in full and that the bankruptcy had nothing to do with me personally.
The rhetoric accusing me of owing monies over gambling debts is a pathetic attempt to extort me and we are expecting this meritless lawsuit from a convicted felon to be dismissed.
My family and I thoroughly enjoy interacting with the thousands of loyal fans who reach out to us in many ways including through social media and will continue to do so. We recognize that there will be people who attempt, often through false, desperate measures, to take attention away from American Pharoah, his Hall of Fame trainer Bob Baffert, and brilliant jockey Victor Espinoza. Our family is grateful for this incredible expeeience and will continue to enjoy the ride along with the colts legion of fans.
The Rubinsky lawsuit has received considerable media exposure over the last 24 hours, including this piece in the New York Times that goes into the matter in further detail.
Comments
Totally agree....Pinny was the 800 lb elephant
"In a Nov. 19, 2014, deposition, Mr. Rubinsky said at one point that Mr. Zayat had offered to pay him $1 million if he told the sportsbook that he had died in a car accident."
What a piece of work.
He also acknowledged betting at times through the brothers and subsequently being scammed by them. He said he learned of the deception when the federal agents came to his office and played tapes of wiretaps of the two explaining how they had taken Mr. Zayats money. One brother was telling him to bet on horses that he knew were going to lose, and the other was taking Mr. Zayats bet.
So I would lose because they were giving me the wrong horses, he admitted.
"Mr. Rubinsky addressed Mr. Zayat as Ephraim, his Jewish name."
AhhahahahahanajajJanabNnNajajajahahahahaha.
Who? Zayat or Pinnacle? Pinnacle are just as low as Zayat is.
lol..I just cant stand them..like the horse but hate the owners..