Right to work? Jockey's career threatened by race-fixing scandal

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Right to work? Jockey's career threatened by race-fixing scandal

Friday, June 01, 2007
By Troy Ruel
muskegonchronicle.com

Veteran thoroughbred jockey Terry Houghton has recovered from the spills and injuries of the track, including one that almost killed him.

But now his career is threatened by a race-fixing scandal involving Great Lakes Downs, and the only way for him to survive is to fight a system in which he's guilty until proven innocent.

Houghton is one of the central figures in a 14-month investigation by the racing industry and federal authorities involving allegations of race fixing. The probe by the Thoroughbred Racing Protective Bureau and the FBI involves as many as nine other jockeys and includes several races last summer at the Fruitport Township track.

The evidence, triggered by unusual betting patterns and large payouts on simulcast races, appears to show elements of a crime, according to the Thoroughbred Racing Protective Bureau. All those involved could face criminal prosecution.

But even though no charges have been filed, Houghton and others already have been punished. After being shown details of the investigation, owners of some of America's largest tracks banned the 10 jockeys.

In fact, it wasn't until a hearing earlier this month before the Illinois racing commission -- forced by Houghton under that state's right-to-work law -- that he even heard the allegations.

He's since fired back by filing a lawsuit in excess of $10 million against Arlington Park Race Course at Cook County Circuit Court in Chicago on May 25, and has threatened to do the same here in Michigan if similar bans continue to be enforced. However, Michigan is not a right-to-work state.

The suit claims that Arlington Park management is violating his constitutional rights by not letting him compete, has defamed his reputation and inflicted emotional distress, among other charges.

"It's extremely frustrating that it has had to come down to this," said Houghton, who has been riding at Indiana Downs because it's been announced he won't be allowed to ride at Great Lakes Downs if he were to apply.

In April, prior to the beginning of the current race meet, Magna Entertainment Corp. officials released a statement that they continue to stand behind their "initial decision not to allow jockeys who were the subject of that investigation to ride horses at tracks owned or operated by MEC."

Houghton believes that is unfair.

"Never in my career, never, have I been accused of doing anything to hurt this sport," he said. "Basically, what they are doing to my reputation is unbelievable and I've done nothing wrong."

Raising red flags

Houghton, 37, has had an amazing horse racing career.

The 5-foot-8, 115-pound, jockey started riding at the age of 17 at Ladbroke-Detroit Race Course and eventually became one of the leading riders in Michigan thoroughbred racing history. He is approaching the magical 4,000-win career plateau.

Through Thursday, he had 3,977 career victories, just 33 wins shy of the Hall of Fame-like standard.

However, he was among a group of jockeys who were banned by the owners of Tampa Bay Downs in late December after the FBI interviewed riders at the Florida track. Among them were Great Lakes Downs regulars Houghton, Joseph Judice, Luis Castillo, Jose Delgado and Ricardo Valdes.

According to the transcript of the Illinois Racing Administrative Board hearing, the jockeys were questioned after a series of unusually large wagers was placed on simulcast races at Great Lakes Downs from Delaware Park in Wilmington, Del.

In one case, an exercise rider in Delaware -- who is Valdes' brother -- attempted to cash winning tickets worth nearly $19,000 after a Sept. 5 race. Charts show Houghton was favored to win aboard Magical Powers in that Michigan-bred claiming race; he finished sixth -- nearly seven lengths behind the winner.

Betting patterns and unusual wagering amounts ultimately triggered an internal audit by the Racing Bureau and the eventual FBI investigation, Illinois court records show. The probe linked cell phone records to an unnamed jockey back in Michigan minutes prior to the race in question.

In all, Racing Bureau officials say they've investigated nearly 25 races last year from across the country that drew suspicious wagering activity -- at least 10 coming from Great Lakes Downs. Of that total, three were included in the report against Houghton -- April 10 at Tampa Bay Downs, and Aug. 26 and Sept. 5 at Great Lakes Downs.

But Racing Bureau officials have been keeping their investigation details close to the vest.

During the Illinois hearing, Racing Bureau President Franklin J. Fabian -- a former FBI, Secret Service and anti-terror agent -- denied watching the races in question. He also denied interviewing trainers or veterinarians at the track or checking Houghton's cell phone records or bank accounts that would indicate a direct link to the suspicious betting activity.

When asked during cross examination if he had evidence to prove Houghton's guilt, Fabian responded by saying, "I have no information that he received money for pulling (holding back) a horse."

Instead, the Racing Bureau points to its own wagering analysis and released those results to its member tracks across the country, including Tampa Bay Downs and Gulfstream Park in Florida, Turfway Park in Kentucky, and Arlington Park. All have used their rights as private property owners to ban one or all of the riders at some point.

Fabian has refused to comment on the case and last released an e-mailed statement on April 29, saying he "cannot comment further regarding the ongoing investigation involving the riders mentioned and others previously identified."

But even though the investigation is in its second year, no criminal charges or indictments have been filed. Track stewards, according to the state Office of Racing Commissioner, have previously stated that they have found no evidence to believe Houghton played a role in manipulating the race in question.

Houghton also maintains his innocence.

"I just thank God that I'm able to ride and work, even if it's only to pay my attorney fees now," said Houghton. "They are basing everything on irregular betting patterns and have made no attempt to review any of the races.

"I want to win every time I race. If I have any faults, it's that I might over try."

Houghton won 185 races last year at Great Lakes Downs for $1.9 million in earnings. Through November, he had earned $2.2 million, including races at other tracks.

Those earnings are divided between the jockey, horse owner, trainer and groomers.

Mixed reaction

Racing historically is based on trust between owners, trainers, jockeys and even the horses they ride.

And those who have worked with Houghton for years say there is no reason not to trust him now.

Robert Gorham trained Magical Powers in the Sept. 5 race that is under investigation and has said Great Lakes Downs -- a converted 5/8ths-mile former harness track -- has many odd intricacies because of the conversion to a thoroughbred track.

He said the layout of the shorter track with tighter turns makes it more challenging to predict for the betting public. He added that he only vaguely recalls the race in question, but said he remembers being surprised that his horse was listed among the favorites.

Gorham is among at least four current Great Lakes Downs trainers who recently have used Houghton on mounts at Hawthorne Race Course or Indiana Downs. He hopes to be able to call upon him when the Michigan stakes season begins June 9.

"Terry is the type of first-call rider you want whenever you have that chance," said Shane Spiess, the inaugural training champion at Great Lakes Downs in 1999. "I believe he's getting a bad deal and I stand behind him 100 percent.

"I race about 300 head a year, and in all my years I've known Terry, never once have I questioned him about a horse. He's as nice and polite of a family guy as you can meet."

Other Michigan trainers that continue to use Houghton include Reid Gross and four-time champion Gerald Bennett.

Indiana Downs general manager Jon Schuster hasn't questioned the decision to let Houghton race there.

"It wasn't a terribly difficult decision to make," said Schuster. "Our state was willing to license him, so I felt we had no reason not to.

"Accusations are a dime a dozen. If there are charges or indictments, absolutely, we would revisit the decision. Until then, we have no problem with it."

Houghton said he has applied for a license to race in Michigan -- Great Lakes Downs is the state's only thoroughbred track -- and "I have the receipt to prove it," he said.

But, the state Office of Race Commissioner, which has said it has found no evidence of wrongdoing on Houghton's part, will only say that his application is "under review."

Houghton couldn't ride at the local track anyway because of MEC's decision to ban all jockeys involved in the investigation.

Great Lakes Downs General manager Amy MacNeil has referred questions about Houghton's riding status at the track to the MEC corporate offices, which oversee 11 racing facilities across North America.

But, this is the last year Magna will offer live racing here. Horsemen have been busy looking for a buyer for the track and the latest controversy doesn't help.

Great Lakes Downs has sanctioned jockeys before.

In 2005, jockey Roberto Perez was suspended for seven years and fined $7,000 after placing an illegal wager on his own behalf at Great Lakes Downs; and Jeffrey H. Faul faced a similar six-year suspension in 2003 for using an electrical device to "unlawfully influence the outcome of a race."

"In any sport in which gambling is involved, there's going to be some corruption," said MacNeil. "We are doing our best to prevent that and I'm proud of the staff for taking a proactive approach.

"I believe these are isolated cases, and in no way, is it indicative of the horse racing in Michigan."