UPDATE: ORC Suspends Brooks, Bulletproof; Permission Needed For Transfers

The Ontario Racing Commission announced today the suspension and purse account freeze for Bulletproof Enterprises' Jeffrey Brooks as well as associated stables and members of his family

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On January 26, 2010, the Director of the Ontario Racing Commission (ORC) ordered the immediate suspension of the ORC licences of the following individuals:

Terry S. BROOKS, Jeffrey R. BROOKS, Andrew S. BROOKS, Victoria S. BROOKS.

The Director also suspended the ORC licenses of the following stables:
Perfect World Enterprises, Bulletproof Enterprises, Goldfinger Enterprises, Seize the Day Industries, VAE LLC.

In addition, with the issuance of Ruling SB 14/2010, all racetracks are ordered to hold, freeze, and maintain all funds, purse accounts or monies related to the above-named individuals and entities, pending the completion of an ORC investigation.

Pursuant to Section 18(3) of the Racing Commission Act, 2000 the above named individuals and entities have been ordered to pay the reasonable costs of the due diligence investigation.
The Ontario Racing Commission acts in the public interest to govern, direct, control and regulate the horse racing industry in Ontario and to ensure public confidence in the honesty and integrity of the industry. Those who hold ORC licenses are expected to act in accordance with this mandate.

The text of ORC ruling SB 14/2010, ordering the purse freeze, appears below.


TO: ALL ASSOCIATIONS LICENSED BY THE ONTARIO RACING COMMISSION ("ORC") WHEREAS,. the ORC has the power to govern, control and regulate the operation of race tracks in Ontario at which any form of horse racing is carried on;

AND WHEREAS, the ORC has the power to license persons to operate race tracks, at which horse racing in any of its forms is carried on, and to impose the terms on a license that the Commission considers expedient;

AND WHEREAS, under section 18 of the Racing Commission Act, 2000, the Director may conduct inquiries and investigations into the character, financial history and competence of an applicant for a license or the renewal of a license that are necessary to determine whether the applicant meets the requirements of the Act and the regulations;

AND WHEREAS, further to Rule 1.09 of the Rules of Standardbred Racing, the Director is of the opinion that the following Ruling must be implemented in the best interests of racing;

TAKE NOTICE that the Director hereby immediately Orders all Associations to hold, freeze and maintain all funds, purse accounts or other monies related to all the following individuals and entities:

i. Terry BROOKS (#7306TO)
ii. Jeffrey BROOKS (#6368T7)
iii. Andrew BROOKS (#962K25)
iv. Victoria BROOKS (#718K13)
v. PERFECT WORLD ENTERPRISES (#185E79)
vi. VA ENTERPRISES (#385B37)
vii. BULLETPROOF ENTERPRISES(#862K92)
viii. GOLDFINGER ENTERPRISES (#301 L09)
ix.. SEIZE THE DAY INDUSTRIES (#085L81)
x. VAE LLC(#374J40)

AND FURTHER TAKE NOTICE that the Director Orders all Associations to immediately report in writing to the Director any funds, purse accounts or other monies that are held, frozen or maintained in accordance with this Ruling;

AND FURTHER TAKE NOTICE that the Director hereby Orders that any payments from the held funds shall only be made further to a written request to the Director and subsequent written approval of any such payment by the Director.


Further to the Notice issued earlier today regarding the suspensions involving Terry S. Brooks, Jeffrey R. Brooks, Andrew S. Brooks and Victoria S. Brooks, and the related stables, the Ontario Racing Commission (ORC) is advising all licensees of restrictions on these suspended persons that may directly affect them.

One of the conditions of the immediate suspensions is that any horse owned by the above-mentioned individuals and the related stables cannot be transferred to new ownership without the written permission of the ORC.

The related stables are Perfect World Enterprises, Bulletproof Enterprises, Goldfinger Enterprises, Seize the Day Industries and VAE LLC.

ORC licensees are cautioned to take care when considering the purchase of horses and are encouraged to contact the ORC Judges is they have any questions or concerns.

Executive Director

John L. Blakney

(ORC)

Comments

Let us not drive nails into empty coffins my friends, but let the judicial system, over time, place a body there. As in past comments, I have voiced that a stable established with "alleged" dirty money, should NOT be recognized at any level of competition. There are numerous legitimate stables, and hard working horsemen and women, overshadowed by the greed and avarice of pompous individuals that think only of the almighty dollar, and a way to get all of them in one basket. I have been following this Brooks affair for the past year my friends, and I am tickled to the nth degreee that David Brooks is finally in a race that he has no chance of winning. My hat goes off to all the hardworking people that make racing a success on both sides of the border-and to all the brave souls that go out each morning in the joggers without the bling hanging from their necks! Thanks for your time.

First of all without me being directly associated with harness racing other than a avid fan. Lets get the brooks family and the stables associated with them out of the way, that being said.

Don't you think the horses have proven that they deserve being nominated and for three of them win the obrien awards, disregard the monies they have bilked out of racing and who or who did not get paid, the horses and the drivers and all of the other staff,have proven without a doubt they were the best on the track at any given time.

In all I agree with Mr. Hie.

There is a difference between civil and criminal offence.
Question G: on SC application
Have you ever been (1) arrested or indicted (2) pleaded guilty, found guilty, or
ever been convicted, or (3) forfeited bail or been fined for any criminal offence,
except highway traffic violations?

Jeffrey Brooks was not suspended by the Pennsylvania racing association.
I am not defending them but that is how Jeffrey ended up with the horses, and I am sure he had the cash to buy them or at least to show a money transfer to buy them.

In reply to by Sunday Silence

If you want the record, you can go to SEC v. Haddad & Brooks, 1992, wherein David Brooks and Jeffrey Brooks were suspended by the Securities and Exchange Commission for five years. How is it that the ORC, others dont know this??

In reply to by Sunday Silence

Wonder where the racing commissions were when they should have known that:
1) David Brooks and Jeffrey Brooks paid civil penalties to the SEC for insider trading in the 1990s, and
2) David Brooks paid penalties in the late 1990s regarding NASDAQ listing falsehoods
Check the records, they are publicly available---yet the Racing Commissions now wonder why they have a major problem on their hands? And Pennsylvania suspended Perfect World and David Brooks in 2006---

I am all for protecting the integrity of the sport, period.

BUT!

Where does innocent before being found guilty come into play?

As for the question of the illegal or inappropriate transfer of ownership of horses; I assume safe-guards are in place by the governing organizations to prevent this from happening in the first place; assuming there is a screening process and the transactions (transfers) were scrutinzed and approved by the USTA and/or Standardbred Canada it should not be questioned 2 YEARS LATER.

Mind you this appears to involve several hundered horses so there should be no questions or excuses that it either slipped through the cracks or was missed or anything else.

Charges against David Brooks where made in court approximatly 2 YEARS AGO, only now, after one of the most successful seasons in the history of the sport, is the ORC taking an action. Where were they 2 YEARS ago.

In a sport that is struggling for survival, surley we can stand by and support our best, at least until a court tells us different.

These folks are not accused of illegal use of drugs, race-fixing, abuse of animals for which I would have no compassion but to tear down success, at this point, just because one person is ACCUSED of wrong doing is wrong.

In reply to by kmh

Well said Doug ! To think these horses will lose eligbilty to the awards is ridiclous! Also anyone who's happy that so many grooms etc will lose there jobs is an idiot.All Tracy Brainard did was win races! Wonder what the ORC will do if he's aquittted?? They should've of waited at least till trial was over.It's not like they just found out. He was charged months ago.It's just amazing the jealousy out there and the happiness in some people over this.From my recollection I can't remember any positives from that barn.People stop kicking them when there down.And i don't even know any of them.

Regards,
Todd Wark

Doug: I know that if a horse gets suspended for a period of time throughout the year they are not eligible to receive an award. I do not know if there is a rule that states if a owner gets suspended the same rule applies. I agree That Tracy and co. had a great year and did an amazing job. Because their owners make bad decisions why should this affect what has happened. I have only read what has happened to trainers owners etc in the game. Again this is the owners and has nothing to do with the horses and training staff

Without a jealous or prejudice thought I make my comments. I have never addended the O'Brien Awards. So I may not be clear on eligibility of finalist. My understanding was the horse that had raced and beaten the best of the best of their age gait and sex could be eligible. The performance of the horse would be what qualifies them for a chance at an O'Brien Award. The ORC ruling that applies to Terry, Jeffrey, Andrew and Victoria Brooks is for not paying income tax in the United States, I am sure this has never happened before (not). If the Brooks family did not pay tax on money their companies made the US Government should deal with them, period.

Perhaps if the ORC were to submit name changes to SC, Yellow Diamond-Brooks, Not Enough-Brooks, and If I Can Dream-Brooks the awards comity would have an easier task in making their decision today. However SC does not allow for a name change after a horse has qualified.

Now on with the show. Shame on Tracy Brainard and your staff for being able to bring out the best in Not Enough, Yellow Diamond and If I Can Dream week after week in 2009. My helmet is off to the achievement of Tracy, her team and horses for the 2009 season. Training a large number of horses mean more problems then I can imagine or want, I am told good horses never need to be vetted, never get sick, never get cast in the stall, never have shoeing or foot problems and always eat well. Boy good horses are great! In conclusion comments should be made after brain is in gear.

All the best.
Doug Hie

In reply to by Jack Rice

Jack:
I think some of you are missing the point. I dont think that the ORC/USTA/others are taking the steps they are because they are prejudging the result(s) of the criminal prosecution of David Brooks. I beleive that the steps are being taken due to a potential allegation that the transfer of horses from Mr. Brooks to his brother (Bulletproof) and his wife (ex-wife) and just lately to Victoria, Andrew and Elizabeth ("VAE") may have been "fraudulent" transfers as far as the racing commission(s) are concerned, no matter the outcome of the present trial. That's my take on it.

In reply to by jsalmons

True, John H. S. - my main point was that the 'Tactical Armor Stable' was NOT one of the entities impacted by the ORC ruling. And (according to allegations), Tactical Armor may have been the main financial conduit for the rest? Then again - it may not have been licensed to race?

As far as the comment about 'loss of jobs' etc. by another poster ... the horses require SOMEONE to care for them - whether owned by current owners, or sold at auction to new owners.

With all due respect Mr Rice there are many trainers, grooms, drivers, vets, suppliers and owners who would beg to differ with your assessment of Mr Brooks and his contributions to the sport. There are no doubt two sides to every story and in the end hopefully the truth will prevail but you don't need to be hit over the head with a hammer to know that it hurts. Some things are obvious. My organization employs a trainer that has felt the true concequences of dealing with Mr Brooks. I have been fortunate enough ( or unfortunate ) enough to see firsthand the tactics that are used and it is a sad day when an owner as successful as Mr Brooks, can be allowed to act in such a manner. I don't feel sorry for anyone dealing with Mr Brooks as they all went into it knowing full well the reputation, but it doesnt change the fact that there is a right way and wrong way to represent yourself and this sport. Mr. Brooks is not the poster child for harness racing and the ORC today did what so many people wished was done a long time ago.

In the U.S.A we believe you are innocent until proven guilty.I for one am not as joyous as others on this subject.Bulletproof Stables employ alot of people that i am friends with and that depend on jobs that in this economy is hard to come by.They also employ Trainers,Grooms and Drivers that will also feel the effect of this decision.
I for one believe in the justice system.If you are proven guilty you deserve to be punished.I feel the comments on here were fueled by the great success The Bulletproof Stable had this past year.
As for the O'brien awards i would think the Blood ,Sweat and Tears by horses,grooms and trainers that did all the work deserves all the credit and are deserving.As far as i know all horses received propper blood testing from the ORC.
Remember horses don't choose their Owners,Trainers,Grooms,Drivers,Blacksmiths ,Vets,Feed,or Transportation.They are truly innocent under all circumstances and deserve what they have accomplished. Jack Rice

In reply to by jsalmons

USTA withholds Brooks transfers

--- Based upon the events of earlier this month and other information solicited and received, effective Jan. 28, 2010, the United States Trotting Association has elected to withhold action on transfer requests submitted in recent weeks by Bulletproof Enterprises, pending the results of an internal investigation concerning the ownership of those horses in question.

Earlier this week, the USTA made contact with Mr. Jeffrey Brooks and his attorney, and has made them both aware of the organization’s position and need for additional information that would support the aforementioned transfer requests.

The USTA has, in recent months, been approached by several regulatory agencies seeking information regarding the Standardbred ownership and industry participation of Bulletproof Enterprises, David Brooks, and Jeffrey Brooks, among others. The Association has readily cooperated in each instance and will continue to do so.

In reply to by Rootin_T

Ralph:
While I appreciate your enthusiasm for today's ORC move, as am I, please remember that what the prosecutor says in an opening statement or otherwise is not evidence. This is an instruction which is always given to a jury or others by a presiding judge.
With regard to the ORC move, it is only three years late. What becomes of all of the purses earned over the past three years if it is shown that all of the transfers were in effect, hidden ownership? There might be a fight between the ORC and the US Attorney's office as to who the rightful owner of the proceeds are

This is great news, congrats to the ORC for taking the right steps in this matter. A step in the right direction where our industry is concerned.

Does this suspension of Bulletproof Enterprises now affect the O'Brien awards for 3 year old Pacing Fillies, Not Enough and Yellow Diamond, and 3 year old Pacing Colt, If I can Dream, like the 2007 infraction by the Trainer of Record for Southwind Tempo eliminated Southwind Tempo from the 2009 voting?

In reply to by Sivraj Hicr

What about Tactical Armor Products - I think that company was the 'banker' of the other stables? This from the opening statement by prosecutors:

"Later on in his opening, the prosecutor also went into some detail about Tactical Armor Products Inc. (“TAP”), a private company owned by Terry Brooks, the wife of defendant Brooks,that did a lot of business with DHB, allegedly making ballistic resistant apparel. According to the prosecutor, TAP made extraordinary amounts of profit and David Brooks siphoned off about $14 million to pay his horse expenses, including:

1) $6,000,000 to purchase horses;

2) $2,000,000 to pay horse trainers;

3) $1,800,000 to pay “horse groomers”; and

4) $1,000,000 in vet bills.

The prosecutor told the jury that TAP was used as “the main tool” for Mr. Brooks “to pay for his horses.”

Its about time. To me I don't see how racing any of their horses can be profitable now for any trainer. If the rumour that Brooks family didn't pay bills before this action has taken place......then I wonder if any bills will get paid now. Great job O.R.C thank-you.