Written by Richard Edmunds
Major international racing and breeding player Phoenix Thoroughbreds has had prizemoney frozen in New South Wales and Victoria as the FBI investigates money-laundering allegations involving its founder, Amer Abdulaziz.
Best-known in Australia as the owner of dual Group 1-winning sprinter Loving Gaby (I Am Invincible) and part-owner of Golden Slipper star Farnan, Phoenix also owns around 30 broodmares in Australia and holds shares in several prominent stallions.
In partnership with Aquis owner Tony Fung, Phoenix topped the buyers’ list at this year’s Magic Millions Gold Coast Yearling Sale with 19 purchases for a total of $11,645,000. They bought the equal second highest-priced lot, a colt by Not A Single Doubt, for $1.8 million.
Lot 612 - Not A Single Doubt x One More Honey (colt)
The money-laundering allegations surfaced in the US courts in 2019, when Abdulaziz was implicated in a global cryptocurrency scam called OneCoin. An American lawyer has been found guilty of laundering around $400 million for OneCoin and will be sentenced next month, while investigations into Phoenix are ongoing.
According to the Australian Financial Review, an FBI indictment estimated that OneCoin generated $4.3 billion in sales from 2014 to 2016, and that 15 per cent of the money came from Australia – around $775 million.
Phoenix has been banned from racing in France and Britain since the allegations came to light, but has continued to operate in American and Australian racing. However, the Australian Financial Review reported on Friday that New South Wales and Victoria moved to freeze prizemoney earnings in January of this year.
“Racing NSW has investigated the matter, and any allegation made in respect to legal proceedings internationally is denied by Mr Abdulaziz,” Racing NSW’s Chairman of Stewards, Marc Van Gestel, said. “Pending the outcome of those matters, Racing NSW is freezing the prizemoney of horses raced by Phoenix Thoroughbreds.”
“Pending the outcome of those matters, Racing NSW is freezing the prizemoney of horses raced by Phoenix Thoroughbreds.” - Marc Van Gestel
A spokesperson for Racing Victoria echoed that viewpoint, saying that, “While these legal proceedings remain ongoing, RV has decided to place a freeze on Phoenix Thoroughbreds’ portion of prizemoney earned by horses they own or part-own. Should any information come to light via these legal proceedings or other means that warrant further action being taken within our jurisdiction, then we will consider it at the time.”
In a statement last November, Phoenix said: “Phoenix Fund Investments LLC categorically denies all allegations made against it and its owner, Mr Amer Abdulaziz, in legal proceedings against OneCoin and its conspirators in the US.
“Phoenix Fund Investments LLC believes that the firm and Mr Amer Abdulaziz have acted according to the law at all times and will vigorously contest all allegations of wrongdoing.”
Justin Fung and Amer Abdulaziz
Meanwhile, the Australian Financial Review reported that Aquis conducted “substantial and significant inquiries” into Phoenix Thoroughbreds after the allegations surfaced in 2019 and decided, because it was still licenced to operate in Australia, it deserved to be presumed innocent.
A spokesman for Aquis also pointed to the fact that no restrictions have been imposed on Phoenix operating in American racing.
“So in the country where the allegations of money-laundering were initially made more than 12 months ago, no adverse action has apparently been taken by a regulatory or racing body against him or his horses,” he said.
