Report: Trustee accuses Zayats of 'gamesmanship' in bankruptcy

The trustee assigned to American Pharoah owner-breeder Ahmed Zayat’s bankruptcy case has accused Zayat and his family of “an ongoing pattern of delay, obstruction, and gamesmanship” in the case, the Thoroughbred Daily News reported Wednesday.

Donald Biase is attorney bankruptcy trustee on the Zayat case. He wrote in a July 13 filing in United States Bankruptcy Court for the District of New Jersey that “(Zayat) and his family members have engaged in a pattern of intermingling of assets and ongoing financial transactions among themselves.”

Biase wrote that the Zayats “have made only paltry productions” in response to subpoenas for documents related to the family’s finances. His filing contends that money has been transferred back and forth between family members, Zayat Stables, and JPZ Holdings, the company of Ahmed Zayat’s son, Justin.

Zayat filed for Chapter 7 bankruptcy protection last September. The Egyptian businessman's listed assets totaled more than $1.8 million, while his liabilities were listed as more than $19.3 million.

The Zayats rose to prominence in 2015 when their homebred American Pharoah swept the Triple Crown series and won the Breeders’ Cup Classic for trainer Bob Baffert and jockey Victor Espinoza. The 2015 Horse of the Year will be inducted next month into the National Museum of Racing’s Hall of Fame.

Zayat Stables, which earned the Eclipse Award for outstanding owner in 2015, have not started a horse during 2021. Their last starter was Alex Joon, who was second in a Churchill Downs allowance race Oct. 29, 2020.