American Pharoah owner didn't pay $1.6M in sports bets, felon says
Ahmed Zayat is the owner American Pharoah, the winner of the 2015 Kentucky Derby
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on May 20, 2015 at 4:22 PM, updated May 20, 2015 at 8:43 PM
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</tbody> NEWARK — Ahmed Zayat, the owner of Triple Crown hopeful American Pharoah, is facing accusations that he cheated a convicted felon out of $1.65 million by refusing to pay off gambling debts he ran up at an offshore sports betting casino, federal court records show.
Documents filed in U.S. District Court in Newark over the past 14 months lay out the contentious legal battle waged between lawyers for Zayat and Howard Rubinsky, a sometime X-ray technician from Florida who specialized in steering high-end gamblers to betting sites.
Rubinsky sued Zayat for breach of contract in March 2014, claiming he advanced the Egyptian-born businessman a line of credit at a sports betting casino in Costa Rica called Tradewinds.
Rubinsky, 58, says that after Zayat lost $2 million betting on sports, Zayat paid back $350,000, sticking Rubinsky with the tab for the rest, according to court documents.
But Zayat refutes the claims and has a different version of events. He says he never agreed to place any bets through Rubinsky and doesn't owe him any money.
"I never asked Rubinsky to put up a line of credit for me anywhere, and I was never aware – and I am still not aware – that he ever did so," Zayat wrote in a March 31, 2015, declaration sent to the court.
Zayat, who lives in Teaneck, ran a successful beer distributorship in Egypt before returning to the U.S. full time in 2005 to run Zayat Stables, quickly establishing himself as one of the country's leading owners and breeders of thoroughbred racehorses.
This is not the first time Zayat's been forced to answer questions about his association with convicted felons.
In 2010, federal bankruptcy court records revealed that Zayat was owed $600,000 he'd loaned to the brothers Jeffrey and Michael Jelinsky, who were convicted on federal charges in 2009 for their roles in an illegal bookmaking operation.
After the New York Times revealed Zayats' link to the Jelinskys in 2010, Zayat said he was "trying to help them out," according to the Times.
The Jelinskys introduced Zayat to Rubinsky during a breakfast meeting sometime between 2001 and 2003, according to Zayat's declaration.
Zayat says he gave Rubinsky a $25,000 check in 2008 during a meeting that he recalled took place in either his office or his home, according to Zayat's lawyers. He does not recall giving Rubinsky a second check, as Rubinsky claims.
"Mr. Rubinsky told me he needed help because he could not afford to live or even to buy food, and could not afford to attend to his health issues," Zayat writes. "It was, and is, not at all uncommon for people to request that I assist them financially, and I was always willing to help a person in need. I agreed to give Mr. Rubinsky some money to help him get back on his feet."
When Rubinsky continued to pester him for money, Zayat said he cut him off.
"I realized that Mr. Rubinsky was trying to take advantage of me, and I decided to sever ties with him," Zayat added.
Rubinsky claimed the alleged payments were evidence that Zayat intended to continue paying off Zayat's Tradewinds debt. He provided the court with text messages from Zayat, which he says show that Zayat made a promise to continue the payments.
Zayat's attorney, Joseph Vann, said he has "moved to dismiss this meritless claim relating to allegations from 11 years ago."
Ahmed Zayat is the owner American Pharoah, the winner of the 2015 Kentucky Derby
Email the author | Follow on Twitter
on May 20, 2015 at 4:22 PM, updated May 20, 2015 at 8:43 PM
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Documents filed in U.S. District Court in Newark over the past 14 months lay out the contentious legal battle waged between lawyers for Zayat and Howard Rubinsky, a sometime X-ray technician from Florida who specialized in steering high-end gamblers to betting sites.
Rubinsky sued Zayat for breach of contract in March 2014, claiming he advanced the Egyptian-born businessman a line of credit at a sports betting casino in Costa Rica called Tradewinds.
Rubinsky, 58, says that after Zayat lost $2 million betting on sports, Zayat paid back $350,000, sticking Rubinsky with the tab for the rest, according to court documents.
But Zayat refutes the claims and has a different version of events. He says he never agreed to place any bets through Rubinsky and doesn't owe him any money.
"I never asked Rubinsky to put up a line of credit for me anywhere, and I was never aware – and I am still not aware – that he ever did so," Zayat wrote in a March 31, 2015, declaration sent to the court.
Zayat, who lives in Teaneck, ran a successful beer distributorship in Egypt before returning to the U.S. full time in 2005 to run Zayat Stables, quickly establishing himself as one of the country's leading owners and breeders of thoroughbred racehorses.
This is not the first time Zayat's been forced to answer questions about his association with convicted felons.
In 2010, federal bankruptcy court records revealed that Zayat was owed $600,000 he'd loaned to the brothers Jeffrey and Michael Jelinsky, who were convicted on federal charges in 2009 for their roles in an illegal bookmaking operation.
After the New York Times revealed Zayats' link to the Jelinskys in 2010, Zayat said he was "trying to help them out," according to the Times.
The Jelinskys introduced Zayat to Rubinsky during a breakfast meeting sometime between 2001 and 2003, according to Zayat's declaration.
Zayat says he gave Rubinsky a $25,000 check in 2008 during a meeting that he recalled took place in either his office or his home, according to Zayat's lawyers. He does not recall giving Rubinsky a second check, as Rubinsky claims.
"Mr. Rubinsky told me he needed help because he could not afford to live or even to buy food, and could not afford to attend to his health issues," Zayat writes. "It was, and is, not at all uncommon for people to request that I assist them financially, and I was always willing to help a person in need. I agreed to give Mr. Rubinsky some money to help him get back on his feet."
When Rubinsky continued to pester him for money, Zayat said he cut him off.
"I realized that Mr. Rubinsky was trying to take advantage of me, and I decided to sever ties with him," Zayat added.
Rubinsky claimed the alleged payments were evidence that Zayat intended to continue paying off Zayat's Tradewinds debt. He provided the court with text messages from Zayat, which he says show that Zayat made a promise to continue the payments.
Zayat's attorney, Joseph Vann, said he has "moved to dismiss this meritless claim relating to allegations from 11 years ago."
