Trainer Lichoa Sentenced to Three Months in Prison

In a short hearing Feb. 17, a United States District Court judge sentenced Florida-based trainer Alfredo Lichoa to three months in prison for violating money laundering laws.

Lichoa and four other defendants were named in a federal indictment March 9 that charged them with one count of knowingly conspiring together to violate United States money laundering laws. The other defendants include Thoroughbred owner Isaac Schachtel, Jose Morely Chocron, Juan Carlos Balaguera Villamizar, and Juan Marcos Matos Ruiz.

Federal authorities announced those federal indictments on the heels of 27 indictments, including prominent trainers Jason Servis and Jorge Navarro, on charges related to the use in horses and distribution of adulterated and mislabeled drugs.

Lichoa pleaded guilty to the lone money laundering charge Oct. 15 as part of a pursuant to a plea agreement. On Wednesday, U.S. District Court Judge Jed Rakoff, of the Southern District of New York, sentenced Lichoa to three months in prison followed by a year of supervised release. Judge Rakoff said in determining a sentencing, he had to weigh the seriousness of the crime, which he noted is often difficult to detect, with Lichoa's otherwise exemplary record.

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Judge Rakoff noted that he was impressed by the 18 letters submitted by Lichoa's friends and family noting his commitment to family and the community. The judge said it became clear in the case that financial difficulties for Lichoa made him vulnerable to the sting that occurred. Noting Lichoa's lack of money, he did not impose a fine.

According to the U.S. Attorney for the Southern District of New York, the five individuals participated in a scheme to launder what they believed to be criminal proceeds using various methods. A confidential source and two undercover agents provided Chocron and the other four individuals with more than $1.5 million that they represented were proceeds of bribe payments to Brazilian public officials that the defendants agreed to launder.

During a series of meetings with an undercover FBI agent between Nov. 15, 2019, through about Jan. 15, 2020, the indictment alleges Schachtel described the possibility of laundering money through certain racehorse trainers, a "system by which illicit funds could be provided to a racehorse trainer, deposited into that trainer's 'horseman's account' and laundered through the rapid resale of a racehorse or through consistent winnings on the basis of a particular racehorse's success."

According to the indictment, Schachtel further described "the ability of a particular racehorse trainer (Lichoa) to virtually guarantee the safety of the money through Lichoa's systematic administration of illicit performance-enhancing drugs to the racehorses under his control," according to the indictment.

Around Feb. 11, an undercover agent met with Schachtel and Lichoa to discuss a plan for laundering money coming from Brazil.

"Some politician friends of ours who have received some payments," the agent tells them. Lichoa responds: "I understand you perfectly."

The indictment states the FBI agent provided Lichoa and Schachtel with $50,000 in cash described as bribe payments from Brazilian public officials. In calling for a sentence of 12-18 months, the U.S. Attorney said Lichoa was prepared to effectuate transactions that would disguise the illicit source of the cash he had been provided.

Lichoa operates out of the Nelson Jones Training Center near Ocala, Fla., which is also home to Northwest Stud's stallion operation. Lichoa is originally from Venezuela and has previously worked as the resident veterinarian in 2001 at John Franks' Franks Farm, also near Ocala. He has also worked as stallion manager for Hartley/DeRenzo Thoroughbreds and was the stallion director for Northwest Stud.

Several letters calling for leniency came from people within the Florida industry. They noted the hard economic times since the beginning of the COVID-19 pandemic and that Lichoa has otherwise been honest, a reliable friend, and good family man.

Judge Rakoff said that while he typically prefers an expedited start to a prison sentence, in light of the ongoing COVID-19 pandemic, he set a surrender date of Aug. 31 to allow Lichoa to receive a vaccination ahead of his sentence.