U.S. Attorneys Recommend 36-Month Sentence for Rhein

In a Nov. 24 court filing, United States Attorneys recommended a 36-month sentence for suspended veterinarian Dr. Kristian Rhein and further described his role in a horse-doping case involving more than two dozen individuals.

The proposed length of sentencing mirrors what was outlined during Rhein's guilty plea during a hearing Aug. 3. The length of the sentence will ultimately be determined by United States District Judge Mary Kay Vyskocil in another court hearing in the Southern District of New York, scheduled for Jan. 5.

According to a filed letter to Vyskocil from United States Attorney Damian Williams, "Rhein actively marketed, sold, and administered SGF-1000 (an alleged performance-enhancing drug) for the non-medical purpose of illicitly improving racehorse performance. That is, Rhein doped horses in an effort to scam others through a prolific fraud. Rhein, through his veterinary practice, further illegally distributed the prescription drug clenbuterol, providing it to trainers in bulk to administer to their horses, without issuing valid prescriptions for that drug, or otherwise administering that drug due to a medical need."

During his plea change to guilty this summer, Rhein implicated trainer Jason Servis, and in Williams' letter to Vyskocil filed Wednesday, the attorney described some of the interactions between the veterinarian and trainer. Servis has maintained a plea of not guilty, while others, such as Rhein and trainer Jorge Navarro, have changed their pleas to guilty.

In one conversation Williams described in his letter, Rhein, a shareholder in Medivet Equine, attempted to calm Servis by emphasizing that they would not get caught in their documentation. He had also maintained SGF-1000 was undetectable by laboratories tasked with testing racehorse blood and urine samples.

"SGF-1000 entries are 'never on a bill. It is never on a bill,'" Williams wrote that Rhein told Servis. "'I bill a lot of mine as like 'acupuncture.' I'm an acupuncturist. I'm trained, I'm a licensed acupuncturist. So, that is for me why I do it. They can't say I am not.'"

The Wednesday filing further indicated that Rhein and Servis became wary of law enforcement in the summer of 2019. A grand jury indicted them and others in February 2020.

In August 2019, Rhein called Servis' assistant trainer, Henry Argueta, and attempted to determine whether a law enforcement agency had approached Servis, Williams wrote.  

Following this scrutiny and even after New York reiterated its prohibition of growth hormones and factors in racehorses, Rhein "continued his equally illicit practice of distributing prescription clenbuterol to trainers without issuing valid prescriptions, and concealed that conduct by issuing fraudulent bills concealing costs of clenbuterol that were paid by racehorse owners," Williams wrote.

Under the parties' plea agreement previously announced this summer, Rhein has agreed to forfeit $1,021,800, representing the value of the adulterated and misbranded drugs distributed. Rhein has further agreed to pay restitution of $729,716, reflecting the amount of payments fraudulently billed to racehorse owners.