Michael Kegley Jr., among a large group of individuals indicted almost two years ago for wrongfully peddling or using performance enhancing drugs in the Thoroughbred racing industry, was sentenced Jan. 6 to 30 months in prison with one year supervised release by U.S. District Court Judge Mary Kay Vyskocil.
According to court records, Kegley was originally charged with a conspiracy count that carries a maximum term of five years. The sentencing hearing Thursday came after a plea agreement between Kegley and the United States that was approved by the court during a July 23 hearing when Kegley formally entered a guilty plea to one count of drug adulteration and misbranding distribution, which carries a maximum sentence of three years. The conspiracy charge was dismissed.
Sentence ranges in federal court are advisory, not mandatory. The sentence guidelines for this case called for 30-36 months incarceration, which was part of the plea bargain. Kegley attorney Scott C. Cox of Louisville, Ky., asked the court to impose one year of home incarceration. Prosecutors recommended the shorter end of the sentencing guideline.
During the July 23 guilty plea hearing, Kegley engaged in a dialog with Vyskocil, known in court circles as an allocution, admitting to promoting and selling PEDs for use on Thoroughbred racehorses. In the words of U.S. Attorney Audrey Strauss following that hearing, Kegley "promoted and sold unregulated performance-enhancing substances intended for use by those engaged in fraud and unconscionable animal abuse in the world of professional horse racing,"
There is no parole in the federal court system, and Kegley is likely to serve 85% of his sentence, subject to some reduction of time if he follows institutional rules while incarcerated.
Kegley worked at Medivet Equine in Nicholasville, Ky., where he sold the illicit products. As part and parcel of Kegley's sentence, a money judgment of $3,310,490 was entered Jan. 5.
The money judgment, agreed to in writing by Kegley and attorney Cox, says the multi-million dollar amount represents forfeiture of the value of "any and all drugs that were adulterated or misbranded" that were or could have been introduced into interstate commerce by Kegley or that were held by him for sale after interstate shipment.
The government agreed to accept $192,615 in full satisfaction of the money judgment so long as the sum is actually paid within 24 months after his release from incarceration. Vyskocil declined to impose a fine on Kegley, which could have been as much as $10,000.
The case against Kegley and more than two dozen others accused of participating in various schemes designed for using PEDs in horses originated in New York via four sealed indictments in February 2020 following a joint investigation by the Federal Bureau of Investigation, U.S. Food and Drug Administration, New York City Police Department, and U.S. Customs and Border Protection.
The best-known racing figures in the case are trainers Jorge Navarro and Jason Servis. Navarro has entered a plea agreement and admitted guilt. At his sentencing on Dec. 17, he was handed five years imprisonment. A $26,860,514 restitution order was also entered, according to previous reporting by BloodHorse. Servis has maintained a not guilty plea.
After Navarro and before Kegley, the most recent defendant to be sentenced was Kristian Rhein, who Wednesday was given 36 months and hefty monetary penalties by Vyskocil. In August 2021 Rhein pleaded guilty to distributing adulterated and misbranded PEDs and administering them to horses trained by Servis while acting as a veterinarian. He has been stripped of his veterinary license by officials in New York. He and other indicted individuals have been suspended from racing.