Does the race industry launder drug money?

A well-known racing identity was recently caught importing 225 kilograms of cocaine and when arrested the AFP seized six million in cash. This racing identity pleaded guilty last month and is awaiting sentencing.

This same well known racing identity had an extensive history of purchasing horses at either the Inglis Easter yearling auctions or the Gold Coast Magic Millions of sales and then syndicating the horse purchased to eager investors. By way of example a horse purchased at yearlings’ sales for $1 million was later sold to racing enthusiasts in ten parcels of $.5 million each. This process of horse syndication was allegedly used to launder drug money.   

Horse racing syndicates allow horse enthusiasts to invest in expensive horses with a view to generating massive returns either from prizemoney and the horse’s reproductive capacity. Horse syndication is largely unregulated and is recognised particularly in the USA to be used by Mexican drug cartels to launder drug monies.

In my view the recent racing identity arrest certainly does raise questions about the relationship between organised criminals and the horse industry.