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Rice License Revocation Overturned by New York Court

Trainer faced three-year suspension; $50,000 fine upheld.

Linda Rice

Linda Rice

Anne M. Eberhardt

Linda Rice was relieved of an administrative revocation of her New York trainer's license by order of a New York appellate court June 8.

Michael C. Lynch, presiding judge of a five-judge panel of the Appellate Division of the New York Supreme Court, wrote the unanimous opinion. The order was rather expeditiously entered following oral arguments that took place April 26.

It was a significant victory for Rice, who was looking at a loss of her license for not less than three years.

Rice, a licensed trainer since 1998, was charged in 2019 by the New York State Gaming Commission with corrupt and improper conduct under a section of the New York Codes, Rules and Regulations for receiving "regular, continual and improper access to the confidential names and other information concerning the other horses entered in races at the New York Racing Association before the entries closed."

In 2021 a hearing officer recommended Rice's license be revoked for no less than three years and a $50,000 fine following a hearing that took eight days sprawled over several months during a pandemic. The NYSGC adopted the recommendation, but Rice appealed and kept training when a court issued a temporary restraining order blocking the license revocation.

In its analysis, the appellate court first rejected Rice's argument that the statute under which she was prosecuted is unconstitutionally vague.

"Even though NYRA had not issued a written policy setting parameters on the information that could be disclosed...the record includes substantial evidence that it was commonly understood in racing circles that the disclosure of horse names was prohibited," Lynch wrote.

However, the court took a dim view of the severity of Rice's license suspension and placed part of the blame on NYRA.

"Petitioner argues, and we agree, that the penalty of a three-year revocation of her license is so disproportionate to the offense and shockingly unfair as to constitute an abuse of discretion as a matter of law," the opinion says. "NYRA bears much of the responsibility for what happened in this matter by fostering an aptly named 'hustling' process without a defined written rule or diligent oversight.

"It is evident from the record that racing clerks would occasionally share the names of horses to entice trainers into entering their horses —all in NYRA's best interest to establish a full race card of 8 to 10 races a day. The key difference in petitioner's case is that she received the horse names on a regular, prolonged basis."

"What is particularly concerning is the disparity in testimony between NYRA's two racing secretaries, (Martin) Panza and (former secretary Paul) Campo, as to the significance of the rule violation," Lynch wrote. "From Panza's perspective, petitioner's actions compromised the integrity of racing. Campo, who served as racing secretary throughout most of the disputed period, downplayed the issue.... Campo opined that the public would not be 'in any way misled.'"

The appellate court affirmed the $50,000 fine imposed on Rice, noting the statute carries a potential $25,000 penalty for each violation and that Rice committed violations over a prolonged period of time.

"This record shows that petitioner was provided with the actual names of horses entered in 'overnight' races by a racing clerk, Jose Morales, on a regular basis throughout the 2012-2014 period at issue," Lynch wrote.