MGG Investment Group

Ahmed Zayat has filed a motion asking the same court that appointed a receiver to oversee the assets of his Zayat Stables to dissolve that order and instead allow the stable to resolve its dispute with MGG Investment Group in some other matter. The filing came five days after a Fayette County (Ky) Circuit Court judge ordered Zayat's assets into receivership, a response to a $23-million civil lawsuit lodged by the investment firm, MGG Investment Group, LP. MGG had alleged that Zayat had defaulted on his loans and had improperly...

The $23-million lawsuit by a lender against Ahmed Zayat and his financially troubled Zayat Stables, LLC, was nearly four years in the making. But a series of red-flag events over the last four months put the alleged fraud more alarmingly into focus, sparking frantic efforts by the plaintiff to get the troubled racing and bloodstock business into court-mandated receivership before the equine assets used to secure $30 million in loans were potentially sold off and hidden. Although the major allegations in the civil lawsuit filed by MGG Investment Group, LP,...

A Fayette County, Kentucky judge granted a motion at an emergency hearing Wednesday to put Zayat Stables and its horses into receivership, reports the Lexington Herald-Leader. The ruling follows a lawsuit filed by New York-based MGG Investment Group alleging that owner Ahmed Zayat had sold shares in Triple Crown-winning stallion American Pharoah that were being used as collateral against loans made by MGG to Zayat. MGG's lawsuit alleges that Zayat defaulted on his loans in September, and seeks at least $23 million from Zayat. According to the Herald-Leader, Zayat sent...