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New Defendants & Fraud Charges Added To Jackson Suit

Wednesday, 15th March 2006

In the US, attorneys for Jess Jackson "have named 3 additional defendants & new fraud charges involving the wine magnate's bloodstock acquisitions & purchase of the former Buckram Oak Farm in Kentucky," reported bloodhorse.com. Jackson (& his entities Four Star Stables & Stonestreet Thoroughbred Holdings) originally filed their headline-generating suit in September against his ex-advisers Emmanuel de Seroux (& his companies Narvick International & Irish-based Continental Bloodstock), trainer Bruce Headley & bloodstock agent Brad Martin, alleging the 3 men "conspired to enrich themselves through kick-backs & undisclosed commissions, while spending tens of millions of dollars on private & public auction purchases of thoroughbreds made on Jackson's behalf". The amended complaint alleges California-based agent Fernando Diaz-Valdez & French agent Frederic Sauque "participated in the scheme to defraud Jackson in private purchases". The amended complaint also alleges that Sauque & Buckram Oak Holdings (a company operated by Mahmoud Fustok until his death in February) "conspired with de Seroux, Headley & Martin to defraud Jackson for between US$1.5-2.5 million in his purchase of Buckram Oak Farm in Central Kentucky". Jackson bought the property in February 2005 for US$17.5 million, which the complaint said was "higher than a previous listed price of US$16 million or the US$15 million Fustok allegedly told an associate he would accept for the 469-acre farm". Three months after Jackson purchased Buckram Oak, Fustok & Sauque allegedly "facilitated the wire transfer of US$500,000 to a Narvick International bank account in Scotland, from which US$100,054 was disbursed to Headley's wife Aase, US$100,000 to Fustok's farm manager Mikhail Albina & US$75,000 to an entity organized by Albina's son Hansley. The purchase agreement for Buckram Oak included a provision stating the seller will not pay to "any employee, agent, representative or other affiliate of purchaser" a commission or fee for "assisting in procuring" the transaction. Jackson also purchased a Kentucky farm property formerly owned by Frank Stronach's Adena Springs Farm & the complaint alleges de Seroux, Headley & Martin (through an intermediary) "attempted to extort a US$500,000 kick-back" from that July 2005 transaction.

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