Liam Fennessy & Aaron Fennessy – Referral Hearing
The Referrals Committee, Mr. Justice Brian McGovern (in the chair), Mr. Nicholas Wachman and Mr. Peter M. Allen convened at the Offices of the Irish Horseracing Regulatory Board on Monday 17th, Tuesday 18th, Wednesday 19th and Thursday 20th October 2022 to consider the referral of Ronan McNally (Trainer), David Dunne (Trainer), Mark Enright (Rider), Darragh O’Keeffe (Rider), Mr. Eoin O’Brien (Rider), Ciarán Fennessy (Point to Point Handler), Mr. Liam Fennessy and Mr. Aaron Fennessy.
The referral hearing followed an investigation by the Irish Horseracing Regulatory Board into the improvement in form of a number of horses owned by Mr. McNally.
At the referral hearing, evidence was heard from Mr. McNally, Mr. Dunne, Mr. Enright, Mr. O’Keeffe, Mr. O’Brien, Mr. Ciarán Fennessy, Mr. Chris Gordon, IHRB Head of Security & Investigations, Mr. Michael O’Donoghue, IHRB Stipendiary Steward, Mr. Garry O’Gorman, IHRB Senior Flat Handicapper, Mr. Mark Bird, IHRB Flat Handicapper, Mr. Andrew Shaw, IHRB Senior National Hunt Handicapper, Mr. Shay Quinn, IHRB National Hunt Handicapper, Dr. Sarah Ross, IHRB Veterinary Officer, Mr. Ian Devlin, Paddy Power Betfair, Mr. Alan Creighton, Irish Equine Centre and Mr. William Sharpe, Lisadelle Equine Hospital.
Having heard all the evidence and submissions, the Referrals Committee adjourned to consider the case in its entirety and issued their findings in relation to the alleged charges against Mr. Liam Fennessy and Mr. Aaron Fennessy on 20th April 2023. The written decision issued by the panel is set out below.
Decision of the Referrals Committee on Liam Fennessy and Aaron Fennessy
In the original Report of the Committee published on 28 November, 2022 no findings were made against Mr. Liam Fennessy and Mr. Aaron Fennessy (hereinafter referred to as the Respondents) on the basis that the Committee was not satisfied that the Board had jurisdiction over them. The Committee remarked that the issue had not been argued before it and that a decision on the point could be left to another day. On 13 January, 2023 a sanctions hearing took place in respect of the findings made against the other Respondents and in advance of the hearing the Board indicated that it wished to make representations on this point and, specifically, to argue that the Committee had jurisdiction to deal with the Respondents. The Respondents were notified of the fact and invited to make submissions either at or before the hearing. No written submissions were received on behalf of the Respondents, but oral submissions were made by Mr. Charles O’Connor, a solicitor acting on their behalf.
Having heard submissions the Committee ruled that it was satisfied it had jurisdiction to consider the charges (31-40) against the Respondents on the basis of the evidence which had been given before it between 17-20 October,2022. In respect of Rules 273(viii) (Charges 32 and 37) and 273(xiii) (Charges 33 and 38) the Rules apply to “any person”. The other charges against the Respondents apply to “any person involved in horse racing.” The Committee accepts the argument made on behalf of the Board that these rules should be given a broad or purposive interpretation since their purpose is to preserve the good reputation of horseracing and to protect the sport from anyone who might do it harm and undermine its integrity. This can only be achieved by giving the IHRB the power to take whatever reasonable steps are necessary to achieve that end.
It should be remembered that the Respondents were on notice of the hearing that took place in October, 2022 and could have attended and made any points in their defence if they wished to do so. In fact, Mr. Liam Fennessy attended on one day of the hearing but was not present when the evidence concerning him was being heard. While he indicated that he might not be able to attend on any other day, neither he nor Mr. Aaron Fennessy applied for an adjournment.
Furthermore, neither of the Respondents argued that the Committee had no jurisdiction to hear the claims against them or that they were not subject to the authority of the Board. By the time the hearing concluded all the relevant evidence which the Board wish to adduce in support of the charges against them had been given to the Committee. The Respondents could have had no reasonable or legitimate expectation that Committee would not proceed to deal with charges 31-40 when making its report.
In its Report setting out the findings against the other Respondents the Committee held that Mr. Ciarán Fennessy breached Rule 272 by passing inside information to Mr. Liam Fennessy and Mr. Aaron Fennessy (the Respondents) and that he had conspired with them and Mr. McNally to engage in a corrupt practice in breach of Rule 273(viii). It also concluded that Mr. McNally had conveyed information to Mr. Ciarán Fennessy (but not the Respondents), not in the public domain, about the condition or wellbeing of Dreal Deal (which may have negatively affected its likely performance) in races at Clonmel on 4 March and /or 24 March, 2020, in circumstances where he knew or ought reasonably to have known that such information may be used for the purpose of backing the horse to lose.
The Committee was satisfied from the evidence that Mr. McNally passed inside information to Ciarán Fennessy who in turn passed on this information to the Respondents who used that information in their betting activities.
The evidence against the Respondents was very strong. Mr. Ian Devlin of Paddy Power Betfair gave evidence of the Respondents’ betting activity over a period of time which showed a definite bias towards horses trained by Mr. McNally. Their betting activity in respect of Dreal Deal was particularly significant. The Committee heard evidence that the starting prices for the horse in its first seven hurdles races before winning at Navan on 19 September, 2020 were 50/1 (Race 1), 66/1 (Race 2), 100/1 (Race 3), 20/1 (Race 4) 40/1 (Race 5), 16/1 (Race 6), and 16/1 (Race 7). There was a distinct betting pattern between those occasions when the horse was beaten when compared to when it was winning. Dreal Deal started at double and sometimes triple figure odds in the seven National Hunt races referred to above where it was beaten between 34 lengths and 75 lengths. On the first occasion it showed any form, when it won at Navan on 19 September, 2020, it was backed from 20/1 to 6/4 favourite. These were shown in the betting accounts of the Respondents and came to the attention of Paddy Power Betfair following a query from the British Horseracing Authority bet monitoring team reviewing Navan on 19 September, 2020 at the request of the IHRB. The respondents backed Dreal Deal not to be placed in Clonmel on 4 March and 24 March, 2020. They also backed Dreal Deal to win the day it won at Navan. It is clear from the evidence that the Respondents’ success at backing and laying Dreal Deal showed that they had to be in possession of inside information and that the likely source of that information was Mr. Ciarán Fennessy, who in turn had received information from Mr. McNally. Any other explanation is, simply, not credible. The transcript of the hearing will show the detailed nature of the evidence about the Respondents’ betting activity and the Committee accepts this evidence. The evidence was not challenged by the Respondents.
CONCLUSIONS
Respondent: Mr. Liam Fennessy
CHARGE 31
Rule 272. It is alleged that Mr. Liam Fennessy’s conduct was prejudicial to the integrity, proper conduct and good reputation of horseracing in that, having obtained inside information of Dreal Deal’s condition or wellbeing, the Respondent used this information for betting purposes.
The Committee is satisfied that this breach has been proved.
CHARGE 32
Rule 273(viii). It is alleged that Mr. Liam Fennessy conspired with Mr. McNally and/or Mr. Ciarán Fennessy and/or others to engage in a corrupt and fraudulent practice in relation to the passing of inside information for betting purposes and/or concealing the true ability of horses so as to obtain handicap marks not reflective of their ability.
The Committee finds that the Respondent conspired with Mr. Ciarán Fennessy to engage in a corrupt and fraudulent practice in relation to the passing of inside information for betting purposes and, to that extent only, finds this breach has been proved.
CHARGE 33
Rule 273(xiii). It is alleged that Mr. Liam Fennessy, as a racecourse farrier and a person involved in horseracing, through the following conduct caused serious damage to the interests of horseracing in Ireland:
- Obtained information about the condition and wellbeing of Dreal Deal and used such knowledge for betting purposes.
- Had disregard for the Rules of Racing, in that, having knowledge of intended breaches of Rule 212A by a licensed trainer, used this information for personal benefit.
The Committee is satisfied that these breaches have been proved.
CHARGE 34
Rule 273(xiv)6. It is alleged that Mr. Liam Fennessy obtained information about the condition and/or wellbeing of Dreal Deal to lay the horse to lose with a betting organisation on 4 and/or 24 March, 2020 at Clonmel.
The Committee is satisfied that this breach has been proved.
CHARGE 35
Rule 273(xiv)7. It is alleged that Mr. Liam Fennessy, having obtained knowledge of an intended breach of Rule 212A concerning Dreal Deal, used this knowledge to lay the horse to lose with a betting organisation on 4 and/or 24 March, 2020 at Clonmel.
The Committee is satisfied that this breach has been proved.
Respondent: Mr. Aaron Fennessy
CHARGE 36
Rule 272. It is alleged that Mr. Aaron Fennessy’s conduct was prejudicial to the integrity, proper conduct and good reputation of horseracing in that, having obtained inside information of Dreal Deal’s condition or wellbeing, used this information for betting purposes.
The Committee is satisfied that this breach has been proved.
CHARGE 37
Rule 273(viii). It is alleged that Mr. Aaron Fennessy conspired with Mr. McNally and/or Mr. Ciarán Fennessy and/or others to engage in a corrupt and fraudulent practice in relation to the passing of inside information for betting purposes and/or concealing the true ability of horses so as to obtain handicap marks not reflective of their ability.
The Committee finds that the Respondent conspired with Mr. Ciarán Fennessy to engage in a corrupt and fraudulent practice in relation to the passing of inside information for betting purposes and, to that extent only, finds this breach has been proved.
CHARGE 38
Rule 273(xiii). It is alleged that Mr. Aaron Fennessy, as a person involved in horseracing, through the following conduct caused serious damage to the interests of horseracing in Ireland:
- Obtained information about the condition and wellbeing of Dreal Deal and used such knowledge for betting purposes.
- Had disregard for the Rules of Racing, in that, having knowledge of intended breaches of Rule 212A by a licensed trainer, used this information for personal benefit.
The Committee is satisfied that these breaches have been proved.
CHARGE 39
Rule 273(xiv)6. It is alleged that Mr. Aaron Fennessy obtained information about the condition and/or wellbeing of Dreal Deal to lay the horse to lose with a betting organisation on 4 and/or 24 March, 2020 at Clonmel.
The Committee is satisfied that this breach has been proved.
CHARGE 40
Rule 273(xiv)7. It is alleged that Mr. Aaron Fennessy, having obtained knowledge of an intended breach of Rule 212A concerning Dreal Deal, used this knowledge to lay the horse to lose with a betting organisation on 4 and/or 24 March, 2020 at Clonmel.
The Committee is satisfied that this breach has been proved.
The Committee considered the Submissions made on behalf of the Board and on behalf of Mr. Liam Fennessy and Mr. Aaron Fennessy.
The Committee accepts the submission on behalf of the Fennessys which distinguishes the facts of this case from the Yashvilli case for the reasons stated therein.
The Committee rules that Mr. Liam Fennessy and Mr. Aaron Fennessy be declared disqualified persons within the meaning of the Rules for a period of three months commencing on 1st May 2023.
The Committee makes no order as to costs.
The case was presented by Mr. Louis Weston, Barrister and Ms. Caoimhe Daly, B.L. instructed by Ms. Clíodhna Guy, IHRB Head of Licensing, Legal and Compliance. Mr. Liam Fennessy and Mr. Aaron Fennessy were represented by Mr. Charles O’ Connor, Charles J. O’ Connor & Co. Solicitors, Newmarket, Co. Cork, during a sanctions hearing on 13th January 2023.
For further information, please contact:
This email address is being protected from spambots. You need JavaScript enabled to view it.