PUBLIC

UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

OFFICE OF ADMINISTRATIVE LAW JUDGES

__________________________________________

) 

In the Matter of ) 

) 

Joseph Peacock and Oscar Ceballos, ) Docket No. 9415 

) 

Appellants. ) 

__________________________________________)

ORDER ON STAY APPLICATION AND APPLICATION FOR REVIEW

On June 15, 2023, Appellants Joseph Peacock (“Appellant Peacock”) and Oscar Ceballos 

(“Appellant Ceballos”) (collectively, “Appellants”) filed a Notice of Appeal and Application for 

Review (“Application”). Appellants appeal the May 17, 2023 decision of the Horseracing 

Integrity and Safety Authority (“HISA” or “Authority”) in Action No. 2022-00431 affirming the 

September 25, 2022 ruling and civil sanction imposed by stewards at Albuquerque Downs 

Racetrack (the “Stewards”), as well as any underlying findings of fact and conclusions of law 

reached by HISA or the Stewards in their respective proceedings below. Appellants request that 

HISA’s May 17 decision and the Stewards’ September 25 ruling and civil sanction be reviewed

by the Administrative Law Judge (“ALJ”) de novo, under 15 U.S.C. §§ 3058(b)(1)-(3) and 16 

C.F.R. § 1.146(b). In addition, in their Application, Appellants request a stay of HISA’s May 17

decision and the Stewards’ September 25 ruling and civil sanction during the pendency of the

Administrative Law Judge’s review.

The Authority filed a Response to the Application on June 26, 2023 (“Response”).

I. Stay Application

Appellants’ request for a stay was filed pursuant to 16 C.F.R. § 1.148. To support its

request, Appellants state only that HISA found good cause to stay the Stewards’ ruling pending 

the appeal to HISA. The record provided by Appellant does not indicate any more detail as to the 

bases for HISA’s entry of a stay. (Application, Exhibit A (Order on Request for Stay Pending 

Appeal)). The Authority has not filed an opposition to the stay application.0F

1

 

Pursuant to 16 C.F.R. § 1.148(d), the factors to be addressed in deciding a stay 

application are:

1 The Authority’s opposition was due June 22, 2023. 16 C.F.R. § 1.148 (“The Authority may file an opposition . . . 

within 7 days of being served with the application for a stay.”).

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(1) The likelihood of the applicant’s success on review; 

(2) Whether the applicant will suffer irreparable harm if a stay is not granted;

(3) The degree of injury to other parties or third parties if a stay is granted; and 

(4) Whether the stay is in the public interest.

16 C.F.R. § 1.148(d). 

Because Appellants’ appeal is grounded principally on their dispute of the facts found 

below, the likelihood of Appellants’ success on review is not apparent at this time. Appellants 

also fail to provide facts or argument from which to assess the probability of irreparable harm if 

a stay is not granted. However, given that HISA has already found good cause for a stay below, 

and that HISA has not opposed continuing that stay pending this appeal, there is adequate basis 

for concluding that the degree of injury to other parties or third parties if a stay is granted is 

minimal and that the stay is in the public interest. 

Based on the foregoing, the request for a stay of HISA’s May 17 decision and the 

Stewards’ September 25 ruling and civil sanction during the pendency of the Administrative Law 

Judge’s review is GRANTED.

II. Request for Evidentiary Hearing 

A. Parties’ Positions and Applicable Rules

Appellants challenge HISA’s May 17 decision and the Stewards’ September 25 ruling 

and civil sanction and request de novo review under 15 U.S.C. § 3058(b)(l)-(3) and 16 C.F.R. § 

1.146(b) on the basis of asserted errors of fact and law. The Authority opposes the request and 

asks that the ALJ uphold the decision below and limit the appellate review to briefing or oral 

arguments by the parties, pursuant to 16 C.F.R. § 1.146(c)(3).1F

2

16 C.F.R. § 1.146(c)(2) sets forth: 

In reviewing the final civil sanction and decision of the Authority, the 

Administrative Law Judge may rely in full or in part on the factual record 

developed before the Authority through the disciplinary process under 15 U.S.C. 

3057(c) and disciplinary hearings under Authority Rule Series 8300. The record 

may be supplemented by an evidentiary hearing conducted by the Administrative 

Law Judge to ensure each party receives a fair and impartial hearing. Within 20 

days of the filing of an application for review, based on the application submitted 

by the aggrieved party or by the Commission and on any response by the 

Authority, the Administrative Law Judge will assess whether: 

2 16 C.F.R. § 1.146(c)(3) applies when neither party requests to supplement or contest the facts found by the 

Authority. Here, Appellant requests to supplement or contest the facts. Thus, 16 C.F.R. § 1.146(c)(3) is not 

applicable.

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(i) The parties do not request to supplement or contest the facts found by the 

Authority; 

(ii) The parties do not seek to contest any facts found by the Authority, but at least 

one party requests to supplement the factual record; 

(iii) At least one party seeks to contest any facts found by the Authority; . . . 

(iv) The Commission, if it filed the application for review, seeks supplementation of 

the record; or 

(v) In the Administrative Law Judge’s view, the factual record is insufficient to 

adjudicate the merits of the review proceeding. 

16 C.F.R. § 1.146(c)(2). 

B. Determinations and Notice of Hearing

Based on the Application filed herein, Appellants request to supplement the factual 

record and seek to contest the facts found by the Authority. In addition, the factual record 

submitted is insufficient to adjudicate the merits of the review proceeding. Accordingly, the 

record will be supplemented by an evidentiary hearing conducted by the Administrative Law 

Judge. 

The parties are hereby notified that the evidentiary hearing in this matter will 

commence on July 13, 2023 at 12:00 p.m., Eastern Standard Time and will be conducted by 

videoconferencing. Details regarding videoconferencing procedures will be sent to the parties in 

advance of the hearing date. 

Pursuant to 16 C.F.R. § 1.146(c)(4): the evidentiary hearing will last no more than 8 

hours for the Appellants and 8 hours for the Authority and will be limited to: an opening 

statement by Appellants of no more than 15 minutes; direct examination by Appellants, with 

opportunity for cross-examination by the Authority; and the admission of documentary evidence. 

16 C.F.R. § 1.146(c)(4). 

Pursuant to 16 C.F.R. § 1.146(c)(4)(i)(C), these procedures apply: 

- You are directed to provide a list of all individuals who will be participating in the 

hearing 3 days in advance of the hearing and file it through the Administrative E-File 

System (“AEFS”).

- Any documentary evidence shall be labeled with an exhibit number and submitted to 

the Administrative Law Judge and to the opposing party 3 days in advance of the 

hearing. You are directed to prepare a cover sheet listing the exhibits you wish to 

submit and to file the exhibit list and exhibits through AEFS. 

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- If Appellants wish to examine any witnesses, Appellants shall ensure such witnesses 

are available. Appellants shall provide notice of the list of witnesses to be called at 

the hearing to the Administrative Law Judge and to the opposing party 3 days in 

advance of the hearing. You are directed to prepare a witness list which includes a 

brief summary of the testimony of each witness and file it through AEFS.

- The hearing will be conducted remotely via videoconferencing (by Zoom) and will be 

transcribed by a court reporter. An audio line will be provided for public access.

ORDERED: 

 D. Michael Chappell

 Chief Administrative Law Judge 

Date: July 3, 2023 

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