UNITED STATES OF AMERICA

BEFORE THE FEDERAL TRADE COMMISSION

OFFICE OF ADMINISTRATIVE LAW JUDGES

FTC DOCKET NO. D-9415

ADMINISTRATIVE LAW JUDGE: D. MICHAEL CHAPPELL

IN THE MATTER OF:

JOSEPH PEACOCK AND OSCAR CEBALLOS APPELLANTS

AUTHORITY’S PROPOSED FINDINGS OF FACT 

AND CONCLUSIONS OF LAW AND 

PROPOSED ORDER

Comes now the Horseracing Integrity and Safety Authority (the “Authority”) 

pursuant to the briefing schedule provided by the Administrative Law Judge after 

the July 13, 2023, evidentiary hearing held in this matter, and submits the 

following Proposed Findings of Fact and Conclusions of Law and Proposed Order. 

STURGILL, TURNER, BARKER &

MOLONEY, PLLC

/s/ Bryan Beauman

BRYAN BEAUMAN

REBECCA PRICE

333 W. Vine Street, Suite 1500

Lexington, Kentucky 40507

Telephone: (859) 255-8581

bbeauman@sturgillturner.com

rprice@sturgillturner.com

HISA ENFORCEMENT COUNSEL 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 1 of 21 * PUBLIC * 
2

CERTIFICATE OF SERVICE

Pursuant to 16 CFR 1.146(a) and 16 CFR 4.4(b), a copy of this Proposed 

Findings of Fact and Conclusions of Law and Proposed Order is being served on 

August 14, 2023, via Administrative E-File System and by emailing a copy to:

Hon. D. Michael Chapel 

Chief Administrative Law Judge 

Office of Administrative Law Judges 

Federal Trade Commission 

600 Pennsylvania Ave. NW 

Washington DC 20580 

via e-mail to Oalj@ftc.gov and electronicfilings@ftc.gov 

Joel B. Turner 

Frost Brown Todd 

400 W Market St. Suite 3200 

Louisville KY 40202-3363 

jturner@fbtlaw.com

Nolan M Jackson 

Frost Brown Todd 

20 F St. NW Suite 850 

Washington DC 20001

njackson@fbtlaw.com

/s/ Bryan Beauman

Enforcement Counsel 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 2 of 21 * PUBLIC * 
3

PROPOSED FINDINGS OF FACT

1. The Horseracing Integrity and Safety Authority (the “Authority”)

maintains its headquarters at 401 West Main Street, Suite 222, Lexington,

Kentucky 40507.

2. The Authority was created by the Horseracing Integrity and Safety Act, 15

USC 57A § 3051 et seq.

1

3. The Authority exists to develop and implement a racetrack safety program

for covered horses, covered persons, and covered horseraces.

4. Albuquerque Downs is a Racetrack, pursuant to the Authority’s Rules,

where Covered Horseraces are conducted.

5. Albuquerque Downs maintains its racing operations at 145 Louisiana

Boulevard NE, Albuquerque, New Mexico 87108.

6. SHERIFF BROWN is a Covered Horse, pursuant to the Authority’s Rules.

7. Joseph Peacock, Jr. is currently the owner of SHERIFF BROWN and was

owner of SHERIFF BROWN on September 24, 2022.2

8. Todd Fincher is currently the trainer of SHERIFF BROWN and was trainer

of SHERIFF BROWN on September 24, 2022.3

9. Oscar Ceballos was rider of SHERIFF BROWN on September 24, 2022, at

Albuquerque Downs.4

1 15 U.S.C. § 3051 et seq.

2 Authority Exhibit 1. 

3 Transcript of Evidentiary Hearing at 217. 

4 Transcript of Evidentiary Hearing at 115. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 3 of 21 * PUBLIC * 
4

10.On September 24, 2022, SHERIFF BROWN raced at Albuquerque Downs

in Race 6.5

11.SHERIFF BROWN placed first in Race 6 on September 24, 2022.6

12.During the course of the race, jockey Oscar Ceballos struck SHERIFF

BROWN eleven times with the riding crop.7

13.The Albuquerque Downs stewards reviewed the race footage and observed

jockey Ceballos use the riding crop eleven times during the race.8

14.The Albuquerque Downs stewards conducted hearings with jockey Ceballos

and trainer Fincher, in place of owner Peacock, on September 25, 2022.9

15.The Albuquerque Downs stewards reviewed the race footage with Ceballos

and Fincher during the September 25, 2022, hearings. This review involved

Ceballos and Fincher counting aloud the number of strikes they observed

during the race.10

16.The Albuquerque Downs stewards issued Ceballos a ruling citing him for a

Class 2 Violation of HISA Rule 2280(b)(1) for striking the horse eleven

times.11

5 Authority Exhibit 2. 

6 Authority Exhibit 3. 

7 Authority Exhibit 2. 

8 Transcript of Evidentiary Hearing at 80-82. 

9 Transcript of Evidentiary Hearing at 82; Transcript of Evidentiary Hearing at 

231. 

10 Id. 

11 Authority Exhibit 2. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 4 of 21 * PUBLIC * 
5

17.The Albuquerque Downs stewards issued Peacock a ruling citing him for a

Class 2 Violation of HISA Rule 2280(b)(1) for Ceballos’ striking the horse

eleven times.12

18.Ceballos filed a Request for Stay Pending Appeal of the Albuquerque Downs

stewards’ ruling with the Authority on October 3, 2022.13

19.Peacock filed a Notice of Appeal of the Albuquerque Downs stewards’ ruling

with the Authority on September 29, 2022.14

20.The Authority granted a stay of penalties on October 3, 2022.15

21.The Authority consolidated the appeals on October 19, 2022.16

22.The Authority conducted a Board hearing of the matter on March 27, 2023.

Jockey Ceballos, trainer Fincher, owner Peacock, and Steward Larry

Fontenot appeared as witnesses at the hearing.17

23.The Authority issued a written decision on appeal on May 17, 2023.18

24.Peacock and Ceballos filed an appeal with the Federal Trade Commission

of the Authority’s decision on June 13, 2023.19

12 Authority Exhibit 3. 

13 Authority Exhibit 5. 

14 Authority Exhibit 4. 

15 Authority Exhibit 6. 

16 Authority Exhibit 10. 

17 Authority Exhibit 15. 

18 Authority Exhibit 19. 

19 Notice of Appeal and Application for Review filed by Appellants, In the Matter of 

Joseph Peacock and Oscar Ceballos, FTC No. D-9415, June 15, 2023. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 5 of 21 * PUBLIC * 
6

25.The Federal Trade Commission conducted a hearing in this matter on July

13, 2023.20

PROPOSED CONCLUSIONS OF LAW

I. Jockey Oscar Ceballos struck SHERIFF BROWN eleven times during

Race 6 on September 24, 2022.

II. No underlying safety concern served as the basis for strikes but rather

the strikes were made in an effort to encourage the horse to achieve

optimal placing in the race.

III. The Albuquerque Downs stewards did not consider any taps, HISA Rule

2280(b)(2), or any flags, HISA Rule 2280(b)(3), when counting the

number of strikes Ceballos committed during the race. The Commission

agrees.

IV. The Albuquerque Downs stewards appropriately applied HISA Rule

2280(b)(1) and found that Ceballos had committed a Class 2 Violation of

the Authority’s crop rule.

V. The Albuquerque Downs stewards appropriately applied HISA Rule

2282(b)(2) and issued the following penalties in the ruling: a $500 fine

for the jockey or 20% of the purse, whichever is greater; a three-day

suspension for the jockey; 5 HISA points for the jockey; and a

disqualification of purse earnings.

20 Transcript of Evidentiary Hearing. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 6 of 21 * PUBLIC * 
7

The Commission finds Ceballos violated HISA Rule 2280(b)(1) on 

September 24, 2022, in Race 6 by striking his horse more than six times 

and imposes the following penalties: a $500 fine for the jockey or 20% of 

the purse, whichever is greater; a three-day suspension for the jockey; 5 

HISA points for the jockey; and a disqualification of purse earnings.

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 7 of 21 * PUBLIC * 
8

Proposed Order

The undersigned Chief Administrative Law Judge (“ALJ”), having held an 

evidentiary hearing on July 13, 2023, having reviewed the entire record de novo, and 

having reviewed the parties’ submitted proposed findings of fact and conclusions of 

law, herby makes the following findings of fact and conclusions of law. 

Introduction

On September 25, 2022, the stewards at Albuquerque Downs stewards issued 

jockey Oscar Ceballos a ruling for violating Horseracing Integrity and Safety 

Authority (“HISA” or the “Authority”) Rule 2280(b)(1) when he struck his mount, 

SHERIFF BROWN, eleven times during the sixth race the previous day.21 As a result, 

the stewards imposed on Ceballos a penalty of a $500 fine or 20% of purse earnings, 

whichever is greater; a three-day suspension from racing; five HISA points; and the 

disqualification of the purse monies won in the race pursuant to HISA Rule 

2282(a)(2). The Albuquerque Downs stewards also issued a ruling to the owner of 

SHERIFF BROWN, Joseph Peacock, imposing a penalty of a disqualification of purse 

monies won in the race pursuant to HISA Rule 2282(a)(2).22 Both Ceballos and 

Peacock, appealed the ruling to the Authority’s Board,23 where Ceballos and Peacock 

21 Authority Exhibits 2 and 3. All exhibits referenced hereinafter are in reference to 

exhibits admitted at the Federal Trade Commission evidentiary hearing held on 

July 13, 2023, in this matter. The exhibits were provided in “Horseracing Integrity 

and Safety Authority Pre-Hearing Exhibit List and the Record Below” and were

admitted during the hearing. Exhibits will be referred to as “Party’s Name Exhibit”

in this filing.

22 Authority Exhibit 3. 

23 Authority Exhibits 4 and 5.

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 8 of 21 * PUBLIC * 
9

(the “Appellants”) were afforded a full hearing on the appeal.24 The HISA Board 

affirmed the stewards’ ruling finding that the ruling lacked any “clear error, and that 

the stewards’ ruling was supported by evidence and applicable law...”25 The 

Appellants appealed the Authority’s decision to the Federal Trade Commission (the 

“Commission”),26 and received a full evidentiary hearing conducted on July 13, 

2023.27 Appellants argued Ceballos exceed the number of strikes HISA Rule 

2280(b)(1) permitted due to safety reasons, despite never raising that mitigation 

factor at the initial Albuquerque Downs stewards’ hearing.28

The evidence presented in the record, at all underlying proceedings, and at the 

Commission’s evidentiary hearing, supports the conclusion Ceballos struck his mount 

SHERIFF BROWN eleven times during the race at Albuquerque Downs on 

September 24, 2022, with no basis to preserve safety for himself, his mount, or other 

riders; and the stewards imposed the appropriate penalty pursuant to HISA Rules 

2280 and 2282, which the Authority’s Board upheld in its May 17, 2023, decision.29 

The Authority’s Rules on Use of Riding Crop and Penalties

HISA Rule 2280 Use of Riding Crop allows jockeys to use riding crops to 

encourage horses to achieve optimal performance. HISA Rule 2280(a). However, the 

Authority has limited a jockey to only striking a horse six times during a race to 

24 Authority Exhibit 15. 

25 Authority Exhibit 19. 

26 Notice of Appeal and Application for Review filed by Appellants, In the Matter of 

Joseph Peacock and Oscar Ceballos, FTC No. D-9415, June 15, 2023.

27 Transcript of Evidentiary Hearing.

28 Transcript of Evidentiary Hearing at 106.

29 Authority’s Exhibit 19. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 9 of 21 * PUBLIC * 
10

achieve the best outcome. HISA Rule 2280(b)(1). If a jockey strikes a horse more than 

six times during a race, the Authority has defined a schedule of accompanying 

penalties. Riders may contact a horse via a tap on the shoulder if both hands are on 

the reins and simultaneously touching the neck of the horse at the time of the tap; 

this tap does not qualify as one of the rider’s six permitted strikes. HISA Rule 

2280(b)(2). A rider may also show or wave the crop to the horse, a term of art in the 

industry called “flagging,” without making contact with the horse; a flag is not 

considered a strike pursuant to the Authority’s rules. HISA Rule 2280(b)(3). 

A jockey incurs a Class 2 Violation of HISA Rule 2280 Use of Riding Crop by 

using four to nine strikes over the maximum six permitted strikes during the race; 

resulting in a penalty of a $500 fine for the jockey or 20% of the purse earnings, 

whichever is greater; a three-day suspension for the jockey; five HISA points for the 

jockey; and a disqualification of the horse from purse earnings. HISA Rule 2282(b)(2). 

The Authority’s rules on the use of the riding crop went into effect on July 1, 

2022, and all Covered Horseraces run after that date have been subject to the 

Authority’s regulations governing the use of the riding crop.30 The Authority 

delegated the adjudication of alleged violations of HISA Rule 2280 to racing stewards, 

whether employed by the Authority, state racing commissions, or tracks. HISA Rule 

8320(a). The stewards follow state racing commission procedural rules for track 

hearings for riding crop violations. If a rider receives a stewards ruling, the rider or 

other interested party may appeal the stewards’ decision to the Authority’s Board for 

30 15 U.S.C. § 3051 et seq.

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 10 of 21 * PUBLIC * 
11

further review. HISA Rule 8350(a). The Authority’s Board reviews the stewards’ 

decision under a clearly erroneous standard.

Ceballos Used the Riding Crop Eleven Times During Race 6 on September 

24, 2022

Evidence in the record and presented at the Commission hearing is clear that 

Ceballos contacted the horse with his riding crop eleven times during the race on 

September 24, 2022. Albuquerque Downs stewards, HISA steward Larry Fontenot, 

Elizabeth Garcia, and Connie Estes, observed Ceballos committing eleven strikes 

during the race.31 The strikes that the stewards observed and counted in their 

assessment were “actually hits.” The strikes were not taps, per HISA Rule 2280(b)(2), 

or flags, per HISA Rule 2280(b)(3).32 The Albuquerque Downs stewards reviewed the 

race footage immediately upon the conclusion of the race and each counted the 

number of strikes they observed. Each steward observed Ceballos use the crop eleven 

times during the race.33

The next day, the stewards conducted a hearing with Ceballos regarding his 

use of the crop, 34 and a hearing with SHERIFF BROWN trainer, Todd Fincher, on 

behalf of owner Peacock, regarding the same. 35 During the hearings, the stewards 

reviewed the race footage with Ceballos and Fincher, and the parties counted the 

strikes used during the race.36 Ceballos and the stewards agreed that Ceballos had 

31 Transcript of Evidentiary Hearing at 81.

32 Transcript of Evidentiary Hearing at 78-79.

33 Transcript of Evidentiary Hearing at 82.

34 Id.

35 Id; Authority Exhibit 1, Transcript of Evidentiary Hearing at 231. 

36 Transcript of Evidentiary Hearing at 82, Transcript of Evidentiary Hearing at 98.

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 11 of 21 * PUBLIC * 
12

struck SHERIFF BROWN eleven times during the race.37 Steward Larry Fontenot 

then issued a Stewards Ruling to Ceballos citing him for violating HISA Rule 

2280(b)(1) by striking his mount “5 Strikes over the Limit” of six strikes per race. 38

Appellants then appealed the ruling to the Authority’s Board.39 At the 

Authority’s hearing, Steward Fontenot appeared to testify as the Authority’s witness. 

Steward Fontenot remained steadfast in his testimony that Ceballos struck the horse 

eleven times during the course of the race.40 On the record at that hearing, Steward 

Fontenot reviewed the race footage and counted aloud the strikes he observed.41 It is 

clear from the underlying record that Ceballos made contact with the horse eleven 

times, five times in excess of what HISA Rule 2280(b)(1) allows. 

Ceballos Was Not Justified in Exceeding the Allowed Amount of Strikes to 

the Horse

No basis exists to support Appellants’ claim that Ceballos used the strikes over 

the allowed six times for safety reasons. At the Commission’s evidentiary hearing, 

Appellants theorized Ceballos’ strikes were a necessary safety measure because the 

horse was “lugging in.”42 Appellants are correct in their assertion that the Authority’s 

rules contemplate a scenario in which riders may use strikes to preserve the safety of 

themselves, their mounts, and other participants in the race. HISA Rule 2280(b)(4). 

37 Transcript of Evidentiary Hearing at 103.

38 Authority Exhibits 2 and 3. 

39 Authority Exhibits 4 and 5. 

40 Authority Exhibit 15 at 11:50-12:28. 

41 Id. 

42 Transcript of Evidentiary Hearing at 112-172; 217-238; and 238-270. For the 

purposes of this appeal, “lugging in” is a racing term of art that means a horse is 

drifting to the inside rail of a race. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 12 of 21 * PUBLIC * 
13

However, Appellants’ hypothesis that Ceballos acted to prevent a dangerous situation 

arose only after the stewards’ hearings with Ceballos and Fincher and was raised by 

the owner. While Appellants are certainly not prohibited from raising this issue here 

with the Commission, if Ceballos was truly concerned during the race about safety of 

horse and rider, he surely would have raised it contemporaneously, immediately after 

the race with the stewards. 

On September 25, 2022, the date of the stewards’ hearings with Ceballos and 

Fincher, both jockey and trainer reviewed the race film with the stewards. Neither 

Ceballos nor Fincher raised any claim of potential safety measures as a basis for the 

additional five strikes.43 Per the testimony of Steward Fontenot, Ceballos “came in, 

we sat there. He watched the race. He counted the whips. I counted the whips. We 

talked about it...And he said... ‘it is what it is.’”44 Later, when Ceballos filed his 

Request for Stay Pending Appeal, he provided the following justification for seeking 

relief from the Authority: 

I know I was penalized for 6 strike rule, but I believe many of the strikes 

were flags or brushes on the shoulder I believe the brushes or flags are 

being considered strikes. I believe my actions with the whip are being 

counted against me, I believe my actions are to encourage the 

horse to the best of my ability.

45

Based on his own admission to the stewards and written statement, in the days 

immediately following the race, Ceballos clearly believed that his use of the riding 

crop was for the limited purpose of encouraging SHERIFF BROWN to win the race. 

43 Transcript of Evidentiary Hearing at 82; Transcript of Evidentiary Hearing at 

231. 

44 Transcript of Evidentiary Hearing at 103 (emphasis added). 

45 Authority Exhibit 5 (emphasis added). 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 13 of 21 * PUBLIC * 
14

The evidence in the record reflects that Ceballos was familiar with the crop 

rule as a rider in multiple New Mexico jurisdictions. In fact, Ceballos served as a 

Spanish language interpreter for New Mexico Stewards at Zia Park to explain the 

Authority’s crop rule to other riders.46 Ceballos understood the parameters of HISA 

Rule 2280, and the associated penalties with striking five times over the limit. 47 With 

his full understanding of HISA regulations, and with his review of the race footage 

with the Albuquerque Downs stewards, Ceballos never expressed any concern that a 

safety issue existed during the race until his appeal was consolidated with Peacock’s

appeal.48

Peacock was the first party to raise the argument to the Authority’s Board that 

Ceballos struck his horse – not Ceballos or Fincher who were present for the race and 

for the stewards’ hearings.49 At the time of the race and the subsequent hearings, 

Peacock was traveling.50 Peacock, recipient of the vast majority of the purse money 

that SHERIFF BROWN would collect but for the HISA Rule 2280 violation, is not a 

racing steward51 nor a former race rider.52 However, he felt “qualified to review the 

race” and use his “best judgment” to determine how many strikes Ceballos 

committed.53 Peacock’s “opinion” of the race led him to believe the strikes Ceballos 

46 Transcript of Evidentiary Hearing at 108-109. 

47 Transcript of Evidentiary Hearing at 103-104. 

48 Authority Exhibit 10. 

49 Appellants Exhibit 10; Transcript of Evidentiary Hearing at 103; Transcript of 

Evidentiary Hearing at 82. 

50 Transcript of Evidentiary Hearing at 240. 

51 Transcript of Evidentiary Hearing at 251. 

52 Transcript of Evidentiary Hearing at 265. 

53 Transcript of Evidentiary Hearing at 258. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 14 of 21 * PUBLIC * 
15

committed additional strikes for safety purposes.54 Peacock’s “best judgment” led him 

to plead in his Notice of Appeal, “It does not appear that Mr. Ceballos struck Sheriff 

Brown the required number of times over the limit. Also, Mr. Ceballos appeared to 

use the crop to preserve the safety of the horses and riders in the race.”55 Peacock 

testified that he neither consulted with Ceballos about the race nor the purpose of 

Ceballos’ strikes prior to conducting his review of the race.56

Appellants’ case presented to the Commission reflects Peacock’s theory of the 

case, which he formulated after the stewards’ hearing with the jockey and trainer and 

conflicts with the rider’s own representations and written statements about the race. 

As such, Appellants’ emergent theory that Ceballos needed to strike the horse five 

times over the limit of permitted strikes to stop the horse from “lugging-in” is 

inconsistent with the evidence in the record in this matter.

Additionally, to bolster this theory of the case, Appellants presented Steward 

Jeff Williams as a witness to provide his opinion about the Albuquerque Downs 

stewards’ ruling. Williams testified that he has been “good friends” with Fincher, an 

interested party to this matter, for 35 years.57 Williams testified upon the request of 

Appellants and his friend, whose purse earnings are subject to redistribution pending 

the Commission’s decision in this matter, because “they didn’t know a lot of other 

stewards...”58

54 Transcript of Evidentiary Hearing at 251. 

55 Authority Exhibit 4. 

56 Transcript of Evidentiary Hearing at 249. 

57 Transcript of Evidentiary Hearing at 212. 

58 Transcript of Evidentiary Hearing at 215. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 15 of 21 * PUBLIC * 
16

Williams also acknowledged in his testimony that stewards across the country 

could watch the same race and reach different determinations in good faith about 

rule violations and infractions from race replays.59 Mr. Williams’ testimony suggests 

that his opinion could justifiably differ from the Albuquerque Downs stewards 

rulings, even if both opinions were formed in good faith. However, only Williams, not 

Steward Fontenot, testified that he was long-time friends with an interested party in 

this matter. Only Williams’ testimony, not Steward Fontenot’s testimony, ignores the 

underlying record of events, admissions in this case, and collaboration with other 

adjudicating stewards and relies exclusively on his own opinion of the race. 

Findings of Fact

1. The Authority maintains its headquarters at 401 West Main Street, Suite

222, Lexington, Kentucky 40507.

2. The Authority was created by the Horseracing Integrity and Safety Act, 15

USC 57A § 3051 et seq.60

3. The Authority exists to develop and implement a racetrack safety program

for covered horses, covered persons, and covered horseraces.

4. Albuquerque Downs is a Racetrack, pursuant to the Authority’s Rules,

where Covered Horseraces are conducted.

5. Albuquerque Downs maintains its racing operations at 145 Louisiana

Boulevard NE, Albuquerque, New Mexico 87108.

59 Transcript of Evidentiary Hearing at 211. 

60 15 U.S.C. § 3051 et seq.

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 16 of 21 * PUBLIC * 
17

6. SHERIFF BROWN is a Covered Horse, pursuant to the Authority’s Rules.

7. Joseph Peacock, Jr. is currently the owner of SHERIFF BROWN and was

owner of SHERIFF BROWN on September 24, 2022.61

8. Todd Fincher is currently the trainer of SHERIFF BROWN and was trainer

of SHERIFF BROWN on September 24, 2022.62

9. Oscar Ceballos was the jockey of SHERIFF BROWN on September 24,

2022, at Albuquerque Downs.63

10.On September 24, 2022, SHERIFF BROWN raced at Albuquerque Downs

in Race 6.64

11.SHERIFF BROWN placed first in Race 6 on September 24, 2022.65

12.During the course of the race, jockey Oscar Ceballos struck SHERIFF

BROWN eleven times with the riding crop.66

13.The Albuquerque Downs stewards reviewed the race footage and observed

jockey Ceballos use the riding crop eleven times during the race.67

14.The Albuquerque Downs stewards conducted hearings with jockey Ceballos

and trainer Fincher, in place of owner Peacock, on September 25, 2022.68

61 Authority Exhibit 1. 

62 Transcript of Evidentiary Hearing at 217. 

63 Transcript of Evidentiary Hearing at 115. 

64 Authority Exhibit 2. 

65 Authority Exhibit 3. 

66 Authority Exhibit 2. 

67 Transcript of Evidentiary Hearing at 80-82. 

68 Transcript of Evidentiary Hearing at 82; Transcript of Evidentiary Hearing at 

231.

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 17 of 21 * PUBLIC * 
18

15.The Albuquerque Downs stewards reviewed the race footage with Ceballos

and Fincher during the September 25, 2022, hearings. This review involved

Ceballos and Fincher counting aloud the number of strikes they observed

during the race.69

16.The Albuquerque Downs stewards issued Ceballos a ruling citing him for a

Class 2 Violation of HISA Rule 2280(b)(1) for striking the horse eleven

times.70

17.The Albuquerque Downs stewards issued Peacock a ruling citing him for a

Class 2 Violation of HISA Rule 2280(b)(1) for Ceballos’ striking the horse

eleven times.71

18.Ceballos filed a Request for Stay Pending Appeal of the Albuquerque Downs

stewards’ ruling with the Authority on October 3, 2022.72

19.Peacock filed a Notice of Appeal of the Albuquerque Downs stewards’ ruling

with the Authority on September 29, 2022.73

20.The Authority granted a stay of penalties on October 3, 2022.74

21.The Authority consolidated the appeals on October 19, 2022.75

69 Id. 

70 Authority Exhibit 2. 

71 Authority Exhibit 3. 

72 Authority Exhibit 5. 

73 Authority Exhibit 4. 

74 Authority Exhibit 6. 

75 Authority Exhibit 10. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 18 of 21 * PUBLIC * 
19

22.The Authority conducted a Board hearing of the matter on March 27, 2023.

Jockey Ceballos, trainer Fincher, owner Peacock, and Steward Larry

Fontenot appeared as witnesses at the hearing.76

23.The Authority issued a written decision on appeal on May 17, 2023.77

24.Peacock and Ceballos filed an appeal with the Federal Trade Commission

of the Authority’s decision on June 13, 2023.78

25.The Federal Trade Commission conducted a hearing in this matter on July

13, 2023.79

Conclusions of Law

1. Jockey Oscar Ceballos struck SHERIFF BROWN eleven times during Race

6 on September 24, 2022.

2. No underlying safety concern served as the basis for strikes but rather the

strikes were made in an effort to encourage the horse to achieve optimal

placing in the race.

3. The Albuquerque Downs stewards did not consider any taps, HISA Rule

2280(b)(2), or any flags, HISA Rule 2280(b)(3), when counting the number

of strikes Ceballos committed during the race. The Commission agrees.

76 Authority Exhibit 15. 

77 Authority Exhibit 19. 

78 Notice of Appeal and Application for Review filed by Appellants, In the Matter of 

Joseph Peacock and Oscar Ceballos, FTC No. D-9415, June 15, 2023. 

79 Transcript of Evidentiary Hearing. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 19 of 21 * PUBLIC * 
20

4. The Albuquerque Downs stewards appropriately applied HISA Rule

2280(b)(1) and found that Ceballos had committed a Class 2 Violation of the

Authority’s crop rule.

5. The Albuquerque Downs stewards appropriately applied HISA Rule

2282(b)(2) and issued the following penalties in the ruling: a $500 fine for

the jockey or 20% of the purse, whichever is greater; a three-day suspension

for the jockey; 5 HISA points for the jockey; and a disqualification of purse

earnings.

6. The Commission finds Ceballos violated HISA Rule 2280(b)(1) on

September 24, 2022, in Race 6 by striking his horse more than six times

and imposes the following penalties: a $500 fine for the jockey or 20% of the

purse, whichever is greater; a three-day suspension for the jockey; 5 HISA

points for the jockey; and a disqualification of purse earnings.

Conclusion

The video footage of the race clearly shows that Ceballos committed eleven 

strikes in the race. The strikes were not used as a tool to prevent SHERIFF BROWN 

from lugging in, but rather were hits to propel the horse to run faster and win the 

race.80 Ceballos rode the race to win and used the crop eleven times to spur SHERIFF

BROWN to cross the finish line first. The Albuquerque Downs stewards ruling 

appropriately accounted for all eleven strikes Ceballos used during the race, and 

appropriately applied the Authority’s penalties. 

80 Authority Exhibit 14. 

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 20 of 21 * PUBLIC * 
21

Based on the foregoing findings of fact and conclusions of law, it is hereby 

ORDERED AND ADJUDGED as follows: 

The Commission hereby AFFIRMS the stewards’ rulings and UPHOLDS the 

attendant penalties as the record supports the Albuquerque Downs stewards’ 

findings in the stewards ruling from September 25, 2022, and the May 17, 2023, 

decision by the Authority’s Board.

Entered this _______ day of _____________, 2023

D. Michael Chappell

Chief Administrative Law Judge

PUBLIC

FEDERAL TRADE COMMISSION | OFFICE OF THE SECRETARY | FILED 08/15/2023 OSCAR NO. 608399 -PAGE Page 21 of 21 * PUBLIC *