A racehorse owner is in hot water after igniting a scandal.
Marshall Gramm, an economics professor at Rhodes College (Tenn.), faces a lifetime ban after being charged with improperly accessing confidential health records for thousands of horses, the Horseracing Integrity and Safety Authority (HISA) said in a statement Monday.
Gramm denied that he used illegal tactics.
HISA alleges that Gramm used this unauthorized access over a six-week period from May to June to access health information of horses that was intended only for veterinarians and the horses’ connections.
It also claimed that Gramm attempted to conceal his identity using an automated method that made his access appear authorized.
Over that six-week span, Gramm engaged in pari-mutuel wagering and claimed nine horses, who earned his racing team between $80,000-$90,000, according to HISA CEO Lisa Lazarus.
“He had access to information that nobody else did,” Lazarus said during a press conference Monday addressing the scandal. “He was able to use that information to monetize that. I don’t think anybody can debate the fact that if you have health horse information ahead of a claiming race and you make a claim based on that information that you have a massive advantage.”
Lazarus said HISA would reimburse the previous owners of those horses and seek restitution from Gramm in court.
Gramm did not deny accessing the information when approached by HISA investigators, but said in a statement on social media that he had broken no rules and would “vigorously defend” himself at his upcoming HISA hearing in September.
“The information at issue was available through my authorized HISA account,” Gramm wrote on X on Monday afternoon. “Once logged into my account, I bypassed no security protocols or other safeguards to access the information. Where I exercised poor judgment was in not bringing the vulnerability to HISA’s attention sooner after it became a public story.”
Gramm’s poor judgment could result in a potential lifetime ban, HISA counsel John Roach told the Daily Racing Form.
HISA also shared its findings with federal and local law enforcement, which could lead to even larger penalties if Gramm is found to have violated any laws.
“There must be significant consequences for individuals who violate the integrity of our rules and obtain and abuse confidential horse health information,” Lazarus said in a statement.
“HISA will take every necessary step to fiercely protect the integrity of Thoroughbred racing and ensure that violators of our rules are punished appropriately.”
Famous racehorse owner and native New York Mike Repole vented on X on Monday about the situation, saying there is “real validity” to the allegations.
“I’ve owned racehorses for 20 years. Today is one of the most embarrassing, disgusting and saddest days I’ve ever experienced in this sport,” he wrote. “And if even half of what is being discussed is true, this could become one of the biggest scandals in horse racing history. If Marshall did something wrong, punish him. But don’t make the mistake of pretending this is just about Marshall. THIS IS ABOUT THE SYSTEM.”
He added: “Horse racing has a massive insider problem. Sales. Wagering. Data. Conflicts. Access. Power. …HISA needs to immediately disclose exactly what happened, how long it happened, who had access and whether anyone else accessed the same information … I think HISA has completely lost the trust of the industry. And I believe this could ultimately be the beginning of the end for HISA as we know it.”
