National Stud left shocked and disappointed following foal's sale without knowledge of part-owner

The National Stud must pay a fine of £5,000 after details emerged on Wednesday of a case in which it sold a filly foal without telling Peter Charalambous, its partner under the foal-sharing agreement that produced her, that an offer had been made. The stud expressed shock and disappointment about the incident, which it said was caused by the failings of an individual who no longer works there.

The fine is the result of a plea agreement between the stud and the BHA, now ratified by a disciplinary panel, which described its terms as "entirely fair and in the interests of justice". "There is no evidence, following an extensive investigation, that there was any wrong intent on the part of the National Stud to defraud Mr Charalambous," the panel was told by Tomas Nolan, a BHA lawyer.

"Rather this seems to have been simply the result of a failure of communication on the part of a single employee, who enjoyed or perhaps was overburdened with excessive autonomy in their role. The failure of the National Stud itself was in not having a process in place to ensure that this could not happen."

The filly is by Time Test out of Charalambous's Aerodrome, a Nathaniel mare who was second in a bumper on her only start. The foal was put through the sales ring at Tattersalls in late November 2021 and was the subject of a bid of 5,500gns, which failed to meet her reserve. 

Nolan said the foal was viewed by a potential purchaser at the stud and a sale agreed four days after the auction. The failure to advise Charalambous of the offer and completing a sale without his approval are breaches of the bloodstock industry code of practice. The filly has been sold on by her new owner, fetching €10,000 at a yearling auction in Ireland last September.

Peter Charalambous: "I'm affected by this every day. I will never, ever trust anyone in authority"Credit: Getty Images

Barrister Roderick Moore, who represented the stud at the hearing, said it was deeply embarrassed and had co-operated fully with the BHA's investigation to discover how this could have happened. "It has not taken every possible legal point or defences it might have sought to run. It doesn't want to undermine the code in any way, it wants it to work because it occupies a position of responsibility in the bloodstock world."

A statement issued by the stud, which is owned by the Jockey Club, said: "During the course of the BHA’s investigation into this matter, we have been shocked and hugely disappointed to learn of such serious failings by a senior executive, whose employment at the National Stud has since been terminated.

"We pride ourselves on regular communication with all our clients and it is clear that on this occasion the actions of the former employee in question fell well short of the high standards expected at the National Stud. Since this incident, a management restructure has taken place, with new procedures also put in place to ensure such events cannot be repeated."

Charalambous told the Racing Post he was still in shock at what had happened and would now seek legal advice. "I've been absolute hell to live with," he said, adding that, in his emotional state, he had dispensed with all but one of his broodmares. "All I wanted was the return of that foal.

"Even now it brings shivers to me. They're my children. I'm affected by this every day. I will never, ever trust anyone in authority."

Read this next:

BHA issues indefinite ban to social media user for 'unacceptable behaviour' 

The Front Runner is our latest email newsletter available exclusively to Members' Club Ultimate subscribers. Chris Cook, a four-time Racing Reporter of the Year award winner, provides his take on the day's biggest stories and tips for the upcoming racing every morning from Monday to Friday. Not a Members' Club Ultimate subscriber? Click here to join today and also receive our Ultimate Daily emails plus our full range of fantastic website and newspaper content