USTA issues heavy fines and indefinite suspensions in ownership fraud case

The United States Trotting Association (USTA) has indefinitely suspended the memberships of Kelsey Wagner and Pamela Wagner following an investigation into fraudulent horse ownership registrations.

The rulings stem from an investigation overseen by the Standardbred Racing Investigative Fund which found that Kelsey Wagner acted as a fictitious owner on behalf of her parents, John and Pamela Wagner.

According to the USTA, Standardbred horses were registered in Kelsey Wagner’s name in order to establish a fraudulent ownership arrangement after John Wagner incurred unapproved medication violations that resulted in a suspension, while Pamela Wagner was disqualified by state regulators.

Investigators determined that despite the horses being registered under Kelsey Wagner’s name, John and Pamela Wagner were, in practice, the true owners.

The arrangement involved the registration of 87 Standardbred horses in Kelsey Wagner’s name. The USTA ruled that the registrations constituted false ownership declarations and were in violation of several USTA rules, including Rule 26.06 relating to fraudulent misconduct, Rule 7.01 requiring horses to race in the name of a bona fide owner or lessee, and Rule 20.07 concerning conspiracy to commit rule violations.

As a result of those findings, the USTA imposed an indefinite suspension of Kelsey Wagner’s membership and initially levied a fine of $217,500. Following a review by the USTA Executive Committee, the suspension was upheld and the fine was reduced to $67,500.

The investigation also concluded that Pamela Wagner played a direct role in transferring horses into her daughter’s name in order to continue operating despite regulatory restrictions.

The USTA determined that Pamela Wagner fraudulently transferred at least 62 Standardbred horses into Kelsey Wagner’s name as part of the arrangement. Those actions were also found to violate Rules 26.06, 7.01 and 20.07.

Pamela Wagner’s USTA membership has also been indefinitely suspended. She was initially fined $435,000, though the Executive Committee later modified the penalty to $135,000 while affirming the suspension.

With the suspensions now confirmed as of March 4, 2026, both Kelsey Wagner and Pamela Wagner are classified as “persons not in good standing” under USTA Rule 4.130 and related regulations.

The case represents one of the more significant ownership-related disciplinary actions taken by the USTA in recent years, involving multiple horses and long-term fraudulent registration practices designed to circumvent regulatory sanctions.

For the complete list of FAS rulings last week, click here.

From Harnesslink Media