Young trainer Mitchell Kerr 'oversold shares in harness horses'

Monday, 21 December 2020

Mitchell Kerr with Bettor Pay Me at Makarewa in 2014.

A promising harness racing trainer is in deep financial trouble as he fights allegations of over-syndicating horses and charging for non-existent insurance policies.

The Racing Integrity Unit (RIU) is investigating the actions of Mitchell Kerr who until recently owned and operated stables in Rangiora, north of Christchurch.

The RIU has declined to comment but Stuff understands it has uncovered several areas of concern that could end up in a police hands.

Police are aware of the allegations but are waiting for the RIU to finish its investigation before deciding whether to launch their own inquiry.

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The concerns relate to Kerr over-selling shares in horses he bought to train and race.

The process of a trainer putting together a syndicate to own a horse and pay its expenses is not unusual.

But Kerr, according to allegations made to the RIU, sometimes sold shares in horses equal to almost twice their value. This is called over-syndicating.

Syndicate owners have therefore found that instead of owning 20 per cent of a horse they actually own only 10 per cent.

Stuff understands some owners have absorbed the loss and left their horses with Kerr so he can pay his debts by training.

Trainer Paul Kerr celebrates with his son, Mitchell, after Pay Me Christian wins the NRM Sire's Stakes Series final at Addington in 2005.

The RIU is also investigating owners being charged insurance premiums for non-existent insurance policies over horses, and a situation where Kerr allegedly sold a non-existent horse to an Australian buyer and charged for its training expenses.

When the owner started to get suspicious, Kerr desperately sought to buy a horse similar to the one he sold.

The RIU is also looking at a large debt Kerr owes to an Australian betting agency. Kerr has previously had problems with a gambling addiction.

Kerr – who already has 87 wins to his credit and has won nearly $900,000 in stake money in his three-year training career – handed in his training licence to Harness Racing New Zealand earlier this month.

His father Paul, a veteran licensed trainer based in Ohoka, North Canterbury, is now employing Mitchell.

He has previously said the allegations against his son were only rumours and hung up when called on Monday.

Neither father nor son responded to text messages from Stuff.

Kerr has worked for his father, and for trainers Robert Dunn, at Woodend Beach, and Gareth Dixon in Auckland.

He went out on his own in 2017 after securing 10 boxes and a barn at Rangiora Raceway and developed the outside yards and paddocks.

RIU general manager Mike Godber confirmed the investigation was continuing but had no further comment.