Rules Would Rein In Shifty Horse Traders.

Byline: Russell Ray

Aug. 29--Scores of horses, coats glistening and muscles rippling, were sized up by potential buyers before they entered the auction ring in Ocala last week, where horse traders paid more than $9 million for Florida's finest yearlings.

The buying and selling of race horses at private and public auctions has long been a self-regulated business, governed by word and reputation.

But the way horse traders do business in Ocala, the heart of Florida's equine industry, and throughout the state is about to change.

A series of highly publicized lawsuits claiming agents have conspired to inflate horse prices in back-room deals with sellers are leading to major changes in Florida and Kentucky. Lawmakers in both states have passed legislation calling for new rules that would require transparency in horse sales and prevent agents from cheating wealthy newcomers to the sport. Florida officials begin in October to devise new rules for horse sales statewide.

What the industry is trying to put an end to is a deceptive practice that results from dual agency, in which an agent receives a commission from both the buyer and the seller.

"Generally what happens is the agent receives money from both the seller and the buyer and didn't tell either one," said Richard Hancock, executive vice president of the Florida Thoroughbred Breeders and Owners Association.