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☛ Letter to NCHA from the Vogels 7-5-18

July 6, 2018

Officers and Directors
National Cutting Horse Association 260 Bailey Avenue
Fort Worth, Texas 76107

Re: Correspondence from Ed Dufurrena Dated June 14, 2018

Post Office Box 610 Saint Jo, Texas 76265


Dear Members of the Executive Committee:

I would like to take the opportunity to respond to the letter from Ed Dufurrena dated June 14, 2018. Janie and I have been encouraged by a number of people to respond to the personal attacks and insults Mr. Dufurrena has directed towards us. I am writing this letter on behalf of Janie and me due to Janie’s temporary difficulties with recent surgeries and a new medication which has temporarily affected her memory. Janie asked me to author this letter.

Mr. Dufurrena has appointed himself as the sole arbiter of facts. His baseless and pejorative attacks on Glory Ann Kurtz and us are based on a twisted interpretation of events. Essentially, Mr. Dufurrena’s actions regarding our agreement sometimes labelled Dos Cats Partners deliberately created confusion as will be detailed below. Mr. Dufurrena has used the confusion he created not only as a shield to defend his position, but also as a sword to attack us. I will address major contentions of Mr. Dufurrena.

Exhibit 1 to Mr. Dufurrena’s letter purports to be a Statement of Ownership History (the “Statement,” Vogel Exh. 1) of horses that were involved in an agreement between us and Mr. Dufurrena. His allegation is that the Statement of Ownership History proves we never had an interest in any of the horses listed on the Statement. The Statement proves nothing of the kind. First, the Statement was carefully worded to indicate we did not dispute what the AQHA records showed regarding ownership history. We did not affirm that the AQHA records were complete nor did we affirm that we never had an interest in the horses listed.

The history reflected in the Statement was provided by counsel for Mr. Dufurrena. We subsequently obtained copies of the AQHA ownership records. The actual AQHA records we obtained and a corrected version of the Schedule are attached as Vogel Exh. 1. It is evident that the AQHA records on their face incorrectly omit our ownership interest. This omission is despite the fact that the handwritten owners agreement prepared by Mr. Dufurrena and dated March 25, 2011 (the “Owners Agreement”) provides for a 49% ownership interest in the listed horses and embryos (Dufurrena Exh. 2). Mr. Dufurrena never complied with the Owners Agreement; he never

Officers and Directors
National Cutting Horse Association July 6, 2018
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put any of the listed horses and embryos in the name of Dos Cats Partners, nor did he add our name to the ownership records as the attached AQHA records attest. It is readily apparent that the information provided by Mr. Dufurrena’s counsel and reflected on the Statement is incorrect.

I would like to review the five horses listed in the Statement, one by one, beginning with Stevie Rey Von.

You may be aware that Janie Vogel appeared before the Non-Pro Committee on June 4, 2018. Janie’s testimony regarding Stevie Rey Von begins at page 21. I will paraphrase that testimony and include copies of the cited transcript excerpts as Vogel Exh. 2. (All citations to transcripts are in Vogel Exh. 2.)

When we signed the handwritten Owners Agreement, Janie believed the embryo by Metallic Cat out of Miss Ella Rey, 6th on the list, had already been flushed and placed in a recipient mare (Vogel Exh. 2, Tr. p. 21, line 4 through p. 22, line 8). The embryo Mr. Dufurrena now asserts was on the Owners Agreement was not even conceived until over a month after the Owners Agreement was signed (Dufurrena Exh. 5).

Mr. Dufurrena’s allegation that the Owners Agreement embryo was the one spontaneously aborted is contradicted by the following: in early of 2012, Shona Dufurrena called Janie to come and see the foal that resulted from the embryo transfer (Vogel Exh. 2, Tr. p. 23 lines 3 through 14). That foal was Stevie Rey Von. The other recipient mare slipped the foal at the end of January 2012 (Dufurrena Exh. 5). We received charges for Stevie Rey Von (named Red Solo Cup on Invoice 1852) dating from January 4, 2012 and continuing thereafter through the Futurity in 2015 (Vogel Exh. 2, Tr. p. 22, lines 17 through 24; and Vogel Exh. 3). (Copies of all invoices cited are included in Vogel Exh. 3.) The charges for Stevie Rey Von included the practice pen in December 2015 as well as meal expenses, show stalling expenses, training for the month of November 2015, and other charges.

One example of the Dufurrenas’ effort to create confusion is reflected in the horse names for Stevie Rey Von on the invoices. Beginning with Invoice 1852, Stevie Rey Von was first identified in January 2012 as “Red Solo Cup.” Invoice 2983 for December 2015 identified him as “S Roanie.” (Invoices in Vogel Exh. 3.) Note, this December 2015 invoice is dated after Stevie Rey Von’s win at the 2015 Futurity, but still uses an incorrect name. Mr. Dufurrena claims we did not assert an ownership interest of 49% in Stevie Rey Von until 2017. This statement is very curious as we had been receiving invoices for our 49% interest since the time of his birth in January 2012.

Next, I would like to address Auspicious Cat. The Owner’s Agreement lists Auspicious Cat as the first horse and places our investment at $49,000 for 49% (Dufurrena Exh. 2). Mr. Dufurrena asserts at page 3 of his letter, paragraph 7, that he purchased our interest in Auspicious Cat on January 1, 2016. As proof, Mr. Dufurrena attaches Invoice No. 2390 which shows a credit of $20,000 for that so-called purchase (Dufurrena Exh. 14). The very first time we saw that invoice was when it was included as an exhibit to Mr. Dufurrena’s letter. We NEVER received that invoice in the ordinary course. While Mr. Dufurrena’s claim is he purchased Auspicious Cat in January of 2016, he still

Officers and Directors
National Cutting Horse Association July 6, 2018
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prepared invoices for Auspicious Cat for the entire year of 2016 (Vogel Exh. 3, Invoice 3249 dated December 31, 2016). We were also distressed to see the price purportedly paid by Mr. Dufurrena was $20,000, which would mean we took a loss of $29,000 based on our investment of $49,000. We were never even asked if we agreed to the transaction.

The third horse is Creyzy Train. At page 3, paragraph 6 of his letter, Mr. Dufurrena claims he purchased our interest in Creyzy Train for $10,000 as reflected on Dufurrena Exh. 13. Once again, we NEVER saw this particular invoice until we saw Mr. Dufurrena’s letter. The invoice was not sent in the ordinary course. The AQHA ownership records do not show a transfer to Mr. Dufurrena at any time. The AQHA record shows the mare registered to Brandon Dufurrena on January 1, 2012, and then no other transfer until the transfer to us in February of 2018 (Vogel Exh. 1). Mr. Dufurrena sent invoices for Creyzy Train through 2016 (Vogel Exh. 3, Invoice 3255 dated December 31, 2016). The horse was variously referred to in invoices as Vella Rey and Creyzy Train thereby adding to the confusion.

Ozzum Man is the fourth horse. Mr. Dufurrena asserts at page 3, paragraph 5 of his letter that Ozzum Man was sold to a third party, and that proportionate payments were made to the co- owners. Mr. Dufurrena attached Invoice 2344 dated October 31, 2013, as proof (Dufurrena Exh. 12). The pattern continues. We NEVER received a copy of that invoice and learned of it when we saw Mr. Dufurrena’s letter. It was never sent in the ordinary course. The Statement represents that the Dufurrenas acquired all rights to Ozzum Man on October 28, 2013. The AQHA record shows no such transfer in 2013, only a transfer in May of 2016 (Vogel Exh. 1). Mr. Dufurrena nevertheless sent invoices for Ozzum Man through 2016 (Vogel Exh. 3, Invoice 2850 dated December 31, 2014; Invoice 2985 dated December 31, 2015; Invoice 3216 dated December 31, 2016).

Finally, I will address What A Sneaky Cat, the fifth horse. At page 3, paragraph 3, Mr. Dufurrena asserts that he purchased our interest on November 29, 2012, as reflected on Invoice 2055 (Dufurrena Exh. 10). Once again, we NEVER received a copy of this invoice in the ordinary course and only saw it when we saw Mr. Dufurrena’s letter. The Statement asserts that Dufurrenas acquired the horse November 12, 2012. The AQHA records show the Dufurrenas’ acquired the horse October 15, 2010 (Vogel Exh. 1). The AQHA records also show that the horse was transferred to Brandon Dufurrena on November 29, 2012, the same day Mr. Dufurrena purportedly purchased our interest. Dufurrena continued sending invoices despite the purported sale (Vogel Exh. 3, Invoice 2357 dated October 31, 2013; Invoice 2850 dated December 31, 2014; Invoice 2985 dated December 31, 2015).

We had been requesting correct invoices from the Dufurrenas from at least the year 2014 forward. Mr. Dufurrena alleges we were behind on payments and the Owners Agreement allowed him to take possession of the horses if the Vogels become 90 days delinquent paying invoices. What Mr. Dufurrena conveniently fails to reveal is that we refused to pay invoices that were blatantly erroneous. Despite our frequent and persistent requests for correct invoices, Mr. Dufurrena did not provide any corrections until we initiated litigation, and even then, the invoices were incorrect. I strongly believe a forensic audit of the invoicing practices of the Dufurrenas is warranted.

Officers and Directors
National Cutting Horse Association July 6, 2018
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On Sunday, February 5, 2017, we went to Dufurrena’s to pick up the horses remaining at their facility. Mr. Dufurrena demanded a $100,000 deposit against expenses he alleged we owed. Mr. Dufurrena said he would not cash the check until the disagreement regarding expenses was settled. This was February of 2017, and we had just received the invoices for 2015 a few months earlier. The billing for the entire year of 2015 was batched up and delivered at the same time. We were expecting overdue payouts from breedings and purse winnings, so were surprised at the demand for a deposit. We were also still waiting for the 2016 invoices as of February 2017. We gave Mr. Dufurrena a check for $100,000 while we continued efforts to dissolve our relationship with the Dufurrenas. On the advice of our then attorney, we stopped payment on the check four and one- half months later, while still waiting for the 2016 invoices. We then commenced litigation to dissolve that relationship. In a counterclaim, Mr. Dufurrena alleged we tried to cheat him with a bad check. This was yet another bogus allegation.

On page four, in the third full paragraph, Mr. Dufurrena asserts that Janie improperly obtained breedings to Stevie Rey Von on the pretext she had lifetime breeding rights. Mr. Dufurrena attached Exhibits 18 and 19, each with a handwritten notation “Lifetime Breeder Janie Vogel.” As a 49% owner of Stevie Rey Von, Janie certainly had every right to expect she would obtain breedings to Stevie Rey Von without paying the stallion fee. Mr. Dufurrena attached, as Exhibit 20, portions of a transcript from Janie’s deposition. Janie did testify that the two stallion contracts were not true copies of the contracts that she signed and that they had been altered. Janie was referring to the notation “Lifetime Breeder Janie Vogel.” That handwriting is certainly not Janie’s; her handwriting is shaky due to her Parkinson’s symptoms. Janie does not know who placed that notation on the contracts. We certainly do not contend, nor do we want to imply, that EE Ranches or whomever placed that notation on the two contracts did anything wrong or inappropriate; it is just not Janie’s handwriting.

Mr. Dufurrena alleges, at page 2 in the third full paragraph that he offered, and Janie accepted, a foal out of a mare named Nievas as a substitute for the embryo that the recipient mare slipped. Janie did not accept that substitution but did accept the foal. Note that the so-called substitute Nievas foal was born a full year after Stevie Rey Von. I also want to note that Janie should have had a rebreed right to Metallic Cat if the embryo she owned had been slipped by the recipient mare. Mr. Dufurrena never made that known nor did Janie get a rebreed. We believe Brandon Dufurrena got the rebreed.

Mr. Dufurrena attached an affidavit from Sharon Baker attesting to the honesty and integrity of the Dufurrenas. I suggest Mr. Dufurrena frame this document as it is surely as rare as a Rembrandt or a collector’s coin. Janie vehemently denies and disagrees with the statements in Ms. Baker’s affidavit, particularly the statements in paragraphs six and eight.

Finally, I want to note that in our settlement of the litigation with Mr. Dufurrena, the basis for the money we paid was buying out Mr. Dufurrena’s 51% interest. Janie gave her own appraisal of the value of Stevie Rey Von, Auspicious Cat and Creyzy Train. Mr. Burg asked if she would be willing to pay 51% of that amount and Janie said yes. The 51%, based on Janie’s values, was $994,000

Officers and Directors
National Cutting Horse Association July 6, 2018
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(Janie Vogel Deposition taken January 24, 2018, p. 50, line 9 through p. 51, line 13, Vogel Exh. 2). A full settlement required $156,000 money on top of that. We understood we were buying out Mr. Dufurrena’s 51% interest and calculated our settlement on that basis.

Janie strongly disagrees with the bulk of the assertions in Mr. Dufurrena’s letter. We had elected to keep a low profile regarding the allegations surrounding our lawsuit and Stevie Rey Von. Sadly, the outrageous allegations in Mr. Dufurrena’s letter require us to respond; we will no longer remain quiet.

Thank you for your attention to this matter.

Very truly yours,

Don Vogel (Jul 6, 2018)

Don Vogel Enclosures


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One Comment

  1. Good Job!!
    Don Hagglund

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