Paul Webber and Oliver Sherwood will be required to attend a hearing of the Jockey Club's disciplinary committee following the outcome of a court case last November.
Both trainers were condemned by a High Court judge for "collusive bidding" to persuade a novice buyer to pay "twice the odds" for a gelding at the Doncaster Sales in 1995.
The Jockey Club hearing, a date for which has yet to be announced, will attempt to establish whether, in connection with the sale of Pru's Profiles on May 15th, 1995, Webber and Sherwood acted in a manner prejudicial to the good reputation of racing contrary to Rule 220 (iii)
Rule 220 (iii) states: No person shall act in a manner which in the opinion of the stewards of the Jockey Club is prejudicial to the integrity, proper conduct or good reputation of horseracing in Great Britain whether or not such conduct shall constitute a breach of any of the foregoing orders or rules of racing.
The horse at the centre of the dispute was a bay gelding whom Webber had bought on behalf of client Jan Steinman for £8,400 in Ireland the previous year.
Company director Gary Heywood did not know that Webber, the agent he employed to advise him through the Curragh Bloodstock Agency, was also an adviser to the vendor of the horse and had an interest in the seller making a profit.
Judge William Crawford said Webber's friend, Sherwood, agreed to bid against him so as to push Heywood to his limit.
Heywood ended up paying 28,000 guineas for a four-year-old gelding worth no more than 14,000 guineas. The horse was not a success and was eventually withdrawn from training.
The judge awarded Heywood's company, Exterior Profiles Ltd, £51,460 damages, plus interest and costs, against Webber's former employers, Newmarket-based Curragh Bloodstock Agency.
Today's move by the Jockey Club is a direct result of the court case and the questions provoked by the judge's findings.