The company that issued the $1,050,000 letter of credit that supposedly was intended to pay riders, officials and ring crews at the Las Vegas World Invitational categorically deny responsibility for payments on the grounds that the agreement was never activated by the organizers.

John P. Kramer, chief executive officer, and Clarence Lee, executive vice president and chief financial officer of Icon, a wholly owned subsidiary of Omnicom Group one of the world's largest conglomerates of advertising and media companies, said that the letter of credit contained a provision requiring that organizers put into an escrow bank account cash equal to the $1,050,000.

The escrow account was never opened by the organizers, Equus Entertainment, and no matching funds were ever provided, according to the executives. Lee said that he notified Equus Entertainment two weeks before the Oct. 14-15 event that no information had been received on the escrow account. Equus Entertainment's David R. Shriner advised Icon, he said, that the funds would not be required.

About $1 million in prize money to the riders and fees to officials and workers at the event have not been paid by Equus Entertainment.

The letter of credit automatically expired within days of the conclusion of the event. Icon International said it did not receive payment of a fee for providing the letter of credit as it was never utilized.

The letter of credit has become the main focus of attention in the scandal surrounding the event as it was cited by the U.S. Equestrian Federation as a requirement to guarantee payment to the riders and led to providing the five-star rating.

Riders, officials, vendors, shippers and investors said the official sanctioning of the event and assurances that funds could be drawn against the letter of credit was what led to their involvement after Equus Entertainment directors David R. Shriner and Fairlie Arrow had failed to gain an FEI santion in three years of efforts.

The event was won by Rodrigo Pessoa, a Brazilian who lives in Belgium. Riders were from nine other nations as well as the U.S., including McLain Ward, Laura Kraut, Richard Spooner, Schuyler Riley, Anne Kursinski, Lauren Hough, Georgina Bloomberg and Kimberley Prince.

Checks to all of the riders except Georgina Bloomberg, Lauren Hough and Ian Millar of Canada bounced or could not be cashed for lack of funds.

A 90-minute television show of the program that was scheduled by CBS for New Year's Eve was canceled, the network said, because Equus Entertainment did not meet its financial obligations.

The financial problems of the event have led to reports in both mainstream and equestrian media outlets throughout the United States and Europe.

Photo Credit: U.S. Equestrian Federation President John Long. Photo by Ken Braddick-HorseSport USA