IN an exclusive story in THE AUSTRALIAN today PATRICK SMITH reports that the extensive racing probe into leading jockey Danny Nikolic yesterday took a dramatic turn with Victoria Police beginning its own investigation into his rides in 10 races and associated betting patterns.

The report reads: ‘While Racing Victoria chief steward Terry Bailey refused to verify or deny the police involvement when asked by The Australian yesterday, racing sources confirmed the unprecedented police interest in both Nikolic and former bookmaker Neville Clements' involvement. Clements, now a punter and commission agent, was last week warned off Australian racecourses.

Separately, a Betfair source confirmed to The Australian that the betting exchange had been contacted by Victorian police. The exchange has promised police unfettered access to betting records if it will help their investigation.

The Australian can also confirm that two of five trainers summoned to the ongoing inquiry told stewards that they were not satisfied with Nikolic's ride on their horses. It had previously been reported in the media that none of the trainers queried Nikolic's riding. And it can also be revealed that phone records submitted by Nikolic were incomplete.

As well Queensland stewards have handed over details of an inquiry into the run of a horse trained by Nikolic's brother, John, to Queensland police. Baby Boom, trained by Nikolic, ran unplaced when $1.30 favourite at the Sunshine Coast on January 3. Nikolic has since surrendered his training license.

Clements and two Queensland punters, Alessandro Alaimo and Kevin McFarland, were told they faced being warned off by Queensland stewards after failing to attend a stewards inquiry on March 17. All three won heavily when Baby Boom was beaten. The Queensland punters are also linked to betting on Nikolic rides in Victoria.

Clements, who has been central to the Nikolic inquiry, refused an order by Victoria's Racing Appeals and Disciplinary Board to hand over his phone records. At a RADB hearing on March 6 stewards argued they needed Nikolic's mobile phone as well as Clements' for several reasons.

One, that Nikolic and Clements had a strong personal relationship. Two, the pair engaged in frequent telephone conversations. Three, Clements had, between November last year and January, placed substantial bets on Betfair which exceeded his historical betting patterns.

They were on eight Nikolic rides. Betfair records show he laid seven of them to run unplaced and they did and one to run a place and it did.

The stewards also claimed that a study of other records available to them showed several punters as well as Clements made bets on the horses which were well outside their normal betting patterns.

Clements was given a week to hand over the records.

He was warned off by the RADB on March 24 after he failed to comply. He is appealing the decision.

Nikolic, who originally refused to make his mobile phone available and was fined $5000 on March 16, submitted his phone only after he was warned that he risked losing his riding licence if he did not.

What began as an inquiry into Nikolic's second-placed ride on odds-on favourite Finishing Card at Mornington on January 8, has broadened to an investigation of 10 Nikolic rides between November and January. All were linked to substantial and unusual betting on Betfair.

Danny Nikolic has fiercely defended his innocence of any wrong doing. He argued before the RADB that he had handed over his phone records for the period in question and was prepared to identify any number the stewards might query or any contact they might want.

The Clements decision was a landmark ruling. He argued that as an unlicensed person he was outside stewards' power.

However, the board agreed with the stewards that there was extensive legal precedent going back to a Privy Council ruling in 1937 which supported the stewards' position. Anyone who participates in racing comes under the rules of racing and therefore the power of the stewards.

THIS STORY WAS AN ‘EXCLUSIVE’ IN THE AUSTRALIAN WHICH WE REPRODUCE COURTESY OF THE WRITER, PARTRICK SMITH & NEWS LTD.