The pair were on Monday charged by Racing Victoria with offences relating to the race mare Azkadellia.

Foster is on remand in a NSW prison awaiting trial on seven serious fraud charges arising from his failed online gambling business Sports Trading Company.

Maher has four charges to answer, including improper and/or dishonourable action.

It is alleged Maher knew, suspected, or ought to have known at certain times that his stable manager was not the beneficial owner of the horses.

The stewards also allege that Maher took no steps to notify the stewards of his knowledge or suspicions involving the ownership of the horses involved.

Maher is accused of conduct that was, in the circumstances, prejudicial to the image, interest and welfare of racing.

Stewards allege Connolly made misrepresentations and provided misleading and inaccurate information regarding the ownership of the horses.

If found guilty, both Maher and Connolly face disqualification from the sport.

Last week, lawyers representing 340 disgruntled investors in Foster's latest scam made an application for freezing orders, which have blocked the transfer of Azkadellia and three other racehorses linked to Foster and his associates.

In 2015, Connolly nominated himself as the sole owner of Azkadellia but is understood to have funnelled more than $500,000 in prizemoney to an ING Bank account linked to Foster over a six-month period in 2016.

Connolly was interviewed by Racing Victoria's integrity unit last September.

Azkadellia is estimated to be worth up to $2 million after winning races in Victoria, NSW and Queensland, but the horse's value is likely to plummet following Monday's decision by Racing Victoria.

The horse was originally bought in 2014 from Ciaron Maher Racing for $280,000 with money believed to have been siphoned from Foster's Sports Trading Company.

In September last year, Racing Victoria's integrity unit interviewed private investigator Ken Gamble, who provided information about Mr Foster's involvement in Victoria's racing industry, which had been concealed by three different proxy owners or "fronts" over more than two years.

Azkadellia was originally registered in the name of Arabella Racing Pty Ltd, which was formerly owned by a Hong Kong company controlled by Foster's niece Arabella Foster, 30, who works as a fashion designer in Brisbane.

On August 31, 2014, Ms Foster completed a declaration that Arabella Racing Pty Ltd was the owner of the horse.

But as suspicion mounted that she was providing a front for her notorious uncle, ownership of Arabella Racing Pty Ltd was transferred to a company owned by Canadian national Thomas Sebastian Cain.

In February 2015, Mr Cain completed a transfer-of-ownership form and declared to racing authorities that he was the new owner of Azkadellia.

But Cain failed to disclose he was formerly known as Matthew Thomas Reed, who was sentenced to 12 years in prison in 2007 after being convicted of smuggling cocaine and ecstasy valued at $211 million into Queensland from British Columbia.

Cain is believed to have met Foster when they were both incarcerated at Brisbane's Arthur Gorrie Correctional Centre and later became involved in the Sports Trading Company, which allegedly defrauded more than 340 investors of about $29 million.

On August 25, 2015, Cain completed a transfer of ownership to Connolly, who paid just $60,000 for the Group 1 winning horse.

Private investigator Ken Gamble said the sale was a "deliberate and covert attempt to deceive Racing Victoria and to conceal Foster's beneficial interest in the racehorse".

Mr Gamble said the sale price of $60,000 for a horse that was bought only 12 months earlier for $280,000 and went on to win $1,588,708 in prize money was "substantially less than fair market value".

After meeting with Mr Gamble in September, Racing Victoria reopened an investigation of the bona fides of Azkadellia, which has been banned from all racing until stewards conclude their inquiry.

Another associate of Foster and director of New Zealand Bloodstock Brokers, Hilton Cook, recently claimed he had agreed to buy Azkadellia for $2 million.

Foster, who lives between Byron Bay and the upmarket Sovereign Island on the Gold Coast, was part of the weight-loss scam SensaSlim.

The 54-year-old has served served prison sentences in the US, Britain, Vanuatu and Australia.

During the 1980s, he persuaded topless model and pop singer Samantha Fox and the Duchess of York, Sarah Ferguson, to promote his product Bai Lin tea, which falsely claimed to promote weight loss.