(a) Rules pertaining to a licensee and rulings against a licensee apply to another person if continued participation in an activity by the other person would circumvent the intent of a Rule or ruling by permitting the person to serve, in essence, as a substitute for the ineligible licensee because:(1) the other person is legally liable for the conduct that violated the Rule or is the subject of the ruling; or(2) the other person benefited financially from that conduct.(b) The fraudulent transfer of a race animal to avoid application of a Rule or ruling is prohibited.