That's horrible, but only far too common especially with Thoroughbreds it seems, those that don't make the grade or that are no longer fast or sound enough quite often end up in the wrong hands or at the knackers. Something the racing industry needs to address, is it really necessary to churn out so many foals every year knowing full well that only a small percentage will ever make it as a profitable racehorse?
I currently have an ex-racer & a TBx, the former was a racehorse but luckily had enough jumping ability to become an affiliated showjumper after her racing days were over. The latter a 6 y.o. has been neglected twice in his life already, once as a foal and again last winter when he was bought by a dealer posing as a private buyer. The lady that had nursed him back to health from a yearling found herself out of a job and sold him for £450 (she was desperate and it was winter). She unwittingly sold him to a dealer who posed as a private buyer who would give the horse a good home. Unfortunately in the two months this dealer had him he went from a healthy bodyweight to little more than a bag of bones.
However he is now a healthy chap full of character who is being brought on slowly. Sadly though, this should never have happened in the first place, a rogue dealer out to make a quick profit and causing misery along the way. I bought the horse for £1200 (partly sympathy, partly because I could see the horse 'underneath'). For the dealer, well she had a straight profit of at least £700 as I doubt she even spent fifty quid on him whilst he was in her 'care'.