The 52-year-old Long Island resident was charged after state police and animal welfare investigators raided his farm in Coxsackie (kuk-SAHK'-ee) in April 2009 and seized 177 horses.
Paragallo is the former owner of 1996 Kentucky Derby favorite and fifth-place finisher Unbridled's Song. He has had horses run in more than 4,500 races.
The state Racing and Wagering Board has suspended him from racing at New York tracks.
Paragallo's lawyer says he'll appeal the sentence.