Troubled apprentice Josh Adams has escaped charges over an incident at a city nightclub but has been warned the renewal of his jockey's licence is in jeopardy.Adams, who is currently serving a seven-month penalty after testing positive to a banned substance, was found in a toilet cubicle with licensed stablehand Claudia Miller as the pair attended a birthday party at the venue.Hotel security staff regarded the circumstances as "suspicious" and removed the pair who fronted Racing NSW stewards on

Troubled apprentice Josh Adams has escaped charges over an incident at a city nightclub but has been warned the renewal of his jockey's licence is in jeopardy.

Adams, who is currently serving a seven-month penalty after testing positive to a banned substance, was found in a toilet cubicle with licensed stablehand Claudia Miller as the pair attended a birthday party at the venue.

Hotel security staff regarded the circumstances as "suspicious" and removed the pair who fronted Racing NSW stewards on Thursday.

The incident occurred around 11.50pm on June 4, only hours after Adams rode in his final race before starting his suspension.

The inquiry was conducted mostly in camera following application from Adams' legal team of three.

Written statements were tendered from several licensed persons including fellow riders Nash Rawiller, Daniel Ganderton and Tommy Berry, along with apprentice Adam Hyeronimus.

CCTV footage from the licensed venue was also played and entered into evidence during the closed part of the hearing.

"Josh, following the last race on June 4 you commenced a seven-month suspension after an illicit substance was found in your system when you were tested at Gosford races on April 5," chief steward Ray Murrihy said.

"It's a concern that today we have examined further circumstances on the very night that suspension commenced where your conduct has been brought into question.

"Yourself and Claudia Miller were removed from an inner-city nightclub for circumstances deemed suspicious by security staff, when found together in a cubicle in the male toilets."

Murrihy said there was insufficient evidence for stewards to issue any formal charges against Adams under the conduct rules.

"However it's our intention to forward a copy of the transcript of the hearing and its exhibits to Racing NSW chief executive Peter V'landys which we recommend to be provided to the licensing committee when and if you apply for a licence for next season."

Murrihy told both Adams and Miller that the conduct of licensed people was integral to the interests and image of racing, both on and off the track.

"Licences are a privilege," Murrihy said, "to those who pass fit and proper persons test and we expect you to take that on board".

Adams rode 43 city winners in Sydney this season before he started his suspension and will finish the season as Sydney's leading apprentice.

He is expected to be one of a couple of junior riders to front a stewards' inquiry on Monday into their conduct at a recent mandatory drug and alcohol awareness seminar Racing NSW put on for the apprentices.