An IAAF arbitration panel found Capobianco guilty of taking anabolic steroids. IAAF general secretary Istvan Gyulai said that the reinstatement of Capobianco in July 1996 following a report for Athletics Australia by Robert Ellicott, QC, was a mistake. That inquiry cleared Capobianco on a technicality to run in the Olympic Games. In 1996, after months of legal challenge, Capobianco was banned from competition for four years by the IAAF for taking the banned anabolic steroidstanozolol after a meeting in Hengelo. Capobianco raced in Dijon the day prior to Hengelo and returned a negative (clear) drugs test. Capobianco's costs for arbitration were paid by the IAAF and his ban was later reduced to 2 years.