In a major unsealing of indictments, federal authorities in Brooklyn have charged six people, including current and former NBA players, in connection with a sophisticated sports betting and money laundering operation. The defendants are accused of exploiting non-public NBA information to rig bets and launder proceeds, according to a press release from the U.S. Attorney's Office, Eastern District of New York.
Among those charged are Terry Rozier, formerly known as "Scary Terry" during his basketball tenure, along with Damon Jones, and other individuals across the country. They face serious allegations of wire fraud conspiracy, and money laundering conspiracy for allegedly profiting off illegal betting activity. "As alleged, the defendants turned professional basketball into a criminal betting operation, using private locker room and medical information to enrich themselves and cheat legitimate sportsbooks," said United States Attorney Nocella in a statement obtained by the U.S. Attorney's Office.
The indictment elaborates on multiple incidents spanning from December 2022 to March 2024, where confidential NBA game details were misused. On one occasion, Terry Rozier informed an associate that he planned to leave a Hornets game early due to a supposed injury, prompting bets against Rozier's performance which resulted in significant illicit profits. The operation appeared to employ insider tips from several NBA players and coaches, enabling co-conspirators to wager on games with a competitive edge.
FBI Director Patel weighed in, emphasizing the impact on the integrity of sports. "Using private information and positions of power to rig sports gambling outcomes is not only illegal, but destroys the integrity of the game and will never be tolerated," he said. The defendants have not had their day in court yet, and they remain innocent unless, and until proven guilty. If convicted, however, each person could face up to 20 years in prison for the wire fraud conspiracy count and an additional 20 years for the money laundering conspiracy count, as per the U.S. Attorney's Office.
The investigation showcased the collaborative efforts of various agencies, including the FBI's New York Field Office and the NYPD. Officials have praised the rigorous inquiry which brought the scheme to light. "Rigging a professional basketball game for personal profit is as immoral as it is illegal," NYPD Commissioner Jessica S. Tisch told reporters. "This investigation exposed a gambling ring built around the NBA, where players and associates allegedly used inside information and even faked injuries to fraudulently manipulate bets on games," as noted by the U.S. Attorney's Office.
Additional support for the investigation came from the Office's Business and Securities Fraud Section, with Assistant United States Attorneys Benjamin Weintraub, David Berman, and Kaitlin Farrell spearheading the prosecution.
