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10/23 16:49 CDT NBA head coach and player charged in sprawling sports betting
and Mafia-backed poker schemes
NBA head coach and player charged in sprawling sports betting and Mafia-backed
poker schemes
By ALANNA DURKIN RICHER, TIM REYNOLDS and PHILIP MARCELO
Associated Press
NEW YORK (AP) --- The head coach of the Portland Trail Blazers and a player for
the Miami Heat were arrested Thursday along with more than 30 other people in a
takedown of two sprawling gambling operations that authorities said leaked
inside information about NBA athletes and rigged poker games backed by Mafia
families.
Portland coach Chauncey Billups was charged with participating in a conspiracy
to fix high-stakes card games tied to La Cosa Nostra organized crime families
that cheated unsuspecting gamblers out of at least $7 million. Heat guard Terry
Rozier was accused in a separate scheme of exploiting private information about
players to win bets on NBA games.
The two indictments unsealed in New York create a massive cloud for the NBA ---
which opened its season this week --- and show how certain types of wagers are
vulnerable to massive fraud in the growing, multibillion-dollar legal
sports-betting industry. Joseph Nocella, the top federal prosecutor for the
Eastern District of New York, called it "one of the most brazen sports
corruption schemes since online sports betting became widely legalized in the
United States."
"My message to the defendants who've been rounded up today is this: Your
winning streak has ended," Nocella said. "Your luck has run out."
Both men face money laundering and wire fraud conspiracy charges. Also charged
was former NBA assistant coach and player Damon Jones, who stands accused of
participating in both schemes.
"The fraud is mind boggling," FBI Director Kash Patel told reporters. "We're
talking about tens of millions of dollars in fraud and theft and robbery across
a multiyear investigation."
The alleged fraud, however, paled in comparison to the riches the athletes
earned on the court. Billups, who was inducted into the Basketball Hall of Fame
last year, had about $106 million in earnings over his 17-year career. Rozier
made about $160 million in his stops in Boston, Miami and Charlotte.
Billups and Rozier have been placed on leave from their teams, according to the
NBA, which said it is cooperating with authorities.
"We take these allegations with the utmost seriousness, and the integrity of
our game remains our top priority," the NBA said in a statement.
Hours after his arrest, Rozier appeared in a federal court in Orlando, Florida,
wearing a Charlotte Hornets sweatshirt, handcuffs and shackles. Billups
appeared before a judge in Portland, Oregon. Both men were ordered released
from custody on certain conditions. Billups' attorney, Chris Heywood, declined
to comment after the hearing.
Rozier's lawyer, Jim Trusty, said in a statement that his client is "not a
gambler" and "looks forward to winning this fight." Trusty criticized
authorities for not allowing his client to surrender on his own and accused
officials of wanting "the misplaced glory of embarrassing a professional
athlete with a perp walk."
Messages were left Thursday at a phone number and email address listed in
public records for Jones.
Roughly 20 other defendants appeared in federal court in Brooklyn, where most
of them pleaded not guilty. Many of those charged with violent crimes or with
lengthy criminal records and ties to organized crime were detained.
Mafia families profited off gambling scheme, officials say The poker scheme lured unwitting players into rigged games with the chance to compete against former professional basketball players like Billups and Jones. The games were fixed using sophisticated cheating technology, such as altered card-shuffling machines, hidden cameras in poker chip trays, special sunglasses and even X-ray equipment built into the table to read cards, authorities allege. The scheme often made use of illegal poker games run by New York crime families that required them to share a portion of their proceeds with the Gambino, Genovese and Bonnano crime families, according to court papers. Members of those families, in turn, also helped commit violent acts, including assault, extortion and robbery, to ensure repayment of debts and the continued success of the operation, officials said in court documents.
Athletes accused of leaving games early In the sports betting scheme, Rozier and other defendants are accused of accessing private information from NBA players or coaches that could affect a player's performance and giving that information to others so they could place wagers. Players sometimes altered their performance or took themselves out of games early to rig prop bets --- a type of wager that allows gamblers to bet on whether a player will exceed a certain statistic, such as a total number of points, rebounds or assists, according to the indictment. In one instance, Rozier, while playing for the Charlotte Hornets in 2023, told people he was planning to leave the game early with a supposed injury, allowing gamblers to place wagers earning them tens of thousands of dollars, authorities said. That game against the New Orleans Pelicans raised eyebrows at the time. Rozier played the first 9 minutes and 36 seconds of the game before leaving, citing a foot issue. He did not play again that season. Posts still online from March 23, 2023, show that some bettors were furious with sportsbooks that evening when it became evident that Rozier was not going to return to the game after the first quarter, with many turning to social media to say that something "shady" had happened regarding the prop bets involving his stats for that night. The indictments contain the descriptions of several unnamed NBA players whose injury status and availability for certain games were the source of betting activity. Those players are not accused of any wrongdoing, and there is no indication that they would have even known what was being said about their status for those games. Those players include LeBron James, Anthony Davis and Damian Lillard. Their identities are clear based on a review of corresponding injury reports surrounding games mentioned in the indictment. The indictments show that certain defendants shared information about the availability of those players in a game on March 24, 2023, involving the Portland Trail Blazers, and two games in 2023 and 2024 involving the Los Angeles Lakers. The NBA had investigated Rozier previously. He was in uniform as the Heat played the Magic on Wednesday in Orlando, Florida, in the season opener for both teams, though he did not play in the game. ___ Durkin Richer reported from Washington, and Reynolds reported from Miami. Associated Press writers Claire Rush in Portland, Oregon; David Collins in Hartford, Connecticut; Sarah Brumfield in Cockeysville, Maryland; Larry Lage in Detroit; Kate Payne in Tallahassee, Florida; and Mike Schneider in Orlando, Florida, contributed to this report.
Mafia families profited off gambling scheme, officials say The poker scheme lured unwitting players into rigged games with the chance to compete against former professional basketball players like Billups and Jones. The games were fixed using sophisticated cheating technology, such as altered card-shuffling machines, hidden cameras in poker chip trays, special sunglasses and even X-ray equipment built into the table to read cards, authorities allege. The scheme often made use of illegal poker games run by New York crime families that required them to share a portion of their proceeds with the Gambino, Genovese and Bonnano crime families, according to court papers. Members of those families, in turn, also helped commit violent acts, including assault, extortion and robbery, to ensure repayment of debts and the continued success of the operation, officials said in court documents.
Athletes accused of leaving games early In the sports betting scheme, Rozier and other defendants are accused of accessing private information from NBA players or coaches that could affect a player's performance and giving that information to others so they could place wagers. Players sometimes altered their performance or took themselves out of games early to rig prop bets --- a type of wager that allows gamblers to bet on whether a player will exceed a certain statistic, such as a total number of points, rebounds or assists, according to the indictment. In one instance, Rozier, while playing for the Charlotte Hornets in 2023, told people he was planning to leave the game early with a supposed injury, allowing gamblers to place wagers earning them tens of thousands of dollars, authorities said. That game against the New Orleans Pelicans raised eyebrows at the time. Rozier played the first 9 minutes and 36 seconds of the game before leaving, citing a foot issue. He did not play again that season. Posts still online from March 23, 2023, show that some bettors were furious with sportsbooks that evening when it became evident that Rozier was not going to return to the game after the first quarter, with many turning to social media to say that something "shady" had happened regarding the prop bets involving his stats for that night. The indictments contain the descriptions of several unnamed NBA players whose injury status and availability for certain games were the source of betting activity. Those players are not accused of any wrongdoing, and there is no indication that they would have even known what was being said about their status for those games. Those players include LeBron James, Anthony Davis and Damian Lillard. Their identities are clear based on a review of corresponding injury reports surrounding games mentioned in the indictment. The indictments show that certain defendants shared information about the availability of those players in a game on March 24, 2023, involving the Portland Trail Blazers, and two games in 2023 and 2024 involving the Los Angeles Lakers. The NBA had investigated Rozier previously. He was in uniform as the Heat played the Magic on Wednesday in Orlando, Florida, in the season opener for both teams, though he did not play in the game. ___ Durkin Richer reported from Washington, and Reynolds reported from Miami. Associated Press writers Claire Rush in Portland, Oregon; David Collins in Hartford, Connecticut; Sarah Brumfield in Cockeysville, Maryland; Larry Lage in Detroit; Kate Payne in Tallahassee, Florida; and Mike Schneider in Orlando, Florida, contributed to this report.
