Two shocking federal indictments give a glimpse into an alleged illegal sports betting scheme in the National Basketball Association and rigged poker games involving organized crime families, leading to the arrests of more than 30 people.
Miami Heat guard Terry Rozier, Portland Trail Blazers coach Chauncey Billups and former Cleveland Cavaliers guard Damon Jones were among the list of people arrested.
Authorities referred to the schemes as “Operation Nothing But Bet” and “Operation Royal Flush,” respectively. In a press conference on Thursday, FBI Director Kash Patel called the fraud “mind-boggling.”
In an indictment related to Operation Nothing But Bet, prosecutors say that Jones and others would sell details about NBA games and players to others before the information became public to inform illegal bets. He and the five other codefendants in the suit have been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering.
In one instance, Jones allegedly sold information about an injury to “Player 3’s” lower body ahead of a game between the Los Angeles Lakers and the Milwaukee Bucks on Feb. 9, 2023.
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Player 3 is described in the document as a “prominent N.B.A. player,” but is not named. Correspondingly, star player Lebron James also did not play that night due to a left ankle injury. Scotty Pippen Jr. also did not play that game, but it was not related to a lower-body injury.
“Get a big bet on Milwaukee tonight before the information is out! [Player 3] is out tonight. Bet enough so Djones can eat to [sic] now!!!” Jones said in a text to a bettor, the indictment said.
Milwaukee beat the Lakers 115 to 106 during that game.
James and Jones overlapped on the Cleveland Cavaliers from 2005 to 2008. Jones also served as an unofficial Lakers coach during the 2022-23 season. James has played for the Lakers since 2018.
James is not accused of wrongdoing.
CNBC reported that a “person familiar with James’ situation” said James was not aware that non-public information about him was used for betting. Likewise, a source told The Athletic that James was unaware.
The sports betting indictment also includes another instance in which Jones and co-defendants Eric Earnest and Marves Fairley conspired based on information about Player 4, believed to be Anthony Davis.
Player 4 was described in the indictment as “one of the Lakers’ best players during the 2023-24 NBA season.”
Davis is not accused of any wrongdoing.
At a news conference, U.S. Attorney Joseph Nocella Jr. of the Eastern District of New York said the conspiracy is “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”
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In the other federal indictment connected to “Operation Royal Flush,” prosecutors say professional athletes like Jones and Billups, known colloquially as “face cards,” lured people to play poker games set up by organized crime families. Then, they would use technology to cheat their way to victory.
The defendants have brought in at least $7,150,000 in numerous games across the country since April 2019, according to the indictment.
“As alleged, members and associates of organized crime families fixed illegal poker games as part of a highly sophisticated and lucrative fraud scheme to cheat victims out of millions of dollars and conspired with others to perpetrate their frauds,” Nocella said in a statement. “Well-known former NBA players and former professional athletes, acted as ‘Face Cards’ to lure unsuspecting victims to high-stakes poker games, where they were then at the mercy of concealed technology, including rigged shuffling machines and specially designed contacts lenses and sunglasses to read the backs of playing cards, which ensured that the victims would lose big. Today’s indictment and arrests sounds the final buzzer for these cheaters.”
Nocella said in a press conference that this scheme also included acts of violence, “including the gunpoint robbery of a person in order to obtain a rigged shuffling machine and extortions that were perpetrated against victims in order to ensure they repaid their gambling debts.”
The 31 defendants in this case have been hit with a range of charges, including wire fraud conspiracy, money laundering conspiracy, operation of an illegal gambling business in relation, and robbery and extortion conspiracy under the Hobbs Act.
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Billups’ attorney Chris Heywood called Billups “a man of integrity” who does “not cheat and defraud others,” according to The Athletic.
“He will fight these allegations with the same tenacity that marked his 28-year career,” Heywood said. “We look forward to our day in court.”
Likewise, Rozier’s lawyer, Jim Trusty of Ifrah Law, said in a statement that Rozier is “not a gambler” and “looks forward to winning this fight,” according to ESPN.
The NBA said Rozier and Billups were placed on leave.
“We are in the process of reviewing the federal indictments announced today. Terry Rozier and Chauncey Billups are being placed on immediate leave from their teams, and we will continue to cooperate with the relevant 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 as reported by The Athletic.
In another statement on Thursday, the NBA said: “The integrity of the game is paramount to NBA players, but so is the presumption of innocence, and both are hindered when player popularity is misused to gain attention. We will ensure our members are protected and afforded their due process rights through this process.”
