Brooklyn, N.Y. — On Thursday, federal prosecutors in Brooklyn revealed two extensive indictments that collectively unveil a vast criminal network connecting organized crime figures, both current and former NBA players, and even a sitting NBA head coach, all involved in schemes related to manipulated poker games and insider sports betting.
In total, 37 defendants were charged across the two cases, which U.S. Attorney Joseph Nocella Jr. described as “a devastating blow against the intersection of organized crime and professional sports corruption.”
Rigged Poker Games Backed by Organized Crime
In the initial instance, 31 defendants—comprising members and affiliates of the Bonanno, Gambino, and Genovese crime families—faced charges in a sophisticated plot to defraud victims of millions of dollars through illicit poker games. Included in the list were Chauncey Billups, the head coach of the Portland Trail Blazers, and Damon Jones, a former NBA player and coach.
Prosecutors allege the defendants used altered shuffling machines, x-ray tables, and contact lenses to read marked cards in underground high-stakes poker games across New York City, East Hampton, and other locations nationwide. Games were often fronted by recognizable figures — including ex-professional athletes dubbed “Face Cards” — to lure wealthy victims.
The indictment charges the conspirators with defrauding victims of no less than $7 million, with organized crime families receiving a share of the profits.
The operation reportedly employed violent enforcement methods, such as robberies, assaults, and extortion to recover gambling debts.
“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,” stated United States Attorney Nocella. “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.
The scheme was allegedly controlled through two major poker circuits — the “Lexington Avenue Game,” linked to the Bonanno family, and the “Washington Place Game,” tied to the Gambino family — with proceeds shared among La Cosa Nostra members.
“Today over 30 people were arrested and charged for their alleged roles in criminal schemes to rig illegal poker games to win large amounts of money. These individuals used technology and deceit to scam innocent victims out of millions of dollars – eventually funneling money to La Casa Nostra and enriching one of the most notorious criminal networks in the world,” stated FBI Director Patel. “This investigation spanned 9 states and FBI offices, and I want to thank the men and women of the FBI for their tremendous work and dedication rooting out those actors responsible. This FBI will never stop following the money to pursue and find those who break our laws.”
Among those charged were Angelo Ruggiero Jr., Joseph Lanni, Ernest Aiello, Julius Ziliani, and Matthew Daddino, all alleged mob affiliates. Investigators said some participants laundered profits through shell companies and cryptocurrency transfers.
Insider Betting and Sports Corruption
In a separate but parallel case, six other defendants — including former and current NBA players — were indicted for wire fraud and money laundering conspiracies tied to insider sports betting schemes.
Those charged include Terry Rozier of the Charlotte Hornets; former NBA player and coach Damon Jones (also charged in the poker case); and defendants Eric Earnest, Shane Hennen, Marves Fairley, and Deniro Laster.
According to the indictment, from December 2022 through March 2024, the group used non-public injury and lineup information from NBA teams to place lucrative bets on games. Prosecutors allege players and coaches themselves leaked or acted on confidential details—such as undisclosed injuries or planned limited playtime—to profit from illegal wagers worth hundreds of thousands of dollars.
“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,” stated United States Attorney Nocella. “This was a sophisticated conspiracy involving athletes, coaches, and intermediaries who exploited confidential information for profit. Insider betting schemes erode the integrity of American sports, and this Office will continue in its strong tradition of holding accountable anyone who seeks to corrupt sports through illegal means.”
“Today the FBI arrested six people, including current and former NBA players, for their alleged role in illegal sports betting and money laundering conspiracy – the result of a sweeping investigation conducted by outstanding FBI professionals and partners. 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. We will continue following the money to ensure gambling operations of all kinds stay within the law and bring to justice those who take advantage of innocent victims,” stated FBI Director Patel.
“Former and current NBA players and coaches, including Terry Rozier, Damon Jones and additional co-conspirators, allegedly informed the defendants and others of confidential information relating to upcoming NBA games and player performances, such as pre-release medical information and a player’s intention to alter their upcoming game performance, which favored certain bettors within their inner social circle,” stated FBI Assistant Director in Charge Raia. “This alleged collusion resulted in the defendants secretly pocketing their lavish winnings and corrupting NBA games. The FBI will never turn a blind eye to any insider betting scheme within sporting industries – regardless of title or professional affiliation – to protect its integrity and afford all participants a fair chance to win big.
In one example, Rozier allegedly informed a friend he would leave a Hornets game early due to a “fake injury,” allowing associates to bet against his performance and collect large winnings. In another, Jones allegedly sold insider information about the Los Angeles Lakers’ player status before games, enabling conspirators to exploit betting lines before they shifted.
“This was a sophisticated conspiracy involving athletes, coaches, and intermediaries who exploited confidential information for profit,” said Nocella. “Insider betting schemes erode the integrity of American sports.”
Joint Law Enforcement Operation
The twin investigations — spanning at least nine states and several federal agencies — were led by the FBI, Homeland Security Investigations, the NYPD, and the New York Waterfront Commission.
FBI Director Kash Patel called the cases “a coordinated assault on the integrity of both our financial systems and professional sports,” adding that “the FBI will never stop following the money.”
The indictments represent one of the largest crackdowns ever on sports-related criminal enterprises, merging the worlds of organized crime, technology-driven cheating, and insider betting.
All defendants are presumed innocent until proven guilty. If convicted, those charged with wire fraud or money laundering conspiracy each face up to 20 years in federal prison.
Victims of the poker fraud are urged to contact the FBI at 1-800-CALL-FBI.
