Brooklyn, N.Y. – Federal prosecutors have charged current and former NBA players, including Terry Rozier and Damon Jones, in a sprawling sports betting and money laundering conspiracy that officials say corrupted professional basketball games with insider information and fake injuries.
The indictment, unsealed Thursday in federal court, alleges that the group used confidential team data to place fraudulent wagers worth hundreds of thousands of dollars.
Authorities say the defendants turned locker-room secrets into profit, undermining the integrity of the league.
Key Points
In other news, Federal Judge Dismisses New Jersey Mother’s Lawsuit Over Removal of Children.
- Current and former NBA players, including Terry Rozier and Damon Jones, are charged in a federal betting and laundering scheme.
- Prosecutors allege the group used private medical and lineup information to place insider bets.
- The operation involved fake injuries, straw bettors, and illegal profits from multiple NBA games.
Prosecutors say conspiracy corrupted NBA games
According to the U.S. Attorney’s Office for the Eastern District of New York, six defendants — Rozier, Jones, Eric Earnest, Marves Fairley, Shane Hennen, and Deniro Laster — are accused of using inside information from players and coaches to profit from illicit betting activity between December 2022 and March 2024.
Prosecutors allege the men received non-public data about player injuries, lineup changes, and game plans, which they then used to place bets before the information became public. The wagers were placed through both online sportsbooks and in-person betting outlets using straw bettors to conceal their identities.
Allegations detail fake injuries and early exits
One of the most striking allegations involves a March 23, 2023, Charlotte Hornets game, when Rozier, still an active player, allegedly told Laster he planned to leave early due to a fake injury. That information reportedly led Laster, Fairley, and Hennen to wager more than $200,000 on Rozier’s “under” statistics. When Rozier exited the game after nine minutes, the group collected tens of thousands in winnings, which prosecutors say they later counted together at Rozier’s home.
Another scheme described in the indictment involves former NBA coach Damon Jones, who allegedly sold inside information about player health and lineup decisions during Los Angeles Lakers games in February 2023 and January 2024. Prosecutors say the tips allowed associates to bet heavily on outcomes tied to the performance of star players before injury details became public.
Officials condemn “criminal betting operation”
U.S. Attorney Joseph Nocella Jr. called the conspiracy “a criminal betting operation that used private medical and locker room information to cheat legitimate sportsbooks.” He said his office will continue to pursue anyone who tries to “corrupt American sports through illegal means.”
Latest developments, US Marshals nab Georgia fugitive tied to Trenton attempted murder shooting.
FBI Director Kash Patel said the arrests followed a sweeping investigation involving multiple field offices. “Using private information and positions of power to rig sports gambling outcomes destroys the integrity of the game,” Patel said.
FBI Assistant Director Christopher Raia added that some participants “faked injuries and altered performances to ensure bets paid out,” while NYPD Commissioner Jessica Tisch called the conduct “an offense to every player and fan.”
High-profile defendants face decades in prison
All six defendants are charged with wire fraud conspiracy and money laundering conspiracy. Each charge carries a maximum penalty of 20 years in prison. The defendants, ranging in age from 30 to 53, reside across six states and will be arraigned in Brooklyn federal court at a later date.
The conspirators allegedly obtained insider information from several NBA players and coaches, including Rozier and Jones, and distributed that information through a network of bettors. These bettors placed wagers through online sportsbooks and retail betting outlets, falsely representing that their wagers complied with the betting companies’ rules—which included, as relevant here, not betting on non-public information or using straw bettors—while concealing that their wagers were based on confidential team information. Some of the co-conspirators’ activities alleged in the indictment are described below:
March 23, 2023 – Charlotte Hornets Game
As alleged, Rozier, then an active player for the Hornets, tipped off longtime friend Laster that Rozier planned to leave the game early due to a purported injury. Rozier provided this information to Laster for the purpose of enabling Laster to place wagers based on this information. Laster, Fairley, and Hennen, among others, used that confidential information to place and direct more than $200,000 in wagers predicting Rozier’s “under” statistics (i.e., that Rozier would underperform). Rozier exited the game after nine minutes, and many of the bets paid off, generating tens of thousands of dollars in profits. Laster collected the cash and drove through the night to Rozier’s house, where together they counted the profits together.
Another major story, Motorcycle Crash Closes 29th Avenue North in Myrtle Beach; Rider Suffers Life-Threatening Injuries.
March 24, 2023 – Portland Trail Blazers Game
As alleged, Earnest received, and then passed on, insider information from a longtime friend, an NBA coach at the time, that several of the Blazers’ top players would sit out a game against the Chicago Bulls. Before that information became public, Fairley and his associates wagered over $100,000 against the Blazers. When the lineup change was later confirmed, betting lines shifted dramatically and the group’s early bets yielded major winnings.
April 6, 2023 – Orlando Magic Game
As alleged, Fairley profited from a tip obtained through an inside connection to a then Orlando Magic player. A co-conspirator leveraged a relationship with the Magic player to learn that several of the team’s top players would sit out a game against the Cleveland Cavaliers—information that had not yet been made public. The co-conspirator relayed the tip to Fairley, who placed an approximately $11,000 bet that the Cavaliers would outperform the point spread. When the lineup change was later confirmed and the Cavaliers went on to beat the Magic by 24 points, Fairley and the co-conspirator pocketed the winnings.
February 9, 2023 and January 15, 2024 – Los Angeles Lakers Games
As alleged, former NBA player and coach Jones shared and sold insider information on numerous occasions about undisclosed information relating to NBA games, such as lineup decisions and pre-release medical information, to his co-conspirators, who then placed significant wagers based on the tips. For example, on February 9, 2023 and January 15, 2024, respectively, Jones provided insider information to co-conspirators about pre-release medical information concerning star players on the Los Angeles Lakers for the purpose of enabling the co-conspirators to place wagers based on this information.
January 26, 2024 and March 20, 2024 – Toronto Raptors Games
As alleged, Jontay Porter, who was then an NBA player with the Toronto Raptors, informed co-conspirator Long Phi Pham and others that he would prematurely exit the games he was scheduled to play on January 26, 2024 and March 20, 2024, due to purported injuries. Porter agreed to exit the games early so that Pham and others could place bets on this non-public information. Pham, in turn, provided this information to Hennen, who also provided the information to Fairley. Subsequently, Hennen placed bets on Porter’s unders, or underperformance, in connection with the games through a network of straw bettors. When Porter exited both games early, numerous of the fraudulent wagers were successful.
Porter and Pham, among others, have previously pleaded guilty in connection with their participation in the scheme related to these two games.
Prosecutors said the scheme netted large illegal payouts and extended across multiple NBA franchises, including the Hornets, Trail Blazers, Magic, Lakers, and Raptors. Several related defendants, including former Toronto Raptors player Jontay Porter and associate Long Phi Pham, have already pleaded guilty in connection with the same insider betting network.
Federal officials said the investigation is ongoing and may result in additional charges as authorities continue to trace the flow of gambling proceeds and the extent of corruption inside professional basketball.
Breaking now, Dozens More New Jersey School Districts Slash Jobs and Programs; Funding Cuts Deepen Divide As Newark Aid Increases.