A current NBA player and head coach were arrested Thursday morning as part of a federal crackdown on illegal gambling and sports-rigging schemes that prosecutors described as “historic in scope.”
The FBI and Department of Justice announced the arrests of Miami Heat guard Terry Rozier and Portland Trail Blazers coach Chauncey Billups during a morning press conference in New York. Officials unsealed two indictments that allege overlapping criminal operations, one involving insider sports betting within the NBA and another tied to a Mafia-backed underground poker network.
Officials said the cases represent “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”
‘Tens of Millions’ at stake in NBA case
Federal prosecutors said 34 people across 11 states were charged following a four-year investigation led by the FBI’s New York Field Office. The combined operation uncovered tens of millions of dollars in fraud and money laundering, FBI Director Kash Patel said.
“This is the insider-trading saga for the NBA,” Patel told reporters. “The fraud is mind-boggling… not thousands or millions, but tens of millions of dollars of theft.”
The twin cases — U.S. v. Ernest et al. and U.S. v. Aiello et al. — were prosecuted out of the Eastern District of New York.
Rozier charged in insider-betting case
The first indictment names six defendants: Rozier and former Cavaliers coach Damon Jones, and co-defendants DeNiro Laster, Marves Fairley, Eric Ernest, and Shane Hennon. Each faces counts of conspiracy to commit wire fraud and money-laundering conspiracy.
Prosecutors allege the group conspired between December 2022 and March 2024 to profit from non-public information about player injuries and availability. According to the indictment, conspirators used insider details, including when players planned to sit out or leave games early, to place winning prop bets at sportsbooks and casinos.
Fairley pleaded guilty in 2020 to felon in possession of a firearm and served one year in prison under DOJ’s Project EJECT initiative. His name also appears in documents obtained by ESPN this week tied to a separate federal probe into suspicious NCAA basketball wagers, though denied involvement and said he does not bet on college games.
Feds: Rozier faked injury to cash NBA unders
Prior to a March 23, 2023 game, Roizer, a member of the Charlotte Hornets at the time, allegedly told associates he would leave early with a “supposed injury.” More than $200,000 in bets were placed on his unders, according to prosecutors. Rozier exited roughly nine minutes into the game after scoring five points with four rebounds and two assists. DOJ officials said the proceeds were later delivered to Rozier’s home, where “the group counted their cash.”
NBA officials said Thursday they are cooperating fully with the investigation. The league previously said its review of Rozier’s 2023 game found no rule violations but deferred to federal authorities once the criminal probe expanded.
“We are in the process of reviewing the federal indictments announced today,” the NBA said in a statement. “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.”
Billups linked to Mafia’s rigged poker scheme
The second indictment cnters technologically sophisticated poker ring that investigators said defrauded victims of more than $7 million and funneled proceeds to organized-crime families.
Among 31 defendants charged are Billups and Jones, accused of serving as “face cards” to attract high-profile victims to games that were secretly fixed.
Federal agents described a network backed by the Bonanno, Gambino, Lucchese, and Genovese crime families, using customized card-reading shufflers, X-ray tables, hidden cameras, and bar-coded decks. One victim lost $1.8 million; others were robbed or threatened when they refused to pay, according to court documents.
Billups, a five-time All-Star and 2004 NBA Finals MVP inducted into the Hall of Fame in 2024, faces charges of wire-fraud conspiracy and money-laundering conspiracy under Title 18 U.S.C. § 1349 and § 1956(h). Prosecutors said his alleged participation occurred before his NBA coaching tenure began.
Same network behind Jontay Porter case
In at least one instance, prosecutors said the defendants threatened another NBA player, Jontay Porter, to obtain such information. Porter was banned from the league in 2024 and later pleaded guilty to conspiracy charges in a separate but related case.
Prosecutors confirmed that the two cases overlap with the same criminal network involved in the Porter investigation. Porter and several associates have already pleaded guilty in that matter, which alleged manipulated prop bets during the 2023-24 season.
Sports betting industry reacts
Officials did not disclose which operators were targeted but said more details will emerge as filings are unsealed.
“The sportsbooks are among the victims in this case,” U.S. Attorney Joseph Nocella Jr. said.
DraftKings praised the regulated industry for helping catch these kind of schemes.
“Game integrity and responsible play are priorities for everyone at DraftKings,” the company said. “We fundamentally believe that regulated online sports betting is the best way forward to monitor for and detect suspicious behavior while offering consumer protections backed by advanced technology… While regulation cannot eliminate all concerns related to game integrity, it significantly reduces risks by enabling collaboration between operators, leagues, teams, and relevant authorities.”
Rep. Paul Tonko (D-N.Y.), sponsor of the SAFE Bet Act, said:
“Scandals like this are an inevitable consequence of the unchecked explosion of the sports betting industry. The constant, unfettered access to sports gambling destroys public trust in the game… It’s past time for the NBA and other professional leagues to support establishing these minimum federal safety standards.”
AGA: stark reminder of illegal gambling
American Gaming Association President Bill Miller said these kinds of cases are a reminder of why the regulated gaming industry is important.
“Today’s revelations are a stark reminder of the pervasive and predatory illegal market, ensnaring countless individuals and operating in the shadows,” Miller said. “It is important to recognize that the regulated legal market delivers transparency, oversight, and collaboration with authorities that assists in bringing these bad actors to light.
“Today, we applaud the work of the FBI, the NYPD, the Department of Homeland Security, and the Eastern District of New York, and reiterate the legal gaming industry’s commitment to integrity and collaboration with regulators, leagues, and law enforcement. We will continue to work closely with all partners to eliminate illegal gambling and uphold the public’s trust in the games we love.”
