NBA head coach and player charged in sprawling sports betting and Mafia-backed poker schemes

The 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, multi-billion-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."

Billups and Rozier expected to make their first court appearances

Both men face money laundering and wire fraud conspiracy charges and were expected to make initial court appearances later Thursday. Also charged is former NBA assistant coach and player Damon Jones, who is 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 multi-year 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 career 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.

A message seeking comment was left Thursday morning with Billups. Rozier's lawyer, Jim Trusty, said in a statement that his client is “not a gambler” and “looks forward to winning this fight.” Trusty said the FBI had previously said his client was not a target in the probe.

But at 6 a.m. “they called to tell me FBI agents were trying to arrest him in a hotel," Trusty said. ”It is unfortunate that instead of allowing him to self-surrender they opted for a photo op. They wanted the misplaced glory of embarrassing a professional athlete with a perp walk. That tells you a lot about the motivations in this case."

Messages were left Thursday at a phone number and email address listed in public records for Jones.

Mafia families profited off gambling scheme, officials say

The poker scheme cheated at least $7 million out of unsuspecting gamblers who were lured 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 the cards of unsuspecting players, 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.

Prosecutors asked a judge to detain Mafia members implicated in the case, as well as the ringleaders of the poker scheme. Prosecutors are arguing for releasing Billups and Jones but with “substantial bail conditions,” including a prohibition on any form of gambling and travel restrictions.

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 impact 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 statistical number, such as whether the player will finish over or under a certain total 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 say. 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 David Collins in Hartford, Connecticut, Sarah Brumfield in Cockeysville, Maryland, and Larry Lage in Detroit contributed to this report.