A federal investigation into illegal gambling shook the NBA shortly after the regular season kicked off on Thursday, with allegations centered around inside information involving LeBron James. Miami Heat guard Terry Rozier was arrested early that day as part of a lengthy sports betting probe. Rozier, who did not play in the Heat's season opener against the Magic, was implicated after suspicious betting patterns were linked to his performance in a March 2023 game against the New Orleans Pelicans, where he left early due to a foot injury.
Portland Trail Blazers coach Chauncey Billups was also arrested, facing charges related to his involvement in an illegal poker game run by organized crime figures. The investigation revealed associations with New York criminal groups, including the notorious La Cosa Nostra. On the same day, federal prosecutors in Brooklyn indicted 31 individuals across 11 states, primarily focusing on two operations: one involved rigging poker games and the other a sports betting scheme utilizing non-public information regarding Rozier's performance.
Former NBA guard Damon Jones was named in the indictments for trying to profit from inside information about LeBron James. Jones, a former teammate of James on the Cleveland Cavaliers, allegedly had knowledge that James was dealing with an injury and might miss a game for the Los Angeles Lakers in February 2023, shortly after James set the NBA all-time scoring record.
US Attorney for the Eastern District of New York, Joseph Nocella, commented that several defendants had turned professional basketball into a “criminal betting operation” by exploiting private locker room and medical details to cheat legitimate sportsbooks. Importantly, Rozier is not accused of any wrongdoing related to the information about James's health.
Betting activity around Rozier caused concern prior to the March game where he was supposed to play for only 10 minutes. Multiple sportsbooks flagged unusual betting patterns connected to his performance, with one taking 30 bets within 46 minutes, all resulting in wins for the bettor. An investigation by the NBA found no violations of league betting rules at that time.
Additionally, Deniro Laster, another defendant, was accused of selling information about Rozier's intention to exit the game early due to a supposed injury. Prosecutors allege that Rozier informed Laster about his early departure before the game. Based on this tip, the conspirators placed bets totaling over $200,000 on Rozier's lower performance statistics.
Marves Fairley, identified as a professional sports betting tout, received information about Rozier from Laster and was reported as a notable figure in the federal investigation. In exchange for the information, Fairley and a co-conspirator were expected to pay Laster around $100,000 from their anticipated gambling profits.
FBI Director Kash Patel described the situation as the NBA's version of an insider trading scandal. Rozier's attorney, Jim Trusty, stated that the federal prosecutors had indicated Rozier was a “subject, not a target” of the investigation. Trusty affirmed Rozier's commitment to clearing his name.
Separately, Billups faces charges of conspiracy to commit wire fraud and money laundering tied to a rigged poker game that took place in April 2019. Billups and Jones used their celebrity status to attract players to this game, which ultimately defrauded victims of at least $50,000. Four other defendants participated in this scheme.
Meanwhile, NBA Commissioner Adam Silver, prior to the arrests, called for stricter regulations on sports betting, particularly regarding prop bets on reserve players. Following the arrests, the NBA placed both Billups and Rozier on immediate leave and emphasized its commitment to cooperating with federal authorities. The league underscored its seriousness regarding these allegations to maintain the integrity of the game.
The ongoing investigation includes prior charges against former Toronto Raptors center Jontay Porter, who faces sentencing in December for orchestrating fraudulent sports betting activities. Additionally, four organized crime families were implicated in the poker scheme, which defrauded victims of over $7 million.
Assistant Director Christopher Raia of the FBI's New York field office reaffirmed the agency's commitment to addressing insider betting schemes in sports to protect their integrity.
