The United States Attorney’s Office for the Eastern District of New York unsealed an indictment Thursday accusing current and former NBA players of using insider information to defraud sportsbooks.
The sports betting indictment charges six defendants, including Miami Heat player Terry Rozier, with wire fraud conspiracy and money laundering conspiracy for their alleged roles in a scheme to use inside information from National Basketball Association (NBA) players and coaches to profit from illegal betting activity.
“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,” said FBI director Kash Patel.
“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.”
The defendants are accused of obtaining and misusing non-public information about upcoming NBA games to place fraudulent sports wagers for profit. This included insider information from Rozier and former player and Cleveland Cavaliers assistant coach Damon Jones, which was then distributed through a network of bettors who placed bets with retail and online sportsbooks.
In March 2023 as a Charlotte Hornets player, Rozier is alleged to have tipped off longtime friend and co-defendant Deniro Laster, a former NFL linebacker, that he planned to leave a game early due to a purported injury. This information was then used by Laster and others to place bets of more than $200,000 on Rozier’s underperformance. Rozier exited the game after nine minutes and the bets paid out.
In other games in 2023 and 2024, Jones is alleged to have sold pre-release medical information concerning star players on the Los Angeles Lakers to his co-conspirators, enabling them to place significant wagers based on this information.
And on two occasions in 2024, former Toronto Raptors player Jontay Poter agreed to exit his Toronto Raptors games early so that a co-conspirator could place bets on this non-public information.
Porter has previously pleaded guilty to participating in the scheme related to these two games and was handed a lifetime ban from the NBA in April 2024.
“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,” said United States Attorney Joseph 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.”
The six indicted individuals are Eric Earnest (Missouri), Marves Fairley (Mississippi), Shane Hennen (Nevada), Damon Jones (California), Deniro Laster (Ohio), and Terry Rozier (Florida).
The defendants will be arraigned at a future date in the Eastern District of New York.
The charges relate to games involving the Charlotte Hornets (March 23, 2023), Portland Trail Blazers (March 24, 2023), Orlando Magic (April 6, 2023), Los Angeles Lakers (February 9, 2023 and January 15, 2024), and Toronto Raptors (January 26, 2024 and March 20, 2024).