Law enforcement authorities in New York have taken down mob-affiliated poker operations that allegedly used technology to cheat players.
In a seven-count indictment unsealed at the federal courthouse in Brooklyn on Thursday, 31 defendants were charged with participating in criminal schemes to rig illegal poker games at various locations in New York City, East Hampton, New York, and throughout the United States.
The defendants include Portland Trail Blazers head coach Chauncey Billups, and former NBA player Damon Jones, who was also charged on Thursday in a separate indictment concerning illegal sports betting.
The NBA pair have been charged alongside members and associates of the Bonanno, Gambino, and Genovese organized crime families.
The indictment alleges that from as early as 2019, the defendants engaged in a series of schemes to use wireless cheating technology to rig illegal poker games.
This included altered shuffling machines that contained hidden technology allowing the machines to read all the cards in the deck, an x-ray table that could read cards face down on the table, and special contact lenses or eyeglasses that could read pre-marked cards.
Billups and Jones are said to have served as celebrity ‘faces’ in the scheme to entice players to participate in the games, while cheating teams worked together using the cheating technology to defraud the victims.
According to law enforcement authorities, members and associates of the Bonanno, Gambino, and Genovese organized crime families had a foothold in the rigged poker scheme because they had preexisting control over “straight” non-rigged illegal poker games in New York City, where some of the rigged poker games also occurred.
One was hosted principally at Lexington Avenue in Manhattan and was on record with the Bonanno family, and a second was hosted principally at Washington Place in Manhattan and was on record with the Gambino family, says the indictment.
The indictment also alleges that as part of the schemes, some of the charged defendants and other co-conspirators also committed acts of violence, including robbery and extortion.
“As alleged, members and associates of organized crime families fixed illegal poker games as part of a highly sophisticated and lucrative fraud scheme to cheat victims out of millions of dollars and conspired with others to perpetrate their frauds,” said Joseph Nocella, Jr., United States Attorney for the Eastern District of New York.
“Well-known former NBA players and former professional athletes acted as ‘Face Cards’ to lure unsuspecting victims to high-stakes poker games, where they were then at the mercy of concealed technology, including rigged shuffling machines and specially designed contact lenses and sunglasses to read the backs of playing cards, which ensured that the victims would lose big. Today’s indictment and arrests sounds the final buzzer for these cheaters.”
FBI director Kash Patel commented: “Today over 30 people were arrested and charged for their alleged roles in criminal schemes to rig illegal poker games to win large amounts of money. These individuals used technology and deceit to scam innocent victims out of millions of dollars – eventually funneling money to La Casa Nostra and enriching one of the most notorious criminal networks in the world.
“This investigation spanned nine states and FBI offices, and I want to thank the men and women of the FBI for their tremendous work and dedication rooting out those actors responsible. This FBI will never stop following the money to pursue and find those who break our laws.”
Ricky J. Patel, Homeland Security Investigations (NY) special agent in charge, added: “With the alleged involvement of three La Cosa Nostra crime families, an NBA head coach and Hall of Famer, as well as other current and former professional athletes, the investigative work that culminated with this morning’s operation are reminiscent of a Hollywood movie. But this was not luck, and it was not theatrics.
“Over four years ago, HSI New York uncovered the operation and worked tirelessly with HSI Newark, the FBI, the New York Waterfront Commission, and the NYPD to expose crimes that defrauded victims of at least $7 million dollars and included violent robberies. I commend all agencies and personnel involved in today’s sweeping arrests, which should serve as a testament to our relentless, evidence-driven and unified effort.”
Three of the defendants indicted in this case were also indicted on Thursday on illegal sports betting charges. They are Eric Earnest, Shane Hennen and Damon Jones.
Bill Miller, chief executive of the American Gaming Association, said the indictments were a stark reminder of the pervasive and predatory illegal market that ensnares countless individuals and operates in the shadows.
“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,” he added.
“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.”