Miami Heat Guard Terry Rozier, former NBA player Damon Jones and others have been charged with wire fraud conspiracy and money laundering conspiracy for their purported participation in a scheme to use insider NBA information to profit from illegal betting activity.
When announcing the charges, the Government stated, “[a]s 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.” FBI Assistant Director in Charge Raia alleged that Terry Rozier, and other co-conspirators, informed defendants of non-public, confidential information “relating to upcoming NBA games and player performances, such as pre-release medical information and a player’s intention to alter their upcoming game performance, which favored certain bettors within their inner social circle.”
Terry Rozier, specifically, is alleged to have faked a foot injury when he played for the Charlotte Hornets. The “injury” was designed to allow gamblers to profit off a prop bet related to Rozier’s performance in the game.
Terry Rozier’s lawyer denies the allegations against Rozier, stating “[t]his is an innocent guy who’s getting completely screwed.” According to Rozier’s counsel, the Government is “latching onto a game where the NBA literally cleared him two years ago and trying to suggest that somehow [the government] knows better and that they know he was a conspirator, as opposed to just somebody with a hurt foot.”
Indeed, the NBA investigated Rozier for “unusual betting activity” in 2023 and did not find a violation of league rules. However, the NBA is now under criticism for its conclusion. The NBA remains steadfast that it did not find any wrongdoing; although, NBA spokesperson Mike Bass stated, “[t]he NBA does not have the same authority or investigatory resources as the federal government, including subpoena power to obtain information from anyone, law enforcement surveillance, wire-tapping, and search warrants.” The NBA is cooperating with the FBI and government prosecutors.
The investigation into Rozier and the parallel investigation that implicated NBA Coach Chauncey Billups has led to a United States Senate Committee requesting information from NBA Commissioner Adam Silver. The Committee requested details concerning the league’s gambling policies and stated, “[t]his Committee needs to understand the specifics of the NBA’s investigation and why Rozier was cleared to continue playing basketball.”
The serious allegations asserted by the FBI and Eastern District of New York Prosecutors raise broader questions about the need for compliance programs in professional and collegiate sports. In fact, following the indictments, NCAA President Charlie Baker, has called for increased penalties at the state level for criminal sports betting schemes. Baker bragged that the “NCAA continues to have the most aggressive competition integrity policies in place.” The NCAA is the only major sports league that prohibits its athletes from partnering with sports books. The NCAA also offers comprehensive gambling education training for its athletes.
While we wait to learn more about the federal investigation, both commentators and fans of the NBA alike are pushing for better regulations to prevent the league’s players, coaches and trainers from leaking non-public information and fixing prop bets. If you would like to remain updated on these issues, please click here to subscribe to Money Laundering Watch. Please click here to find out about Ballard Spahr’s Anti-Money Laundering Team.