Joseph Nocella (00:33):
Good morning, everybody. My name is Joseph Nocella. I am the United States Attorney for the Eastern District of New York. I'd like to welcome you here today. In addition, we have with us today FBI Director, Kash Patel; FBI assistant director in charge, Christopher Raia of the New York Field Office; Special Agent in charge of the New York Field Office, Leslie Backschies; New York Special Agent in charge of Homeland Security, Ricky Patel; Newark Special Agent in charge of Homeland Security, Michael McCarty; Police Commissioner, Jessica Tisch, Chief of Detectives, Joseph Kenney; and the Executive Director of the Waterfront Commission, Phoebe Sorial. I'm now going to turn the podium over to FBI Director Kash Patel.
Kash Patel (01:27):
Good morning. Today, we are here in New York to announce a historic arrest across a wide-sweeping criminal enterprise that envelops both the NBA and La Casa Nostra. The men and women up here standing with me represent a small portion of the leadership team that brought profound justice in an era that needed it more than any.
(01:47)
I'll just highlight some of the details in the case and the FBI work, and then you'll hear from the others. But as you now know, individuals such as Chauncey Billups, Damon Jones, and Terry Rozier were taken into custody today, former, current NBA players and coaches. What you don't know is that this is an illegal gambling operation and sports rigging operation that spanned the course of years.
(02:12)
The FBI led a coordinated takedown across 11 states to arrest over 30 individuals today, responsible for this case, which is very much ongoing. Not only did we crack into the fraud that these perpetrators committed on the grand stage of the NBA, but we also entered and executed a system of justice against La Casa Nostra, to include the Bonanno, Gambino, Genovese, and Lucchese crime families, and you'll hear more about those details today.
(02:45)
The charges and the arrests that were taken down across his country range from wire fraud, money laundering, extortion, robbery, illegal gambling. This FBI will leave no room for any perpetrator of crime across the country. You hear a lot about our work of defending the homeland and crushing violent crime. Well, this work is also representative of a colossal portion of the FBI's mandate to keep America safe and to keep our entertainment industry fair and secure.
(03:11)
The men and women that are standing up here today worked tireless hours, days, months, and years, and the fraud is mind-boggling. It's not hundreds of dollars. It's not thousands of dollars. It's not tens of thousands of dollars. It's not even millions of dollars. We're talking about tens of millions of dollars in fraud and theft and robbery, across a multi-year investigation. And we could not have done it without our interagency partners that are before us today, the NYPD, HSI, and teams of law enforcement officials from around the country made this day possible.
(03:47)
It takes a team to bring this kind of justice, sweeping justice, into the halls of the United States courtrooms, where our brave United States Attorney has led this prosecution. It takes courageous prosecutors to stand before you and say, "We will not allow this kind of illicit activity to happen." Not only at the national sporting level, but also where it hides in La Casa Nostra. And when these two collided together, they perpetrated a fraud that is historic, in terms of not just money, but the scheme and the deceit that they utilize to steal and swindle people from money, to include crypto fraud.
(04:28)
This is an operation that showcases to you that under President Trump's administration, there is no room for any type of criminal behavior, be it on the world's largest stage or in the back rooms of tiny parlors where card games are being played. We are proud to stand here today with the men and women of the FBI and this legal team. And to the United States Attorney, I just want to thank you personally for taking the time to display the work that the media is about to hear about today in detail.
(04:59)
As I said, it does take courageous prosecutors, but it takes a courageous United States Attorney to bring this case. Because we are going to take heat for it. But we don't shy away in this administration. We don't say no. What we do is, we bring the results across the finish line. We bring them to the public. We bring you accountability. And yes, they will have their day in court, and you will hear the evidence through the court system exclusively. We will not deny anyone of due process, and that's the brilliance of this system. That's the brilliance of this administration. Everyone will be held to account. So with that, I turn it over to United States Attorney, Nocella. Thank you.
Joseph Nocella (05:34):
Thank you, Director Patel. To be clear, we're announcing today indictments in two major cases, both involving fraud. One involves sports betting, and the other involves illegal gambling, very specifically, rigged poker games.
(05:54)
The first indictment involves six defendants who are alleged to have participated in one of the most brazen sports corruptions since online sports betting became widely legalized in the United States. This scheme is an insider sports betting conspiracy that exploited confidential information about National Basketball Association athletes and teams.
(06:17)
The second indictment involves 31 defendants, alleged to have participated in a nationwide scheme to rig illegal poker games. These defendants, which include former professional athletes, used high-tech cheating technology to steal millions of dollars from victims in underground poker games that were secretly fixed. The games in the New York area were backed by the Bonanno, Gambino, and Genovese Crime families of La Casa Nostra.
(06:54)
While the cases are separate, there are three overlapping defendants charged in both cases, Damon Jones, Eric Earnest, and Shane Hennen. The indictments in these cases contain only allegations, and the defendants are presumed innocent until they are proven guilty in a court of law. But my message to the defendants who have been rounded up today is this: Your winning streak has ended. Your luck has run out. Violating the law is a losing proposition, and you can bet on that. First, I would like to talk about United States V. Earnest, the NBA basketball gambling case. The defendants in this case are Eric Earnest, Marves Fairley, Shane Hennen, Deniro Laster, Damon Jones, a former NBA player and coach, and Terry Rozier, a current NBA player. Other co-conspirators were previously charged for their roles in the scheme, including former NBA player, Jontay Porter.
(08:07)
Between December, 2022 and March, 2024, these defendants perpetrated a scheme to defraud by betting on inside, non-public information about NBA athletes and teams. The non-public information included when specific players would be sitting out future games, or when they would pull themselves out early for purported injuries or illnesses. They relied on corrupt individuals, including Jones and Rozier. They also misused information obtained through long-standing friendships that they had with NBA players and coaches, and in at least one instance, they got their information by threatening a current player, Porter, because of his pre-existing gambling debts.
(08:56)
Defendants used this non-public information to place hundreds of thousands of dollars in fraudulent bets, mostly in the form of prop bets on individual player performance. The bets were placed through online sports books, and also in person at casinos. The defendants relied on a network of straw bettors to place the maximum amount of bets to increase their potential profits. Most of these bets succeeded, and the intended losses were in the millions of dollars. The defendants then laundered their illegal winnings in various ways, peer-to-peer platforms, bank wires, and simple cash exchanges.
(09:42)
The indictment details specific examples where the defendants profited from illegal gambling and illegal betting on various NBA games about the performance of players on, among other things, the Charlotte Hornets, the Portland Trail Blazers,
Joseph Nocella (10:00):
The Los Angeles Lakers and the Toronto Rangers. Each defendant in the NBA basketball gambling case has been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering.
(10:15)
Now, I would like to turn to the other case, United States versus Aiello, the rigged poker game case.
(10:23)
Beginning as early as 2019, the defendants in this case orchestrated a scheme to use wireless cheating technology to run rigged poker games across the United States, including in The Hamptons, Las Vegas, Miami, and Manhattan.
(10:44)
The scheme targeted victims known as, quote, "fish," who were often lured to participate in these rigged games by the chance to play alongside former professional athletes who were known as, quote, " face cards."
(11:02)
The so-called face cards included the defendant, Chauncey Billups, who at the time of the scheme was a former NBA player and is currently the head coach of the Portland Trail Blazers, and also Damon Jones, a former NBA player and coach.
(11:20)
What the victims, the fish, didn't know is that everybody else at the poker game, from the dealer to the players, including the face cards, were in on the scam.
(11:33)
Once the game was underway, the defendants fleeced the victims out of tens or hundreds of thousands of dollars per game. The defendants used a variety of very sophisticated cheating technologies, some of which were provided by other defendants in exchange for a share of the profits from the scheme.
(11:55)
For example, they used off-the-shelf shuffling machines that had been secretly altered in order to read the cards in the deck, predict which player at the table had the best poker hand, and relay that information to an offsite operator.
(12:15)
The offsite operator sent the information via cell phone back to a co-conspirator at the table, and that person at the table was known as the quarterback. The quarterback then signaled secretly the information he had received to others at the table, and together they used that information in order to win their games and to cheat the victims.
(12:45)
Defendants used other cheating technologies such as poker chip tray analyzers, which is a poker chip tray that secretly reads cards using a hidden camera, special contact lenses or eyeglasses that could read pre-marked cards, and an X-ray table that could read cards face down on the table.
(13:08)
What you see depicted on a screen right now is an example of the X-ray table that reveals the cards. Although they are face down on the table, they can be read because of the X-ray technology.
(13:22)
The Mafia, specifically members and associates of the Bonanno, Gambino, and Genovese organized crime families, had pre-existing control over non-rigged illegal poker games around New York City. As a result, they also became involved in the rigged poker games, helping to organize the games and taking a cut of the proceedings and working to enforce the collection of debts.
(13:50)
The defendants laundered their proceeds, including through cash exchanges, the use of multiple shell companies, and through cryptocurrency transfers. As part of the scheme, some of the defendants and their co-conspirators also committed acts of violence, including the gunpoint robbery of a person in order to obtain a rigged shuffling machine, and extortions that were perpetrated against victims in order to ensure that they repaid their gambling debts.
(14:23)
Defendants who participated in the rigged poker scheme are charged with wire fraud conspiracy. Other defendants have been charged with crimes including illegal gambling, money laundering, Hobbs Act robbery, and extortions. This case demonstrates our office's unrelenting commitment to fighting the scourge of organized crime in whatever form it takes.
(14:48)
I'd like to conclude my remarks by thanking the incredible hard work of our law enforcement partners, including the FBI, Homeland Security, the NYPD, and the Waterfront Commission.
(15:01)
I also want to thank the dedicated prosecutors who built these two cases and who are standing to my right, Benjamin Weintraub, David Bourbon, Kaitlin Farrell, Michael Gibaldi, Irisa Chen, and Sean Sherman. They had the assistance of Paralegal Specialists Liam McNett, John Schneider, Marlene Boslor.
(15:28)
Also deserving of our thanks, because of their outstanding investigative work on the NBA case, are FBI Special Agents Russell Lantier, Dominic Mariani, Amy Gio Rosa, Shane Wilkins, and Supervisory Special Agent Luke Hardison.
(15:47)
On the rigged poker game scheme, outstanding work was performed by FBI Special Agents Thomas Kribbid, Jeff Boreola, Jonathan Corona, Alexander Silverman, Amy Campanaro, and Supervisory Special Agent Michael Mullahy, as well as NYPD Task Officer James McCullough, and from Homeland Security, Supervisory Special Agent Charles Freund, and from the Waterfront Commission, Detective Paul Symborski.
(16:20)
Finally, I want to note that the investigations in both cases are ongoing, and we encourage anyone with information about either scheme to please contact the FBI.
(16:32)
Now I would like to turn the podium over to special agent in charge of [inaudible 00:16:38] in charge of the New York Field Office of the FBI, Christopher Rea. Chris?
Christopher Rea (16:51):
All right, thank you, Joe. As always, we appreciate the partnership here. I can't do any of this without you and your team, so thank you. Also want to publicly thank the director for coming down from DC. The director's a very busy person, and for him to come down should tell you the importance of this historic case.
(17:10)
I'm Christopher Rea, the assistant director in charge of the FBI New York Field Office. Today, as you've heard, our office conducted a massive nationwide takedown from two indictments of 34 defendants for their alleged involvement in two separate illegal poker and sports betting schemes where, as you heard, the odds were rigged in their favor.
(17:36)
Among these defendants are 13 members and associates of the Bonanno, Gambino, and Genovese crime families to include capos and soldiers from these families. Additionally, as you heard, current and former NBA coaches and players are also implicated to include Chauncey Billups, Damon Jones, and Terry Rozier.
(18:05)
Three of the named defendants are charged for their alleged roles in both schemes. This alleged illegal gambling operation hustled unwitting victims out of tens of millions of dollars, and created a financial pipeline for La Cosa Nostra to help fund and facilitate their organized criminal activity.
(18:32)
Victims were attracted to play alongside well-known professional athletes and coaches like Chauncey Billups, only to be unknowingly deceived through rigged shuffling machines, fixing the odds in their favor, as alleged and as you just heard from the US Attorney's Office.
(18:51)
This alleged scheme wreaked havoc across the nation, exploiting the notoriety of some and the wallets of many to fund the Italian crime families here in New York.
(19:06)
Let me be clear about this fact. The FBI has not and will never take their eye off the ball when it comes to Italian organized crime in this city, specifically the LCN and the five families here in New York.
(19:24)
We are not going to permit any criminal enterprise, whether it be Italian organized crime, Asian organized crime, Eurasian organized crime, we are not going to permit any of those organized crimes, families, and organizations to operate in our city or our country, as evidenced by the 11 states that were also participating in this operation today. The FBI office here in New York remains committed to eradicating all unlawful revenue streams fueling this criminal activity.
(19:59)
As with
Christopher Rea (20:00):
… with most cases we work. This is only the tip of the iceberg for the FBI and the US Attorney's Office. Our LCN squad agents and analysts are continuing to work day and night with the Eastern District of New York to ensure members and associates of the Five Families cannot continue to wreak havoc in our communities. Today would not have been possible without the tireless efforts and dedication of the FBI New York Eurasian Organized Crime Task Force, which as you heard was led by Supervisory Special Agent Luke Hardison, and the Italian Organized Task Force, which was led by Supervisory Special Agent Mike Mullahy. And coincidentally, Supervisory Special Agent Mullahy is going out on a positive, as he's retiring at the end of this month for 30 years of dedicated service to the FBI, and that deserves a hand. He's what we call a legend here at FBI New York. Additionally, obviously, we cannot do this alone without our partners. I want to extend my appreciation to Homeland Security Investigation, Special Agent In Charge, Ricky Patel. Of course, we do nothing in this city without the NYPD, New York City Police Department Commissioner, Jesse Tisch. Thank you, ma'am, for all your work and all your resources that you dedicated to this. And New York Waterfront Commissioner, Phoebe Sorial, for their agency's assistant and support throughout this lengthy and complex investigation. Our collective efforts ensure these subjects will face accountability, like the director said, "For their alleged wrongdoings."
(21:37)
Thank you, and I'll now turn it over to Special Agent In Charge of HSI, Ricky Patel.
Ricky Patel (21:47):
Thanks, Chris. Good afternoon everyone. My name is Ricky Patel, I'm the special agent in charge for Homeland Security Investigations here in New York. This morning hundreds of special agents and investigators with HSI, the FBI, the New York Waterfront Commission, and the NYPD, descended upon the homes of individuals who for years have operated with the false sense of impunity, a false sense of incivility. In the early hours of today, across nine states, coast to coast, dozens of defendants were arrested and will face the consequences of their alleged crimes. This was their wake-up call. With the alleged involvement of three La Cosa Nostra crime families, one NBA head coach, a Hall of Famer, no less, and former NBA players, the years of investigative work that culminated with this morning's operation seem reminiscent of a Hollywood movie. But this wasn't luck and this wasn't theatrics, this was an evidence-driven, relentless and unified effort among law enforcement.
(22:51)
Through what we have dubbed Operation Royal Flush, HSI New York, along with our task force personnel from the Waterfront Commission, first uncovered the scheme more than four years ago. Agents and investigators dedicated countless hours and sleepless nights in identifying the criminal network, dissecting communications and patterns, and following the money with precision. We built a case, piece by piece, and what we discovered was a sprawling criminal enterprise that utilized cutting edge technology and various methods of deception to dupe unsuspecting gamblers into paying up so that these defendants could cash out. As alleged, this sophisticated conspiracy cheated victims out of at least $7 million, and placed the public and the defendants alike at risk. This case involved global reach, financial depth, and the patience to dismantle complex financial criminal enterprises from the inside out.
(23:51)
When criminal organizations attempt to launder profits through our country, HSI connects the dots and shuts it down. To anyone who thinks intimidation, fraud, or violence will shield their profits, understand this, if you are exploiting our communities, expect HSI and all of our law enforcement partners at your door.
(24:12)
I would like to thank all our partners here today. Obviously, the United States Attorney's Office for the Eastern District of New York, the Waterfront Commission, the FBI, the NYPD, and the prosecutors that will carry this forward. Today's arrests are not an end point, they are the start of accountability. Thank you, and I now turn it over to Police Commissioner Jessica Tisch.
Jessica Tisch (24:44):
Good morning. Thank you to Director Patel, Assistant Director Raia, and US Attorney Nocella. What we're announcing today is not just another takedown, it's the result of more than two years of coordinated investigative work by the NYPD's Joint Organized Crime Task Force and the FBI. Two cases that exposed criminal networks led by 34 individuals who believe the rules did not apply to them. They hid behind layers of complexity, behind money, and behind influence, believing those things would shield them from accountability. The first case, Operation Nothing But Bet, exposed a gambling ring built around professional basketball, where players and associates allegedly used inside information to manipulate prop bets on major sports betting platforms. They placed wagers on unders on players to score less, rebound less, assist less, using information that was not yet public. In some instances, players altered their performance or took themselves out of games to make sure that those bets paid out.
(25:54)
One example occurred on March 23rd, 2023 in Charlotte. Terry Rozier, an NBA player now with the Miami Heat, but at the time playing for the Hornets, allegedly let others close to him know that he planned to leave the game early with a supposed injury. Using that information, members of the group placed more than $200,000 in wagers on his under statistics. Rozier exited the game after just nine minutes, and those bets paid out generating tens of thousands of dollars in profit. The proceeds were later delivered to his home, were the group counted their cash. As the NBA season tips off his career is already benched, not for injury, but for integrity. As a result of this investigation, six defendants, including Rozier, are now facing conspiracy to commit bank and wire fraud.
(26:48)
In a second case, Operation Zen Diagram, investigators uncovered a long-running scheme in which members and associates of several well-known organized crime families rigged high-stakes poker games across the country. These operatives included capos and multiple soldiers from the Bonanno, Gambino, Lucchese, and Genovese crime families. Bringing four of the five families together in a single indictment is extraordinarily rare. It reflects how deep and how far this investigation reached, and the skill and the persistence it took to get here.
(27:25)
That work uncovered a deliberate, technologically sophisticated operation designed to carry out their crimes. They used custom shuffling machines that could read the order of cards, bar-coded decks, and hidden cameras built into tables and light fixtures. The organizers also enlisted well-known public figures, former and current NBA players and coaches, including Chauncey Billups, the head coach of the Portland Trail Blazers, an NBA champion and a Hall of Famer, to make the games appear legitimate. Victims believed that they were sitting at a fair table, instead, they were cheated out of millions. One victim in particular lost $1.8 million. In total, losses exceeded $7 million and continue to climb. And when people refused to pay, these defendants did what organized crime has always done, they used threats, they used intimidation, and they used violence. It's the same pattern that we have seen for decades. Traditional mob enforcement methods combined with new technology to expand the reach of their operations. Now with the unsealing of today's indictment, 34 individuals are facing charges including robbery, extortion, money laundering, wire fraud, bank fraud, and illegal gambling.
(28:47)
I want to commend the outstanding work of our detectives from the Joint Organized Crime Task Force, and their dedication to these cases, especially [inaudible 00:28:57], Sergeant Chris McGuire, Detective Alexander Creamer, Detective James McCullough, and of course our Chief of Detectives, Chief Kenny. As part of these investigations, our members recovered and reviewed thousands of hours of video, conducted extensive surveillance on illegal gambling locations across the city, and executed more than two dozen search warrants on electronic records that revealed the true extent of this conspiracy. Once again, the work of our detectives, together with the FBI and the US Attorney's Office, closed those gaps before they could widen further. The NYPD is proud to stand with each of you today as these cases represent the kind of partnership that defines modern law enforcement agencies, sharing intelligence, coordinating resources, and moving as one team. Thank you.
Speaker 2 (29:56):
If anyone has any questions that they'd like to ask,
Joseph Nocella (30:00):
… ask, now is the time.
Speaker 3 (30:02):
I had a question about the structure of the case. Is it the investigation into one case, did that lead into the discovery of the other? If you could talk more about the link between the two.
Joseph Nocella (30:15):
I'm not at liberty to discuss either the back [inaudible 00:30:20]
(30:17)
… and means that there will be further evidence uncovered at a minimum, and there's always that possibility, but I can't comment any further with respect to that. Yes?
Speaker 5 (31:31):
Thank you. Director Patel, you had said in your comments, "We're going to take heat for this case." Why do you say that and what efforts might you take to counter that?
Kash Patel (31:47):
It's not popular to go after some of the defendants that we went after today, but justice is served blindly, and how do we counterman that? Simple. The unsealing of these indictments today shows the force of the Department of Justice and our great attorney general and the leadership that we have at the FBI and the team here to specifically mete out justice.
(32:08)
And look, let's not mince words. This is the insider trading saga for the NBA. That's what this is. That's why we are going to take heat. But as the evidence comes out, as the indictments are unsealed, you will see the extensive work these men and women put in countless hours over years, and that's how we countermand it.
Speaker 4 (32:25):
Director Patel, so the dates on these indictments that they've been filed are October 9th and October 16th. Can you talk about the timing of moving in now? Why now?
Kash Patel (32:38):
We will not publicly discuss the timing of when we do takedowns. I will only say that we do takedowns in a coordinated fashion with our law enforcement partners and the U.S. attorney at the appropriate time to make sure that we ensure the integrity of the investigation, as the United States attorney said, an investigation that is very much ongoing.
Speaker 7 (32:56):
Director Patel, you said, "Insider trading for the NBA." What are the implications of this case for other sports leagues and for the legal gambling industry in general?
Kash Patel (33:06):
Simple. If you are participating in the legal gambling industry, you got nothing to worry about. If you're participating in illegal conduct, you got everything to worry about and this case shows it.
Speaker 8 (33:15):
Did the illegal conduct cross with the legal sports game platforms in any capacity, and if so, is that the search warrants that the police commissioner just referenced?
Joseph Nocella (33:24):
I'm not sure I quite understand your question. You're asking if the illegal conduct…
Speaker 8 (33:29):
If it crossed with the sports betting industry or the online sports?
Joseph Nocella (33:33):
The sports books themselves are victims in this case. They themselves did not, as far as our investigation has concluded, they did not perpetrate anything unlawful.
Speaker 3 (33:47):
Are you able to say which sports books or online outlets they used to make these bets?
Joseph Nocella (33:54):
I'm not going to respond to that at this time, but that information will be made public. Yes?
Speaker 9 (33:59):
Can you identify the access point where these co-conspirators were able to recruit these famous people to partake in the schemes?
Joseph Nocella (34:08):
When you say, "The access point"-
Speaker 9 (34:11):
They were able to recruit them?
Joseph Nocella (34:13):
I'm not sure which case you're referring to.
Speaker 9 (34:15):
Rozier's case [inaudible 00:34:20]
Joseph Nocella (34:25):
… and that will be revealed in due course? Yes?
Speaker 10 (34:28):
Did you know he was being-
Joseph Nocella (34:30):
What is your question, sir?
Speaker 10 (34:32):
Oh, sorry.
Speaker 6 (34:33):
Hey, thanks for being here. You just said that the sports books themselves are the victims, at least in the indictment involving Terry Rozier and others.
Joseph Nocella (34:42):
They're among the victims.
Speaker 6 (34:43):
Okay. But those companies make, as we all know, they make a crazy amount of money off of… A lot of everyday Americans make bets and mostly lose them. Are you concerned with a jury potentially not being sympathetic in a case where the victims, as you say, are these multi-million or billion-dollar gambling companies?
Joseph Nocella (35:08):
Let me repeat that. All of the defendants themselves are presumed innocent. We believe that at a trial, when they have the opportunity to present their defenses, if they chose because they're not required to, we will come forward with the evidence to demonstrate their guilt. Yes?
Speaker 10 (35:29):
There has been… I'm sorry.
Speaker 11 (35:32):
Did the NBA cooperate with this investigation at all?
Joseph Nocella (35:35):
The answer to your question is yes, the NBA has cooperated with the investigation. Yes, sir?
Speaker 10 (35:40):
There has been reason to believe there's an associated college basketball element to this. Can you confirm that? Or is there another investigation or part of this investigation that will affect college basketball?
Joseph Nocella (35:52):
The investigations that we announced today did not involve college basketball.
Speaker 12 (35:56):
Last question, last question.
Joseph Nocella (35:58):
Yes?
Speaker 13 (35:59):
There was an emphasis on the Italian crime presence, organized crime in New York. Can you give us a sense of the strength and status of Italian organized crime in New York right now?
Joseph Nocella (36:11):
No, I'm sorry. That would be a question that goes beyond what we're here to discuss today, which is these two indictments. Thank you.
Speaker 12 (36:19):
Thank you, everybody.