FBI exposes poker scheme involving NBA coaches and the mafia

The FBI has uncovered a large-scale poker fraud scheme involving NBA coaches and the New York mafia. The case features corruption and high-tech cheating methods.

The United States Federal Bureau of Investigation (FBI) has carried out a large-scale operation to expose a sophisticated poker fraud scheme involving prominent coaches and players from the National Basketball Association (NBA), as well as New York crime families. The investigation uncovered two separate but overlapping schemes: corruption in sports betting and the organization of underground poker games that utilized advanced cheating technology. Two Cases: Sports Betting and Poker Cheating At a press conference, Joseph Nocella, the U.S. Attorney for the Eastern District of New York, detailed two independent cases that nonetheless share three defendants, including former Cleveland Cavaliers assistant coach Damon Jones. The first case centers on the use of insider information to commit fraud in sports betting; the second involves the running of underground poker games where high-tech cheating devices were used. Both cases are linked by the involvement of professional athletes and the intersection of interests between organized crime groups and the sports world. In a coordinated operation spanning 11 states, 13 members of the Bonanno, Gambino, and Genovese crime families were arrested. According to FBI Director Kash Patel, the investigation lasted several years and uncovered fraud, theft, and extortion totaling tens of millions of dollars. The charges include wire fraud, money laundering, extortion, robbery, and illegal gambling operations. “Brazen” Corruption in Sports Betting Joseph Nocella described the scheme as one of the most brazen in the history of legalized online betting in the United States. From December 2022 to March 2024, six defendants used confidential information about NBA players and teams to place bets on individual player statistics (so-called “prop bets”—wagers on specific in-game actions such as points, rebounds, or assists). The conspirators obtained information about when players would miss games or leave the court early. In some cases, the athletes themselves deliberately altered their play or exited games to influence the outcome of bets. During the press conference, an example was given involving Terry Rozier, who informed his associates that he would leave a game early due to injury. Based on this tip, the group wagered over $200,000 on the “under” for his stats in that game. After Rozier left the court nine minutes in, the bets netted tens of thousands of dollars in pure profit. Such actions not only violate the principles of fair play but also undermine trust in sporting events and the betting market, where millions of fans and bettors expect transparency and integrity. High-Tech Cheating in Underground Poker Games According to the U.S. Department of Homeland Security, an operation codenamed “Royal Flush” uncovered an elaborate scheme that defrauded poker players out of approximately $7 million. The case involves 31 defendants, including professional athletes. The core of the scheme was the organization of underground poker games using technological cheating methods to gain an unfair advantage. The games were held in cities such as the Hamptons, Las Vegas, Miami, and Manhattan. In New York, these games were controlled by the Bonanno, Gambino, and Genovese crime families, who not only organized the events but also handled debt collection and laundered proceeds through shell companies and cryptocurrency. How the Scheme Worked Victims were enticed by the chance to play with former professional athletes. Newcomers were called “fish,” while celebrity players were referred to as “face cards.” Among the latter were Chauncey Billups, head coach of the Portland Trail Blazers, and Damon Jones. Participants were unaware that dealers and some players were colluding. Modified automatic shufflers were used, capable of identifying who at the table held the strongest hand and transmitting this information to an operator outside the venue. The operator would send the data via mobile phone to a so-called “quarterback” at the table, who would then discreetly signal accomplices. Other cheating methods included special chip tray analyzers, contact lenses or glasses for reading pre-marked cards, and tables equipped with X-ray scanners that could “see” cards face down. While organized crime has long controlled illegal poker games in New York, the advent of high-tech cheating has led to even deeper involvement and greater profits from such operations. Key Figures and Their Roles Three well-known NBA figures are named in both cases: Chauncey Billups, Terry Rozier, and Damon Jones. Chauncey Billups — current head coach of the Portland Trail Blazers, was arrested and is set to appear before a federal court in Brooklyn. Billups is a Basketball Hall of Famer, 2004 NBA Finals MVP, five-time All-Star, and finished his career averaging 15.2 points and 5.4 assists per game. Terry Rozier — selected 16th overall in the first round of the 2015 NBA Draft, has played for three teams, and at the time of the investigation was with the Miami Heat. He previously drew attention in March 2023 when, playing for the Charlotte Hornets, he left a game early against the New Orleans Pelicans. His attorney told ESPN that Rozier met with NBA and FBI representatives in 2023, and after an internal NBA investigation, no violations were found on his part. Damon Jones — charged in both cases, played 11 seasons in the NBA, retired in 2012, and later served as an assistant coach for the Cleveland Cavaliers from 2016 to 2018. All three are required to appear in court to face the charges. The arrest of Chauncey Billups has attracted the most attention, given his stature and achievements in the basketball world. Poker Cheating Mechanisms and Technology Operation “Royal Flush” revealed a full arsenal of technological devices used to cheat participants in underground games. Here’s a closer look at how the cheating was carried out: Modified automatic shufflers — devices that not only shuffled the cards but also scanned them to determine who at the table would have the best hand. The information was sent to an operator outside the venue. Chip tray analyzers — hidden devices built into the table that could read cards as the dealer collected them into the tray. Contact lenses and special glasses — allowed users to see markings on pre-marked cards that were invisible to the naked eye. Tables with X-ray scanning — enabled accomplices to see cards lying face down, giving them complete control over the game. All information was relayed to the “quarterback,” who used gestures or other signals to pass it on to accomplices, giving them an edge over unsuspecting opponents. Arrests, Charges, and Consequences As a result of the investigation, 13 members of organized crime families were arrested, and a total of 31 people are implicated in the poker case. The charges include wire fraud, money laundering, extortion, robbery, and illegal gambling operations. The sports betting case involves six defendants, three of whom are also named in the poker case. At the press conference, Joseph Nocella addressed the participants in the scheme: “Your winning streak is over. Your luck has run out. Breaking the law is a losing strategy, and you can be sure of that.” Chauncey Billups and Terry Rozier were arrested and are to appear in court in Brooklyn. Damon Jones is charged in both cases. The investigation is ongoing, and the list of defendants may yet grow. Context: Locations, Venues, and Defendants The investigation covered a wide geographic area: underground games were held in the Hamptons, Las Vegas, Miami, and Manhattan. In New York, crime families have traditionally controlled illegal poker clubs, but with the rise of new technology, their influence has extended to high-tech cheating schemes as well. The list of defendants includes both current and former professional athletes, which gives the case particular resonance. The use of technological cheating devices is rare even in the underground poker world, where psychological tactics and player collusion have traditionally prevailed. Participant and Prize Pool Table (According to the Investigation) The original material does not provide a detailed prize pool or final results table, but the following key figures and amounts are mentioned: Total amount defrauded in poker games: approximately $7,000,000 Amount wagered on the Terry Rozier game: over $200,000 Number of defendants in the poker case: 31 people Number of arrested crime family members: 13 people Number of defendants in the sports betting case: 6 people Charges: wire fraud, money laundering, extortion, robbery, illegal gambling operations What This Means for PPPoker Club Players For PPPoker club members, this story serves as an important reminder: even in the most prestigious and seemingly secure games, cheating is possible—especially in underground events or games with unfamiliar participants. The use of technological cheating methods is becoming increasingly sophisticated, and even experienced players can fall victim to collusion. The practical takeaway for PPPoker players is to always choose reputable clubs with transparent structures, watch for unusual behavior from other players and dealers, and don’t hesitate to report suspicious situations to the administration. In online games, it’s also important to pay attention to software security and the presence of anti-cheating mechanisms. Ultimately, this case underscores the importance of fair play and reputation for the entire poker community. Only strict oversight, transparency, and cooperation with law enforcement can maintain player trust and ensure safety in both online and offline poker.