A guilty plea from the ex-Cavs guard and the possibility of new charges against another NBA player highlight a busy week of developments in the case.
In the middle of the NBA Playoffs, federal prosecutors are steadily making progress in unravelling two of the most intricate illegal gambling cases since the historic PASPA decision.
A series of developments this week in Brooklyn underscore the commitment of the US Attorney’s Office in bringing the prominent defendants to justice. When Damon Jones pleaded guilty to two counts of wire fraud conspiracy on 28 April, the former Cleveland Cavaliers guard became the first defendant in the sweeping scandal to formally offer a guilty plea. The proceedings transpired one day after prosecutors signalled their intentions to bring further charges against ex-Miami Heat guard Terry Rozier.
The two NBA figures are among a group of 31 defendants facing indictments in parallel cases in New York. The scandal that has rocked the NBA has also ensnared a member of the Pro Basketball Hall of Fame, a professional boxer and members of several New York organised crime families, among others.
In a hearing before US Magistrate Judge Joseph A. Marutollo, Jones admitted to providing insider information to a group of bettors who allegedly defrauded several unnamed betting companies through the fraudulent wagers. Separately, Jones told Marutollo that he received compensation for taking part in a series of poker games that he knew were rigged.
“As shown by his guilty pleas today, Damon Jones converted his fame and ties to professional basketball into a multi-faceted criminal betting operation,” said Joseph Nocella Jr, who serves as US Attorney for the Eastern District of New York.
“Jones will now face the consequences for his corrupt conduct. Insider betting and rigged poker schemes erode the integrity of American sports and fair contest.”
A contrite Jones
Clad in an all-black suit and a black buttoned-down shirt, Jones made the appearance at a Brooklyn courthouse located several miles from Madison Square Garden. The hearing in US vs Earnest, the illegal sports betting case, took place on Tuesday morning, hours before Game 5 of the Eastern Conference Quarterfinals between the New York Knicks and the Atlanta Hawks. While NBA Commissioner Adam Silver was spotted at the game, he did not attend the hearing. Last October, when a Grand Jury unsealed indictments in the two cases, Silver described the allegations as “deeply disturbing”.
Jones, 49, is facing a prison sentence of 21-27 months in the sports betting case. An 11-year NBA veteran, Jones made an appearance in the 2007 Eastern Conference Finals alongside LeBron James. The two reconnected in 2022 when the Los Angeles Lakers brought in his former Cavs’ teammate as an unpaid assistant.
According to the indictment, Jones provided inside information on the injury status of a Lakers’ player to a co-conspirator before a February 2023 game against the Milwaukee Bucks. James, who missed the 115-106 loss with an ankle injury, fits the profile of the unnamed player. Jones did not refer to James by name in a brief statement to the court.
“I would like to sincerely apologise to the court, my peers and the National Basketball Association,” Jones said at the hearing.
Serving as a ‘face card’
On the poker side, numerous defendants allegedly engaged in a scheme to use sophisticated cheating technology to rig illegal poker games, according to the Eastern District. Jones conceded that he acted as a “face card,” or a celebrity to entice others to participate in the games. The former NBA player admitted to taking part in at least three of the games, including one in Miami in December 2020 and another in East Hampton, New York in September 2023.
The games were allegedly backed by several New York organised crime families, including members of the Bonanno, Gambino and Genovese families, federal prosecutors said in a news release. Nocella was joined by members of the FBI and Homeland Security Investigations in delivering the announcement.
“Status, access and a high-profile career do not exempt any individual from answering for criminal conduct,” said HSI New York Acting Special Agent in Charge Michael Alfonso, in the statement. “This outcome is the product of a sustained, coordinated effort by HSI New York and our law enforcement partners, who together traced the money, unravelled the cheating technology and exposed the full scope of these schemes.”
In developing estimated sentencing guidelines, Assistant US Attorney Michael Gibaldi noted that the victims suffered financial losses of approximately $9.5 million. The extraordinary loss bumped the guidelines to a range of 63-78 months. However, Jones is expected to receive a downward variance of 15 months by agreeing to a deal by 30 April. Altogether, the two counts could land Jones in prison for at least five years.
Outside the courtroom, Jones and his attorney Kenneth Montgomery declined to comment on the fact pattern surrounding the case. But when asked by iGB if he’s pleased to move on to the next phase in the legal process, Jones responded: “To God be the glory”.
Other developments
On the same day Jones pleaded guilty, prosecutors unsealed filings related to another prominent defendant in the case. Marves Fairley, a presumed ringleader in a Pennsylvania college basketball point-shaving scandal, is also facing multiple charges in New York. In a letter addressed to two federal judges, prosecutors argued that Fairley’s charges are “presumptively related”, necessitating a change of venue.
According to court filings obtained by iGB, Fairley has agreed to plead guilty to charges in the Eastern District of New York. In the Pennsylvania case, Fairley is accused of offering a bribe to a former Chinese Basketball Association player to influence the outcome of a bet. The Fairley case in Pennsylvania has been transferred to US District Judge LaShann DeArcy Hall, the presiding judge in the Earnest matter.
On 27 April, Hall heard arguments in a motion to dismiss hearing for Rozier. According to court filings, Deniro Laster, a co-defendant, sold information to Fairley and a co-conspirator that Rozier planned to leave a March 2023 game early. Rozier is facing multiple counts in connection with allegations that he provided inside information to a syndicate to secure the outcome of a wager.
At Monday’s hearing, Assistant US Attorney Kaitlin Farrell indicated that prosecutors may file additional charges against Rozier. The government may file charges against Rozier on honest services fraud and bribery in sports by 14 May, she said. Jim Trusty, an attorney for Rozier, declined to comment outside the courtroom on the possibility of a superseding indictment.
Jones, meanwhile, has been ordered to forfeit $35,000 in the sports betting case and $38,000 in the rigged poker one. He is scheduled to be sentenced on 6 January 2027.
