Former NBA player Damon Jones pleaded guilty in Brooklyn to wire fraud charges tied to insider NBA betting and rigged poker games, admitting to schemes that prosecutors say cost victims more than $10 million and involved a network of bettors and organized crime backing.
Earlier this week in federal court in Brooklyn, Damon Jones, 49, of Houston Texas, entered guilty pleas to two counts of wire fraud conspiracy. The charges cover one scheme that used non-public NBA information to place illegal sports wagers and another that involved rigging high-stakes poker games. The cases say the combined loss amount exceeds $10 million.
Jones is a former NBA player who played for the Cleveland Cavaliers from 2005 to 2008 and later worked on the coaching staffs of the Cavaliers and the Los Angeles Lakers. The proceedings were held before U.S. Magistrate Judge Joseph A. Marutollo. Prosecutors say Jones converted access and reputation into a criminal operation that targeted sportsbooks and poker victims alike.
According to court filings and facts presented at the plea hearing, between December 2022 and March 2024 Jones and associates obtained and misused confidential information about upcoming NBA games to place fraudulent wagers. That non-public material came from multiple teams, players and coaches, and it was shared through a network of bettors. Those wagers were placed at online sportsbooks and retail outlets while concealing their fraudulent origin.
Investigators say the bettors falsely represented compliance with betting rules, including rules barring bets based on non-public information and bans on using straw bettors to hide the true source of wagers. The scheme relied on secrecy and misrepresentation to move money and avoid detection. Authorities traced wagers and unraveled layers of concealment during their probe.
“As shown by his guilty pleas today, Damon Jones converted his fame and ties to professional basketball into a multi-faceted criminal betting operation. He used private locker room and medical information from multiple NBA teams to cheat legitimate sportsbooks. He also, separately, lured unsuspecting victims to high-stakes rigged poker games,” stated United States Attorney Nocella.
“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. This Office will continue in its strong tradition of holding accountable anyone who seeks to profit through fraud and corruption.”
“Former NBA player Damon Jones admitted to exploiting his profession and fame to help others cheat in two separate rigged betting schemes. With our federal and local law enforcement partners, the FBI continues to hold accountable those who threaten the integrity of American sports,” stated FBI Assistant Director in Charge Barnacle.
Beginning as early as 2019, defendants in the related prosecutions allegedly used wireless cheating technology to rig illegal poker games in the Eastern District of New York and around the country. Jones admitted at his guilty plea hearing that he acted as a “Face Card” to entice victims to play in high-stakes rigged games and that he participated with cheating teams who defrauded players at the tables. These schemes combined modern cheating tech with organized, coordinated fraud.
Co-conspirators are described in filings as including game organizers who orchestrated underground poker events, suppliers of the cheating technology, former pro athletes used as Face Cards, dedicated cheating teams, money launderers, and members and associates of the Bonanno, Gambino and Genovese organized crime families who allegedly backed games in the New York area. Those families reportedly took a cut of proceeds from the rigged events. Prosecutors say the structure mixed celebrity access and traditional criminal networks.
“As today’s plea makes clear, Damon Jones used his presence at underground card tables to fuel fraudulent betting and fixed poker schemes that stole millions from victims. Status, access, and a high-profile career do not exempt any individual from answering for criminal conduct. This outcome is the product of a sustained, coordinated effort by HSI New York and our law enforcement partners, who together traced the money, unraveled the cheating technology, and exposed the full scope of these schemes,” stated HSI New York Acting Special Agent in Charge Alfonso.
Jones’s conduct included recruiting and bolstering confidence among players to draw victims into rigged games, then leveraging technology and personnel to ensure cheating teams profited. Law enforcement says the scams victimized players who had no idea they were competing in manipulated contests. That pattern of deception and organized support is central to the two prosecutions.
“The defendant in this case traded his reputation for greed and fraud,” stated NYPD Commissioner Tisch.
“By exploiting his access to the NBA, and rigging illegal poker games across the country, Damon Jones attempted to orchestrate a scheme that defrauded victims of millions of dollars. Thanks to our investigators, law enforcement partners, and the U.S. Attorney’s Office for the Eastern District of New York, we are upholding the integrity of the game and ensuring accountability for those who break the law and betray the public’s trust.”
United States Attorney Joseph Nocella Jr.; James C. Barnacle, Jr., Assistant Director in Charge of the FBI New York Field Office; Michael Alfonso, Acting Special Agent in Charge, HSI New York; Jessica S. Tisch, NYPD Commissioner; and Phoebe S. Sorial, Executive Director, New York Waterfront Commission, announced the guilty pleas. Their offices prosecuted the matters across the Business and Securities Fraud, Organized Crime and Gangs, and Asset Forfeiture sections, with specific Assistant United States Attorneys and paralegal specialists handling different aspects of the cases.
“While his unsuspecting victims believed Damon Jones was playing by the rules, he was playing an entirely different game. He used his celebrity as the opening bet and when it was time to cash in, he enriched not only himself but also some of the most notorious La Cosa Nostra crime families. His guilty plea today sends a clear message: exploiting trust for personal gain is not a game you can win,” stated New York Waterfront Commission Executive Director Sorial.
“The Waterfront Commission will continue to work side by side with our federal, state, and local law enforcement partners to combat organized crime and corruption, and to dismantle criminal enterprises in the New York metropolitan area by severing the illicit revenue streams that fuel them.”
