Six men, including the recently arrested Terry Rozier, were charged with conspiracy to commit wire fraud and money laundering by the U.S. Attorney in the Eastern District of New York on Thursday, following an investigation into two separate gambling cases conducted by a joint task force that included the FBI.
Key Takeaways
- The federal indictment reveals many details and amounts wagered in several betting schemes.
- Rozier, Damon Jones, and a list of known bettors are included as defendants in the case.
- Lakers star LeBron James is reportedly involved, but he was not implicated in any wrongdoing.
The group, which also includes former NBA player and assistant coach Damon Jones, is accused of sharing inside, non-public information that resulted in fraudulent wagering on five different NBA teams and seven total games. The other men named in the federal indictment are known bettors Eric Earnest, Marves Fairley, Shane Hennen, and Deniro Laster. There is also a list of named and unnamed co-conspirators and players.
“As 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,” U.S. Attorney Joseph Nocella Jr. said in a statement. “This was a sophisticated conspiracy involving athletes, coaches, and intermediaries who exploited confidential information for profit.”
According to the grand jury indictment, information was often traded for payments or promises of shared betting earnings. The court document says the scheme ran from March 2023 through March 2024. Here’s a look at how the group allegedly shared information and wagered on each of those games:
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March 23, 2023: Hornets vs. Pelicans
This is the game that involved Rozier, the Miami Heat guard who formerly played for the Charlotte Hornets. Rozier allegedly informed Laster, a longtime friend, that he was going to remove himself from the game in the first quarter with a “supposed” injury and not return, with the intent for Laster to wager on the game.
Rozier was not on the injury report before the game, and Charlotte was not expecting him to exit early, so this was not public information. Laster sold this information to Fairley and an individual listed as “Co-Conspirator 1” for $100,000 of their expected betting winnings.
Fairley then told Hennen, a known gambler who’s also a defendant in the rigged poker case, for an agreed-upon share of the betting profits. Hennen shared the Rozier’s plan with his associates, who all bet the player prop unders for Rozier. Hennen placed prop and parlay wagers totaling over $61,000 on those unders at a retail sportsbook.
Another individual, identified as “Co-Conspirator 2,” also wagered $107,000 on Rozier’s unders through straight bets and parlays. Long Phi Pham and Timothy McCormack, two of the co-conspirators in the Jontay Porter betting scheme with ties to Hennen, also wagered on Rozier’s props and sent communications about and payments for their fraudulent bets.
At least five other co-conspirators received the information and wagered on Rozier’s unders. Many of the bets hit as Rozier left the game after playing nine minutes and 34 seconds. He scored five points, recorded two assists, and hit on a 3-pointer, all well below his season averages. His four rebounds, however, did go over the prop set at sportsbooks.
Here's a quick clip from the Hornets-Pelicans 03/23/23 game under investigation. It appears as though Terry Rozier tweaks his foot after hitting this jumper. He grabs at it and seems to be limping. He did play a few more minutes before checking out for good. pic.twitter.com/P2P84os8sx
— J.E. Skeets (@jeskeets) January 30, 2025
Three days later, Fairley met Hennen in Philadelphia to collect earnings from the Rozier betting payout. Laster then met with Fairley to receive tens of thousands of dollars in proceeds from the inside information. Laster drove from Philadelphia to Rozier’s home in Charlotte, where the duo allegedly counted the cash.
March 24, 2023: Trail Blazers vs. Bulls
The indictment claims that Earnest received a tip from an NBA coach that several Portland players were going to miss the game against Chicago. The betting line did not reflect those absences. Earnest shared the information with Fairley, who agreed to pay him $5,000 for the tip.
Fairley told Hennen and his associates, and the group, including Pham, McCormack, and co-conspirator 1, wagered over $100,000 on the Bulls to win the game. When the injury report was released with several players out of the game, there was a significant line shift, giving the defendants and co-conspirators a huge advantage.
Lineup alert: Blazers will start Arcidiacono, Sharpe, Thybulle, Watford, Eubanks on Friday.
— Underdog NBA (@UnderdogNBA) March 25, 2023
The Bulls won 124-96, cashing the fraudulent bets placed with the inside information.
April 6, 2023: Magic vs. Cavaliers
Co-conspirator 1 found out from a player on the Magic that a key teammate would miss the game. Co-conspirator 1 shared this before the news was publicly released with Fairley, who bet the Cavaliers to cover as a +9.5 underdog with an “unsolicited bookmaker.”
The key player did indeed sit out, and the Cavs won by 24 points, cashing Fairley’s wager.
NBA INJURY ALERT: Magic PF Paolo Banchero (back), PG Markelle Fultz (knee), SF Franz Wagner (ankle) and C Wendell Carter Jr. (hip) have been ruled out for tonight's game vs. the Cavaliers. pic.twitter.com/JEgpCc20DC
— DraftKings Network (@DKNetwork) April 6, 2023
Feb. 9, 2023: Lakers vs. Bucks
On two occasions, Jones, who had ties to the Lakers, sold inside personnel information to Earnest, Fairley, and co-conspirators, according to the indictment. Jones received the info “by virtue of his relationship” with who the court document identifies as “Player 3.” Lakers star LeBron James was the player who provided the privileged information, according to ESPN. James was not implicated in the case in any way.
Jones sent text messages on the morning of Feb. 9 to inform co-conspirator 9 that James was going to miss a game that night against the Bucks. Jones said to “get a big bet on Milwaukee tonight before the information is out” and “bet enough so Djones can eat to [sic] now.”
James missed the game and the Lakers lost, leading to big earnings for the defendants and co-conspirators.
Jan. 15, 2024: Lakers vs. Thunder
Jones said he found out from a trainer that a Laker, listed as “Player 4,” was injured before a Jan. 15 game against the Thunder. Jones told Earnest, who contacted Fairley. He paid Jones $2,500 through a peer-to-peer transaction app for the information. Fairley then told Hennen and his associates, who placed multiple bets, including approximately $100,000 on the Thunder at a retail sportsbook.
Player 4 was listed as “probable” on the injury report and played in the game. The Lakers won, 112-105. Fairley asked Jones, through Earnest, to repay the $2,500 info fee. Jones replied that the non-public information was credible.
Jan. 26 and March 20: Porter scandal games
Two games that were documented in the case against Porter, who received a lifetime ban from the NBA and pleaded guilty to wire fraud charges in July 2024, were included in the indictment because of two defendants.
A group, including Pham, conspired with Porter for him to take himself out of two Toronto Raptors games, once with an eye injury and another time for illness, so the co-conspirators could wager and win on his player prop unders. This was agreed upon so Porter could pay off gambling debts. Four other co-conspirators have also pleaded guilty, including Pham and McCormack.
One of the games in question for Jontay Porter is January 26th against the Los Angeles Clippers.
— Jon Metler (@JonMetler) March 25, 2024
He boxes out Mason Plumlee but doesn’t even attempt to grab the rebound. pic.twitter.com/hRn57XCBDE
In terms of this latest indictment, Hennen also allegedly took part in the fraudulent wagering after Pham let him in on Porter’s plan. Hennen passed the information to both his associates and to Fairley so they could profit from the betting scheme.
The court document says Hennen used several peer-to-peer payment app transactions to “promote the scheme and distribute the proceeds of such wagers.”
Porter is expected to be sentenced for his role in the scandal in December.
