FORMER NBA PLAYER AND COACH DAMON JONES PLEADS GUILTY IN MULTI-MILLION DOLLAR FRAUD SCHEMES INVOLVING INSIDER SPORTS BETTING AND RIGGED POKER OPERATIONS

BROOKLYN — National Basketball Association player and coach Damon Jones pleaded guilty in federal court to two counts of wire fraud conspiracy tied to separate criminal schemes involving insider sports betting and rigged illegal poker operations.

The plea was entered before U.S. Magistrate Judge Joseph A. Marutollo in the Eastern District of New York. Jones, 49, of Houston, Texas, admitted to participating in coordinated fraud activities that resulted in losses exceeding $10 million.

According to federal prosecutors, Jones leveraged his access to non-public information derived from NBA teams, players, and coaching staff to facilitate fraudulent wagering activity. The scheme involved the distribution of confidential injury reports, lineup decisions, and other restricted internal data to a network of bettors. These individuals placed wagers through online sportsbooks and retail betting platforms while concealing that their bets were based on insider information in violation of sportsbook rules and federal law.

The conduct took place between December 2022 and March 2024 and involved the use of intermediary bettors, often referred to as straw bettors, to obscure the origin and intent of the wagers. Federal authorities stated that the wagers were placed under false pretenses, creating the appearance of legitimate betting activity while relying on confidential information to generate profit.

In a separate but related case, Jones admitted to participating in a nationwide scheme involving rigged illegal poker games. The operation involved multiple layers of coordination, including organizers who recruited participants, suppliers of wireless cheating technology, and structured teams that worked together to manipulate outcomes during high-stakes games.

Court records show that Jones acted as a “Face Card” in the scheme, using his public profile and prior professional status to attract participants to underground poker games. Once engaged, victims were unknowingly placed into games that were manipulated through covert technological means, resulting in substantial financial losses.

The broader operation included individuals responsible for laundering proceeds and maintaining the financial flow of the enterprise. Federal authorities also identified the involvement of members and associates of organized crime groups, including factions connected to the Bonanno, Gambino, and Genovese families, who received a portion of the proceeds from the illegal gambling activity.

U.S. Attorney Joseph Nocella Jr. stated that Jones used his professional access and reputation to facilitate coordinated fraud schemes that targeted both regulated betting systems and private individuals. Federal officials stated that the misuse of insider information and manipulation of gaming environments undermines the integrity of both professional sports and lawful wagering systems.

Officials from the Federal Bureau of Investigation, Homeland Security Investigations, and the New York City Police Department confirmed that the case involved coordinated investigative efforts across multiple jurisdictions. Investigators traced financial transactions, identified communication networks, and recovered evidence related to the use of electronic cheating systems in the poker scheme.

The insider betting case, United States v. Earnest, et al., is being handled by the Business and Securities Fraud Section of the U.S. Attorney’s Office. The poker-related case, United States v. Aiello, et al., is being prosecuted by the Organized Crime and Gangs Section. Asset forfeiture proceedings are being handled separately.

Jones faces sentencing at a later date. The charges carry significant federal penalties, including potential imprisonment tied to wire fraud conspiracy counts.

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