A Basketball Corridor of Famer. X-ray poker tables. The Mafia. They had been all purportedly essential to an alleged yearslong unlawful poker rigging scheme that resulted in 31 federal indictments this week. The case targeted on rigged poker video games is one in every of two introduced that allegedly contain distinguished NBA figures.
Investigators state that the scheme to defraud gamers at a poker desk started in April 2019 when defendant Robert “Black Rob” Stroud and different co-conspirators started devising a ruse to make use of expertise to rig unlawful poker video games, often Texas Maintain ’em, towards unwitting, rich gamers whom they referred to as “fish” or “whales,” and who had been conscious that they had been enjoying in unlawful, high-stakes video games, however believed these had been “straight” video games towards different rich gamers. In actuality, in lots of circumstances, each different individual on the desk apart from them was in on the scheme.
The fish had been additionally enticed to play by the presence of high-profile former skilled athletes, often called “face playing cards,” with the most important names revealed to date to be Basketball Corridor of Famer Chauncey Billups and former NBA participant and coach Damon Jones.
How did all of it work?
The scheme began with the expertise, which was primarily contained in the card-shuffling machines, which learn the order through which the playing cards had been dealt and relayed the knowledge to an off-site operator. Generally the video games employed X-ray tables and/or hidden cameras within the poker chip tray to help in studying the playing cards. Gamers would additionally sometimes put on particular contact lenses or glasses that will permit them to see marked playing cards.
As soon as the operator knew the playing cards had been on the desk, they might relay the related data to a “quarterback” on the desk, who would subtly sign to the remainder of the “dishonest crew” what they need to do.
In an instance cited in a courtroom doc from a September 2024 recreation in Miami, defendant John Mazzola performed quarterback. If Mazzola had the very best hand, he would faucet his arm or wrist. If one other inside participant did, Mazzola touched his $1,000 poker chip, and so forth and so forth. If the “fish” had the very best hand, Mazzola would contact his black chips, indicating to the opposite inside gamers to fold.
To keep up the charade and maintain the unknowing participant on the desk, the co-conspirators would textual content about technique in actual time. They sometimes allowed the victims to win. Throughout that very same Miami recreation, defendant Michael Renzulli messaged a bunch chat of co-conspirators, telling them to let the participant — on this case, known as John Doe No. 4 — win a hand in order that he would maintain enjoying.
The identical idea utilized to the video games when Billups and Jones had been concerned, although there was an additional layer of nuance given their superstar. Throughout an April 2019 recreation, defendant Sophia Wei texted the group that Billups and defendant Eric “Spook” Earnest had gained two unbelievable fingers (“gutshot on the river,” or a straight draw needing to hit a center card to make his hand) towards the identical participant. Whereas Stroud responded that the participant “acted like he needed Chauncey to have his cash” as a result of he was “starstruck,” Wei insisted they insert one other member of the dishonest crew (“the center jap man”) into the sport in order that Billups and Earnest might purposely lose to him and dispel suspicion.
What had been the organized crime connections on this scheme?
The presence of the Mafia, in any other case often called La Cosa Nostra (LCN), concerned offering help and safety, usually merging its personal current unlawful, high-stakes poker video games, which weren’t essentially rigged, into the scheme.
The courtroom paperwork allege that, in Manhattan, New York, the Bonanno crime household had already been backing a recreation at 147 Lexington Ave., whereas the Gambino crime household, with help from at the least one Genovese crime member of the family, hosted a recreation at 80 Washington Place. In 2023, these two video games merged, collectively working the rigging scheme utilizing the expertise provided by Stroud.
LCN furthered the scheme in at the least one occasion by allegedly robbing a person recognized solely as “John Doe No. 7,” who was initially concerned with the rigged poker video games, of an altered Deckmate 1 shuffling machine which, in its unaltered type, retailed for greater than $10,000.
The Mafia and non-mob co-conspirators additionally managed lots of the monetary points associated to the scheme, usually utilizing quite a few of the techniques they’ve change into most notorious for. In November 2022, defendant Zhen Hu allegedly threatened and assaulted “John Doe No. 5” for not paying his poker playing money owed. In fall 2023, a number of of the co-conspirators allegedly extorted “John Doe No. 6” by invoking their Mob connections, which ultimately frightened him into paying his $10,000 debt.
Moreover, defendant Anthony Shnayderman allegedly laundered the proceeds of the poker video games via shell firms and third events, finally paying different co-conspirators in money or cryptocurrency.
“With the alleged involvement of three La Cosa Nostra crime households, an NBA head coach and Corridor of Famer, in addition to different present and former skilled athletes, the investigative work that culminated with this morning’s operation are paying homage to a Hollywood film,” mentioned Homeland Safety Investigations New York particular agent in cost Ricky Patel. “However this was not luck, and it was not theatrics.”
“Utilizing the attract of high-stakes winnings and the promise to play alongside well-known skilled athletes, these defendants allegedly defrauded unwitting victims out of tens of hundreds of thousands of {dollars} and established a monetary pipeline to La Cosa Nostra,” mentioned Christopher Raia, assistant director in cost with the FBI.
Total, victims of the rigged poker scheme misplaced at the least $7.15 million, in keeping with courtroom paperwork. One of many victims alone, “John Doe No. 1,” was cheated out of $1.8 million in video games staged in June and July 2023.
Following his arrest, Billups appeared in courtroom Thursday and was launched from custody on the situations of a considerable bond with the federal courtroom within the Jap District of New York, in addition to surrendering his passport. He’s subsequent scheduled to seem in courtroom on Nov. 24. On Thursday night, his lawyer, Chris Heywood, launched an announcement saying they intend to combat the fees.