Ex-NBA player Damon Jones first to plead guilty in pair of gambling cases

Former NBA player Damon Jones became the first person to plead guilty in a pair of federal indictments involving 34 defendants, including some with alleged links to the mafia and other NBA figures.

Jones, 49, was among three people charged in both indictments, one of which focused on poker schemes in which wealthy victims were allegedly lured to play in rigged games against athletes. The other focuses on sports betting, accusing the former Cleveland Cavaliers guard of using inside information to place bets.

In total, Jones pleaded guilty to two counts of wire fraud conspiracy Tuesday. Federal prosecutors said the losses from both cases amounted to more than $10 million.

Reading from a prepared statement inside Brooklyn federal court in the first of two hearings, Jones acknowledged he used “insider information” he obtained from the relationships he made during his time as a player, The Associated Press reported.

He apologized to his family, colleagues and the NBA as part of his statement. 

CBS News has reached out to his attorney for comment.

Joseph Nocella, U.S. attorney for the Eastern District of New York, said in a statement that “Damon Jones converted his fame and ties to professional basketball into a multi-faceted criminal betting operation.”

In the sports betting case, federal prosecutors accused Jones of sending a tip about “a prominent NBA player, saying: ‘Get a big bet on Milwaukee tonight before the information is out! [Player 3] is out tonight.'” He appears to be referring to LeBron James, a former teammate and longtime friend. Jones also served on the coaching staffs of the Cavaliers and the Los Angeles Lakers.

James is not accused of any wrongdoing.

Prosecutors have not indicated that pleas are expected for other defendants in the sports betting cases. Terry Rozier, who was released by the Miami Heat earlier this month, and who pleaded not guilty to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, appeared in court on Monday for a motion to dismiss his case.

Instead, federal prosecutors said during the hearing that they intend to bring additional charges – including bribery and wire fraud – against the NBA star by mid-May.

Prosecutors accused Jones of participating in a rigged poker game in Las Vegas in 2019, court documents said, that used a device described as a “rigged shuffling machine” that was secretly altered to read the cards. The FBI said a victim was defrauded of $50,000 in that game.

Eleven other defendants caught up in the investigation are set to make plea agreements.

Jones’ sentencing is set for Jan. 6, 2027, the AP reported.

Prosecutors have not indicated that pleas are expected for other defendants in the sports betting cases. Terry Rozier, who was released by the Miami Heat earlier this month, and who pleaded not guilty to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, appeared in court on Monday for a motion to dismiss his case.