Early Plea Talks Begin in Mob-Linked Gambling Case, Prosecutors Say

Federal prosecutors say early plea discussions are underway in the 31-defendant mob-linked gambling case tied to an alleged rigged-poker operation in New York, according to a new status report filed on November 20. 

The filing outlines the initial procedural steps in the case, including the commencement of discovery and plans for managing a large volume of digital evidence. Prosecutors submitted the status report to U.S. Magistrate Judge Ramon Reyes ahead of the status conference scheduled for Monday at 10 a.m. ET. 

The case made headlines in October when Portland Trail Blazers head coach Chauncey Billups and former NBA player and assistant coach Damon Jones were indicted alongside alleged mob associates in what prosecutors describe as a rigged-poker scheme that defrauded victims of millions of dollars.

Billups appeared in federal court Monday morning, where he pleaded not guilty to the charges. Most of the remaining defendants have already been arraigned or made their initial appearances in either New York or in the districts where they were arrested.

Early Conversations, but No Formal Plea Offers Yet

In the status report, prosecutors informed Judge Reyes that preliminary conversations related to potential plea agreements have already begun with several defense teams. 

The government wrote that “although it is too early for the government and any of the defendants to engage in substantial plea negotiations, the government and defense counsel for several defendants have begun productive discussions that the government hopes will ultimately lead to resolutions as to several defendants without the need for a trial.”

It’s not clear from the filing which defendants are engaged in these discussions, and no plea agreements have been submitted to the court. Defense teams have only received an initial set of materials, and most of the digital evidence cannot be produced until a protective order is finalized.

Gov’t Begins Discovery Production, More Digital Evidence Processed

Prosecutors informed the court that the first set of materials was produced on November 20, which included criminal-history reports, arrest-related documents, body-worn camera footage, and records from search warrants executed during the arrests.

A much larger set of evidence is still being processed. The government said that once a protective order is entered, it plans to turn over “electronic evidence seized from electronic devices and Apple iCloud accounts, which exceeds 1 terabyte of data.” Additional seized devices remain under review.

Other evidence prosecutors expect to produce includes “surveillance photographs, pole camera footage, and associated reports; bank records; phone records; and other records provided by third parties.” Prosecutors have discussed with defense counsel the potential need to appoint a coordinating discovery attorney due to the size of the case and the technical burden of distributing a large amount of digital evidence among 31 defendants. 

The government asked the court to designate the case as complex under the Speedy Trial Act, citing the “high number of defendants in this case (thirty-one), the voluminous nature of the discovery material (terabytes of electronic evidence), the number of victims and rigged poker games that are the subject of the charges (at least 25 rigged games over a five-year period), and the evidence of complex money laundering.”

Case Involves Alleged Rigged Poker Games Tied to Mob

The charges in this case stem from an alleged long-running scheme to rig high-stakes underground poker games in multiple locations, including Washington Place and Lexington Avenue in New York City, East Hampton, New York, Las Vegas, and Miami, as outlined in the indictment unsealed last month. 

Prosecutors say cheating teams used wireless communications, rigged shuffling machines, and X-ray poker tables that allowed the co-conspirators to see card information during the games. 

According to the indictment, members and associates of La Cosa Nostra, specifically the Bonanno and Gambino crime families, helped facilitate the operation, providing protection and collecting a share of the proceeds. The victims thought they were participating in ordinary, “straight” poker games but were allegedly defrauded of millions of dollars.

Although the indictments were unsealed on the same day, the rigged poker game case is separate from the insider-betting allegations involving Miami Heat guard Terry Rozier and Jones. 

Prosecutors also requested that the judge schedule the next status conference for approximately 60 to 90 days from November 24, saying that several defense counsel have already expressed a preference for the full 90 days due to the anticipated volume of discovery.

Read the full status report (PDF).