Federal college basketball betting scandal probe widens

As the opening tip of the new college basketball season draws nearer, there are strong indications that a multi-year, national betting scandal case about point-shaving is moving closer to resolution.

The latest chapter in a scandal that has marred the sport appears to be focused on multiple Division I programmes located in the southern region of the nation, a source told iGB Thursday on the condition of anonymity.

On Thursday, SI.com reported that the Eastern District of Pennsylvania has broadened its investigation into point shaving in the sport, a harbinger that the probe could lead to multiple indictments. There are further indications that federal law enforcement officials enlisted agents to speak with multiple players under investigation for potential match manipulation, iGB has learned.

The district covers nine counties in the Keystone State, most notably Philadelphia County, home to the city’s “Big 5” NCAA basketball programmes: Villanova, Drexel, Temple, Saint Joseph’s and the University of Pennsylvania. However, investigators instead appear focused on several schools in the South, a development that tracks with previous reporting that several southern schools are under scrutiny in a broader investigation on anomalous betting patterns.

Another source independently confirmed on Thursday night that the investigation in the district has advanced. When reached by iGB, a spokesperson from the Eastern District of Pennsylvania declined to comment.

Alleged mastermind behind college basketball betting scandal

Thursday’s reports provide the latest twist in a summer rife with disconcerting headlines on the state of sports integrity. Last month, ESPN reported that a bettor in Mississippi placed more than two dozen bets involving NBA guard Terry Rozier in a span of 46 minutes. Rozier is one of three NBA players being probed in a parallel investigation in the Eastern District of New York, along with former Raptors centre Jontay Porter and ex-Pistons guard Malik Beasley.

In January, federal law enforcement agents apprehended a Las Vegas man before he boarded a one-way flight to Panama, en route to Colombia. Prosecutors described the defendant, Shane Hennen, as the alleged architect of a multi-million dollar illegal sports betting ring.

Since his arrest, Hennen’s exact involvement in college basketball remains unclear. However, the ring is reportedly under federal investigation for suspicious activity related to both NBA and college hoops, according to multiple outlets. For instance, earlier this year, ESPN reported that betting accounts linked to the illegal ring placed wagers on three mid-majors college basketball programmes under investigation in the probe.

All told, at least five Division I schools (Eastern Michigan, Temple, Loyola (MD), North Carolina A&T and Mississippi Valley State) have been named by various outlets in connection with suspicious wagering activity. Another programme, the University of New Orleans, suspended four players last season for potential NCAA violations related to sports betting.

A source who spoke to iGB on Friday on the condition of anonymity said the current investigation could be one of the largest on record in the post-PASPA era.

Hennen’s NBA betting ties explained

According to a complaint, Hennen helped orchestrate a fraudulent sports wagering scheme involving an individual identified in court records as “NBA Player 1”. While Porter is not identified by name in the complaint, the fact pattern in the indictment matches his identity.

This week, Michael Porter Jr, Porter’s older brother, broke his silence in the case when he told a podcast that the hazards surrounding sports betting will only “get worse”.

Hours before a 26 January 2024 NBA game, the player presumed to be Jontay Porter, texted two defendants, identified in court filings as Co-Conspirator 1 and Co-Conspirator 2.

On the same date, Porter removed himself from a game against the Clippers with a self-reported eye injury. Porter finished scoreless with three rebounds in four minutes. Prior to the game, Co-Conspirator 1 forwarded a message to Hennen from the NBA player, the complaint states.

“I told [Co-Conspirator 2] no blocks, no steals. I’m going to play first 2-3 minute stint off the bench then when I get subbed out, tell them my eye killing me again,” the player wrote.

A network of proxies in betting scandal

Following the text from the NBA player, CC-1 allegedly sent Hennen two screenshots that appeared to be betting slips for Player 1’s statistical performance in the aforementioned game, according to an affidavit from an FBI special agent. After receiving inside information on the player’s intended underperformance, Hennen, acting through a series of proxies, placed bets on the NBA player’s “unders”, the agent wrote.

In a 13 January letter to Nevada prosecutors requesting Hennen’s detention, a US attorney in Brooklyn wrote that the government had developed “substantial evidence” that Hennen conducted illicit financial transactions and fraudulent sports wagers totalling millions of dollars, including through a network of proxies and straw bettors located across the country, such as his co-conspirators.

“The proof of his guilt is overwhelming,” wrote then-Acting US Attorney Caroline Pokorny, citing witness testimony, betting slips and other financial records.

Months later, on 22 July, a federal judge in the Eastern District of New York granted an order that allowed attorneys in Hennen’s case to extend plea negotiations until late September. It marked the fourth time that the parties had received a continuance to extend the negotiating window.

Prior to the final continuance, iGB contacted a Las Vegas-based attorney who represents Hennen. A message left with the attorney was not returned.

Hennen’s ties to City of Brotherly Love

Todd Leventhal, Hennen’s attorney, told SI.com in February that the government painted a “very vivid picture” on the alleged scheme. Often, major federal investigations can be complicated by a lack of cooperation from authorities in multiple jurisdictions. The latest wrinkle begs the question on why the investigation progressed in Pennsylvania.

Documents obtained by iGB indicate that Hennen maintained multiple residences in Philadelphia over a five-year period through 2023. Hennen, a professional poker player, apparently relocated to Las Vegas in December of that year.

In the same piece, a sportsbook manager at Rivers Casino in Philadelphia told SI that Hennen had gained a reputation for placing heavy wagers. At one point, Hennen, the proprietor of tout website SugarShaneWins.com, was ranked as the book’s largest customer, SI reported.

Expertise in other complex gambling matters

Prosecutors from the Eastern District of Pennsylvania have experience in handling complicated illegal gambling matters related to sports betting. In 2020, a holding company for offshore sportsbook 5Dimes paid a fine of more than $46.8 million to settle charges with the office.

An inquiry from the EDPA in conjunction with the Department of Homeland Security Investigations spent several years investigating 5Dimes for a litany of federal crimes, including but not limited to illegal gambling, money laundering and wire fraud.

As part of the investigation, federal authorities determined that the offshore book designed incentives for customers to utilise Amazon gift cards as a withdrawal vehicle, while offering a 10% premium for selecting the method.

Several 5Dimes customers funded their accounts and placed illegal sports bets while located in the jurisdiction, according to prosecutors.

NCAA president’s testimony on college betting

More recently, NCAA President Charlie Baker made an appearance on Capitol Hill to discuss the perils of sports betting. Baker was one of several witnesses who testified last December before the Senate Judiciary Committee at a hearing entitled  “America’s High-Stakes Bet on Legalised Sports Gambling.” 

Following his testimony, Baker declined comment when asked by iGB if he had any updates on the college basketball investigation.

An NCAA spokesperson did not immediately respond to a request for comment from iGB on Friday. But a source familiar with the broader investigation told iGB last month that the NCAA is doing its best to unravel the complex intricacies of the case.

In written testimony provided to the committee, Baker wrote that the NCAA partners with an integrity monitoring service that examines more than 22,000 contests per year. In addition, the former Massachusetts governor – who supported legalisation of sports betting in his home state before becoming the NCAA’s top official – noted that the association keeps open lines of communications with numerous state regulators and participates in the FBI’s Sport Integrity Working Group.

“It’s clear that significantly more attention should be dedicated to the collegiate sports betting environment by state and federal lawmakers, regulators and betting operators to protect collegiate athletics competitions and student-athlete wellbeing from the dangers of pervasive sports betting,” Baker wrote.