Former NBA guard and assistant coach Damon Jones was arrested Thursday by the FBI as part of a wide-ranging investigation into illegal sports betting and rigged card games, which also involves Portland Trail Blazers coach Chauncey Billups and Miami Heat guard Terry Rozier.
According to the indictment against Jones, he and his fellow co-conspirators “participated in a scheme to defraud the Betting Companies by providing, obtaining and using non-public information relating to NBA games to place and cause others to place fraudulent sports wagers for profit, and to launder the proceeds thereof.”
Notably, the Department of Justice highlighted two Los Angeles Lakers games on Feb. 9, 2023 and Jan. 15, 2024, and alleged that Jones was selling information relating to the injury status of “Player 3” and “Player 4.” While the indictment does not name those players, the context points to “Player 3” being LeBron James and “Player 4” being Anthony Davis.
Via the indictment, which was obtained by The New York Times:
“The defendant DAMON JONES was a former NBA player and assistant coach. JONES played in the NBA from approximately 1999 through 2008, including as a member of the Cavaliers from approximately 2005 through 2008. JONES was an assistant coach on the Cavaliers from approximately 2014 through 2018. JONES was also an unofficial assistant coach on the Los Angeles Lakers during the 2022-23 NBA season. During many of those years, JONES was a teammate or coach of a prominent NBA player (“Player 3″), an individual whose identity is known to the Grand Jury.”
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“Player 4, an individual whose identity is known to the Grand Jury, was one of the Lakers’ best players during the 2023-24 NBA season.”
Jones allegedly used his connection to James to sell non-public information for profit. Ahead of the Lakers’ game against the Milwaukee Bucks on Feb. 9, 2023, Jones texted his co-conspirators “Get a big bet on Milwaukee tonight before the information is out! [Player 3] is out tonight. Bet enough so Djones can eat to [sic] now!!!”
At the time of Jones’ text, James was not listed on the injury report. James ended up sitting out of the game — which came two days after he broke the NBA’s all-time scoring record — due to ankle soreness. The Lakers would go on to lose, 115-106.
A little under a year later, ahead of the Lakers’ Jan. 15, 2024 game against the Oklahoma City Thunder, Jones is said to have told his co-defendants that a trainer for James and Davis informed him that Davis was injured and was going to play limited minutes and/or his performance would be affected because of the injury.
Jones’ co-defendants allegedly paid him $2,500 for the information through an intermediary, and then placed multiple bets against the Lakers, including one for $100,000. Davis was later listed as probable due to an ankle injury and played in the game. He finished with 27 points, 15 rebounds and five assists in 38 minutes, and helped the Lakers win, 112-105. Following the game, one of Jones’ co-defendants asked him to repay the $2,500 fee, but Jones maintained that his information had been credible.
According to Dan Woike of The Athletic, James had no knowledge that Jones was selling information about his injury status.
Jones and his co-defendants have been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. attorney for the Eastern District of New York Joseph Nocella Jr. called the situation “one of the most brazen sports corruption schemes since online sports betting became widely legalized in the United States.”