Eighteen former NBA players have been charged with allegedly defrauding the NBA’s health and welfare benefits plan out of close to $4 Million dollars, say federal prosecutors in an indictment that was unsealed Thursday.
The players include Anthony Allen, former Lakers Guard Shannon Brown, Jamario Moon, Glen Davis, who played for the Boston Celtics, Orlando Magic and Los Angeles Clippers, Milt Palacio, Antoine Wright, Sebastian Telfair, who played for the Cleveland Cavaliers, Clippers, Boston Celtics and Minnesota Timberwolves and Darius Miles, drafted by the Clippers in the 2000 Draft.
The alleged ringleader was Terrence Williams, drafted by the New Jersey Nets and a six-time NBA All-Defensive Team member. Anthony Allen’s wife, Desiree Allen, is the only woman charged in the indictment.
The former players face a count of conspiracy to commit health care and wire fraud. The indictment accuses the players of submitting false documents and claims asking for reimbursement for medical and dental expenses that were fake.
The players are accused of creating fake invoices, including for chiropractic treatments and Williams is accused of impersonating a claims processor as well. The indictment alleges that the scheme took place between 2017 and 2020 and the benefits plan received close to $4Million fraudulent claims. It disbursed about $2.5 Million dollars to the players.
One player named Gregory Smith allegedly submitted fraudulent claims for a root canal in Beverly Hills but the government found evidence that on the supposed day of the root canal, which he said cost him tens of thousands of dollars, Smith was playing professional basketball in Taiwan.
A news conference was planned for Thursday around noon Eastern to go over the charges.
Here is a clip!
Some of the players charged have previous run-ins with the law. In 2019, Sebastian Telfair was convicted of a felony for weapons possession and sentenced to three and a half years in prison for the offense.
In 2018, Glen Davis was arrested for drug possession and drug distribution after police found marijuana and a briefcase with $92,000 in cash inside his hotel room. The state chose not to pursue the charges.
Darius Miles was arrested back in 2011 at an airport for carrying a loaded gun. In 2016, he filed for bankruptcy despite making $62 Million dollars during his NBA career and admitted to battling mental health issues.
Here is more from the presser by the Southern District.
A full list of defendants is shown below.