Federal prosecutors said three New York crime families helped run an elaborate scheme to rig underground poker games, cheating wealthy players out of at least $7 million with the help of high-tech gadgets and famous former NBA players.
The poker scheme was just one facet of a widespread gambling operation that federal prosecutors in New York's Eastern District unveiled Thursday. NBA players and coaches are accused of giving intel to sports betting operators on players and games throughout the country. The alleged conspiracy has raised difficult questions for the legalized sports betting industry that has taken hold of professional athletics.
But back in New York City, reputed mobsters from well-known crime families were involved in the century-old practice of fixing card games, only with a modern twist.
Weekly Texas Hold'em games took place in Manhattan’s Kips Bay and Greenwich Village neighborhoods, as well as in East Hampton on Long Island. But according to court documents unsealed Thursday in federal court in Brooklyn, the games were rigged.
Prosecutors said organizers used modified card shufflers and hidden cameras to ensure that victims, referred to by conspirators as “fish,” never stood a chance.
“Once the game was underway, the defendants fleeced the victims out of tens or hundreds of thousands of dollars per game,” said Joseph Nocella Jr., U.S. Attorney for the Eastern District of New York.
A modified card shuffling machine allegedly used to rig games with hidden electronics.
According to the indictment, members and associates of the Bonanno, Gambino and Genovese crime families backed the games and took a cut of the winnings. When victims refused to pay up, prosecutors said, the mob used threats, intimidation and violence to collect debts.
The cheating setup was high-tech: rigged shuffling machines could read the entire deck and transmit the information to an off-site operator, who relayed it by phone to a “Quarterback” at the table. That person would then use subtle signals, like touching a specific chip, to cue their teammates at the table on when to bet or when to fold.
Other cheating tools included poker tray analyzers with hidden cameras, X-ray tables that could read cards face down, and special contact lenses or glasses that revealed pre-marked cards.
The organizers also used celebrity power to lure high-rolling players. Former NBA coach Chauncey Billups and retired player Damon Jones were allegedly paid to attend the games and bet strategically to drain victims’ bankrolls.
Prosecutors said both men acted as “face cards,” using their fame to entice victims and then participating in the scheme themselves.
In one case, defendant Zhen Hu allegedly punched a player in the face in November 2022 after a dispute over unpaid debts. A year later, prosecutors said, another victim was robbed at gunpoint so conspirators could steal a $10,000 rigged shuffling machine.
In all, 31 people are charged in a seven-count indictment that includes wire fraud conspiracy, illegal gambling, money laundering and extortion. The most serious charge carries a maximum of 20 years in prison.
Lawyers for most of the defendants have not commented. Attorneys for Nicholas Minucci and Angelo Ruggiero Jr. declined to speak.