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Arraignments begin in NBA sports betting scandal as league engages in gambling briefings with…

**Damon Jones, a former player and a longtime friend of LeBron James, pleaded not guilty in federal court to charges tied to illegal betting, poker.**

On a day when multiple ex-NBA players were scheduled to be arraigned for their role in a complex gambling scheme, only one made an appearance in federal court in Brooklyn.

Damon Jones, a longtime friend of Los Angeles Lakers star LeBron James, appeared before two judges on Thursday – exactly two weeks after indictments were unsealed in a sweeping case tied to allegations of criminal sports betting and poker schemes. Jones, a former Cleveland Cavaliers guard accused of involvement in both activities, pleaded not guilty on multiple counts.

Initially, Portland Trail Blazers coach Chauncey Billups was scheduled to make an appearance on Thursday in the same courthouse for charges stemming from illegal poker games. But less than 36 hours before the arraignment, Billups received a continuance that moved his appearance back several weeks.

Jones is accused of illegally disseminating non-public information on the injury status of a Lakers player. While James is not charged in the complaint, he matches the description of the player.

Jones’ arraignment came one day after several NBA representatives met with staffers of the US House Energy and Commerce Committee in Washington DC. The [historic sports betting scheme](https://igamingbusiness.com/sustainable-gambling/sports-integrity/report-nba-rozier-billups-arrested-federal-gambling-probe/) in which he was charged has spawned an inquiry from Congress on a litany of integrity concerns about the connection between sports and gambling.

Last month, a Brooklyn grand jury unsealed indictments against more than three dozen defendants in a combined illegal poker-sports betting investigation. Joseph Nocella Jr, interim US Attorney for the Eastern District of New York, described the illegal activity as the “most brazen” sports betting scheme since the 2018 PASPA decision.

Jones served as an unofficial assistant with the Lakers in 2023, more than a decade after he teamed with James in Cleveland to win the 2007 Eastern Conference title. Two days after setting the league’s all-time scoring record for career points as a member of the Lakers, James missed a February 2023 tilt against the Milwaukee Bucks. Jones, according to the indictment, received $2,500 for passing information that a particular Lakers player would not appear in the game. James missed the game with an ankle injury.

Jones is one of three defendants who is charged in both the sports betting and poker cases. Jones first appeared Thursday before Judge Ramon Reyes in US vs Aiello, the poker case. From there, he walked across the hall to appear before Judge Taryn Merkl in US vs Earnest, the sports betting case.

During a brief bail hearing, Reyes released Jones on a $200,000 bond. Jones’ mother plans to post a surety bond against her Houston home by Friday, according to his attorney.

When Jones made an initial court appearance last month in Las Vegas, a federal prosecutor told a presiding judge that the former basketball player had a “serious gambling” problem. Following his arrest, the New York Post reported that Jones spent long hours at the ARIA’s high limit room where he sought out successful gamblers for loans. When asked by iGB if he could expound on the [compulsive gambling aspects of the case](https://igamingbusiness.com/sustainable-gambling/nba-scandal-catalyst-for-problem-gambling-change/), Jones declined to comment.

Marves Fairley, a Mississippi resident, also appeared before Merkl on Thursday. Fairley, according to the indictment, paid Jones the $2,500 fee via a peer-to-peer mobile payment platform. In addition, Fairley allegedly took part in another scheme involving Miami Heat guard Terry Rozier. While a member of the Charlotte Hornets, Rozier deliberately underperformed in a March 2023 game to enable a group of bettors to win more than $200,000 collectively on a series of props, according to prosecutors.

Deniro Laster, another defendant, allegedly sold information on Rozier’s plans to leave the game early, enabling the bettors to collect on their “under” wagers. Fairley and another co-conspirator agreed to pay Laster $100,000 from the expected winnings, prosecutors allege.

Fairley, who pleaded not guilty to several charges, also posted a bond of $200,000. A professional sports betting tout, Fairley declined comment on the case to iGB. Fairley has also been reportedly tied to an investigation on suspicious betting activity in college basketball, but he has not been charged in that matter.

On Wednesday, NBA officials met with staffers from the House Energy Committee for a briefing on the league’s response to the scandal. The meeting included discussion of the NBA’s partnerships with legal sportsbooks, as well as efforts to prevent the dissemination of material non-public information related to odds movements, ESPN reported. Neither Commissioner Adam Silver nor Deputy Commission Mark Tatum took part in the meeting, iGB has learned.

Separately, a Senate committee wrote a letter to the NBA last month asking the league to provide documentation regarding its internal gambling investigations dating back to 2020.

In total, 31 defendants are charged in US vs Aiello, a case that centres on a series of rigged illegal poker games. According to prosecutors, several members of New York organised crime families received a cut of the poker profits. Over the past two days, six defendants in the cases made appearances at the Brooklyn courthouse. Alleged Gambino crime family soldier Anthony Ruggiero Jr’s application to be released on a $5 million bond in the rigged poker games case was denied by Reyes.

While Billups is charged only in the poker case, he also fits the description of an unindicted co-conspirator in the sports betting investigation. Billups, an NBA Hall of Famer, is now scheduled for arraignment on 24 November. Marc Mukasey, Billups’ attorney, did not respond to a request for comment.

On the same date, Jones is scheduled to appear at a status conference with several other defendants. Rozier is scheduled to be arraigned next month.

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