According to representatives for NBA free agent Malik Beasley, the former Detroit Pistons guard is no longer a target of a Department of Justice investigation into possible illegal gambling.
That’s good news for Beasley, but it doesn’t mean he’s in the clear. He could still be implicated in wrongdoing, become a witness in another person’s trial or be found in violation of NBA rules.
There’s a lot of wiggle room between not being a target of federal charges and having assurance of a clean slate. That room is a factor NBA teams will weigh in whether to sign the runner-up for the NBA’s 2024-25 Sixth Man of the Year award.
Right before Beasley, 28, was set to become a free agent in June, ESPN revealed the guard was under federal investigation. At issue were Beasley’s activities during the 2023-24 season. There were, allegedly, unusual movements in betting lines for prop bets concerning the number of rebounds Beasley would grab in a game. ESPN also referred to sportsbooks noticing atypically high interest in Beasley’s statistics.
ESPN on Friday reported on comments from Beasley’s attorneys, Steve Haney and Mike Schachter, about how they have held “extensive conversations and meetings” with prosecutors from the Eastern District of New York. Haney said that after months of investigation, Beasley’s status “remains uncharged and is not the target of this investigation.” Haney stressed what he termed “catastrophic consequence” for Beasley, who has been under a cloud of suspicion while seeking a contract. Beasley reportedly was set to sign a three-year, $42 million contract with the Pistons, but the public reveal of the investigation put those talks on pause.
It’s understandable why Beasley’s representatives want it known their client isn’t a target. Beasley’s NBA future, and his ability to secure a multimillion contract, partly hinges on whether teams view him as a possible legal risk. Likewise, Beasley’s agents likely have a financial stake in him signing a contract, as most agents are compensated via commissions.
The term “target” has specific legal meaning with the Department of Justice. The agency’s manual indicates it is the DOJ’s policy to advise a grand jury witness of their rights if they are a “target” or “subject” of an investigation. The DOJ considers a target someone whom “the prosecutor or the grand jury has substantial evidence linking him or her to the commission of a crime and who, in the judgment of the prosecutor, is a putative defendant.”
A “subject” of an investigation isn’t a target, but could still get in trouble and could later become a target if evidence and testimony implicate that person. A subject is someone “whose conduct is within the scope of the grand jury’s investigation.”
A subject could also become a key witness who, even if not charged, is revealed as engaging in problematic behavior and admitting to dubious acts. In addition, a target or subject could seek to cooperate with the DOJ to mitigate their legal exposure by agreeing to testify against others and share evidence, such as texts and emails. Since grand juries are conducted in secret, it’s impossible to know the status of Beasley other than, his attorneys say, he’s not a target.
Even if Beasley is cleared of any relationship to criminal wrongdoing, that doesn’t ensure he hasn’t broken NBA rules. The relevant test for the NBA in determining whether to punish a player is not whether a player is charged or convicted, but whether he has broken contractual, labor and employment obligations.
That’s important when considering sports wagering allegations. The NBA is run by seasoned attorneys, such as commissioner Adam Silver and top executives Rick Buchanan and Dan Spillane, who are experienced at conducting investigations into player wagering and other prohibited conduct. They rely on organizations that monitor sports betting as well as data shared from betting operators and other subject matter experts.
To that point, the NBA conducted its own investigation into former Toronto Raptors forward Jontay Porter, who partook in a scheme where he bet against himself in games where he feigned injury. Although Porter was also criminally charged and pleaded guilty to conspiracy to commit wire fraud, Silver wasn’t reliant on the legal system to determine that Porter’s actions warranted a lifetime ban from the NBA. The league had the authority to make that determination on its own.
Similarly, while Miami Heat guard Terry Rozier has reportedly been investigated by federal authorities for possible alterations in his play in connection with bets, whether he faces NBA sanction is up to the NBA.