Eastern District of New York | 31 Defendants, Including Members and Associates of Organized Crime Households and National Basketball Association Coach Chauncey Billups, Charged in Schemes to Rig Unlawful Poker Games

Earlier right this moment, on the federal courthouse in Brooklyn, a seven-count indictment was unsealed charging 31 defendants in legal schemes to rig unlawful poker video games at numerous places in New York City, East Hampton, New York, and all through the United States.  This morning, 31 defendants had been arrested in 11 states, together with members and associates of the Bonanno, Gambino, and Genovese organized crime households of La Cosa Nostra (LCN); Chauncey Billups, head coach of the Portland Trail Blazers of the National Basketball Association (NBA); and Damon Jones, also called “Dee,” a former NBA participant with the Cleveland Cavaliers and Miami Heat.  The defendants will make preliminary court docket appearances this afternoon at federal courthouses all through the United States, together with the Eastern District of New York. 

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Kash Patel, Director, Federal Bureau of Investigation (FBI); Christopher G. Raia, Assistant Director in Charge, FBI, New York Field Office (FBI); Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI); Jessica S. Tisch, Commissioner, New York City Police Department (NYPD); and Phoebe S. Sorial, Executive Director, New York Waterfront Commission, introduced the arrests and fees.

“As alleged, members and associates of organized crime families fixed illegal poker games as part of a highly sophisticated and lucrative fraud scheme to cheat victims out of millions of dollars and conspired with others to perpetrate their frauds,” said United States Attorney Nocella.  “Well-known former NBA players and former professional athletes, acted as ‘Face Cards’ to lure unsuspecting victims to high-stakes poker games, where they were then at the mercy of concealed technology, including rigged shuffling machines and specially designed contacts lenses and sunglasses to read the backs of playing cards, which ensured that the victims would lose big.  Today’s indictment and arrests sounds the final buzzer for these cheaters.”

Mr. Nocella additionally thanked Homeland Security Investigations Newark for his or her beneficial contribution to the case.

“Today over 30 people were arrested and charged for their alleged roles in criminal schemes to rig illegal poker games to win large amounts of money. These individuals used technology and deceit to scam innocent victims out of millions of dollars – eventually funneling money to La Casa Nostra and enriching one of the most notorious criminal networks in the world,” said FBI Director Patel.  “This investigation spanned 9 states and FBI offices, and I want to thank the men and women of the FBI for their tremendous work and dedication rooting out those actors responsible. This FBI will never stop following the money to pursue and find those who break our laws.”

“Using the allure of high-stakes winnings and the promise to play alongside well-known professional athletes, these defendants allegedly defrauded unwitting victims out of tens of millions of dollars and established a financial pipeline to La Cosa Nostra,” said FBI Assistant Director in Charge Raia.  “This alleged scheme wreaked havoc across the nation, exploiting the notoriety of some and the wallets of others to finance the Italian crime families. Our office maintains its aggressive pursuit of any Italian organized crime operating in our jurisdiction and will continue to stem all unlawful revenue streams fueling their illicit activity.”

“With the alleged involvement of three La Cosa Nostra crime families, an NBA head coach and Hall of Famer, as well as other current and former professional athletes, the investigative work that culminated with this morning’s operation are reminiscent of a Hollywood movie. But this was not luck, and it was not theatrics,” said HSI New York Special Agent in Charge Patel.  “Over four years ago, HSI New York uncovered the operation and worked tirelessly with HSI Newark, the FBI, the New York Waterfront Commission, and the NYPD to expose crimes that defrauded victims of at least $7 million dollars and included violent robberies. I commend all agencies and personnel involved in today’s sweeping arrests, which should serve as a testament to our relentless, evidence-driven and unified effort.”

“For years, these individuals allegedly hosted illegal poker games where they used sophisticated technology and enlisted current and former NBA players to cheat people out of millions of dollars,” said NYPD Commissioner Tisch.  “This complex scheme was so far reaching that it included members from four of the organized crime families, and when people refused to pay because they were cheated, these defendants did what organized crime has always done: they used threats, intimidation, and violence. I want to thank the incredible team at the NYPD that worked diligently on this case, and our partners in the FBI, HSI, and the U.S Attorney’s Office for their collaboration in shutting down this illegal gambling ring.”

“Today’s indictment represents a concerted effort to combat traditional organized crime, which continues to plague our communities,” said Waterfront Commission Executive Director Sorial.  “The arrests of members from three La Cosa Nostra crime families is a stark reminder that they are not averse to working together to advance their sophisticated schemes when it serves their interest.  Disruption of their illegal gambling proceeds weakens their grip on our region, particularly in the Port of New York where they have long held influence. The New York Waterfront Commission, in close coordination with its federal, state and local law enforcement partners, remains unwavering in its commitment to dismantle these criminal enterprises by severing the illicit revenue streams that sustain them.”

As alleged within the indictment, starting as early as 2019, the defendants engaged in a collection of schemes to make use of wi-fi dishonest know-how to rig unlawful poker video games (mostly, Texas Hold’em) within the Eastern District of New York and throughout the United States.  Co-conspirators within the scheme included sport organizers, who organized for unwitting victims to play in underground unlawful poker video games that had been secretly rigged; suppliers of the rigged dishonest know-how; former skilled athletes, who had been enlisted as “Face Cards” within the scheme to entice the victims’ participation within the video games; dishonest groups who labored collectively utilizing the dishonest know-how to defraud the victims; cash launderers; and members and associates of the Bonanno, Gambino, and Genovese organized crime households of LCN, who backed video games within the New York space and took a proportion of the crime proceeds from these video games.  LCN members and associates had a foothold within the rigged poker scheme as a result of they’d preexisting management over “straight” (i.e., non-rigged) unlawful poker video games in New York City, the place a number of the rigged poker video games additionally occurred: one which was hosted principally at Lexington Avenue in Manhattan, that was on report with the Bonanno household (the “Lexington Avenue Game”); and a second that was hosted principally at Washington Place in Manhattan, that was on report with the Gambino household (the “Washington Place Game”).  As a part of the schemes, a number of the charged defendants and different co-conspirators additionally dedicated acts of violence, together with the theft and extortions charged within the indictment.

In a typical authentic poker sport, a seller makes use of a shuffling machine to shuffle the playing cards randomly earlier than dealing them to all of the gamers in a specific order.  As set forth within the indictment, the rigged video games used altered shuffling machines that contained hidden know-how permitting the machines to learn all of the playing cards within the deck.  Because the playing cards had been at all times dealt in a specific order to the gamers on the desk, the machines may decide which participant would have the successful hand. This info was transmitted to an off-site member of the conspiracy, who then transmitted that info by way of cellphone again to a member of the conspiracy who was enjoying on the desk, known as the “Quarterback” or “Driver.”  The Quarterback then secretly signaled this info (normally by prearranged alerts like touching sure chips or different objects on the desk) to different co-conspirators enjoying on the desk, who had been additionally contributors within the scheme.  Collectively, the Quarterback and different gamers in on the scheme (i.e., the dishonest workforce) used this info to win poker video games towards unwitting victims, who generally misplaced tens or tons of of 1000’s of {dollars} at a time. The defendants used different dishonest know-how as effectively, reminiscent of a chip tray analyzer (primarily, a poker chip tray that additionally secretly learn all playing cards utilizing hidden cameras), an x-ray desk that would learn playing cards face down on the desk, and particular contact lenses or eyeglasses that would learn pre-marked playing cards.

The defendants and their co-conspirators guess accordingly to make sure that the unsuspecting victims misplaced cash.  Through the rigged poker schemes, the defendants brought about losses to victims of at the very least $7 million.

As alleged, members of the conspiracy fulfilled completely different roles to make sure the schemes’ success.  The defendants Tony Goodson, Shane Hennen, Curtis Meeks, and Robert Stroud provided the dishonest know-how.  The defendants Ammar Awawdeh, Saul Becher, John Gallo, Zhen Hu, Stroud, and Seth Trustman organized the rigged video games.  Members of the dishonest groups included the defendants Nelson Alvarez, Louis Apicella, Chauncey Billups, Eric Earnest, Marco Garzon, Jamie Gilet, Tony Goodson, Kenny Han, Hennen, Horatio Hu, Damon Jones, John Mazzola, Nicholas Minucci, Michael Renzulli, Angelo Ruggiero, Jr., Stroud, Trustman, and Sophia Wei.  In addition, the defendant Anthony Shnayderman, amongst others, laundered the proceeds of the schemes.  For instance, sport organizers generally directed victims to ship cash by way of financial institution wires to shell corporations managed by Shnayderman, who then transferred cash (both in money or cryptocurrency), much less a cash laundering charge, again to the sport organizers.

As alleged within the indictment, the Bonanno, Genovese, and Gambino organized crime households of LCN backed the Lexington Avenue Game and the Washington Place Game and obtained a portion of the legal proceeds from each the “straight” unlawful poker video games and rigged video games run by the organizers of these video games.  In specific, Becher, Zhen Hu, and Trustman—the organizers of the Lexington Avenue Game—had been required to make funds to defendants Ernest Aiello, Julius Ziliani, and Thomas Gelardo of the Bonanno household for the video games (rigged or “straight”) that they operated.  Similarly, Awawdeh and John Gallo—organizers of the Washington Place Game—had been required to make funds to the defendants Lee Fama, Joseph Lanni, and Ruggiero of the Gambino household and to the defendant Matthew Daddino of the Genovese crime for the video games (rigged or “straight”) that they operated.  For a interval in 2023, the 2 video games merged and had been collectively operated. During that interval, all three organized crime households obtained proceeds from the rigged and unlawful poker video games.   

As charged within the indictment, members of the conspiracy dedicated violent acts, together with assault, extortions, and theft, in furtherance of the schemes to make sure the reimbursement of money owed and continued success of the operation.  Between November 2022 and February 2023, Gelardo, Zhen Hu and Ziliani extorted John Doe #5 to safe the reimbursement of a playing debt.  Among different issues, Zhen Hu and Gelardo each punched the sufferer to get him to pay again the debt.  In September 2023 and October 2023, Becher, Zhen Hu and Trustman extorted one other sufferer by threatening him to pay again a debt from unlawful poker video games.  On September 7, 2023, Awawdeh, Hoti, Mazzola, Minucci, and Stroud organized and dedicated a gunpoint theft of a co-conspirator to steal a rigged shuffler machine that the defendants wished to make use of.   

Bettors who had been defrauded within the rigged video games could also be victims beneath the Mandatory Victims Restitution Act.  If you consider you had been a sufferer of the scheme, please contact 1-800-CALLFBI.

The fees within the indictments are allegations and the defendants are presumed harmless except and till confirmed responsible.

The authorities’s case is being dealt with by Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Michael W. Gibaldi, Irisa Chen, and Sean M. Sherman are accountable for the prosecution with the help of Paralegal Specialists John Schneider and Marlane Bosler.  Assistant United States Attorney Michael Castiglione of the Office’s Asset Recovery Section is dealing with forfeiture issues.

The Defendants:

ERNEST AIELLO 
Age: 46
Wantagh, New York

NELSON ALVAREZ (also called “Spanish g”)
Age: 53
Uniondale, New York

LOUIS APICELLA (also called “Lou Ap”)
Age: 50
New Rochelle, New York

AMMAR AWAWDEH (also called “Flapper Poker” and “Flappy”)
Age: 34
Brooklyn, New York

SAUL BECHER
Age: 45
Bronx, New York

CHAUNCEY BILLUPS
Age: 49
Lake Oswego, Oregon

MATTHEW DADDINO (also called “Matty” and “The Wrestler”)
Age: 43
Franklin Square, New York

ERIC EARNEST (also called “Spook”)
Age: 53
St. Louis, Missouri

LEE FAMA
Age: 57
Brooklyn, New York

JOHN GALLO
Age: 53
Brooklyn, New York

MARCO GARZON
Age: 39
Elizabeth, New Jersey

THOMAS GELARDO (also called “Juice”)
Age: 42
Scarsdale, New York

JAMIE GILET
Age: 40
Jericho, New York

TONY GOODSON (also called “Black Tony”)
Age: 52
Forsyth, Georgia

KENNY HAN
Age: 40
Queens, New York

SHANE HENNEN (also called “Sugar”)
Age: 40
Las Vegas, Nevada

OSMAN HOTI (also called “Albanian Bruce”) and “Big Bruce”)
Age: 44
Ridgefield Park, New Jersey

HORATIO HU (also called “H”)
Age: 37
Queens, New York

ZHEN HU (also called “Jonathan Chan,” “Jonathan Hu,” “Scruli,” and “Stanley”)
Age: 37
Brooklyn, New York

DAMON JONES (also called “Dee Jones”)
Age: 49
Houston, Texas

JOSEPH LANNI
Age: 54
Staten Island, New York

JOHN MAZZOLA (also called “John South”)
Age: 43
Gray, Georgia

CURTIS MEEKS (also called “Curt”)
Age: 41
Elgin, Texas

NICHOLAS MINUCCI
Age: 39
East Northport, New York

MICHAEL RENZULLI
Age: 42
Islip, New York

ANGELO RUGGIERO, JR.
Age: 53
Howard Beach, New York

ANTHONY SHNAYDERMAN (also called “Doc”)
Age: 39
Brooklyn, New York

ROBERT STROUD (also called “Black Rob”)
Age: 67
Louisville, Kentucky

SETH TRUSTMAN
Age: 43
Queens, New York

SOPHIA WEI (also called “Pookie”)
Age: 40
Queens, New York

JULIUS ZILIANI (also called “Jay”
Age: 54
Wayne, New Jersey

E.D.N.Y. Docket Nos. 25-CR-314 (JMA)