X-ray tables, marked playing cards and the Mafia: How the FBI says poker video games had been rigged

A Basketball Hall of Famer. X-ray poker tables. The Mafia. They had been all purportedly essential to an alleged yearslong unlawful poker rigging scheme that resulted in 31 federal indictments this week. The case centered on rigged poker video games is one among two introduced that allegedly contain outstanding NBA figures.

Investigators state that the scheme to defraud gamers at a poker desk started in April 2019 when defendant Robert “Black Rob” Stroud and different co-conspirators started devising a ruse to make use of know-how to rig unlawful poker video games, normally Texas Hold ’em, towards unwitting, rich gamers whom they referred to as “fish” or “whales,” and who had been conscious that they had been enjoying in unlawful, high-stakes video games, however believed these had been “straight” video games towards different rich gamers. In actuality, in lots of circumstances, each different particular person on the desk apart from them was in on the scheme.

The fish had been additionally enticed to play by the presence of high-profile former skilled athletes, referred to as “face cards,” with the largest names revealed so far to be Basketball Hall of Famer Chauncey Billups and former NBA participant and coach Damon Jones.

How did all of it work?

The scheme began with the know-how, which was primarily contained in the card-shuffling machines, which learn the order through which the playing cards had been dealt and relayed the data to an off-site operator. Sometimes the video games employed X-ray tables and/or hidden cameras within the poker chip tray to help in studying the playing cards. Players would additionally often put on particular contact lenses or glasses that might enable them to see marked playing cards.

Once the operator knew the playing cards had been on the desk, they might relay the related data to a “quarterback” on the desk, who would subtly sign to the remainder of the “cheating team” what they need to do.

In an instance cited in a court docket doc from a September 2024 sport in Miami, defendant John Mazzola performed quarterback. If Mazzola had one of the best hand, he would faucet his arm or wrist. If one other inside participant did, Mazzola touched his $1,000 poker chip, and so forth and so forth. If the “fish” had one of the best hand, Mazzola would contact his black chips, indicating to the opposite inside gamers to fold.

To preserve the charade and hold the unknowing participant on the desk, the co-conspirators would textual content about technique in actual time. They often allowed the victims to win. During that very same Miami sport, defendant Michael Renzulli messaged a gaggle chat of co-conspirators, telling them to let the participant — on this case, known as John Doe No. 4 — win a hand in order that he would hold enjoying.

The identical idea utilized to the video games when Billups and Jones had been concerned, although there was an additional layer of nuance given their superstar. During an April 2019 sport, defendant Sophia Wei texted the group that Billups and defendant Eric “Spook” Earnest had received two unbelievable palms (“gutshot on the river,” or a straight draw needing to hit a center card to make his hand) towards the identical participant. While Stroud responded that the participant “acted like he wanted Chauncey to have his money” as a result of he was “starstruck,” Wei insisted they insert one other member of the dishonest workforce (“the middle eastern guy”) into the sport in order that Billups and Earnest may purposely lose to him and dispel suspicion.

What had been the organized crime connections on this scheme?

The presence of the Mafia, in any other case referred to as La Cosa Nostra (LCN), concerned offering help and safety, usually merging its personal current unlawful, high-stakes poker video games, which weren’t essentially rigged, into the scheme.

The court docket paperwork allege that, in Manhattan, New York, the Bonanno crime household had already been backing a sport at 147 Lexington Ave., whereas the Gambino crime household, with help from at the least one Genovese crime member of the family, hosted a sport at 80 Washington Place. In 2023, these two video games merged, collectively working the rigging scheme utilizing the know-how equipped by Stroud.

LCN furthered the scheme in at the least one occasion by allegedly robbing a person recognized solely as “John Doe No. 7,” who was initially concerned with the rigged poker video games, of an altered Deckmate 1 shuffling machine which, in its unaltered type, retailed for greater than $10,000.

The Mafia and non-mob co-conspirators additionally managed lots of the monetary points associated to the scheme, usually utilizing quite a few of the ways they’ve grow to be most notorious for. In November 2022, defendant Zhen Hu allegedly threatened and assaulted “John Doe No. 5” for not paying his poker playing money owed. In fall 2023, a number of of the co-conspirators allegedly extorted “John Doe No. 6” by invoking their Mob connections, which ultimately frightened him into paying his $10,000 debt.

Additionally, defendant Anthony Shnayderman allegedly laundered the proceeds of the poker video games by shell corporations and third events, finally paying different co-conspirators in money or cryptocurrency.

“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,” stated Homeland Security Investigations New York particular agent in cost Ricky Patel. “But this was not luck, and it was not theatrics.”

“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,” stated Christopher Raia, assistant director in cost with the FBI.

Overall, victims of the rigged poker scheme misplaced at the least $7.15 million, based on court docket paperwork. One of the victims alone, “John Doe No. 1,” was cheated out of $1.8 million in video games staged in June and July 2023.

Following his arrest, Billups appeared in court docket Thursday and was launched from custody on the circumstances of a considerable bond with the federal court docket within the Eastern District of New York, in addition to surrendering his passport. He is subsequent scheduled to look in court docket on Nov. 24. On Thursday night, his lawyer, Chris Heywood, launched an announcement saying they intend to struggle the fees.