The Federal Bureau of Investigation (FBI) announced a significant crackdown on an alleged illegal poker rigging operation this week, leading to 31 federal indictments. The scheme, which reportedly involved high-profile figures from the National Basketball Association (NBA), including Basketball Hall of Famer Chauncey Billups and former player and coach Damon Jones, is said to have defrauded players of tens of millions of dollars.
According to court documents, the operation began in April 2019 when Robert “Black Rob” Stroud and his accomplices devised a method to manipulate poker games, primarily Texas Hold ’em. The targets of this scheme were wealthy players, referred to as “fish” or “whales,” who were aware they were participating in illegal high-stakes games but believed they were playing against other affluent individuals. In reality, many of the players at the table were part of the cheating team.
The scheme relied heavily on technology, particularly card-shuffling machines that communicated the order of cards to an off-site operator. In some cases, X-ray tables and hidden cameras were employed to assist in reading cards. Players also sometimes wore specialized contact lenses or glasses that enabled them to see marked cards. Once the operator had the necessary information, they would relay it to a designated “quarterback” at the table, who would discreetly signal to the other conspirators.
In a notable instance from a game in September 2024 in Miami, John Mazzola acted as quarterback. He used subtle gestures to indicate whether he or another inside player had the best hand. For example, if Mazzola had the strongest hand, he would tap his arm, while if a “fish” had the best hand, he would touch his black chips, signaling others to fold.
To maintain the façade of legitimacy, the conspirators occasionally allowed victims to win. During the same Miami game, co-conspirator Michael Renzulli instructed others to let a player, referred to as “John Doe No. 4,” win a hand to encourage further play.
The involvement of organized crime significantly complicated the operation. The Mafia, or La Cosa Nostra (LCN), provided support and protection, merging existing illegal poker games into the scheme. Court documents indicate that the Bonanno and Gambino crime families were involved, with the Gambino family reportedly hosting a game in Manhattan. In 2023, these operations allegedly coalesced into the rigged scheme utilizing technology supplied by Stroud.
The Mafia’s influence extended to financial management as well. In November 2022, defendant Zhen Hu allegedly threatened an individual for unpaid poker debts, while other co-conspirators invoked their mob connections to intimidate victims into settling debts. Additionally, Anthony Shnayderman is accused of laundering proceeds through shell companies, paying co-conspirators in cash or cryptocurrency.
“This was not luck, and it was not theatrics,” stated Ricky Patel, special agent in charge of Homeland Security Investigations New York. “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.”
The financial impact of the scheme has been substantial, with victims losing at least $7.15 million. One victim, identified as “John Doe No. 1,” reported losses of $1.8 million from games staged in June and July 2023.
Following the arrests, Billups appeared in court on Thursday, where he was released on a substantial bond and required to surrender his passport. He is scheduled to appear again in court on November 24, 2023. His attorney, Chris Heywood, issued a statement indicating plans to contest the charges.
As investigations continue, the implications of this case extend beyond the poker tables, raising questions about the intersection of sports, crime, and the consequences of illegal gambling activities.
