New York Eastern District federal prosecutors announced on October 23rd the indictment of 31 defendants on seven charges, accusing them of operating and manipulating high-stakes illegal poker games in New York City, East Hampton, and across the United States. The charges include the use of high-tech cheating devices, money laundering, and violent extortion.
Among the defendants are members and associates of the three major Italian-origin American Mafia families, La Cosa Nostra – Bonanno, Gambino, and Genovese, as well as multiple Chinese individuals and figures from the NBA, including Portland Trail Blazers head coach Chauncey Billups and former player Damon Jones.
Prosecutors stated that the 31 defendants arrested in 11 states on Thursday are suspected of orchestrating a multi-state fraudulent network, using secretly controlled shuffling machines, invisible glasses, and wireless communication devices to obtain advance knowledge of the card outcomes in poker games and fraudulently extract at least $7 million from unsuspecting victims.
“These individuals organized a highly sophisticated and lucrative fraud scheme, using well-known athletes as ‘fronts’ to lure victims into rigged gambling activities and ensuring their inevitable losses through technology,” said New York federal prosecutor Joseph Nocella, Jr.
According to the indictment, since 2019, the defendants have been utilizing various wireless cheating techniques to manipulate illegal poker games in the East District of New York and throughout the United States, most commonly involving Texas Hold’em.
In these illegal gambling activities, modified shuffling machines can read all the cards in the deck. As the cards are dealt to players at the table in a specific order, these machines can determine which player will have winning hands and relay this information in real-time to an accomplice outside the room. The accomplice then communicates the details to the players at the table through signals such as touching chips or other items.
Furthermore, the defendants used X-ray tables to see through poker cards, chip tray cameras, invisible eyeglasses, and sunglasses that could identify special marks, ensuring that the “inside players” had access to all information.
Prosecutors alleged that NBA coaches and former players were recruited as the “face cards” of the scheme, responsible for attracting high-end players to participate in the gaming activities under the guise of playing with NBA stars. These victims placed high bets under the premise of being at the table with NBA celebrities but ultimately lost heavily due to the manipulated outcomes.
The defendants include cheat technology providers, game organizers, cheating poker teams, money launderers, and members of the three major crime families, forming a criminal chain. Apart from fraud, they were also involved in various acts of violence. Between 2022 and 2023, multiple victims were threatened, physically assaulted, and robbed at gunpoint after refusing to repay gambling debts. One incident involved an armed robbery planned to seize a cheating shuffle machine.
According to the indictment, Chinese defendants Zhen Hu, Kenny Han, Horatio Hu, and Sophia Wei were collaborators in this high-stakes poker fraud network. Zhen Hu was charged with organizing illegal gambling as the main operator of the “Lexington Avenue Game,” required to pay operational fees to Bonanno family members and suspected of pursuing gambling debts through violence and intimidation. The other three were members of the “cheating team,” responsible for manipulating game outcomes and providing technical support.
The indictments revealed that the Bonanno, Gambino, and Genovese crime families each controlled different gambling activities, with the Bonanno family managing the “Lexington Avenue Game,” and the Gambino family overseeing the “Washington Place Game.” After merging later on, the profits from the games were shared among the three families.
“These defendants exploited technology and deception to extract millions of dollars from innocent victims, ultimately funneling the funds to the American Mafia, nurturing one of the most notorious crime networks in the world,” said FBI Director Kash Patel.
FBI Assistant Director Christopher G. Raia added that this case “established a financial pipeline to the Mafia.” Homeland Security Investigations Special Agent Ricky J. Patel pointed out that this case is “like a Hollywood movie, but behind it lies real crime,” emphasizing the key role of cooperation between federal agencies.
Under the Victims of Crime Act, bettors who were deceived in manipulated games can apply for compensation from the federal government. The FBI urged anyone who suspects they have participated in related rigged games and suffered losses to call 1-800-CALLFBI to contact investigators.