2021 coincided with the NBA's 75th anniversary celebrations, and the 8th Alliance released a promotional video for its 75th anniversary. Many legends in the short film appeared together, and the NBA was not busy. On this day, U.S. federal authorities also gave the NBA a "big gift" — accusing 18 former NBA players of illegally profiting from the league's health and welfare program, involving nearly $4 million.
According to the Associated Press on October 8, the US Federal Bureau of Investigation (FBI) has arrested 15 former NBA players and a player's family across the country. U.S. Attorney Audrey Strauss said at a news conference: "The defendants were involved in fraud and fraud. ”
Some of the 18 players are well known, such as six-time NBA Defensive Team Member Tony Allen, former Lakers guard Shannon Brown, who has won two championships, and played for Celtics, Magic, clippers "big baby" Glenn Davis. According to an indictment released in federal court, the 18 former NBA players are: Tony Allen, Glen Davis, Darius Miles, Terrence Williams, CJ Watson, Alan Anderson, Shannon Brown, Will Bynum, Melvin Eli, Douglas Roberts, Tony Roten, Milt Palacio, Sebastian Telfer, Antoine Wright, Ruby Patterson, Eddie Robinson, Greg Smith, and Jamarillo Moon. Tony Allen's wife, Deez Allen, was also arrested.
The Associated Press quoted the indictment in Manhattan federal court as saying that from 2017 to 2020, the players submitted false invoices to the NBA through "fraudulent claims" and obtained false reimbursement for medical and dental procedures out of thin air. After investigation, they never actually received the cost of a masseuse studio, two dentist clinics and a wellness club specializing in "sexual health, anti-aging and general well-being."
It is not uncommon for NBA players to go bankrupt after retiring due to poor financial management and spending money like water, but jumping directly from sports news to legal news, and even developing into an organized and premeditated fraud gang can be described as a groundbreaking. This time, the "NBA Health and Welfare Plan" they are targeting is precisely a guarantee plan proposed to avoid NBA players from falling into a tight situation after retiring, which reflects the league's care for players.
In addition to pensions, the NBA also provides various benefits for retired players and elderly players. For example, players who have served in the NBA for 3 years can enjoy lifetime medical insurance; after 10 years of service, the spouses and children of players can also enjoy free medical care. The starting point of this benefit is undoubtedly good, but some players are not in the right mind.
Terrence Williams, who was named to the NBA with the 11th pick in the first round in 2009, was to blame for the fraud. The Manhattan District Court accused it of conspiracy to commit health care fraud and telecommunications fraud.
Williams meticulously planned the program for several years and continually recruited other players who participated in the NBA's health and welfare program to join, while providing false invoices from relevant medical institutions to support them in their claims process.
So how did "leading big brother" Williams come up with the idea of using this method to deceive the US knife? It all started in November 2017: He submitted a fraudulent $19,000 reimbursement to the league for a chiropractic treatment, ultimately receiving $7,672. Thus, Williams identified a "business opportunity". There are so many retired players in the league, and contacting a bunch of brothers can definitely make a lot of money.
Just do it! Williams worked with two unnamed accomplices to produce false invoices and forge letters issued by doctors before distributing them to other former professional players. With a trick to "hide the sky" Williams and these players to profit together. Of course, these fake documents are not given in vain. Williams allegedly received at least $230,000 in kickbacks from 10 other players.
Williams also obtained a template invoice through a number of means, so that the fake invoice appeared to be officially issued. Even more shocking, Williams is also suspected of impersonating an individual who audits reimbursements to advance his plans.
Several red flags in the forged documents later caught the attention of the health care program's administrators, as well as the coalition's law enforcement. According to court documents, several forged invoices and medical need forms were particularly striking because "they did not raise heads, were unusually formatted," and were issued by different agencies on the same day. Some doctors' letters contain grammatical errors and misspelle the patient's name.
Some of the people involved in the case were even more careless, submitting invoices claiming to be being treated, yet they were out of state or even abroad.
Strauss said prosecutors have confirmed through travel records, emails, location systems that the players are sometimes simply not where they should be treated. An invoice submitted by Glenn Davis showed that he was undergoing dental treatment in Beverly Hills, California, in October 2018, when in fact he was on a flight to Paris.
Another example is in December 2018, former Houston Rockets player Greg Smith was playing in the professional league in Taiwan, but claimed to have received $48,000 worth of root canal and crown treatment at the same dental clinic in Beverly Hills, California.
Glenn Davis, Tony Allen, Tony Rottten scams are even more outrageous, how outrageous is it? According to Grizzlies reporter Drew Hill, tony Allen, Tony Rotthen and Glenn Davis reported that the three of them underwent root canal treatment on 6 teeth in the same position on April 30, 2016, and root canal treatment for 6 teeth in the same position on May 11, 2016.
In addition, on September 6, 2018, Roten and Tony Allen treated 13 teeth in the same position, and on October 2, 2018 they treated another 12 teeth in the same position. Please, even if it is a deception, use the wisdom of ideas.
The indictment mentions Brooklyn-born Sebastian Telfer, a former high school star who played for six NBA teams including the Cavaliers, Clippers, Celtics and Timberwolves. Terfer's financial situation qualified him for court-appointed counsel when he appeared in Manhattan, and the judge set a bail of $250,000, which Terfer signed and was released. His lawyer, Deborah Coulson, declined to comment and has defended him not guilty on his behalf.
Portland Trail Blazers assistant coach Palacio has been suspended by the Blazers as part of the charges. The Trail Blazers declined to comment further "awaiting the outcome given by the law."
"These players will be held accountable for flagrant breaches of the law." Prosecutor Strauss was very adamant at the press conference. She also claimed that each defendant had lied about fees ranging from $65,000 to $420,000.
The former NBA players accused of having similar careers, moving from several different teams have never received the status or salary of a top player. Still, the 18 players also made a total of $343 million over their NBA careers, not counting endorsements and playing in overseas leagues.
As of noon local time on Thursday, 16 of the 18 players had been arrested, and authorities were seeking to detain the remaining three defendants.
All of the players involved have been charged with conspiracy to commit medical fraud and telecommunications fraud and could face up to 20 years in prison if convicted. Williams has also been charged with serious identity theft and could be sentenced to two years in prison.
The head of the FBI office in New York, Michael M. J. Driscoll said scams cost the U.S. healthcare industry tens of billions of dollars each year, and they will continue to focus on exposing these behaviors.
The case is largely similar to what happened before 2019 when NFL players were accused of defrauding the league's health insurance plans. That case led to the arrest of 10 former NFL players, including Clinton Portis, a former Washington football team running back who pleaded guilty in September.
As part of a 2016 collective bargaining agreement, the NBA and players' unions expanded health benefits for retired players. Given the high medical costs of retired athletes, this move is a top priority in union negotiations.
Former players guild president Chris Paul praised medicare as a way for incumbent players to give back to their seniors. In July 2016, Paul said in a statement: "All players in the league today should realize that without the hard work and selfless dedication of our predecessors, we could not have had the glory we have now." Paul touted the program as a "first" in the U.S. sports world. "It's important that this cares for our entire NBA family. I am very proud that my colleagues have taken this unprecedented step to ensure the healthy lives of their predecessors. ”
It took just one year from the launch of the program to the first time Williams successfully obtained reimbursement using false invoices. This care is used by some players as a tool to grab profits, which is chilling. However, in the past three years, more than a dozen players have committed crimes in a row, and they have never been discovered, and they can't help but want people to say a "fixed question".
Finally, as the victim, the NBA said in a statement that it was "very upset" and said it would fully cooperate with the authorities' investigation.