On Wednesday’s edition of ESPN’s “The Hoop Collective” podcast, former federal prosecutor Kate Reilly outlined the two criminal cases that last week placed Miami Heat guard Terry Rozier, Portland Trail Blazers head coach Chauncey Billups and former player Damon Jones under intense scrutiny.
Who is Kate Reilly?
Reilly spent 11 years in the U.S. Attorney’s Office for the Southern District of New York, ultimately leading its complex frauds and cybercrime unit. She is now a partner in the white-collar and regulatory enforcement group at Pryor Cashman. Although she has no direct role in the current proceedings—both cases were filed by the Eastern District of New York—Reilly drew on her former position to discuss how such investigations typically unfold.
First indictment: Illegal poker and organized crime
The first filing centers on underground poker games that prosecutors say were rigged to defraud wealthy participants. According to Reilly, athletes were allegedly used to attract high-stakes players, while members of a Mafia-linked ring employed threats, extortion and, in one instance, an armed robbery to enforce debts and control the games.
Second indictment: Sportsbook fraud via inside information
The second case accuses several individuals—among them Billups, Rozier and Jones—of conspiring to exploit non-public NBA information for profit. Prosecutors claim the group either sold the tips or placed bets themselves, then laundered the winnings. Reilly described this count as a more novel application of the federal wire-fraud statute, hinging on alleged misrepresentations or omissions to online sportsbooks regarding the use of privileged data.
Why Reilly sees different legal hurdles
Reilly called the poker indictment a “traditional” organized-crime prosecution, noting that similar cases have long originated from the Brooklyn office. By contrast, she labeled the betting indictment “aggressive,” predicting defense attorneys will challenge whether violating a sportsbook’s terms of service can constitute wire fraud.
How federal tools differ from league inquiries
Reilly emphasized that law-enforcement agencies possess investigative powers—subpoenas, search warrants for emails and cellphones—that private organizations such as the NBA do not. She pointed to text exchanges cited in the complaints as evidence gathered through those methods. While the NBA can cooperate with prosecutors, grand-jury secrecy rules limit what the league is told, potentially leaving officials without a complete picture of alleged misconduct.
Next procedural steps
Both indictments remain allegations. Reilly expects defense lawyers to file motions contesting the scope of the wire-fraud theory in the betting case. Court calendars for arraignments, evidentiary motions and any potential trials have not yet been announced.
The NBA said last week that Rozier “did not violate any NBA rules,” but the league has not commented further on either indictment.
Source: ESPN
