Eighteen former National Basketball Association (NBA) players were charged in New York federal court for their alleged involvement in a $3.9 million health insurance fraud scheme on Thursday, Oct. 7.
The players charged include Terrence Williams, Alan Anderson, Anthony Allen, Shannon Brown, William Bynum, Ronald Glen Davis, Christopher Douglas-Roberts, Melvin Ely, Jamario Moon, Darius Miles, Milton Palacio, Ruben Patterson, Eddie Robinson, Gregory Smith, Sebastian Telfair, Charles Watson Jr., Antoine Wright and Anthony Wroten. Allen’s wife Desiree Allen was also charged.
“…We’ve charged 18 former NBA players and one spouse for their alleged participation in a health care fraud scheme that resulted in nearly $2 million in losses to the National Basketball Association’s Health and Welfare Benefit Plan,” FBI Assistant Director Michael J. Driscoll said.
Allegedly, the defendants submitted fraudulent insurance claims. The health insurance fraud scheme reportedly occurred from 2017 to 2020.
Of the $3.9 million requested in fraudulent insurance claims, the defendants received approximately $2.5 million.
Due to the indictment, Palacio has been placed on administrative leave by the Portland Trail Blazers. He served as an assistant coach to the team.
Former Celtics and Nets player Williams is reported to be the alleged ringleader as he recruited other players, offered falsified invoices and letters and impersonated an insurance claim processor.
Williams reportedly received $2,300 from the other defendants for helping them falsify medical records and health insurance claims.
“The benefit plans provided by the NBA and the National Basketball Players Association to our players are critically important to support their health and well-being throughout their playing careers and over the course of their lives which makes these allegations particularly disheartening,” the NBA said in a statement released on Thursday, Oct. 7. “We will cooperate fully with the U.S. Attorney’s Office in this matter.”
NBA Hall of Fame inductee and chairman of the NBA Retired Players Association Spencer Haywood criticized the defendants for undoing Haywood and others’ work for ensuring retired players had health insurance.
“What [the defendants] have done is taken advantage of that health insurance that we worked so far for. And it’s blackened all of our eyes,” Haywood said.
Haywood also criticized those with an eight-figure salary, such as Davis.
All of the defendants are charged with one count of conspiracy to commit health care and wire fraud and can face a maximum sentence of 20 years in prison. Williams faces an additional charge of one count of aggravated identity theft and can face a minimum sentence of two years in prison.
