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Former NBA gamers indicted for alleged $four million insurance coverage fraud scheme

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The 18 former players charged by the unsealed indictment yesterday were:

  • Milt Palacio
  • Sebastian Telfair
  • Antoine Wright
  • Charles Watson
  • Darius Miles
  • Ruben Patterson
  • Eddie Robinson
  • Gregory Smith
  • Glen Davis
  • Jamario moon
  • Terrence Williams
  • Alan Anderson
  • Tony Allen
  • Shannon Brown
  • William Bynum
  • Melvin Ely
  • Christopher Douglas-Roberts
  • Tony Wroten

In addition to the ex-NBA players, Desiree Allen – Tony Allen’s wife – was also charged.

According to prosecutors, Terrence Williams – a former security guard for the Houston Rockets and the Nets – allegedly orchestrated the plan. The named players allegedly jointly carried out a plan to cheat the NBA’s insurance plan by filing fraudulent insurance claims for reimbursement of medical or dental services that were never performed. The regulation ran from 2017 to 2020, according to the indictment.

As the alleged ringleader, Williams recruited other participants into the program by offering fake bills to prop up their fake insurance claims. He is also said to have helped his co-conspirators receive false letters about the medical need. Prosecutors also said that in one case when a player failed to pay a kickback, Williams allegedly posed in an email as a plan manager, pretending that there was an issue with the player’s bill.

The indictment states that Williams allegedly first filed a fake medical claim for $ 19,000 for chiropractic services that he allegedly received in California. That fraudulent claim managed to pay Williams $ 7,672, and he later began recruiting others to commit the system.

For his “services” Williams is said to have received at least $ 230,000 in kickback payments from 10 other players, according to the indictment.

Prosecutors suggested that some of the ex-players’ medical claims were identical, which immediately made the claims seem suspicious. Some of the claims under the scheme also resulted in questionably high reimbursements. The indictment states that four of the former players received over $ 200,000 each after claiming to see the same chiropractor as Williams.

Each of the defendants was charged with conspiracy to commit healthcare fraud and referral fraud. Williams was also charged with serious identity theft. Officials said the conspiracy count includes a maximum imprisonment of 20 years.

The New York Times reported that many players’ lawyers could not be immediately identified for comment.

CBS Sports said Milt Palacio, a current assistant coach for the Portland Trail Blazers and one of the former defendants, has been taken on administrative leave by the team.

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