Eighteen former NBA players have been charged with conspiracy to commit health insurance fraud and wire fraud. They were indicted in federal court in New York. The defendants include former players from the New Jersey Nets, the Los Angeles Lakers, the Boston Celtics, and other teams. Also indicted was the wife of one of the defendants.
Conspiracy to Commit Health Insurance Fraud
The conspiracy, according to the indictment, involved defrauding the NBA Players’ Health and Welfare Benefit Plan. It consisted of submitting fake reimbursement claims to the plan for medical services and dental services that were never rendered. The reimbursement claims were supported, the indictment goes on, by fake invoices for the medical and dental services that were not performed. The defendants allegedly claimed that they had paid for the services out of pocket and were entitled to reimbursement from the plan.
It is also alleged that between 2017 and 2020, fake claims totaling almost $4 million were submitted, and that the players were reimbursed approximately $2.5 million.
The government alleges that the scheme was orchestrated for Terrence Williams, a former NBA shooting guard who played for the Nets, the Celtics and other NBA teams. They allege that he recruited others to join in the conspiracy, for which he supposedly received over $200,000 in kickbacks.
What Triggered the Investigation?
Unlike many fraud investigations, this one does not appear to have been started by a tip, a statement by an informant, or similar means. In this case, the fake invoices raised eyebrows because they were not on the letterheads of medical professionals, contained grammatical errors, and had overlapping dates covering different offices. Once the invoices were examined, the U.S. Attorney says, they discovered additional issues. For example, one invoice was for almost $50,000 in dental work performed at a time when the patient in question was plaining basketball in Taiwan.
What’s Next?
The defendants face a potential 20 year prison term if convicted. The government is also seeking restitution for any money or property derived from the alleged fraud. No date has been set for trial.
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