The FBI first contacted the NBA on June 20 to discuss one of the referees who had allegedly been gambling on the games. Donaghy resigned July 9 after 13 years as an NBA official. NBA commissioner David Stern said he would have fired Donaghy sooner, but was told that might affect the investigation. Stern also said that the NBA would “continue with our ongoing and thorough review of the league’s officiating program to ensure that the best possible policies and procedures are in place to protect the integrity of our game.”
Donaghy would speak in code during telephone conversations to tip off high stakes gamblers with information on the inside and gave them recommendations on which teams would be profitable bets. When Donaghy’s picks hit, he was paid $5,000.
“By having this nonpublic information, I was in a unique position to predict the outcome of NBA games,” Donaghy said to the judge in the Brooklyn courtroom on Wednesday.
Donaghy was released on $250,000 bond. He faces a maximum sentence of 25 years in prison when he is sentenced November 9 for conspiracy to engage in wire fraud and transmitting betting information through interstate commerce. He also will be required to pay a $500,000 fine and at least $30,000 in restitution to the government.
According to court papers, Donaghy, who is 40 years old, began placing bets on NBA games in 2003. Last December, he began giving gambling associates sensitive, “inside” information, which included the crews who would officiate the games, and the ways that the players and the various officials interacted.
Donaghy’s two alleged co-conspirators are James Battista, a professional gambler with the nicknames “Baba” and “Sheep” and Thomas Martino. The pair also appeared in court on Wednesday and were released on $250,000 bail after their arraignment on charges to defraud the NBA. None of the defendants in this case was charged with organized crime affiliation.
Angela Edwards lives on Washington State's Coastline in the Great Northwest
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