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The federal case tied to the NBA betting scandal reached a milestone this week as the first defendant received a prison sentence. Timothy McCormack was sentenced to two years in federal prison in New York after prosecutors accused him of defrauding sportsbooks by using non public information to place wagers.
The case first came to light in October and triggered a wave of arrests connected to alleged betting manipulation. Authorities said McCormack used inside knowledge linked to NBA personnel to gain an edge with sportsbooks. The broader investigation included the arrests of Miami Heat point guard Terry Rozier and former NBA journeyman Damon Jones, who later served as an assistant coach with the Cleveland Cavaliers.
During sentencing in a Brooklyn courtroom, Judge LaShann DeArcy Hall acknowledged McCormack history with gambling addiction before issuing the sentence.
She said:
“He has an addiction. I don’t believe the conduct Mr. McCormack engaged in defines him.”
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Despite expressing sympathy, Hall emphasized the broader consequences of the crime. She said the actions undermined the trust fans place in professional sports.
Hall said:
“There is no question this is a serious crime. Sports matters to me as an individual, as it should to society.”
Federal prosecutors told the court that McCormack role involved placing bets informed by restricted information rather than organizing the operation. That distinction helped limit his sentence to two years instead of the maximum available under sentencing guidelines.
The FBI alleged that Rozier and others had access to private information known by NBA players or NBA coaches and used that information to influence wagers in exchange for fees or a share of profits.
In total, investigators arrested 34 people across 11 states as part of the operation. The announcement also included arrests connected to a separate high stakes poker cheating scheme.
Portland Trail Blazers head coach Chauncey Billups was arrested in connection with that poker case. Investigators alleged Jones played a role in both operations.
Of those arrested, six suspects were linked to the sports betting case, while 31 were tied to the poker investigation. Rozier, Jones, and Billups have all pleaded not guilty.
Authorities believe the betting activity also intersected with a separate case involving former Toronto Raptors forward Jontay Porter. He pleaded guilty to conspiracy to commit wire fraud after admitting to manipulating statistics for bettors in 2024. The NBA later banned Porter for life.