The
U.S. Attorney, Eastern District of New York announced a seven-count indictment was unsealed charging 31
defendants in criminal schemes to rig illegal poker games at various locations
in New York City, East Hampton, New York, and throughout the United
States.
31 defendants were arrested in 11 states, including
members and associates of the Bonanno, Gambino, and Genovese organized crime
families of La Cosa Nostra (LCN); Chauncey Billups, head coach of the Portland
Trail Blazers of the National Basketball Association (NBA); and Damon Jones,
also known as “Dee,” a former NBA player with the Cleveland Cavaliers and Miami
Heat. The defendants will make initial court appearances this afternoon
at federal courthouses throughout the United States, including the Eastern
District of New York.
Joseph Nocella, Jr., United States Attorney for the Eastern
District of New York; Kash Patel, Director, Federal Bureau of Investigation
(FBI); Christopher G. Raia, Assistant Director in Charge, FBI, New York Field
Office (FBI); Ricky J. Patel, Special Agent in Charge, Homeland Security
Investigations, New York (HSI); Jessica S. Tisch, Commissioner, New York City
Police Department (NYPD); and Phoebe S. Sorial, Executive Director, New York
Waterfront Commission, announced the arrests and charges.
“As alleged, members and associates of organized crime families
fixed illegal poker games as part of a highly sophisticated and lucrative fraud
scheme to cheat victims out of millions of dollars and conspired with others to
perpetrate their frauds,” stated United States Attorney Nocella.
“Well-known former NBA players and former professional athletes, acted as ‘Face
Cards’ to lure unsuspecting victims to high-stakes poker games, where they were
then at the mercy of concealed technology, including rigged shuffling machines
and specially designed contacts lenses and sunglasses to read the backs of
playing cards, which ensured that the victims would lose big. Today’s
indictment and arrests sounds the final buzzer for these cheaters.”
Mr. Nocella also thanked Homeland Security Investigations Newark
for their valuable contribution to the case.
“Today over 30 people were arrested and charged for their alleged roles in
criminal schemes to rig illegal poker games to win large amounts of money.
These individuals used technology and deceit to scam innocent victims out of
millions of dollars – eventually funneling money to La Casa Nostra and
enriching one of the most notorious criminal networks in the world,” stated FBI
Director Patel. “This investigation spanned 9 states and FBI offices, and
I want to thank the men and women of the FBI for their tremendous work and
dedication rooting out those actors responsible. This FBI will never stop
following the money to pursue and find those who break our laws.”
“Using the allure of high-stakes winnings and the promise to
play alongside well-known professional athletes, these defendants allegedly
defrauded unwitting victims out of tens of millions of dollars and established
a financial pipeline to La Cosa Nostra,” stated FBI Assistant Director in
Charge Raia. “This alleged scheme wreaked havoc across the nation,
exploiting the notoriety of some and the wallets of others to finance the
Italian crime families. Our office maintains its aggressive pursuit of any
Italian organized crime operating in our jurisdiction and will continue to stem
all unlawful revenue streams fueling their illicit activity.”
“With the alleged involvement of three La Cosa Nostra crime families, an NBA
head coach and Hall of Famer, as well as other current and former professional
athletes, the investigative work that culminated with this morning’s operation
are reminiscent of a Hollywood movie. But this was not luck, and it was not
theatrics,” stated HSI New York Special Agent in Charge Patel. “Over four
years ago, HSI New York uncovered the operation and worked tirelessly with HSI
Newark, the FBI, the New York Waterfront Commission, and the NYPD to expose
crimes that defrauded victims of at least $7 million dollars and included
violent robberies. I commend all agencies and personnel involved in today’s
sweeping arrests, which should serve as a testament to our relentless,
evidence-driven and unified effort.”
“For years, these individuals allegedly hosted illegal poker
games where they used sophisticated technology and enlisted current and former
NBA players to cheat people out of millions of dollars,” stated NYPD
Commissioner Tisch. “This complex scheme was so far reaching that it
included members from four of the organized crime families, and when people
refused to pay because they were cheated, these defendants did what organized
crime has always done: they used threats, intimidation, and violence. I want to
thank the incredible team at the NYPD that worked diligently on this case, and
our partners in the FBI, HSI, and the U.S Attorney’s Office for their
collaboration in shutting down this illegal gambling ring.”
“Today’s indictment represents a concerted effort to combat
traditional organized crime, which continues to plague our communities,” stated
Waterfront Commission Executive Director Sorial. “The arrests of members
from three La Cosa Nostra crime families is a stark reminder that they are not
averse to working together to advance their sophisticated schemes when it
serves their interest. Disruption of their illegal gambling proceeds
weakens their grip on our region, particularly in the Port of New York where
they have long held influence. The New York Waterfront Commission, in close
coordination with its federal, state and local law enforcement partners,
remains unwavering in its commitment to dismantle these criminal enterprises by
severing the illicit revenue streams that sustain them.”
As alleged in the indictment, beginning as early as 2019, the
defendants engaged in a series of schemes to use wireless cheating technology
to rig illegal poker games (most commonly, Texas Hold’em) in the Eastern
District of New York and across the United States. Co-conspirators in the
scheme included game organizers, who arranged for unwitting victims to play in
underground illegal poker games that were secretly rigged; suppliers of the
rigged cheating technology; former professional athletes, who were enlisted as
“Face Cards” in the scheme to entice the victims’ participation in the games;
cheating teams who worked together using the cheating technology to defraud the
victims; money launderers; and members and associates of the Bonanno, Gambino,
and Genovese organized crime families of LCN, who backed games in the New York
area and took a percentage of the crime proceeds from those games. LCN
members and associates had a foothold in the rigged poker scheme because they
had preexisting control over “straight” (i.e., non-rigged) illegal poker
games in New York City, where some of the rigged poker games also occurred: one
that was hosted principally at Lexington Avenue in Manhattan, that was on
record with the Bonanno family (the “Lexington Avenue Game”); and a second that
was hosted principally at Washington Place in Manhattan, that was on record
with the Gambino family (the “Washington Place Game”). As part of the
schemes, some of the charged defendants and other co-conspirators also
committed acts of violence, including the robbery and extortions charged in the
indictment.
In a typical legitimate poker game, a dealer uses a shuffling
machine to shuffle the cards randomly before dealing them to all the players in
a particular order. As set forth in the indictment, the rigged games used
altered shuffling machines that contained hidden technology allowing the
machines to read all the cards in the deck. Because the cards were always
dealt in a particular order to the players at the table, the machines could
determine which player would have the winning hand. This information was
transmitted to an off-site member of the conspiracy, who then transmitted that
information via cellphone back to a member of the conspiracy who was playing at
the table, referred to as the “Quarterback” or “Driver.” The Quarterback
then secretly signaled this information (usually by prearranged signals like
touching certain chips or other items on the table) to other co-conspirators
playing at the table, who were also participants in the scheme.
Collectively, the Quarterback and other players in on the scheme (i.e.,
the cheating team) used this information to win poker games against unwitting
victims, who sometimes lost tens or hundreds of thousands of dollars at a
time. The defendants used other cheating technology as well, such as a
chip tray analyzer (essentially, a poker chip tray that also secretly read all
cards using hidden cameras), an x-ray table that could read cards face down on
the table, and special contact lenses or eyeglasses that could read pre-marked
cards.
The defendants and their co-conspirators bet accordingly to
ensure that the unsuspecting victims lost money. Through the rigged poker
schemes, the defendants caused losses to victims of at least $7 million.
As alleged, members of the conspiracy fulfilled different roles
to ensure the schemes’ success. The defendants Tony Goodson, Shane
Hennen, Curtis Meeks, and Robert Stroud supplied the cheating technology.
The defendants Ammar Awawdeh, Saul Becher, John Gallo, Zhen Hu, Stroud, and
Seth Trustman organized the rigged games. Members of the cheating teams
included the defendants Nelson Alvarez, Louis Apicella, Chauncey Billups, Eric
Earnest, Marco Garzon, Jamie Gilet, Tony Goodson, Kenny Han, Hennen, Horatio Hu,
Damon Jones, John Mazzola, Nicholas Minucci, Michael Renzulli, Angelo Ruggiero,
Jr., Stroud, Trustman, and Sophia Wei. In addition, the defendant Anthony
Shnayderman, among others, laundered the proceeds of the schemes. For
example, game organizers sometimes directed victims to send money via bank
wires to shell companies controlled by Shnayderman, who then transferred money
(either in cash or cryptocurrency), less a money laundering fee, back to the
game organizers.
As alleged in the indictment, the Bonanno, Genovese, and Gambino
organized crime families of LCN backed the Lexington Avenue Game and the
Washington Place Game and received a portion of the criminal proceeds from both
the “straight” illegal poker games and rigged games run by the organizers of
those games. In particular, Becher, Zhen Hu, and Trustman—the organizers
of the Lexington Avenue Game—were required to make payments to defendants
Ernest Aiello, Julius Ziliani, and Thomas Gelardo of the Bonanno family for the
games (rigged or “straight”) that they operated. Similarly, Awawdeh and
John Gallo—organizers of the Washington Place Game—were required to make
payments to the defendants Lee Fama, Joseph Lanni, and Ruggiero of the Gambino
family and to the defendant Matthew Daddino of the Genovese crime for the games
(rigged or “straight”) that they operated. For a period in 2023, the two
games merged and were jointly operated. During that period, all three
organized crime families received proceeds from the rigged and illegal poker
games.
As charged in the indictment, members of the conspiracy
committed violent acts, including assault, extortions, and robbery, in
furtherance of the schemes to ensure the repayment of debts and continued
success of the operation. Between November 2022 and February 2023,
Gelardo, Zhen Hu and Ziliani extorted John Doe #5 to secure the repayment of a
gambling debt. Among other things, Zhen Hu and Gelardo both punched the
victim to get him to pay back the debt. In September 2023 and October 2023,
Becher, Zhen Hu and Trustman extorted another victim by threatening him to pay
back a debt from illegal poker games. On September 7, 2023, Awawdeh,
Hoti, Mazzola, Minucci, and Stroud arranged and committed a gunpoint robbery of
a co-conspirator to steal a rigged shuffler machine that the defendants wanted
to use.
Bettors who were defrauded in the rigged games may be victims
under the Mandatory Victims Restitution Act. If you believe you were a
victim of the scheme, please contact 1-800-CALLFBI.
The charges in the indictments are allegations and the
defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by Office’s
Organized Crime and Gangs Section. Assistant United States Attorneys
Michael W. Gibaldi, Irisa Chen, and Sean M. Sherman are in charge of the
prosecution with the assistance of Paralegal Specialists John Schneider and
Marlane Bosler. Assistant United States Attorney Michael Castiglione of
the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendants:
ERNEST AIELLO
Age: 46
Wantagh, New York
NELSON ALVAREZ (also known as “Spanish g”)
Age: 53
Uniondale, New York
LOUIS APICELLA (also known as “Lou Ap”)
Age: 50
New Rochelle, New York
AMMAR AWAWDEH (also known as “Flapper Poker” and “Flappy”)
Age: 34
Brooklyn, New York
SAUL BECHER
Age: 45
Bronx, New York
CHAUNCEY BILLUPS
Age: 49
Lake Oswego, Oregon
MATTHEW DADDINO (also known as “Matty” and “The Wrestler”)
Age: 43
Franklin Square, New York
ERIC EARNEST (also known as “Spook”)
Age: 53
St. Louis, Missouri
LEE FAMA
Age: 57
Brooklyn, New York
JOHN GALLO
Age: 53
Brooklyn, New York
MARCO GARZON
Age: 39
Elizabeth, New Jersey
THOMAS GELARDO (also known as “Juice”)
Age: 42
Scarsdale, New York
JAMIE GILET
Age: 40
Jericho, New York
TONY GOODSON (also known as “Black Tony”)
Age: 52
Forsyth, Georgia
KENNY HAN
Age: 40
Queens, New York
SHANE HENNEN (also known as “Sugar”)
Age: 40
Las Vegas, Nevada
OSMAN HOTI (also known as “Albanian Bruce”) and “Big Bruce”)
Age: 44
Ridgefield Park, New Jersey
HORATIO HU (also known as “H”)
Age: 37
Queens, New York
ZHEN HU (also known as “Jonathan Chan,” “Jonathan Hu,” “Scruli,”
and “Stanley”)
Age: 37
Brooklyn, New York
DAMON JONES (also known as “Dee Jones”)
Age: 49
Houston, Texas
JOSEPH LANNI
Age: 54
Staten Island, New York
JOHN MAZZOLA (also known as “John South”)
Age: 43
Gray, Georgia
CURTIS MEEKS (also known as “Curt”)
Age: 41
Elgin, Texas
NICHOLAS MINUCCI
Age: 39
East Northport, New York
MICHAEL RENZULLI
Age: 42
Islip, New York
ANGELO RUGGIERO, JR.
Age: 53
Howard Beach, New York
ANTHONY SHNAYDERMAN (also known as “Doc”)
Age: 39
Brooklyn, New York
ROBERT STROUD (also known as “Black Rob”)
Age: 67
Louisville, Kentucky
SETH TRUSTMAN
Age: 43
Queens, New York
SOPHIA WEI (also known as “Pookie”)
Age: 40
Queens, New York
JULIUS ZILIANI (also known as “Jay”
Age: 54
Wayne, New Jersey
E.D.N.Y. Docket Nos. 25-CR-314 (JMA)
