Department of Justice targets former WSOP winner over $25m sports betting scam
Multistate investigation arraigns leader of group on two counts of wire fraud and money laundering
The US Department of Justice (DOJ) has arrested a former World Series of Poker winner on two counts of committing wire fraud, mail fraud and money laundering in connection with a $25m sports betting scheme.
The man, who has been named by the DOJ as Cory Zeidman, a winner of a WSOP bracelet in 2012, was the leader of an organization which placed national radio advertisements encouraging people to engage with the group for advice on sports betting.
Victims were led to believe that the organization had privileged information that made said betting events a “no risk” proposition, by which they could not lose.
To obtain this information individuals were required to pay a fee, however, the information provided was either fictitious or obtained online for free by Zeidman and his co-conspirators.
As a result of the criminal activities many of the victims lost their life savings, with the scheme itself being worth an estimated $25m.
The scheme was operated out of homes owned by Zeidman in Long Island, Florida, where he was arrested this morning. He will make his initial appearance at the federal courthouse in Miami.
During the course of his criminal activities, Zeidman utilized a number of aliases, including Richard Barnes, Walter Barr, Mr. Carlyle, Ray Palmer, Rick Cash, Elliot Stern, Gordon Howard, David Coates, Simon Coates, Paul Knox, Mark Lewis, Joel Orenstein and Steve Nash.
Zeidman’s company also operated under several aliases, including Gordon Howard Global, Ray Palmer Group and Grant Sports International.
The investigation into the group involved several US enforcement agencies, including the US Attorney’s office in New York, the Department of Homeland Security, the Nassau County Police Department and the US Postal Service inspectors office.
US Attorney Breon Peace was damming in his criticism of Zeidman and the group.
“As alleged, Zeidman defrauded his victims, stole their life savings and persuaded them to drain their retirement accounts to invest in his bogus sports betting group, all so he could spend it on international vacations, a multi-million-dollar residence and poker tournaments,” he said.
“Today’s indictment serves as a reminder to all of us to be wary of so-called investment opportunities that purport to have inside information, as they are really a gamble not worth taking,” Peace added.
Homeland Security acting special agent in charge, Ricky J. Patel, highlighted the depths of the fraudulent activities perpetrated and the cost to the conspiracy’s victims.
“As alleged, Zeidman preyed on individuals who were led to believe he had inside information that would lead them to easy money,” Patel stated.
“In reality, he was selling nothing but lies and misinformation – bilking millions from victims along the way, leaving their lives in financial ruin and their bank accounts empty.
“HSI will continue to work together with our partners to follow the money and tackle complex financial investigations to bring to justice fraudsters like Zeidman, who finance their lavish lifestyles by concocting ways to bamboozle the innocent when their only real goal is lining their pockets with ill-gotten cash,” he added.