On October 7, 2021, The United Stated Attorney’s Office, the Federal Bureau of Investigations, and the New York Police Department announced the unsealing of an indictment, charging 18 former NBA players of a multi-million-dollar health insurance fraud scheme.  The grand jury indictment alleges the former players engaged in a widespread scheme from approximately 2017 until approximately 2020 to defraud the NBA Players’ Health and Welfare Benefit Plan by submitting fake reimbursement claims for medical and dental services that were never actually rendered. 

Some players charged in the indictment include Tony Allen, Ronald Glen Davis, Shannon Brown, and notably Terrance Williams who allegedly orchestrated the scheme and recruited other NBA health plan participants to assist. 

All were charged with conspiracy to commit health care fraud and wire fraud. If convicted, each defendant could face a penalty of up to 20 years in prison. Williams, also charged with aggravated identity theft, could face an additional two years in prison.

Manhattan U.S. Attorney, Audrey Strauss contends each defendant made false claims for reimbursements that ranged from $65,000 to $420,000.  The alleged fraudulent claims totaled nearly $4 million.

Prosecutors are seeking all property derived directly or indirectly from the alleged fraud in restitution. If any of that property cannot be acquired for whatever reason, the U.S. government says it will seek forfeiture of any other property of the defendants up to the same value. 

Michael J. Driscoll of New York’s FBI office contends that this case demonstrates the FBI’s continued focus on uncovering fraud scams that cost the health care industry tens of billions of dollars each year.

The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with white-collar criminal investigations and health care fraud investigations.  If you need assistance with such a matter, please contact us today.