Cory Zeidman, a renowned poker player from Long Island, has confessed to orchestrating a $25 million sports betting fraud targeting sports bettors nationwide.
At a Glance
- Cory Zeidman pleaded guilty to wire and mail fraud charges linked to a $25 million scam.
- The operation misled bettors with promises of privileged sports information.
- He faces up to 20 years in federal prison and owes $3.7 million in restitution.
- The fraudulent activities involved fake names and national radio ads.
The Scheme and Admission
Zeidman’s fraudulent operation involved significant deception from 2006 to 2020. Using national radio ads, his team promised bettors foolproof sports betting tips, based on so-called insider information. The scam resulted in over $25 million collected from his victims. Zeidman, initially reluctant to admit guilt, reversed his stance in October, pleading guilty to conspiracy to commit wire and mail fraud in the Eastern District of New York.
Zeidman, known for his poker prowess including winning a bracelet in 2012, attracted both media and legal scrutiny. He used fake business identities like “Gordon Howard Global” to give a semblance of legitimacy to his pursuits. Customers were misled into believing in the authenticity of information regarding nonpublic injury updates and game fixes to secure their bets.
Deceptive Practices Exposed
Victims of this elaborate ruse were baited with false assurances regarding the outcome of sporting events. Zeidman’s targets were lured into making payments based on misleading claims, siphoning their savings and retirement funds. Prosecutors revealed that the so-called expert insights were either fabricated or extracted from general internet searches, a far cry from confidential data as claimed.
“Zeidman and his partners baited unsuspecting victims with false claims of an edge in sports betting only to feed them lies and pocket millions of dollars,” according to U.S. Attorney Breon Peace.
Zeidman and his associates utilized high-pressure tactics to persuade customers. They assured clients that their advice stemmed from privileged insider information sourced from supposedly informed physicians and TV executives. The deceit extended to invoking “dirty” referees and fixed games, which were merely contrived narratives to maximize their financial gain.
Legal Repercussions and Restitution
Despite his initial protestations, Zeidman now confronts serious legal consequences. The potential for a 20-year federal prison sentence looms, and he has been ordered to reimburse $3.7 million to his defrauded clients. The financial penalties serve as partial reparation for the substantial losses imposed on victims. Observers now await his sentencing as his culpability in the extensive fraud has been firmly established.
“Our company would occasionally provide potential customers with false information regarding information that our company had about various sporting events in order to induce those customers into paying fees in exchange for sports betting advice,” Cory Zeidman said.
The U.S. Attorney’s Office for the Eastern District of New York played a crucial role in prosecuting this case. Zeidman’s arrest in May 2022 drew widespread attention, highlighting the risks of fraudulent schemes exploiting the vulnerability of bettors nationwide. As the legal proceedings continue, Zeidman’s story serves as a cautionary tale against predatory practices in the betting world.
