Tim Donaghy Pleads Guilty to Wire Fraid

Former NBA referee Tim Donaghy pleaded guilty to two felony charges Wednesday, August 15, in an NBA betting scandal that has raised serious questions about the integrity of games, and the league itself.^[1]

Donaghy faces a maximum of 25 years in prison when he is sentenced for conspiracy to engage in wire fraud and transmitting wagering information through interstate commerce.^[2]

Donaghy provided recommendations, called "picks," to co-conspirators about what team they should bet on, if he was correct they paid him.^[3] The “picks” included non-public information about games that Donaghy personally officiated; Donaghy could give this type of information because he had "unique access," including what crews would officiate at games, the interaction of different officials and players, and the physical condition of certain players, said U.S. District Court Judge Carol Bagley Amon.^[4]

"As expected, former NBA referee Tim Donaghy pleaded guilty today to betting on NBA games, including games in which he officiated, and providing confidential information to others who bet on NBA games….[however] we will continue with our ongoing and thorough review of the league's officiating program to ensure that the best possible policies and procedures are in place to protect the integrity of our game," NBA commissioner David Stern said in a statement.^[5]

Prosecutors asserted in court that Donaghy bet on games himself; but that was not a specific part of the verbal admission he made before the judge.^[6] The two alleged co-conspirators were in the custody of federal marshals on Wednesday and were awaiting arraignment on conspiracy charges carrying a maximum penalty of 20 years.^[7] In addition to possible jail time Donaghy also must pay a $500,000 fine and at least $30,000 in restitution.^[8]

Transmission of wagering information is covered under 18 U.S.C. § 1084(a) wherein it states that whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.^[9]

Federal criminal defense attorney Douglas McNabb has previously discussed the federal crime of wire fraud in his blog, here.

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^[1] ESPN Staff, Donaghy pleads guilty, could face up to 25 years in prison, ESPN.com, August 15, 2007, available at http://sports.espn.go.com/nba/news/story?id=2975532 (last visited August 15, 2007).
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id.
^[9] 18 U.S.C. § 1084(a)(2007).