Terrence Williams allegedly helped others obtain fake letters of medical necessity.
Eighteen former NBA players which includes Big Baby, Terrence Williams have been charged in New York federal court for an alleged multi-million-dollar health insurance fraud scheme that aimed to rip off the league’s health and wellness benefit plan for retired players, according to an indictment unsealed in the Southern District on Thursday.
The players named in the indictment allegedly engaged together in a widespread scheme aimed at defrauding the league’s plan by submitting false insurance claims in order to get reimbursed for medical or dental services that were never actually rendered. The scheme was executed from at least 2017 to 2020, and totalled approximately 4 million dollars in false claims. Out of that money, the defendants received about 2.5 million dollars in reimbursements. The NBA released the following statement on Thursday:Â
Big Baby, Sebastian Telfar, Darius Miles, and Tony Allen are among 18 former NBA players arrested and charged for insurance fraud.
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“The benefit plans provided by the NBA and the National Basketball Players Association to our players are critically important to support their health and well-being throughout their playing careers and over the course of their lives which makes these allegations particularly disheartening. We will cooperate fully with the U.S. Attorney’s Office in this matter.”
Terrence Williams, who was selected 11th overall in the 2009 NBA Draft by the Nets, is the alleged ringleader of the fraud scheme. Williams is said to have orchestrated the plan and recruited other participants to join by offering fake invoices to support their false insurance claims. Williams also allegedly helped others obtain fake letters of medical necessity and impersonated a plan to claim processor. He reportedly received at least 230,000 dollars in kickback payments from 10 other players for his services.Â
In addition to Williams, former NBA champions Tony Allen, Glen “Big Baby” Davis, Shannon Brown and Melvin Ely were also among those indicted. The players charged face a count of conspiracy to commit health care and wire fraud, along with aggravated identity theft. You can see the complete list of former players who were charged below:Â
In addition to the 18 former NBA players, Tony Allen’s wife, Desiree Allen, was also charged. Palacio, an assistant coach for the Portland Trail Blazers, has been placed on administrative leave by the team.