Cory Zeidman has admitted guilt in a sweeping $25 million sports betting fraud scheme, leaving a trail of betrayed clients and financial ruin.
At a Glance
- Renowned poker player Cory Zeidman pled guilty to conspiracy and wire fraud in a $25 million betting scam.
- Zeidman promised clients exclusive insights into sports events, misleading them with fabricated information.
- Zeidman faces up to 20 years in prison and must pay $3.7 million in restitution.
- The fraudulent operation ran from 2006 to 2020, exploiting victims across the nation.
The Scheme Unfolded
Cory Zeidman, a prominent figure in the poker world, orchestrated a multi-million dollar fraud scheme targeting sports bettors. From 2006 to 2020, Zeidman and his collaborators lured clients with promises of insider knowledge about sporting events. The operation used national radio ads under aliases like “Gordon Howard Global” and “Ray Palmer Group,” deceiving victims with claims of nonpublic information.
Zeidman initially resisted pleading guilty, quoting philosopher Friedrich Nietzsche to emphasize his innocence. He finally admitted guilt in October at the United States District Court Eastern District of New York. Zeidman’s elaborate scam deceived clients, amassing over $25 million in fees, sometimes sourcing the fraudulent information from mere internet searches.
🚨PokerNews has learned that WSOP bracelet winner and longtime poker pro Cory Zeidman will plead guilty to money laundering/wire fraud charges related to a $25m sports betting scheme.
Details at the link below: 👇https://t.co/BIlGSwUMKJ
— PokerNews (@PokerNews) October 23, 2024
The Impact
The fraudulent scheme left many victims financially devastated. Zeidman often exploited clients’ savings and retirement accounts, promising them risk-free investments. These clients, seeking to enhance their financial standing through sports betting, were met with deceitful practices. Prosecutor Breon Peace summarized the scam as one that “baited unsuspecting victims with false claims of an edge in sports betting only to feed them lies and pocket millions of dollars from their savings and retirement accounts.”
The betrayal was profound, with clients told that the company had access to privileged information from college physicians and TV executives, none of which was true. Although Zeidman has agreed to pay over $3 million in restitution, the road to justice for the victims remains steep.
The Legal Repercussions
The case, prosecuted by the United States Attorney’s Office for the Eastern District of New York, is a landmark example of long-running fraud. Zeidman now faces up to 20 years in federal prison. Since his arrest in May 2022, Zeidman has avoided poker tournaments, a sharp contrast to his past reputation as a 2012 World Series of Poker bracelet winner.
As sentencing approaches, the spotlight remains on how such exploitative schemes can be prevented in the future. For Zeidman, who once claimed innocence by invoking Nietzsche, the plea marks a dramatic fall from grace in both the poker and sports betting worlds.
