LeBron James injury information leaked to bettors, indictment suggests

A bombshell new indictment charging former NBA player Damon Jones with criminal charges suggests that Jones leaked information about superstar LeBron James’ injury status to sports bettors before a February 2023 game while he was with the Los Angeles Lakers.

The same indictment alleges that Jones leaked information to bettors about the playing status of then-Lakers star Anthony Davis before a game against the Oklahoma City Thunder in January 2024.

According to the indictment, Jones told a co-defendant that it was “possible” that the Lakers’ star player, identified only as Player 4, would play in the game. Davis was the only player listed as “possible” for that game, according to records.

One bettor who received that information placed a bet of approximately $100,000 against the Lakers, with Davis playing to his usual standards and the Lakers ultimately winning.

Not James or Davis. Now playing for the Dallas Mavericks, he is accused of misconduct in a federal indictment unsealed Thursday in U.S. District Court in Brooklyn, New York.

Jones, 49, Miami Heat player Terry Rozier and four other men are charged with conspiracy to commit fraud and money laundering against a gambling company.

Jones and James previously played together for the Cleveland Cavaliers. Jones was the Lakers’ unofficial coach at the time of the February 2023 game in Los Angeles mentioned in the indictment.

A spokesperson for James declined to comment to CNBC. A spokesperson for Davis did not respond to a request for comment.

The indictment mentions an unidentified Player 3.

Jones “was a teammate and coach of a prominent player,” Player 3, according to the document.

The indictment alleges that on the morning of the Feb. 9 Lakers-Milwaukee Bucks game, Jones sent a text message to Co-conspirator 9 that read, “Bet big on Milwaukee tonight before the info gets out! (Player 3) is out tonight. Bet big enough for Jones to eat…now!”

“At the time Jones provided non-public information regarding Player 3 to Co-conspirator 9, Player 3 was not removed from the NBA game injury report,” the indictment states.

James will miss the Feb. 9 game with a lower-body ankle injury.

“Athlete 3 did not participate in the game on February 9th due to a lower body injury,” the indictment states.

The only other active Lakers player to miss that game with an injury was Scottie Pippen Jr., who did not suffer a lower-body injury. Pippen was in concussion protocol for the game.

In that game, Milwaukee defeated the Lakers 115-106.

According to various odds sites, the Bucks entered the game as favorites with an average margin of eight points.

A person familiar with James’ situation said he had no idea that his information would be used for gambling.

Other language in the indictment suggests Davis is a person identified only as Player 4, and the indictment describes him as “one of the Lakers’ best players during the 2023-2024 season.”

Before the Lakers’ home game against the Thunder on January 15, 2024, Jones “alleged that he learned from the trainers of Players 3 and 4 that Player 4 was injured and was scheduled to play limited time and/or that his performance in the game was likely to be affected due to his injury,” the indictment states.

Jones then allegedly shared the nonpublic information with co-defendant Eric Earnest, who then sent a text message to defendant Marveth Fairey saying, “I’m saying I got the information, please contact me as soon as possible.”

According to the indictment, Ernest then shared information about Player 4 with Fairey, who in turn shared the information with two other people. Fairley, who paid Jones $2,500 in tips, and a co-conspirator placed multiple bets on the Lakers, and Fairley paid approximately $100,000, according to the indictment.

“Hours before the game on January 15, Player 4 was listed as ‘possible’ on the NBA injury report, but it was not communicated to the public, including to the gambling companies, that Player 4 was likely to have limited playing time or limited opportunity due to injury,” the indictment states.

However, “Ultimately, Player 4 performed well in the game on January 15, playing minutes in line with his season average, and the Lakers won the game,” the indictment states.

Fairley then asked Jones to repay Fairley a $2,500 tip, according to the indictment.

No players other than Davis were listed as candidates for the game against the Thunder.

— Additional reporting by CNBC’s Jessica Golden