On Thursday, federal prosecutors charged 18 former NBA players with defrauding the league's health and welfare benefit plan.
The widespread scheme involved submitting false and fraudulent claims to get reimbursed for medical and dental procedures that never actually happened.
Between 2017 and 2020, the false claims totaled about $3.9 million dollars and paid out about $2.5 million dollars.
"The defendants’ playbook involved fraud and deception," Manhattan U.S. Attorney Audrey Strauss said. "Thanks to the hard work of our law enforcement partners, their alleged scheme has been disrupted and they will have to answer for their flagrant violations of law."
Former Oklahoma State basketball standout Tony Allen is among those charged. His wife, Desiree Allen, is the only non-player charged.
The Daily Memphian reports the indictment claims Allen received $260,000 in fraudulent chiropractic claims and repaid some of the $420,000 he owed for both false chiropractic and dental claims.
In a news conference on Thursday, federal prosecutors noted Allen and two others reported root canals on the same teeth on the same day. Investigators also used travel records and GPS data to discover if the claimants were even near the place of service on those dates.
While at OSU, Allen led the Cowboys to the 2004 NCAA Final Four and was named the Big 12 Player of the Year.
As a pro, he made the NBA's all-defensive team six times and was a member of the 2008 NBA champion Boston Celtics. He also played for the Memphis Grizzlies and New Orleans Pelicans. The Grizzlies recently announced that they plan to retire Allen's jersey at a Jan. 28 game against the Utah Jazz.
Each of those charged face one count of conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison. In addition, Terrence Williams faces one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.
Prosecutors allege Williams was the ringleader, recruiting other former players to join him in defrauding the plan and offering to provide fraudulent invoices from a California chiropractor and dentist and a wellness office in Washington. Some of those players then paid Williams in kickbacks.
Another former NBA player involved in the scheme is Sebastian Telfair, who was a member of the Oklahoma City Thunder for four months in 2014. Newly hired Portland Trail Blazers assistant coach Milt Palacio is also among those charged. He has since been put on administrative leave.
Rounding out the list of former players charged are Alan Anderson, Shannon Brown, William Bynum, Glen Davis, Christopher Douglas-Roberts, Melvin Ely, Darius Miles, Jamario Moon, Ruben Patterson, Eddie Robinson, Gregory Smith, Antoine Wright and Tony Wroten.
Just last month, three former NFL players pleaded guilty to a health care fraud scheme involving that league's health plan.
