NBA Fraud: 18 former NBA players arrested and charged for defrauding $4,000,000

As many as 18 former NBA players were arrested and federally charged for allegedly defrauding over $4,000,000 from the NBA’s Health and Welfare Benefit Plan, according to Tom Winter of NBC News.

Darius Miles, Tony Allen, Glen Davis, Sebastian Telfair, Terrence Williams, Alan Anderson, Anthony Allen, Shannon Brown, WillBynum, Christopher Douglas-Roberts, Melvin Ely, Jamario Moon, Milton Palacio, Ruben Patterson, Eddie Robinson, Gregory Smith, Charles Watson Jr., Antoine Wright and Tony Wroten are the players in question.

As of now, it’s not known what kind of punishment, fine, or sentence the former players could be looking up to. But it seems like this is just the tip of the iceberg regarding this terrible scandal.

NBA Fraud: Terrence Williams Orchestrated The Plan:

(Transcript via ABCNews)

The indictment alleges Williams orchestrated the plan.

“Williams recruited other plan participants to defraud the plan by offering to supply them with false invoices to support their false and fraudulent claims to the plan in exchange for the payment kickbacks to Williams,” the indictment said.

The indictment also alleges that Williams impersonated an individual who processed the plan’s claims. Williams, the indictment said, received $230,000 in kickbacks from the other defendants for his role.”

What’s The NBA’s Health And Welfare Benefit Plan?

“The NBA Players’ Health and Welfare Benefit Plan (the “Plan”) provides you with a health
reimbursement account benefit (the “HRA Benefit”). The benefit provides you with contributions into a health reimbursement account (“HRA”). Subject to Plan rules, amounts in your HRA can be used to reimburse eligible healthcare expenses incurred by you and your family both during and after your NBA playing career. It is important to understand that there are conditions on when you may use your HRA Benefit and that not every health-related expense qualifies for reimbursement,” reads the NBA Players Association’s pamplhet.

For years, players have fought for their rights and they want to add more coverage and benefits for former and current NBA players, so this incident couldn’t have come at a worst time.