Cory Zeidman, a former Long Island resident and professional poker player has pled guilty to defrauding consumers in New York and Florida over several years in a gambling scheme involving sports betting. Zeidman admitted guilt for conspiring to commit mail and wire fraud when he claimed to have inside information that would help bettors beat the sportsbooks.
Zeidman, 63, awaits sentencing in the U.S. District Court for the Eastern District of New York , on charges that could result in a maximum sentence of 20 years in prison, fines, and restitution.
“Zeidman and his partners 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,” said U.S. Attorney Breon Peace at the time of the guilty plea. Charges were filed against Zeidman more than two years ago, in 2022.
Court documents show that Zeidman led a group called the Phoenix Organization. It purported to have inside information on athlete injuries, crooked referees, and fixed sporting events. He charged high fees to customers to get the supposed sports betting information. According to the original indictment, Phoenix Organization described sports wagering to Zeidman’s targets as “investing, not high-risk gambling.” Customers were asked to mail or wire funds to Zeidman to get the betting advice.
Zeidman’s guilty plea closes the chapter on his criminal enterprise that bilked victims in both New York and Florida. He lists an address in Boca Raton.
How Zeidman’s fraud scheme worked
Zeidman’s scheme involved the placement of ads on radio to lure victims. According to the Department of Justice, Zeidman and his associates “reaped millions in fees from victims.” Via materials disseminated to unsuspecting customers, Zeidman claimed that his organization knew which sporting events were fixed. That was based on the desires of media companies.
Daniel B. Brubaker, United States Postal Inspection Service Inspector stated:
“Illegal gambling is not a victimless crime. Zeidman and his partners were able defraud so many individuals with their lies and had them pay these exorbitant fees for nothing. USPIS will continue to investigate individuals who are intentionally skirting federal regulations for their own selfish desires.”
“Today’s guilty plea sends a message to all those who would prey upon the public by falsely advertising gambling as an ‘investment opportunity’: the only sure bet here is that this Office will work tirelessly to root out sources of disinformation and fraud and prosecute them to the fullest extent of the law,” said U.S. Attorney Peace.
Officials ask anyone who may have been a victim of these crimes to contact Homeland Security Investigations at 1-866-347-2423.
