Guilty plea entered in $3.6M sports betting fraud case

December 5, 2024 Robert Abruzzese, Courthouse Editor

U.S. Attorney Breon Peace, whose office prosecuted the case against Cory Zeidman, announced the guilty plea and outlined the details of the multimillion-dollar sports betting fraud scheme. Photo: Yuki Iwamura/AP

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A 63-year-old from Boca Raton, Florida, has pleaded guilty to running a scheme that defrauded sports bettors out of $3.6 million by falsely claiming access to insider information about college and professional games.

The plea was entered in federal court in Central Islip, part of the Eastern District of New York (EDNY), and the defendant now faces up to 20 years in prison.

The defendant, Cory Zeidman, admitted to conspiring to commit mail and wire fraud as part of a yearslong scheme. Prosecutors detailed how Zeidman and his associates relied on national radio advertisements to lure victims, promising low-risk gambling advice based on fabricated claims of non-public information, such as player injuries and rigged games. Victims were charged high fees for what turned out to be worthless advice.

To build credibility, Zeidman’s organization used fake names and employed high-pressure sales tactics to convince prospective bettors that they held an insider edge. In reality, the “insider” information was either made up or compiled from publicly available sources. Over the years, the scheme generated millions of dollars in fees from unsuspecting clients.

Authorities caught on to the scheme following complaints from victims who realized the information provided was false. The investigation involved Homeland Security Investigations, the U.S. Postal Inspection Service, and the Nassau County Police Department. Officials said the fraudulent operation lasted for several years before Zeidman and his partners were brought to justice.

Zeidman will also be required to forfeit the millions he collected through the scheme. Sentencing will occur at a later date.

“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,” said U.S. Attorney Breon Peace.