NEW YORK -- As a top-tier NBA referee, Tim Donaghy knew the
system: which crews would officiate games, how different officials
and players interacted, details about players' injuries.
He used that inside knowledge to navigate a shady netherworld of
sports betting -- speaking in code while relaying his predictions to
gamblers by phone, then taking $5,000 payoffs in secret meetings
when his picks hit the mark.
He also had a bad gambling habit. He started betting on the NBA
in 2003, including on games he officiated, authorities said. In the
process, he "compromised his objectivity as a referee because of
his personal financial interest in the outcome of NBA games," the
government said.
And on Wednesday, Donaghy pleaded guilty to felony charges for
triggering a scandal that rocked the entire NBA. He could go to
prison for up to 25 years.
In Brooklyn federal court, Donaghy stood ramrod straight, hands
clasped in front of him, speaking in nearly inaudible tones as he
pleaded guilty to charges of conspiracy to engage in wire fraud and
transmitting betting information through interstate commerce.
"Tim is relieved this part of the proceeding is over and we
look forward to completely resolving this matter in the coming
months," defense attorney John Lauro told The Associated Press
after the plea. "Tim deeply regrets his involvement in this matter
and especially the pain it has caused his family, friends and
co-workers."
Authorities did not spell out specific games that Donaghy
officiated and placed bets, nor would they say if he made calls
during games to help a team cover the spread.
But court documents show how Donaghy associated with gamblers on
game days.
In one exchange with his co-conspirators, Donaghy provided a tip
about an NBA game on Dec. 13, 2006, according to court papers. That
same day, he officiated a 76ers game in Philadelphia against the
Boston Celtics.
The next day, Donaghy, 40, met with the conspirators and
received a cash payment, authorities say. A person close to the
investigation, speaking on condition of anonymity because the case
is ongoing, said the payment was for a successful tip on the
76ers-Celtics game.
The point spread moved two points before it went off the board --
a fairly significant swing -- with Boston going from a 1.5-point
favorite to a 3.5-point choice. Boston won by 20.
Speaking in code during telephone calls, Donaghy made
recommendations to co-conspirators about what teams they should bet
on. If he was correct, they paid him $5,000 in cash. If he was
wrong, he received no money.
It was highly lucrative. While in Toronto, Phoenix and
Washington, D.C., to referee games earlier this year, Donaghy
received thousands of dollars in cash payoffs from the gamblers,
authorities said in court documents.
The two alleged co-conspirators, identified by prosecutors as
James Battista, a professional gambler with the nicknames "Baba"
and "Sheep," and Thomas Martino, also appeared in court
Wednesday. They were ordered released on $250,000 bond after their
arraignment on charges of conspiracy to defraud the NBA.
Battista's lawyer, Jack McMahon, said outside court that a grand
jury is expected to hear the case and that, if indicted, his client
intends to plead innocent.
"Mr. Donaghy walked away with a nice situation for himself. He
is the linchpin and he seems to have worked his way into a nice
situation," said McMahon. "I don't know if that is fair."
The betting scheme was uncovered during an investigation into
the Gambino crime family in Brooklyn. None of the defendants in
this case were charged with organized crime affiliation.
"He has no more association with an organized crime family than
me, and I'm not associated with any organized crime," McMahon said
of Battista.
The FBI first contacted the NBA on June 20 to talk about a
referee alleged to be gambling on games, and the two sides met the
next day, Commissioner David Stern said last month. Donaghy
resigned July 9 after 13 years as a referee; Stern said he would
have fired him sooner but was told it might affect the
investigation.
Stern blamed a "rogue, isolated criminal" for a scandal that
threatened the credibility of every referee.
Donaghy was rated in the top tier of officials, and there was
nothing suspicious about the frequency of his foul calls, Stern
said. He was assigned to work in the second round of the playoffs,
with his last NBA game coming during the Phoenix-San Antonio
Western Conference semifinal.
No other NBA officials or players were expected to be involved
in the scandal, which Stern called the "most serious situation and
worst situation that I have ever experienced either as a fan of the
NBA, a lawyer for the NBA or a commissioner of the NBA."
After Donaghy's guilty plea, Stern said the NBA would "continue
with our ongoing and thorough review of the league's officiating
program to ensure that the best possible policies and procedures
are in place to protect the integrity of our game."
In court, Donaghy admitted that he is receiving treatment for
his problems, including seeing a psychiatrist and taking an
antidepressant and anxiety medication.
When the judge asked him "what are you under a doctor's care
for?" Donaghy quietly responded, "gambling addiction."