Personal Foul. Tim Donaghy
law enforcement partnerships, and an intelligence framework. It was initiated by two of my predecessors—J. Bruce Mouw and George Gabriel—and the past and present Special Agents of the New York FBI’s “Gambino squad” (C-16).
I became involved in this case because at the time I headed the FBI’s Gambino squad. The squad normally would not investigate a gambling matter unless it had been determined that the proceeds were providing large sums of cash to organized crime families. That finding is what brought this case to light.
In telling his story, Tim Donaghy gives me much too much credit for solving this case; in truth this case was identified in part by the archival evidence gathered during 30 years of FBI organized crime investigations. Specifically, success was the result of collaboration by Paul Harris, a very focused and talented case agent; Frank Scalera, an enthusiastic and determined intelligence supervisor; and Tom Seigel, a motivated and experienced federal prosecutor.
Once identified, the case was given the full access and support of the entire FBI’s investigative and intelligence resources. Those resources provided the additional intelligence and prospects necessary to build a viable case. That meant eliminating the source of illicit funding to organized crime cabals and making interested parties more aware of the importance of integrity.
Success in this case also depended on the insightful cooperation and talented and wise leadership of the FBI’s New York office, namely: Mark Mershon, David Cardona, Kevin Hallinan, and David Shafer; FBI co-case agents Gerry Conrad, Beth Ambinder, Chris LaManna, and Rita Steiner; and the entire Gambino squad. Credit is also due to the United States Attorneys’ Office of the Eastern District of New York and the prosecutorial wisdom, relentless work ethic, and leadership of Thomas Seigel and Mitra Hormozi. Defense attorney John Lauro was an excellent advocate and a “Class A” gentleman. Finally, crucial to success in this case were retired FBI agent Warren Flagg, the defense’s ever enthusiastic P.I., and naturally, the early cooperation of Tim Donaghy.
The additional issues of employment-contract breaches by the NBA referees, alleged misconduct, manipulations, associations, and sport integrity were peripheral aspects of our investigation. We left those issues to others who wished to call attention to the culture of officiating. We concerned our investigation with aspects of illegal gambling and the directions of its revenue stream, as well as with organized crime factions targeting individuals with something to hide. Outside of the guilty pleas of Thomas Martino, James Battista, and Tim Donaghy, the professional gaming cabals and culture were put on notice of our awareness and the significant potential economic losses that had been prevented.
The far-reaching effects of the investigation and Tim Donaghy’s cooperation had placed significant concerns on the radar screen. Future law enforcement scrutiny, a vigilant press, and the voice of public opinion have had a positive effect on restoring the sport’s traditional American values to the game.
Phil Scala
Retired Supervisory Special Agent, FBI Squad C-16 (Gambino Family) (02/29/2008) Founder and CEO, Pathfinder Consultants International, LLC P.O. Box 7537, Garden City, NY 11530
Introduction
I’m guilty.
For 13 years I was a referee in the National Basketball Association, living a glamorous life on and off the court, rubbing elbows with superstar players and celebrity A-listers. I suppose many would say that I had it all—a great job, money, a wonderful family—but it was all an illusion.
You see, during my last four years in the NBA, I led a secret life that would ultimately cost me everything: my integrity, my reputation, my career, my livelihood, my marriage, my family, and my freedom. During those four years, I placed illegal bets on more than 100 NBA games, many of which I officiated as one of three referees on the court. My dalliance with sports betting started innocently enough, but it quickly became an obsession and addiction, one that would consume my life and destroy everything I once cherished.
For 13 years I lived the dream and experienced a thrill ride on the court alongside the best players in the world. As an NBA referee, I had a front-row seat to the greatest show on earth. I was a courtside witness to the greatness of Michael Jordan, Kobe Bryant, LeBron James, and Shaquille O’Neal. I casually mingled with Hollywood icons like Jack Nicholson and Spike Lee. I traveled around the country 26 days a month, made more than $250,000 per year, and distinguished myself on the court as a high-quality referee with a bright future in the league.
Along the way I married a great woman, had four beautiful daughters, and earned the respect of my father. For me, life was more than good; it was overwhelmingly great! But somewhere in my subconscious, there was an insatiable need for more action and more thrills, along with a dangerous impulse toward risky behavior. That unyielding need was satisfied, or so I thought, when I embarked on a dark affair with the seedy world of illegal gambling. It all started innocently enough, but my flirtation turned into an addiction, one that could never be satisfied and one I didn’t want to stop. I became an out-of-control juggernaut hell-bent on self-destruction. My days and nights were consumed with thoughts of finding some action, placing a bet, and risking it all.
My road to ruin was punctuated by a shameful relationship with underworld figures who would stop at nothing to squeeze every ounce of dignity out of my soul. It didn’t really matter. My soul had turned into a void as I placed my fixation on gambling above everything that was important in my life—my career, my family, and my freedom.
My involvement with illegal betting was more than a crime; it was a betrayal of the profession to which I had devoted my entire adult life. During this dark period, I associated with sleazy bookies and reputed mob figures, slowly becoming someone my family and friends no longer recognized. I passed inside information to wiseguys who were making millions of dollars on my picks and lining the pockets of Mafia heavyweights.
When the bubble finally burst, I was actually relieved to get out from under the threats and pressure brought to bear by my underworld coconspirators. And I made a choice that would both set me free and put me behind bars—I decided to confess my crimes and set the record straight.
They say a man’s character is defined by the choices he makes in life. Of course, a man’s character is also revealed by his willingness to accept responsibility for his actions, learn from his mistakes, and move forward in a positive, healthy, and honest way.
The mistakes I made were tremendous and life-changing, but I was determined not to let them define my character. Over the objections of my lawyer, I sat down with an assistant U.S. attorney and several FBI agents and confessed. As my addiction to gambling spun out of control, I had finally come to the painful conclusion that my life was a disaster and that it was time to salvage what remained of my soul. I told them everything: the bets, the lies, the betrayals, and things they had no idea existed. My reckless behavior set the stage for a free fall. My confession was the equivalent of the hangman pulling the lever and opening the trapdoor. It was finally over.
I resigned my position as an NBA referee and began a perilous and uncertain journey as a government witness. The FBI had a difficult time accepting the fact that I could so easily pick the winners of NBA games and probed me for more information. Along the way, FBI agents wanted to know if I, or any other referee, deliberately “fixed” games. The subsequent investigations, including one done at the NBA’s request, revealed that a culture of favoritism and manipulation existed in the NBA, a culture that often affected the outcome of games. I was all too familiar with that “culture” and used my insider’s knowledge to engage in illegal conduct, not for the purpose of affecting the outcome of a game, but for picking a winner and placing a bet. For me, it was as simple as knowing which referees were working a particular game; the rest was merely academic. I knew these guys. I knew who they liked, who they despised, who they would bend over backward to help, and who they would screw over at the drop of a hat. In fact, I knew them so well that they became consistently predictable, and I used their patterns to make predictions and place bets.
It wasn’t just