Sports-betting and poker professional Cory Zeidman has formally reached a plea deal with prosecutors in the US Eastern District of New York for his role in the operation of a series of fraudulent sports-betting schemes. Bettors were misled into believing that the operators of the schemes possessed profitable insider information impacting the outcome of games.
Zeidman, now 63 and living in Florida, pled guilty on Wednesday in a federal courtroom on New York's Long Island to mail fraud and wire fraud in connection with the years-long schemes, which extracted millions of dollars from bettors who believed the group's fraudlent claims. For years, Zeidman helped run a group that placed radio ads nationwide, promising would-be bettors access to "non-public player injury information, [knowledge of] 'dirty' referees, or that professional sporting events were 'fixed' and that media executives’ shared predetermined outcomes with Zeidman’s organization."
All of the claims were bogus. Instead of having the access to private info that would skew the betting lines, Zeidman and his group made up the information on the fly, changing the claims and the sites and business fronts being used as needed throughout the group's multiple years of operation.
Zeidman, in acknowledging his roles in the operation, will accept a $3.6 million forfeiture and will face up to 20 years in prison when sentenced. The sentencing date was not announced in an Eastern District of New York Attorney General's Office statement on the plea deal, but will likely occur in the first part of 2025. He originally pled not guilty to the felony charges, but more recently told an outlet that he was going to be forced to accept a plea deal of some sort.
Zeidman's prominent poker past
Zeidman has been a well-known player in the poker world for a quarter-century. At the 2012 WSOP, Zeidman won the $1,500 Seven Card Stud Hi-Lo 8 or Better bracelet event, topping a 622-entry field to win a live-tournament career best of $201,559.
The outspoken Zeidman was also a frequent participant on multiple televised cash-game poker shows, including an infamous appearance in 2007 on Poker After Dark where he got into a running war of words with Phil Hellmuth.
Zeidman's live-tourney record shows cashes totaling more than $690,000. His last recorded cashes came in May of 2022, just before his arrest and indictment on the fraudulent sports-betting-business charges.
Group believed to have taken $25M from listeners
Those sports-betting schemes appear to have been where Zeidman garnered much of his wealth. During the years his group's fraudulent tout schemes were in operation, authorities claimed the group garnered at least $25 million in illicit income. Zeidman was indicted in May of 2022 and was accused of being one of the leaders of the 'Phoenix Organization', as the group was referred to by prosecutors.
Zeidman's guilty plea was announced simultaneously by officials from four federal- and local-level agencies who took part in the investigation.
“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,” stated Breon Peace, United States Attorney for the Eastern District of New York. “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.”
“Sports bettors sought Cory Zeidman’s advice before gambling their money — but it was Zeidman himself who was scoring big through his deceptive practices, outright lies, and high-pressure tactics that exploited unsuspecting clients,” stated Homeland Security Investigations New York Special Agent in Charge William S. Walker. “Today, HSI New York and our law enforcement partners brought Zeidman’s racket to an end. The public deserves to know the truth concerning where their money is going, and HSI is committed to working with our partners to protect the community wherever and whenever possible from illicit schemes.”
