Professional poker player Cory Zeidman has been arrested and indicted on federal charges of conspiracy to commit wire fraud and mail fraud as well as conspiracy to commit money laundering.
A federal indictment from the United States District Court for the Eastern District of New York was released Wednesday, per David Purdum of ESPN. It alleges that Zeidman and unnamed co-conspirators took in more than $25 million over a period of 16 years from people who believed that the poker player led an organization that had privileged inside information on "fixed games" for sports betting purposes.
"As part of the scheme, Zeidman and his co-conspirators placed misleading radio ads in various U.S. markets, claiming to have a 'sophisticated white-collar approach to gathering sports information.'
"When listeners contacted the service, which used names like 'Gordon Howard Global' and 'Ray Palmer Group,' they were told the organization had privileged information about fixed games that it received from physicians at colleges and television executives, according to the indictment. Callers were asked to pay a fee for access to the information."
However, Zeidman and his co-conspirators allegedly did not have any inside information.
"In reality, he was selling nothing but lies and misinformation—bilking millions from victims along the way, leaving their lives in financial ruin and their bank accounts empty," Homeland Security Investigations New York acting special agent in charge Ricky J. Patel said in a statement.
Zeidman and his co-conspirators also allegedly opened bank accounts from 2013-20 "in the names of shell corporations for the purpose of receiving proceeds of the fraud scheme."
Zeidman, 61, won a bracelet at the 2012 World Series of Poker. He has $690,146 in recorded earnings, per Card Player.