Former NBA player Terrence Williams has been sentenced to 10 years in federal prison for his involvement in a healthcare scheme that defrauded the NBA's benefit plan of at least $5 million.
Williams, along with 18 other former players, participated in a fraud scheme between 2017 and 2021, filing invoices for medical and dental treatments that were never provided.
According to the United States Attorney's Office for the Southern District of New York, Williams orchestrated the scam, enlisting other players, doctors, and a dentist to provide him with false invoice forms.
Williams received kickbacks in exchange for filing these forms, pocketing $300,000. Additionally, Williams created fake email accounts, posing as plan employees, and threatened a co-defendant to extort money, resulting in an additional $346,000.
Williams, originally from Seattle, was arrested in October 2021 and released on bail. However, in April 2022, he began sending threatening text messages to co-defendants, prompting U.S. District Judge Valerie Caproni to remand him back to jail. Since then, Williams has been in federal custody.
In August 2022, Williams pleaded guilty to conspiracy to commit health care and wire fraud, as well as aggravated identity theft. On Thursday, Judge Caproni sentenced him to 10 years in federal prison and ordered him to pay over $3.1 million in forfeitures and restitution.
U.S. Attorney Damian Williams expressed his belief that Terrence Williams deserves a lengthy prison sentence. "Williams led a wide-ranging scheme to steal millions of dollars from the NBA Players' Health and Welfare Benefit Plan," Williams said. "He not only lined his pockets through fraud and deceit but also stole the identities of others and threatened a witness to further his criminal endeavors."
Terrence Williams, who was drafted by the New Jersey Nets in 2009, played in the NBA for three years before primarily playing overseas. He had brief stints with the Houston Rockets, Sacramento Kings, and Boston Celtics. Williams' attorney did not respond to a request for comment.
This case highlights the importance of maintaining the integrity of benefit plans and holding individuals accountable for fraudulent activities. The NBA's Health and Welfare Benefit Plan is designed to provide medical and dental coverage for current and former players, and schemes like this undermine the trust and resources of such programs.
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