A Bettor Who Used NBA Insider Information Was Sentenced to Two Years in Prison

For what they called "cold, hard fraud," the prosecution had requested a four-year term. McCormack admitted to the court that he had battled a gambling addiction for more than half of his life. Jeffrey Chartier, his lawyer, argued that his client was a "degenerate gambler" and opposed a prison sentence.

Additionally, Chartier highlighted the irony of prosecutors portraying sportsbooks as victims despite the fact that they made money off of individuals like as his client.

McCormack wagered on games featuring former Toronto Raptors player Jontay Porter, who is currently incarcerated for life. Additionally, he placed bets on games involving Terry Rozier, the point guard for the Miami Heat, who is still facing charges.

After knowing that the Portland Trail Blazers were resting players in order to better their draft position, McCormack and one of his co-defendants also wagered on the club to lose a game.

He must report to prison by April 20. During his 12-month supervised release, the judge prohibited him from gambling.

Porter's Early Exit from Games
In June 2024, McCormack was accused by federal authorities in the Porter case. He was one of several bettors who had wagered on Porter's performance, winning more than $1 million.

They were able to get Porter to leave games early since he had accrued gambling debts with them. On January 26 against the Los Angeles Clippers and March 20 against the Sacramento Kings, the Raptors player informed Long Phi Pham that he planned to leave a game early.

McCormack won $33,250 on the January game after placing a $7,000 parlay on Porter's three-pointers, steals, and assists. An $80,000 parlay on Porter's blocks, steals, three-pointers, rebounds, and assists for the March game earned Mahmud Mollad $1.04 million.

Within a day before the second game in issue, two sportsbooks notified the International Betting Integrity Association (IBIA) of the suspicious activity. The FBI was then informed by the Association. The NBA was also informed and started looking into Porter.

In court documents, the prosecution did not identify the sportsbooks. They have only stated that two sportsbooks—DraftKings and FanDuel—have been NBA co-partners since 2021.

Additional Examples of Insider Information Use
McCormack and Long Phi Pham collaborated closely to use insider knowledge to wager on other games. Before the Charlotte Hornets vs. New Orleans Pelicans game on March 23, 2023, the two wagered approximately $41,000 both online and at a retail sportsbook in New Jersey. They placed many parlay and straight bets on Terry Rozier unders.

In the hours preceding this behavior, McCormack had received two payments totaling around $40,000 via a peer-to-peer mobile payment application. The Rozier bets were made with this money.

According to the prosecution, Rozier informed his friend Deniro Laster that he intended to fake an injury in order to leave the game during the first quarter. In return for $100,000 of the anticipated awards, Laster then sold this secret knowledge to a number of the case's defendants.

This strategy is revealed in text messages that the prosecution has obtained. In fewer than ten minutes of action, Rozier fell well short of his pregame averages for points, assists, and three-pointers.

Rozier continues to insist in his innocence. In December, he entered a not guilty plea to accusations of money laundering and wire fraud conspiracy. He is free on a $3 million bond and is on unpaid leave from the NBA.

Following insider knowledge, McCormack and Pham wagered against the Portland Trail Blazers the next day. Prosecutors claim that before the lineup was made public on March 24, 2023, the knowledge allowed the two to gamble $32,000 through two online bookmakers.

Final Thoughts on the Porter Scandal
This case's Jontay Porter component is currently coming to an end. In July 2024, he entered a guilty plea to conspiracy to conduct wire fraud. Porter used a friend's online betting account to make 13 wagers on his own prop bets. His sentencing has been repeatedly delayed, and no public date for 2026 has yet been established.

Ammar Awadeh, Mahmud Mollad, and Long Phi Pham are the other three defendants who entered guilty pleas and are awaiting sentencing.

In a case that has already changed league governance, sportsbook monitoring procedures, and the larger discussion about integrity threats associated with regulated sports betting, McCormack's sentencing represents the first tangible punishment. It comes at a time when numerous surveys indicate that public confidence in the integrity of professional sports is eroding.