Court documents reveal that Zeidman orchestrated a fraud operation that marketed betting tips through radio advertisements followed by aggressive sales tactics. The group operated under fictitious names and falsely claimed to possess insider knowledge about corrupt officials, rigged games, and outcomes decided in advance, as outlined in a statement from the US attorney’s office for the Eastern District of New York.
A sentencing date for Zeidman has not been determined.
Bettors paid substantial fees for these services, led to believe that their bets were low-risk due to supposedly special information. However, according to the US attorney’s office, this information was either fabricated or publicly accessible through internet searches.
“Zeidman exploited people by making them think he had insider insights that would lead to easy profits,” explained Ricky J Patel, acting special agent in charge of Homeland Security Investigations New York, during Zeidman’s indictment in May 2022. “In reality, he provided only falsehoods, siphoning millions from victims and leaving them financially devastated.”
### US attorney: Victims were “enticed”
Zeidman’s network ensnared bettors in New York and Florida, court records detail.
Currently residing in Boca Raton, Florida, Zeidman pleaded guilty today in federal court located in Central Islip. Previously, he lived in Long Island and was a recipient of a 2012 World Series of Poker bracelet. Over the course of his scheme, he operated under more than a dozen aliases and utilized at least three fake companies.
As reported by Poker News, Zeidman’s operation amassed $25 million in fees from 2004 to 2020.
“Zeidman and his cohorts deceived unsuspecting victims with false promises of a sports betting advantage, ultimately feeding them lies to earn millions,” stated Breon Peace, US attorney for the Eastern District of New York, in a press release. “Today’s guilty plea serves as a warning to those who mislead the public by misrepresenting gambling as a ‘lucrative investment’; the only certainty here is this office’s commitment to eliminate fraud and disinformation and prosecute offenders to the fullest extent.”
The Eastern District Office is also addressing the Jontay Porter sports betting case. In this case, the former NBA player collaborated with four others to leave Toronto Raptors games prematurely, which allowed bettors to secure their “under” wagers. Porter admitted guilt in July and anticipates sentencing on December 18 in Brooklyn court.
Zeidman’s indictment occurred months after digital sports betting launched in New York and before its legalization in Florida.