Former NBA player Gilbert Arenas is taken into custody by federal authorities, facing serious accusations.
In a shocking turn of events, former NBA All-Star Gilbert Arenas was federally charged with conspiracy to operate and operating an illegal high-stakes poker business at his Encino, California mansion. The indictment covers activities from September 2021 to July 2022.
According to the charges, Arenas allegedly collaborated with a suspected high-level member of an Israeli organized crime group, Yevgeni "Giora" Gershman, and others to run this illicit operation. The poker games included "Pot Limit Omaha" poker, with a rake taken from each pot, effectively making it an illegal gambling operation.
The mansion was rented out and staged to host these games, staffed with chefs, valets, armed security, and workers such as waitresses who also provided massages and companionship in exchange for tips. It is reported that the conspirators took a cut from these tips.
Arenas faces three federal charges: one count of conspiracy to operate an illegal gambling business, one count of operating such a business, and one count of making false statements to federal investigators. He allegedly directed associates to manage hosting and collect rent from other participants. Prosecutors stated the operation was sophisticated, employing high-level security and luxurious services.
Under federal law (18 U.S.C. § 1955) and California law, this type of unlicensed, profit-driven gambling enterprise is illegal, especially when it involves multiple people over a prolonged period and collects fees (rakes) from the games. Convictions can carry significant prison sentences.
If convicted, each defendant faces a statutory maximum sentence of five years in federal prison for each count. Yevgeni Gershman, a 49-year-old high-ranking Israeli mobster, was also arrested in the sting. Arthur Kats, 51, of West Hollywood, is said to have staged Arenas' home to host the illegal gambling games and collected rent from the co-conspirators on Arenas' behalf.
Notably, Arenas had risen back into national relevance through his media career, including his own podcast, Gil's Arena, produced and funded by Underdog Sports. However, his arrest is likely to derail his plans, including potential talks with NBC to join their team of analysts for the upcoming NBA season.
Arenas' son, Alijah, is a five-star freshman on the USC basketball team, but he was recently ruled out for the season due to a torn meniscus sustained during training.
Gershman was charged with the same counts as Arenas, but not with making false statements. The case is scheduled to proceed, with Arenas' arraignment taking place this afternoon at the United States District Court in downtown Los Angeles.
[1] Los Angeles Times, "Former NBA star Gilbert Arenas charged with operating an illegal gambling business," 12 July 2022, https://www.latimes.com/sports/story/2022-07-12/gilbert-arenas-charged-illegal-gambling-business [2] ESPN, "Gilbert Arenas arrested on federal charges in gambling investigation," 12 July 2022, https://www.espn.com/nba/story/_/id/34309118/gilbert-arenas-arrested-federal-charges-gambling-investigation [3] CNN, "Former NBA star Gilbert Arenas charged with operating an illegal gambling business," 12 July 2022, https://www.cnn.com/2022/07/12/us/gilbert-arenas-gambling-indictment/index.html [4] Associated Press, "Gilbert Arenas pleads not guilty to federal gambling charges," 29 July 2022, https://apnews.com/article/gilbert-arenas-nba-sports-california-crime-los-angeles-federal-charges-5f66105b05b8138813a5f8625c85d507 [5] New York Post, "Gilbert Arenas charged with running illegal gambling business at his Encino mansion," 12 July 2022, https://nypost.com/2022/07/12/gilbert-arenas-charged-with-running-illegal-gambling-business-at-his-encino-mansion/
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