LeBron James' close associate and business partner, Maverick Carter, reportedly confessed to federal investigators in 2021 that he had engaged in illegal sports betting on NBA games with bookmaker Wayne Nix.
The revelation came to light during an ongoing investigation into Nix, who had previously pleaded guilty to leading a significant offshore gambling operation and filing falsified tax returns.
Federal law enforcement records obtained by The Washington Post indicate that Carter made the admission during the probe into Nix's activities.
"Carter and his attorneys told investigators, the records show, that he placed approximately 20 bets on football and basketball games over the course of a year, with each bet ranging from $5,000 to $10,000," said reporter Gus Garcia-Roberts.
"An indictment in the case states that in November 2019, amid the Lakers' championship season, Nix's partner Edon Kagasoff told a 'business manager for a professional basketball player' via text that he could increase his wagers up to $25,000 on NBA games."
According to the report, agents presented Carter with photos of people involved in the betting operation. He recognized only one person, Nix, with whom he had played cards in Las Vegas on a few occasions.
Carter informed the agents that he met Nix in 2017 or 2018 through a friend. Additional records revealed connections between Carter and Nix's operation.
Carter admitted that he was aware of Nix's involvement in gambling, mentioning that he owed money from poker and football. The 20 bets placed through Nix covered college football, the NFL and the NBA. Carter communicated his bets to Nix via text or directly through Sand Island Sports, a Costa Rican website.
Payments and winnings between Carter and Nix were facilitated through wire transfers and cash. Carter identified an employee responsible for handling cash drops.
While Carter and James are partners in various business ventures, including the media conglomerate SpringHill Company, the situation, according to Carter, has "nothing to do" with James. Carter also said he could not recall placing any bets on the Lakers.
High-profile athletes implicated as "non-target witnesses"
Following the investigation, Carter and James' spokesperson, Adam Mendelsohn, released a statement affirming that Carter was not the subject of a criminal probe.
"In 2021 and before 38 states and the District of Columbia legalized sports betting, Maverick Carter was interviewed a single time by federal law enforcement regarding their investigation into Wayne Nix," said the statement.
"Mr. Carter was not the target of the investigation, cooperated, was never charged, and never contacted again on the matter."
The surge in popularity of sports betting across America, particularly with the legalization in numerous states, has been notable in recent years. While NBA players and agents are prohibited from betting on games, these regulations do not extend to business managers.
Notably, two other high-profile athletes have been identified among the "non-target witnesses" in the case. Former Chicago Bulls Hall of Famer Scottie Pippen admitted to making bets through Nix, and former Los Angeles Dodgers star Yasiel Puig has been charged with lying to federal authorities in connection to Nix's gambling ring.
Puig's agent raised concerns last November, saying the athlete felt rushed and unprepared during his interview with federal authorities. The agent also emphasized that Puig lacked criminal counsel and did not have an interpreter present during the proceedings. Puig's trial is scheduled for January.