Poker player Cory Zeidman arrested on charges of fraud, for alleged sports betting scheme
A former World Series of Poker bracelet winner, Cory Zeidman, has been arrested for his alleged role in a sports betting scheme that has collected more than $25 million from alleged victims.
Zeidman, 61, faces federal charges of conspiracy to commit wire fraud and mal fraud, and conspiracy to commit money laundering as part of a sports betting subscription scheme that spanned from 2004 - 2020, according to a two-court indictment out of the United States District Court for the Eastern District of New York.
According to the federal indictment unsealed on Wednesday, Zeidman and his unnamed co-conspirators received more than $25 million in interstate wire transfers and private commercial carriers from victims who were led to believe the organization had privileged information that made betting on sports events a no-risk proposition.
According to the indictment, Zeidman and his associates placed radio ads in various markets “which falsely advertised a sophisticated white-collar approach to gathering sports information and promised wagering as investing, not high risk gambling.” Potential customers were instructed to call a number where they were told the organization had privileged information about fixed games that it received from physicians at colleges and television executives. Callers were asked to pay a fee for access to the information.
“As alleged, Zeidman defrauded his victims, stole their life savings and persuaded them to drain their retirement accounts to invest in his bogus sports betting group, all so he could spend it on international vacations, a multi-million dollar residence and poker tournaments,” United States Attorney Breon Peace said in a statement that announced the indictment.
“Mr. Zeidman took advantage of the public’s interest to ‘get in on the ground floor’ of his sports betting organization. He devised a criminal scheme to fatten his pockets using nothing more than people’s love for sports and his clever words wrapped around a fraud,” announced United States Postal Inspector in Charge Daniel Brubaker. “Postal Inspectors remind investors to thoroughly review all investment offers to ensure they are not left with a line of empty promises and a drained bank account.”
Born in Long Island, NY, but living in Florida, Zeidman used multiple aliases and businesses to collect the money.
According to Card Player, Zeidman has four tournament wins with 42 tournament cashes for over $690,000.