Defendant’s organization misled victims into believing it had inside information on college and professional sporting events
NEW YORK — A former Long Island man pleaded guilty on Dec. 4 to conspiring to commit mail and wire fraud following an investigation by Homeland Security Investigations (HSI) New York, in coordination with our law enforcement partners.
Cory Zeidman, age 63, who now resides in Boca Raton, Florida, admitted to his involvement in a yearslong scheme to defraud prospective sports bettors in New York and Florida by claiming to have inside information on sporting events. When sentenced, Zeidman faces a maximum sentence of 20 years’ imprisonment, as well as forfeiture and restitution of approximately $3.6 million.
HSI New York Special Agent in Charge William S. Walker announced the guilty plea alongside Breon Peace, United States Attorney for the Eastern District of New York; Daniel B. Brubaker, Inspector in Charge, United States Postal Inspection Service, New York; and Patrick J. Ryder, Commissioner, Nassau County Police Department.
“Sports bettors sought Corey Zeidman’s advice before gambling their money — but it was Zeidman himself who was scoring big through his deceptive practices, outright lies, and high-pressure tactics that exploited unsuspecting clients,” stated Walker. “Today, HSI New York and our law enforcement partners brought Zeidman’s racket to an end. The public deserves to know the truth concerning where their money is going, and HSI is committed to working with our partners to protect the community wherever and whenever possible from illicit schemes.”
“Zeidman and his partners baited unsuspecting victims with false claims of an edge in sports betting only to feed them lies and pocket millions of dollars from their savings and retirement accounts,” stated Peace. “Today’s guilty plea sends a message to all those who would prey upon the public by falsely advertising gambling as an ‘investment opportunity’: the only sure bet here is that this Office will work tirelessly to root out sources of disinformation and fraud and prosecute them to the fullest extent of the law.”
“Today’s guilty plea is proof that this individual gambled and lost when he thought his illegal activities would fly under the radar. Illegal gambling is not a victimless crime, Zeidman and his partners were able defraud so many individuals with their lies and had them pay these exorbitant fees for nothing. USPIS will continue to investigate individuals who are intentionally skirting federal regulations for their own selfish desires. I would like to thank Homeland Security Investigations, Nassau County Police Department, and the United States District Court for the Eastern District of New York for their collaborative effort on this massive investigation,” stated Brubaker.
“The guilty plea of defendant Cory Zeidman is a reminder that crimes against our residents will not go unpunished. Numerous victims lost millions of dollars after being given fraudulent and misleading information regarding online betting. We need to set an example and continue to investigate and arrest offenders who commit fraud and any other crimes against our residents. I would like to thank the United States Attorney for the Eastern District of New York and Homeland Security Investigations for their assistance in this case,” stated Ryder.
According to the investigation and as alleged in court documents, Zeidman helped run an organization that placed national radio advertisements to lure prospective bettors to retain the organization for sports betting advice. Using fake names and high-pressure sales tactics, Zeidman and his partners falsely led the bettors to believe that their organization had access to non-public information — bettors were often told, for example, that Zeidman’s organization had access to non-public player injury information, “dirty” referees, or that professional sporting events were “fixed” and that media executives’ shares predetermined outcomes with Zeidman’s organization. This information, the bettors were told, made gambling on sporting events a low or no-risk proposition. Victims were required to pay exorbitant fees to obtain this supposedly privileged information which, unbeknownst to them, was fictitious or based on the conspirators’ open-source internet research. Over the course of several years, Zeidman and his partners reaped millions in fees from victims.
Any individuals who believe they may have been the victim of the alleged crimes perpetrated in connection with this release can contact HSI at 1-877-4-HSI-TIP.