(Photo credit: John Hefti-Imagn Images)

Portland Trail Blazers coach Chauncey Billups and Miami Heat guard Terry Rozier were arrested Thursday morning in connection with a federal investigation into illegal gambling.

Also taken into custody was former Cleveland Cavaliers assistant coach Damon Jones, who was linked to investigations involving fixed poker games and illegal betting on basketball. He allegedly used his insider knowledge about players -- including his former teammate, LeBron James -- to profit.

Billups, a member of the Naismith Basketball Hall of Fame, was arrested in Oregon, the morning after the Trail Blazers lost their season opener to the Minnesota Timberwolves. The 49-year-old Billups has coached the team since 2021.

Rozier, 31, did not play in the Heat's season opener on the road against the Magic because of a hamstring injury. He was taken into custody at his hotel in Orlando.

Both Billups and Rozier face charges of money laundering and wire fraud conspiracy.

The NBA cooperated in the federal investigation, authorities said.

'We are in the process of reviewing the federal indictments announced today,' the NBA said in a statement. 'Terry Rozier and Chauncey Billups are being placed on immediate leave from their teams, and we will continue to cooperate with the relevant authorities. We take these allegations with the utmost seriousness, and the integrity of our game remains our top priority.'

The Trail Blazers released a statement Thursday afternoon, which read, 'We are aware of the allegations involving head coach Chauncey Billups, and the Trail Blazers are fully cooperating with the investigation. Billups has been placed on immediate leave, and Tiago Splitter will assume head coaching duties in the interim. Any further questions should be directed to the NBA.'

The arrests were a product of a multiyear investigation that spanned 11 states.

At a news conference Thursday morning in Brooklyn, a spokesperson for the U.S. Attorney's Office in the Eastern District of New York said Billups and Rozier would appear in federal courts later in the day.

Billups is set to appear in court in Portland and Rozier in Florida, John Marzulli said. Both will be arraigned in New York at a later date.

'This is an illegal gambling operation and sports rigging operation that spanned the course of years,' FBI director Kash Patel said at the news conference.

Billups and Jones allegedly played in rigged poker games in New York that were linked to the Mafia.

The games allegedly involved advanced technology, such as X-ray machines to read cards that were face down on the table and rigged shuffling machines, U.S. attorney Joseph Nocella Jr. said.

In all, 34 people were arrested in the separate investigations into betting and illegal poker, said Christopher Raia, assistant director of the FBI's New York field office. He characterized the arrests as a 'massive, nationwide takedown' that also included 13 members of the Mafia and their associates.

Court documents assert Jones, who was around the Los Angeles Lakers and conducted pregame workouts with James in the 2022-23 season, used his access to players, the locker room and injury information for the collective profit of the gambling ring.

Specifically, Jones 'sold or tried to profit from non-public information so that others could bet on it' and make money, the FBI charged. In one case, the investigation appears to point to Jones' connection with former Cavaliers teammate James. They were on the same team from 2005-08 and Jones was an assistant in Cleveland when James rejoined the team from 2014-18.

The indictment details reported Thursday include alleged messages Jones sent to leaders of the betting ring when players would not play before the information was released. One case in which the inside information is alleged to have come from Jones was Feb. 9, 2023. James was ruled out against the Milwaukee Bucks due to ankle soreness.

'Get a big bet on Milwaukee tonight before the information is out!,' Jones allegedly sent in a text message.

An investigation into Rozier has been underway since a March 23, 2023, game when Rozier played for the Charlotte Hornets. Sportsbooks reported unusual betting activities on prop bets -- all on the under -- in a game Rozier left after 10 minutes, claiming a foot injury.

The indictment alleges Rozier made it known to associates that he would depart the game early, and more than $200,000 was wagered on the under, with a share of the winnings given to Rozier.

Rozier's attorney, Jim Trusty, criticized law enforcement in a statement:

'We have represented Terry Rozier for over a year. A long time ago we reached out to these prosecutors to tell them we should have an open line of communication,' he said. 'They characterized Terry as a subject, not a target, but at 6 a.m. this morning they called to tell me FBI agents were trying to arrest him in a hotel.

'It is unfortunate that instead of allowing him to self surrender they opted for a photo op. They wanted the misplaced glory of embarrassing a professional athlete with a perp walk. That tells you a lot about the motivations in this case.'

The NBA conducted its own investigation and announced in January that it 'did not find a violation of NBA rules.'

'Terry was cleared by the NBA and these prosecutors revived that non-case,' Trusty said in the statement. 'Terry is not a gambler, but he is not afraid of a fight, and he looks forward to winning this fight.'

The National Basketball Players Association said it intends to stay active as the case plays out.

'The integrity of the game is paramount to NBA players, but so is the presumption of innocence, and both are hindered when player popularity is misused to gain attention,' according to a statement from the association. 'We will ensure our members are protected and afforded their due process rights through this process.'

Billups played 17 years in the NBA, winning a championship as the Finals MVP with the Detroit Pistons in 2004. The five-time All-Star guard entered the Basketball Hall of Fame in 2024.

Jones, 49, played with 10 teams over 11 NBA seasons.

Rozier entered the league as a first-round draft pick of the Boston Celtics in 2015. He is playing this season on the final year of a four-year, $96.3 million deal he signed with the Hornets and has $160.4 million in career earnings, according to Spotrac.

--Field Level Media