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Terrence Williams sentenced to 10 years in prison for defrauding the NBA’s health care plan for $5 million

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Updated11 hours ago on April 27, 2024

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Nets Terrence Williams sentenced to 10 years in prison for defrauding the NBAs health care plan for $5 million

Former New Jersey Nets player Terrence Williams, a first-round draft pick in 2009, was sentenced to 10 years in prison Thursday by Manhattan federal Judge Valerie E. Caproni for devising a scheme to steal $5 million from the NBA’s health care plan.

Williams, 36, admitted in August 2022 of developing a plan to defraud the NBA’s Health and Welfare Benefit Plan that provides coverage to former and retired players. Judge Caproni also ordered the Washington native to pay more than $3.1 million in restitution and forfeitures.

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“You were yet another player who frittered away substantial earnings from the period of time when you were playing basketball professionally,” Caproni told Williams. “You should have had enough money to be set for life, but you don’t. And you think first and foremost about yourself and not others.”

From 2017 through 2021, Williams and the co-defendants allegedly submitted fake invoices, filled with typos and inconsistencies, to the health care plan for reimbursement of medical and dental expenses for care they never received, prosecutors said.

Former New Jersey Nets guard Terrence Williams sentenced to 10 years in prison for defrauding the NBA’s health care plan, pleaded guilty to conspiracy to commit health care and wire fraud and aggravated identity theft

On Oct. 7, 2021, the U.S. Attorney for the Southern District of New York, Audrey Strauss, arrested Williams and 15 other former ballers in connection with the alleged scheme. Approximately $4 million in fraudulent claims were made. Strauss referred to Williams as the leader of the conspiracy over 18 ex-players.

The charges allege that Williams obtained fraudulent medical and dental invoices, sent them to his co-conspirators — which include NBA players, doctors, and a dentist — and claims were submitted by the defendants to the plan, which paid “most” claims for medical care never rendered.

“Each defendant made false claims for reimbursement that ranged from $65,000 to $420,000,” Straus said. Williams initially claimed he did it for chiropractic care.


Moreover, the dentist and one of the doctors resided in California, whereas the other doctor in Washington state. Judge Caproni said the former player used his people skills to entice others to aid. Forms were filed for the supplement coverage plan.

According to investigators, Williams recruited other current and retired players into making fraudulent medical claims by offering to give them fake invoices. Of course, the invoices he received came from shady health care providers, prosecutors said.

For coordinating the scam, Williams received $346,000 in kickbacks, per the feds. Williams impersonated employees from the insurance company to email co-defendants and intimidate them to maintain the scheme and send him additional kickbacks, the feds alleged.

Terrence Williams, Glen Davis, Shannon Brown, Sebastian Telfair, Darius Miller, Jamario Moon, Melvin Ely, Ruben Patterson, Tony Wroten, and Tony Allen were among the listed accomplices

Furthermore, at least 10 of the ex-players paid kickbacks totaling about $230,000 to Williams. The University of Louisville product told one co-defendant to pay him a “fine” or risk being reported for the fraudulent invoices, prosecutors claimed.

A total of 19 people were charged in this indictment on counts of conspiracy to commit health care fraud and wire fraud. At this juncture, 13 have pleaded guilty to charges.

Terrence Williams, Glen Davis, Shannon Brown, Sebastian Telfair, and Darius Miller were among the listed accomplices. Jamario Moon, Melvin Ely, Ruben Patterson, Tony Wroten, and Tony Allen participated as well.

Additionally, the former Net pleaded guilty to conspiracy to commit health care and wire fraud and aggravated identity theft. “I one million percent take full accountability for my role in this case,” Williams said.

Not to mention, the 18 players made a combined $343 million during their on-court NBA careers, excluding outside income, endorsements, and money earned playing overseas.

Equally important, Williams has been incarcerated since May 2022. Prosecutors alleged that he sent threatening phone texts to a witness. Threatening a witness can be a felony. If convicted as a felony, he or she can face two to four years in prison.

U.S. Attorney Damian Williams said the defendant did everything in his power to maximize illegal profits. “Williams not only lined his pockets through fraud and deceit, but he also stole the identities of others and threatened a witness to further his criminal endeavors. For his brazen criminal acts, Williams now faces years in prison.”

In addition to playing for the Nets, Williams played for the Boston Celtics, Houston Rockets, and Sacramento Kings. The 6-foot-6 guard averaged 7.1 points, 3.6 rebounds, and 2.4 assists in 153 career games. He made an estimated $6.9 million in his playing career, per Basketball-Reference.

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