NBA referee pleads guilty in gambling scandal

Former NBA referee Tim Donaghy pleaded guilty to two felony charges on Wednesday, admitting to helping co-conspirators, one of whom was a professional gambler, bet on games that he officiated.

The case has sent shockwaves through professional basketball, leaving fans wondering if Donaghy altered the outcome of games because of his financial interest.

Donaghy, 40, faces a maximum prison sentence of 25 years but stands to be sentenced to less time as part of a plea deal with federal prosecutors. He was released on $250,000 bail and agreed to forfeit $30,000.

"I was in a unique position to predict the outcome of NBA games," Donaghy told US District Court Judge Carol Amon in Brooklyn federal court.

"Some of my picks included games I had been assigned to referee."

His two accused co-conspirators, James Battista, 42, and Thomas Martino, 41, were released on $250,000 bail on Wednesday.

Donaghy admitted to participating in a scheme in which, against National Basketball Association rules, he would pass along inside information, such as the physical condition of certain players and which referees would officiate upcoming games, the judge said.

Prosecutors allege he received up to $5,000 from professional gamblers for making predictions that turned out to be correct and accepted money at least three times: in Phoenix in January 2007, in Toronto in March and in Washington in April.

He pleaded guilty to wire fraud conspiracy to defraud the NBA and to transmitting gambling information across state lines.

Gambling problem

"He has had a severe gambling problem for a while," defence lawyer John Lauro told reporters. "He has expressed a great deal of regret and concern about the pain he has caused."

Prosecutors allege Donaghy started betting on NBA games in 2003, using a friend to place the bets with a bookmaker so he could escape detection.

In December 2006, Donaghy met Battista and Martino in Philadelphia, prosecutors said in an affidavit based on an FBI probe.

Battista, a professional gambler, confronted Donaghy with the fact he was betting on NBA games and proposed that Donaghy provide picks for upcoming games in exchange for $2,000 for each correct pick, the affidavit said. Later the amount was increased to $5,000.

Donaghy and Martino devised a code for communicating Donaghy's picks over the phone - a system that continued until April 2007.

Donaghy, who earned $260,000 from the league last season, resigned on July 9 after 13 seasons as an NBA referee. Eleven days later the FBI approached the NBA about him.

NBA Commissioner David Stern in July called Donaghy a "rogue, isolated criminal" and said it appeared no other league employees were involved.

"We will continue with our ongoing and thorough review of the league's officiating programme to ensure that the best possible policies and procedures are in place to protect the integrity of our game," Stern said in a statement on Wednesday.