Cory Zeidman, formerly of Long Island, pleads guilty to sports betting fraud scheme charges

A former professional poker player from Long Island admitted in federal court Wednesday to knowingly providing false inside information on sporting events to bettors for a fee in a multimillion dollar sports gambling scheme.

Cory Zeidman, 63, a native of Syosset who now resides in Boca Raton, Florida, pleaded guilty to conspiracy to commit wire and mail fraud before Magistrate Judge Lee Dunst in Central Islip for his role in the scheme identified in court records as the "Phoenix Operation," which prosecutors said operated on Long Island and Florida and attracted customers from across the country.

"Our company would occasionally provide potential customers with false information regarding information that our company had about various sporting events in order to induce those customers into paying fees in exchange for sports betting advice," Zeidman told Dunst during the plea hearing. "Fees the customers paid and for which I profited."

Assistant U.S. Attorney Anthony Bagnuola said the false information included claims the company had inside knowledge about "dirty referees" and "fixed games" that made betting "risk free."

"Mr. Zeidman’s operation was described as a more secure investment opportunity than mere sports betting," Bagnuola said of the exchanges Zeidman had with prospective clients.

Court records show Zeidman and his business partners set up entities by using aliases and creating fake websites and also placed radio advertisements that promoted their operation as a "sophisticated white-collar approach to gathering sports information" promising "wagering as investing, not high-risk gambling." In total, the scheme generated about $25 million in fees, according to the 2022 indictment charging Zeidman. Prosecutors described the fees as "exorbitant" and said Zeidman and associates used "high-pressure sales tactics" to bait gamblers into placing bets.

"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," U.S. Attorney for the Eastern District Breon Peace said in a statement. "Today’s guilty plea sends a message to all those who would prey upon the public by falsely advertising gambling as an ‘investment opportunity.’"

Bagnuola said investigators used recorded telephone conversations, text messages, emails and bank records to build the case against Zeidman. Three of his coconspirators also pleaded guilty and agreed to testify against him, along with 10 victims of the scheme, had the case gone to trial.

Zeidman, who according to a school website, pitched on the Hofstra University baseball team in the early 1980s, said outside of court that he could not discuss the case, but wished to make an unrelated statement. He used his time to instead offer a sharp critique of how Yankees manager Aaron Boone managed his pitching staff in the 2024 MLB postseason and what he saw as the declining physical abilities of Jets quarterback Aaron Rodgers.

Zeidman, a winner of a 2012 World Series of Poker bracelet, considered the top prize in poker, declined to say if he is still gambling.

United States Postal Inspector Service Inspector in Charge Daniel Brubaker said in a statement that Zeidman "gambled and lost when he thought his illegal activities would fly under the radar."

As part of his plea agreement, Zeidman agreed to pay nearly $3.7 million in restitution to his victims and faces a fine of up to $250,000.

Zeidman, who on Wednesday waived his right to appeal any sentence of 46 months or less, faces a maximum sentence of 20 years behind bars with no minimum sentence, Dunst noted.

Defense attorney Sarita Kedia, of Manhattan, agreed with prosecutors to recommend an estimated guideline sentence of between 33 and 41 months in federal prison when he is sentenced by Magistrate Judge Joanna Seybert in May.

By Grant Parpan

grant.parpan@newsday.com@GrantParpan

Grant Parpan covers Suffolk County courts and federal courts for Newsday. A Long Island native, he joined Newsday in 2022.