U.S. Attorney Breon S. Peace | U.S. Department of Justice
Earlier today, Cory Zeidman pleaded guilty in a federal court in Central Islip to conspiring to commit mail and wire fraud. This plea is related to a scheme aimed at defrauding sports bettors in New York and Florida by claiming access to inside information on sporting events. United States Magistrate Judge Lee G. Dunst presided over the proceeding. Zeidman faces up to 20 years in prison, along with forfeiture and restitution of approximately $3.6 million.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea alongside William S. Walker from Homeland Security Investigations (HSI), Daniel B. Brubaker from the United States Postal Inspection Service (USPIS), and Patrick J. Ryder, Commissioner of Nassau County Police Department (NCPD).
“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 United States Attorney Peace.
Walker added that Zeidman's deceptive practices exploited clients through high-pressure tactics: “Today, HSI New York and our law enforcement partners brought Zeidman’s racket to an end."
Brubaker emphasized that illegal gambling is not victimless: “Illegal gambling is not a victimless crime; Zeidman and his partners were able defraud so many individuals with their lies.”
Commissioner Ryder remarked on the importance of setting an example against fraud: “The guilty plea of defendant Cory Zeidman is a reminder that crimes against our residents will not go unpunished."
Court documents revealed that Zeidman's organization used national radio ads to lure bettors with promises of privileged information, such as non-public player injury details or fixed game outcomes. These claims were fictitious or based on open-source internet research.
Victims paid significant fees for this supposed insider knowledge, leading to millions in profits for Zeidman and his associates over several years.
Individuals who believe they may have been victims are encouraged to contact HSI at 1-866-347-2423.
In July 2022, Breon Peace was selected as Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). The case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Anthony Bagnuola.
The Defendant:
CORY ZEIDMAN
Age: 63
Boca Raton, Florida
E.D.N.Y. Docket No. 22-CR-228 (JS)
