Terry Rozier files motion to dismiss charges in federal sports betting case

Rozier previously pleaded not guilty to wire fraud and money laundering charges

Miami Heat guard Terry Rozier continues to step up his legal defense in advance of a potential trial in the federal sports betting case. Just over two weeks after he entered a not guilty plea, Rozier now seeks to have his charges dismissed altogether.

Rozier was arraigned on two charges -- conspiracy to commit wire fraud and conspiracy to commit money laundering -- but his attorney, Jim Trusty, argues that the federal government overstepped with those allegations. Trusty said the government did not clearly explain how Rozier allegedly committed wire fraud in the indictment and, in turn, filed a motion to dismiss.

Trusty cited a 2023 United States Supreme Court ruling that outlines the basis of a wire fraud charge. That is, the purpose of the scheme must be to deprive a victim (in this case, the sportsbooks) of money or property. The money laundering charge depends on the wire fraud charge and would thus crumble if the latter is dismissed.

"The government has billed this case as involving 'insider betting' and 'rigging' professional basketball games," Trusty said in a public legal document. "But the indictment alleges something less headline-worthy: that some bettors broke certain sportsbooks' terms of use."

Rozier was implicated in the case for his alleged involvement in a gambling ring that involved the trading of inside, non-public information to bettors. Rozier is accused of informing a co-conspirator, De'Niro Laster, that he would remove himself early from a March 2023 game during his tenure with the Charlotte Hornets. Laster then sold that information to gamblers, who then distributed it through a betting syndicate, according to the indictment.

"The indictment does not allege that Mr. Rozier ever placed a bet, whether himself or through a proxy, on any NBA game," Trusty said. "Nor does it allege that he knew that Laster intended to sell this information to others, or that using it to place wagers would violate the Betting Companies' rules."

The prosecution must respond by Feb. 2. The next procedural hearing for the more than 30 defendants in the gambling case is set for March 4, and Judge Ramon Reyes said at a previous hearing that he intends for a trial to begin by September.

Rozier was arrested in October along with suspended Portland Trail Blazers coach Chauncey Billups, former NBA player Damon Jones and more than 30 others. Billups is accused of participating in a separate gambling scheme tied to rigged poker games run by organized crime. Jones is implicated in both cases. Both pleaded not guilty to their charges.