A Serious Indictment for Cory Zeidman

By Scott Bowen,
Editor at online-gambling.com

Scott Bowen Editor at online-gambling.com

Scott Bowen is a casino expert and editor with many years of experience in the gambling industry. He is one of the most valuable members of our team at online-gambling.com. Bowen specializes in writing on a variety of subjects, including roulette, blackjack, video poker, sports betting, and more.

• Twitter
• Email

More About Scott Bowen

Last updated: May 30, 2022

A two-count indictment was unsealed last month by the US Attorney’s Office for the Eastern District of New York. Cory Zeidman was charged with a number of serious federal crimes. Below are the charges:

• Count 1: Conspiracy to commit mail fraud and wire fraud by obtaining property and money from victims under false promises and pretences.
• Count 2: Conspiracy to commit money laundering by carrying out interstate financial transactions that involve the proceeds of illegal activity.

On May 25, federal authorities apprehended Zeidman in Florida, and he appeared at the federal court in Miami for the first time.

US Attorney Breon Peace said Zeidman duped his victims, took their savings, and convinced them to empty their retirement accounts so they could invest in his fake sports betting group. He did it to spend the money on a multi-million-dollar home, international vacations, and poker tournaments.

This is said to have been done under the identities of several companies, including Gordon Howard Global, Grand Sports International, and Ray Palmer Group.

How He (Purportedly) Did It

Zeidman lived in Boca Raton, Florida, but his business was allegedly also being operated out of Long Island.

He operated the Phoenix Organization with several other conspirators not listed in this indictment. They were in operation from January 2004 to March 2020.

Zeidman and his conspirators ran ads on radio stations across the United States. The adverts promised an “advanced white-collar method to acquiring sports information” and that “wagering should be viewed as an investment, not a high-risk gamble.” Listeners could get more information by calling a phone number mentioned in the advertisement.

They broadcast commercials on radio stations across the United States. The advertising promised a “professional white-collar technique to acquiring sports information” and that “wagering should be viewed as an investment, not a high-risk gamble.” Listeners could get more information by calling a phone number mentioned in the advertisement.

Callers were told that some sporting events were predetermined. They were told that the company could predict the outcomes of some sporting events due to insider and privileged information they had from a variety of sources, including television executives and college physicians.

The callers were assured that their wagers were risk-free and that all they had to do was to pay a fee for the opportunity to wager on fixed results.

People were compelled to send fees exceeding $25 million via commercial/private carriers and interstate wire transfers.

US District Asked for the Money to Be Returned

The US District Court has asked for the money to be returned. It claims that people used their savings and other funds to bet on “fixed” games, which are guaranteed to win money for them.

The indictment requests the return of all property earned directly or indirectly from the alleged crimes under the first count of wire and mail fraud. It should be worth at least $25 million.

Per the second count, the money in the same bank accounts must be returned. This also includes property in Levittown, New York.