In November 2007, former NBA referee Tim Donaghy pleaded guilty to betting on NBA games, including games that he officiated, as well as providing confidential information to others who bet on NBA games, a serious violation of NBA regulations.
For four years, Donaghy placed personal bets on NBA games, and for at least five months he advised gamblers on which teams to pick by providing information about referee assignments, health of players, and relationships between referees and players. He was paid to make picks on the games, initially netting $2,000 for each correct pick and later he earned up to $5,000. By committing these crimes, Donaghy has brought into question the NBA’s ability to monitor and regulate their referees.
John Lauro, his lawyer, stated that he believed Donaghy’s actions were based on a gambling addiction that went untreated for too long.
Donaghy faces up to 25 years in prison and up to $500,000 in fines.
Source: St. Petersburg Times