A significant figure in a basketball point-shaving conspiracy has confessed to his role in federal court. Jalen Smith, who acted as a fixer, admitted to recruiting and compensating college athletes to intentionally underperform in games, thereby preventing their teams from covering the spread. Payments ranged from $10,000 to $30,000 per game.
Smith and his co-conspirators placed substantial bets against the affected teams through various sportsbooks and intermediaries. This extensive scheme involved over 39 players from at least 17 NCAA teams and influenced more than 29 games.
The operation initially started with games in the Chinese Basketball Association (CBA), where the fixing group first orchestrated point shaving before extending their activities to NCAA men’s basketball. Prosecutors have indicated that this scheme was active from at least September 2022 until February 2025.
On March 9, Smith entered a guilty plea on multiple counts, including bribery in sporting contests, conspiracy to commit wire fraud, aiding and abetting, and possession of a firearm by a felon. He now faces a lengthy prison sentence and potential fines. The bribery charge carries a maximum penalty of five years, while the wire fraud charges could result in up to 20 years in prison.
One notable aspect of the indictment is Smith's strategy to avoid targeting star players with lucrative endorsement deals. Instead, he focused on players with limited NIL (Name-Image-Likeness) earnings, often from underdog teams. Since the legalization of NIL compensation in 2021, college athletes have been able to profit from their market value.
While star players with significant social media followings have reaped the most benefits, many Division I athletes still see little to no NIL income. For those earning minimal amounts, the prospect of receiving over $15,000 in untaxed cash can be tempting. Prosecutors noted that the conspirators specifically sought out players with few legitimate NIL opportunities and even compensated them for insights regarding the health and status of their teammates.
Smith maintained regular contact with the recruited players. A press release from the U.S. Attorney’s Office for the Eastern District of Pennsylvania highlighted a specific incident where, during halftime of a close game, Smith texted a bribed player, urging him to underperform in the second half. He insisted that the game needed to be a blowout and expressed concern that the player was costing him money by not ensuring the team’s loss.
When bets were successful, Smith would visit college campuses to deliver cash bribes to the players. However, the scheme was not always successful. For instance, in a game between Buffalo and Kent State, fixers placed bets totaling at least $424,000 but lost most of it after failing to cover the spread by half a point.
Kent State needed to lead the first half by more than 8.5 points but only managed an 8-point lead. At least three players involved in the scheme scored just one point collectively in the last 13 minutes of the first half, missing several scoring opportunities.
The fixers often targeted first-half spreads, allowing them to influence only part of the game rather than the final result. This prompted NCAA President Charlie Baker to call on state regulators to prohibit certain betting markets, including individual player prop bets and first-half spreads.
One alarming aspect of this scandal is its duration, spanning approximately two and a half years and involving numerous players and games. Millions of dollars were wagered through sportsbooks without triggering any early integrity alerts. Eventually, the FBI uncovered the operation.