North Carolina Man First to Plead Guilty in Massive NCAA Basketball Fixing Scandal

A Charlotte man became the first person to plead guilty in a widespread college basketball point-shaving operation that involved bribing players to underperform in games. Jalen Smith admitted to wire fraud and bribery charges in federal court, just days before March Madness begins.

A Charlotte, North Carolina man became the first defendant to admit guilt in a massive college basketball gambling conspiracy that federal prosecutors say generated millions through rigged games.

Jalen Smith entered guilty pleas to wire fraud and bribery charges during a federal court hearing in Philadelphia on Monday. He is the first among 26 defendants charged in the widespread betting operation to formally accept responsibility. The plea comes just days before March Madness kicks off, when billions will be wagered both legally and illegally on the 64-team tournament.

According to federal prosecutors, Smith leveraged his background training local basketball players for professional tryouts to build relationships that he later exploited as part of the gambling conspiracy.

Federal authorities unveiled charges against Smith and 25 co-defendants in January. The case encompasses not only the organizers who enlisted players and placed wagers, but also 17 former college athletes and four players who were still competing for their university teams this season.

Prosecutors revealed that over a dozen players attempted to manipulate game outcomes as recently as last season, with some actively recruiting additional participants into the scheme.

The scandal represents the most recent gambling controversy to emerge since the Supreme Court’s 2018 ruling triggered explosive growth in legal sports betting nationwide.

Federal authorities say Smith participated in game-fixing activities during both the 2023-24 and 2024-25 seasons, placing wagers while recruiting players with promises of substantial payments in return for deliberately poor performance.

The conspirators would then wager against those players’ teams during the manipulated contests, defrauding both sportsbooks and other bettors, according to investigators.

Prosecutors detailed how Smith frequently made personal trips to deliver cash payments directly to players. In one instance, authorities say he traveled to Louisiana to arrange the delivery of approximately $32,000 in cash to two players now facing charges in the case.

Smith also entered a guilty plea to a separate firearms violation following an FBI search of his North Carolina bedroom last May, where agents discovered a loaded gun hidden in a laundry hamper beneath clothing.

Due to a 2018 drug conviction, Smith was legally prohibited from possessing firearms. According to the plea agreement, he told agents he purchased the weapon from someone outside a Charlotte sneaker store, though investigators later determined it had been reported stolen.

The point-shaving operation initially began with two Chinese Basketball Association games in 2023, according to the federal indictment. After achieving success there, organizers brought Smith and two other recruiters into the conspiracy before expanding into NCAA games. Their final fixed game occurred in January 2025.

The scheme eventually encompassed more than 39 players across over 17 different NCAA Division I men’s basketball programs, who manipulated or attempted to manipulate more than 29 contests, prosecutors stated.

The conspirators wagered millions of dollars while generating substantial profits for themselves and paying hundreds of thousands in bribes to participating players. Individual player payments typically fell between $10,000 and $30,000 per game, authorities said.

Federal prosecutors identified more than 40 universities where games were allegedly targeted, including Tulane University and DePaul University.

The manipulated contests spanned major conferences and postseason play, including first-round Horizon League championship and second-round Southland Conference championship games, according to prosecutors.

Players often enlisted teammates to participate by performing poorly, sitting out plays, or preventing non-participating players from scoring opportunities. However, some attempted fixes failed, resulting in losses for the betting conspirators, prosecutors noted.