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Former NBA Player Tony Allen Avoids Prison Time in $5M Health Care Fraud Scheme

Paul KasabianFeatured Columnist IIAugust 8, 2023

New Orleans Pelicans guard Tony Allen (24) stands on the court during a video tribute to him in the first half of an NBA basketball game against the Memphis Grizzlies Wednesday, Oct. 18, 2017, in Memphis, Tenn. (AP Photo/Brandon Dill)
AP Photo/Brandon Dill

Former NBA guard Tony Allen has been sentenced to community service and supervision as part of his role in a larger $5 million benefits scam in which he submitted $420,000 in fake health invoices.

Per Pete Brush of Law360, Allen has paid back most of the $420,000 he illegally took before being charged.

The 14-year veteran pled guilty to conspiracy to commit health care fraud and wire fraud in April, per The Athletic.

"I fully acknowledge my individual responsibility and I understand the gravity of my actions," Allen said in court on the day of his sentencing. "As a member of the NBA community I failed to uphold our core values."

As Brush noted, Allen is one of numerous NBA players who have avoided jail time as part of the fallout from the scam.

However, three players seen as ringleaders in the scam received jail time. Terrence Williams, the ringleader of the operation, has been sentenced to 10 years. Keyon Dooling and Alan Anderson, who Brush called "active participants" in the scam, received lighter sentences for their roles.

All told, 18 ex-NBA players have been accused of submitting $5 million in fraudulent medical and dental claims from 2017 to 2020, per The Athletic, who also relayed how the Williams-led scam worked.

"According to court documents, Williams recruited other benefits plan participants to the scheme 'by offering to provide them with false invoices to support their fraudulent claims,' and medical professionals — including a dentist in California and doctors in California and Washington — provided Williams with the invoices, among other tactics," per The Athletic. "He submitted the fraudulent claims in exchange for kickbacks totaling at least $300,000."

In addition to jail time, Williams had to forfeit over $650,000 and pay $2.5 million in restitution.

Other players involved reportedly include Shannon Brown, Melvin Ely, Sebastian Telfair and Glen "Big Baby" Davis.

Allen, 41, was one of the NBA's best defensive players during his pro career. The six-time NBA All-Defensive Team member won a championship with the 2007-08 Boston Celtics and played a key role on the "Grit and Grind" Memphis Grizzlies in the 2010s.

He ultimately played in the Association from 2004 to 2018, finishing his career with the New Orleans Pelicans.