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When one defendant failed to pay for the false documentation in kickbacks, Williams allegedly "tried to frighten the player into re-engaging" by impersonating an employee who processed the health-care plan claims and saying there was an issue, Strauss noted. According to the indictment, Williams received at least $230,000 in kickbacks from the players. Williams allegedly recruited other NBA players by offering fabricated invoices to be used in false claims in exchange for the payment of kickbacks to him.
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Terrence Williams, 11th overall in the 2009 NBA draft by the then-New Jersey Nets, was the alleged ringleader of the scheme to defraud the plan, according to the indictment. It is primarily funded by contributions from NBA teams. The NBA's Health and Welfare Benefit Plan provides additional coverage on top of existing medical coverage for eligible active and former NBA players and their families, Strauss said. The remaining players will be presented before judges in their districts of arrest. One defendant, former Portland Trail Blazers player Sebastian Telfair, will be presented late Thursday before a SDNY magistrate judge, SDNY U.S.
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The FBI arrested 16 of the defendants Thursday morning in 12 districts across the country, said Michael Driscoll, the Assistant Director in Charge of the FBI's New York Field office. The NBA Players Association also said in a statement late Thursday it was aware of the indictment and will continue to monitor the situation. The league noted that it will cooperate with the U.S. Attorney's Office in this matter. "The benefit plans provided by the NBA and the National Basketball Players Association to our players are critically important to support their health and well-being throughout their playing careers and over the course of their lives, which makes these allegations particularly disheartening," The NBA said in a statement Thursday. Players received about $2.5 million in total fraudulent proceeds, with each receiving as little as $65,000 to as much as $420,000. Those false claims totaled about $3.9 million, according to the indictment.
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