El Paso Man Pleads Guilty to Ponzi Scheme with Fake NBA Promotions

Authorities say the 63-year-old scammed investors through a fraudulent scheme involving phony NBA preseason game events.

Mar. 30, 2026 at 7:45pm

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An extreme close-up photograph of a crumpled, torn document or contract, conveying a sense of financial wrongdoing through the use of dramatic lighting and a stark, gritty aesthetic.A recent wave of financial fraud schemes targeting sports fans exposes the need for greater consumer protection against Ponzi-style investment scams.El Paso Today

A 63-year-old man from El Paso, Texas has pleaded guilty to seven counts of wire fraud related to a Ponzi scheme that involved promoting fake NBA preseason games. The U.S. Attorney's Office for the Western District of Texas says the man defrauded investors by claiming he could arrange lucrative NBA exhibition matches, when in reality no such games were ever scheduled or took place.

Why it matters

Ponzi schemes that target unsuspecting investors through false promises of high returns continue to be a persistent problem, especially in the sports and entertainment industries where fans can be easily drawn in by the prospect of exclusive access or insider information. This case highlights the need for greater scrutiny and regulation around the promotion of live sporting events to protect consumers from financial fraud.

The details

According to prosecutors, the 63-year-old El Paso resident operated the Ponzi scheme by soliciting investments from individuals under the false pretense that he could organize NBA preseason games in El Paso. He claimed he had secured agreements with the league and specific teams, when in reality no such games were ever scheduled or took place. The man used funds from new investors to pay fake "returns" to earlier investors, characteristic of a classic Ponzi scheme.

  • The fraudulent scheme took place over several years, from 2019 to 2025.
  • The man pleaded guilty to the charges on March 30, 2026.

The players

U.S. Attorney's Office for the Western District of Texas

The federal prosecutorial office that brought charges against the El Paso man for operating the Ponzi scheme.

63-year-old El Paso resident

The individual who pleaded guilty to seven counts of wire fraud for running the fraudulent investment scheme involving fake NBA preseason game promotions.

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What’s next

The 63-year-old man will be sentenced at a later date, where he could face up to 20 years in federal prison for each wire fraud conviction.

The takeaway

This case serves as a stark reminder for investors to thoroughly vet any promotions or investment opportunities, especially those involving high-profile sports leagues or celebrities, in order to avoid falling victim to sophisticated financial fraud schemes.