Former Syosset Resident Indicted In Massive Fraud Scheme: Feds

SYOSSET, NY — A former Syosset resident who now lives in Florida was indicted today on fraud charges related to a sports betting scheme he ran, federal authorities say.

Cory Zeidman, 61, who now lives in Boca Raton, was charged with conspiracy to commit wire fraud, mail fraud and money laundering conspiracy in connection with a sports betting fraud scheme he ran from a location in Amityville, as well as Florida, officials said.

“As alleged, Zeidman defrauded his victims, stole their life savings and persuaded them to drain their retirement accounts to invest in his bogus sports betting group, all so he could spend it on international vacations, a multi-million dollar residence and poker tournaments,” said United States Attorney Breon Peace. “Today’s indictment serves as a reminder to all of us to be wary of so-called investment opportunities that purport to have inside information, as they are really a gamble not worth taking.”

According to Peace, Zeidman was the leader of The Phoenix Organization, a group that put out national radio advertisements that advertised his sports betting advice business. Victims were led to believe that multiple sports games were rigged, and that Zeidman had inside information about who would win, prosecutors said. Victims would pay a fee to get the information so they could place bets, which they thought were guaranteed wins, prosecutors said. But the information that Zeidman sold was either made up or found on internet searches by Zeidman and his partners, said Peace.

Officials say Zeidman ran the scheme from January 2004 to March 2020, collecting more than $25 million in fees from victims. Many people lost their life savings placing bets on Zeidman's fraudulent tips, officials said.

Officials say that Zeidman used multiple aliases during the course of the scheme: Richard Barnes, Walter Barr, Mr. Carlyle, Ray Palmer, Rick Cash, Elliot Stern, Gordon Howard, David Coates, Simon Coates, Paul Knox, Mark Lewis, Joel Orenstein and Steve Nash. Some of the company names used by Zeidman were Gordon Howard Global, Ray Palmer Group and Grant Sports International, according to officials.

“As alleged, Zeidman preyed on individuals who were led to believe he had inside information that would lead them to easy money. In reality, he was selling nothing but lies and misinformation— bilking millions from victims along the way, leaving their lives in financial ruin and their bank accounts empty,” said HSI New York Acting Special Agent in Charge Ricky J. Patel. “HSI will continue to work together with our partners to follow the money and tackle complex financial investigations to bring to justice fraudsters like Zeidman, who finance their lavish lifestyles by concocting ways to bamboozle the innocent when their only real goal is lining their pockets with ill-gotten cash.”

Anyone who thinks they may have been a victim of this scheme should contact Homeland Security Investigations by calling 1-866-347-2423.