Malik Beasley Under Federal Scrutiny Amid Betting Probe and Mounting Debt

NBA shooting guard Malik Beasley is the target of a federal probe by the U.S. Attorney's Office for the Eastern District of New York. The probe is investigating potential wire fraud offenses, illegal gambling activity, and illegal prop betting schemes.

Although Beasley was not criminally charged, the investigation has already had severe professional repercussions. After news of the investigation surfaced, the Detroit Pistons rescinded a three-year, $42 million contract offer.

The investigation appears to be underway after an unidentified sportsbook detected unusual activity on bets placed by Beasley earlier this year on his player props. Suspicion first began to develop following the Jan. 31 game between the Milwaukee Bucks and the Portland Trail Blazers, when the odds of Beasley having Under 2.5 rebounds moved from +120 to -250 following significant action.

Despite the action shift, Beasley grabbed six rebounds in the contest.

This inquiry is part of a broader investigation of a group of individuals charged with rigging betting results and abusing insider information. Toronto Raptors guard Jontay Porter, who entered a guilty plea to conspiracy to commit wire fraud and is awaiting sentencing, is among the others already charged.

According to an NBA statement from this past January, Miami Heat shooting guard Terry Rozier is also the target of a federal investigation in another, but similar, gambling investigation. The league confirmed that it investigated suspicious betting on a game in March 2023, in which Rozier, then with the Charlotte Hornets, played against the New Orleans Pelicans.

Financial issues

Although Beasley could be charged with being part of the betting scheme, the NBA veteran is already facing severe financial troubles. Public records indicate that he has almost $8 million in debt, which he has incurred through lawsuits, judgments, and defaulted personal loans.

Beasley was also sued in federal court in April by Hazan Sports Management Group, his former sports agency, for failing to repay a $650,000 advance. The agency claims he violated the terms of a four-year representation agreement signed in November 2023 by abandoning the contract early. 

The suit seeks over $2 million in damages based on promises made under breached contractual terms and disparate repayment schedules.

Beasley is also responsible for a $5.8 million judgment South River Capital obtained three years ago after a loan defaulted. Despite incorporating future and present NBA revenues into new loan arrangements, Beasley's financial condition appears to have deteriorated.

The other legal matters include two suits by Detroit landlords for past-due rent and judgments against him by a barber and a Minnesota dentist for over $60,000.