Stern: Betting Allegations an Isolated Case

NEW YORK (AP) -- David Stern insisted allegations a former referee bet on games was an isolated case and called it the worst situation he had experienced during his tenure as commissioner.

"Mr. Donaghy is the only referee alleged to have bet on NBA games and disclosed confidential information to others," Stern said Tuesday during a packed news conference. "I'll say it again, I understand this is an isolated case."

The FBI is investigating former referee Tim Donaghy for allegedly betting on games he officiated during the last two seasons. He is expected to turn himself in at U.S. District Court in Brooklyn later this week or early next week, according to a person familiar with the investigation.

A subdued Stern said he felt betrayed on behalf of NBA fans in his first public comments since news of the investigation broke.

Stern said his understanding is that Donaghy is being investigated for betting on games he did and did not officiate and for providing insider information to others so they could profit by betting on games.

"The current state of what we're dealing with is betting and providing information," Stern said. "I don't know of any charges yet or any discussions yet as to fixing of games."

Stern called it the "worst situation I've every experienced either as fan of the NBA, a lawyer for the NBA or commissioner of the NBA."

Donaghy's lawyer has informed the NBA that the former referee is considering agreeing to a plea agreement.

The FBI first contacted the NBA on June 20 to talk about a referee alleged to be gambling on games, and the two sides met on June 21, Stern said. Donaghy resigned July 9.

"Suffice to say, we would have liked to have terminated him earlier, but our understanding was the investigation would best be aided if we did not terminate Mr. Donaghy," Stern said.

The June call from the FBI was not the first time Donaghy faced gambling allegations.

In January 2005, Stern said, the NBA investigated a dispute between Donaghy and a West Chester, Pa., neighbor. During the investigation, there were allegations that Donaghy was gambling -- not on sports -- in Atlantic City. Stern said the league contacted every casino in Atlantic City and Las Vegas and found no evidence of gambling by Donaghy.