Donaghy Pleads Guilty in Scandal

Asked if his client's actions were the result of his gambling addiction, Lauro said, "In my mind, absolutely."

In a brief statement posted on the NBA's Web site Wednesday, Commissioner David Stern said, "We will continue with our ongoing and thorough review of the league's officiating program to ensure that the best possible policies and procedures are in place to protect the integrity of our game."

Washington Wizards guard Gilbert Arenas said Wednesday he studies referees' tendencies "the way some people study the players." He said nothing stood out about Donaghy, who called seven Wizards games last season, all during the regular season.

Arenas did, however, express concern about the league's image. "At the end of the day, I hope fans understand that this is one person," Arenas said. "I don't want people thinking that all of the refs are cheating, just like I don't want them thinking that because one player gets in trouble, all players are getting into trouble."

After Donaghy resigned July 9 while under FBI investigation, Stern called him a "rogue, isolated criminal" and said he believed no other players or officials were involved. Stern said he felt "betrayed" by Donaghy, adding, "This is the most serious situation and the worst situation that I have ever experienced, either as a fan of the NBA, a lawyer for the NBA or a commissioner of the NBA."

The FBI first contacted the NBA June 20 to discuss allegations that a referee was gambling on games -- charges that reportedly surfaced in a separate investigation of organized crime activities. Stern said he would have fired Donaghy before his July 9 resignation but that he was told not to because it might affect the investigation.

According to U.S. Attorney Roslynn R. Mauskopf, Donaghy began placing bets on NBA games four years ago, including games he officiated.

Among the "overt acts" cited in a federal charging document was a meeting between Donaghy and a co-conspirator in Toronto on or about March 11, 2007, at which the referee "received a cash payment."

The document did not specify any amounts that Donaghy received, but a separate FBI affidavit in support of arrest warrants for Battista and Martino said Donaghy -- identified only as a "confidential source of information" -- initially received $2,000 for each correct pick and several weeks later began getting $5,000 for each game picked correctly.

A spokesman for the U.S. Attorney's Office, Robert Nardoza, said the $30,000 in restitution that Donaghy is being assessed does not necessary represent the amount he received as part of the scam.

The newly unsealed document said Donaghy started placing bets on NBA games with a friend in 2003 and that this became known to Battista and Martino. It said that at a meeting in Philadelphia in mid-December 2006, Battista "confronted" Donaghy with the fact that he was betting on NBA games and "proposed" the scheme in which the referee would be paid for his correct picks.

The affidavit said Donaghy would call Martino, who in turn would call Battista, who then placed the bets. It said Martino made payments to Donaghy for correct picks in Phoenix in January, Toronto in March and Washington in April when the referee was in those cities to officiate NBA games. Cellphone records showed "hundreds of calls" from Oct. 1, 2006, through May 1, 2007, between Donaghy and Martino and between Martino and Battista, the affidavit said.

There was no immediate word from the FBI or the U.S. Attorney's Office on whether Donaghy corruptly influenced the outcome of games he was officiating -- an issue that the FBI's Organized Crime Squad reportedly has been investigating.

One of about 60 referees in the NBA, Donaghy worked in 139 regular season games, 8 playoff games and 4 exhibition games in the past two years. The last game Donaghy officiated was Game 3 of the controversial Western Conference semifinals on May 12 between the Phoenix Suns and the San Antonio Spurs. San Antonio won, 108-101 and went on to capture the NBA championship.

In a news conference last month, Stern said he was unaware of specific accusations that Donaghy fixed or tampered with the final scores of games. But he said, "When you place a bet on a game, you lose the benefit of the doubt."

Branigin reported from Washington. Staff writer Ivan Carter contributed to this report from Washington.