Arenas and five others, including a suspected high-level member of an Israeli organized crime group, are accused of having high-stakes poker games at his Encino mansion. Arenas, 43, is named in the indictment as "Agent Zero," a nickname from his playing days with the Washington Wizards.
He is charged with one count of conspiracy to operate an illegal gambling business, one count of operating an illegal gambling business and one count of making false statements to federal investigators.
Arenas was a three-time NBA All-Star during an 11-year career with four teams, including the Golden State Warriors and Wizards. He's also known in L.A. as well for his son Alijah Arenas, a star recruit at USC who was recently in a violent Cybertruck crash.
Also charged in the indictment with conspiracy and operating an illegal gambling business are:
- Yevgeni Gershman, 49, of Woodland Hills, a suspected organized crime figure from Israel;
- Evgenni Tourevski, 48, of Tarzana;
- Allan Austria, 52, of West Hills;
- Yarin Cohen, 27, of Tarzana; and
- Ievgen Krachun, 43, of Tarzana.
Arenas appeared in a downtown L.A. courtroom Wednesday afternoon for his arraignment, where he pleaded not guilty. The judge ordered Arenas to be released on $50,000 bond. A trial date was set for Sept. 23.
His attorney Jerome Friedberg said outside the courthouse that he hadn't had much time to speak with his client and couldn't comment on the case.
"At this point in the case, he is presumed innocent, right?" Friedberg said. "He has the same right as any other citizen to that presumption and that's how he should be treated."
According to the indictment, Arenas rented out an Encino mansion he owned for the purpose of hosting high-stakes illegal poker games. At Arenas' direction, Arthur Kats, 51, of West Hollywood, staged the house to host the games, found co-conspirators to operate the games, and collected rent from the co-conspirators on Arenas' behalf from September 2021 to July 2022, federal prosecutors allege.
Prosecutors' evidence includes a photo they say Arenas texted to a defendant showing a gold-trimmed poker table with the words, "Arenas Poker Club."
Gershman, Tourevski, Austria and Cohen managed illegal "Pot Limit Omaha" poker games, among other illegal games, at the home, collected a fee the house charged from each pot either as a percentage or a fixed amount per hand and invited players to compete, the indictment contends.
Young women allegedly collected tips to serve drinks, provide massages and offer companionship to the poker players, prosecutors allege, and were charged a percentage of their earnings from working the games. Chefs, valets and armed security guards also were hired to staff the games, according to the indictment.
The U.S. Attorney's Office also contends that Krachun worked as a "chip runner," in which he tracked players' wins and losses, distributed poker chips and paid employees.
Gershman, an Israeli citizen, is charged along with Valentina Cojocari, 35, of Woodland Hills, with three additional counts -- conspiracy to commit marriage fraud, marriage fraud and making a false statement on an immigration document, according to the indictment.
Prosecutors allege that in early 2022, Gershman conspired with Cojocari to enter into a sham marriage for the purposes of obtaining permanent legal status in the United States and lied to immigration authorities to procure legal status for Gershman, who provided financial support to Cojocari in exchange for her participation in the sham marriage.
Both Gershman and Cojocari submitted false information on their U.S. immigration forms, including Gershman's answers of "no" as to whether he had ever been detained by any law enforcement official and whether he intended to engage in illegal gambling or any other form of commercialized vice, federal prosecutors said.
Cojocari was also arrested Wednesday and was scheduled to appear in court later with the other defendants.
If convicted, the defendants would face up to five years in federal prison for each count, prosecutors noted.
Arenas last played professionally in China in 2013. In 2010, he pleaded guilty to carrying a pistol without a license after an armed confrontation in the Wizards locker room in 2009 with teammate Javaris Crittenton.
The Associated Press and City News Service contributed to this report.