Cleveland Guardians pitchers indicted gambling

Two pitchers from the Cleveland Guardians were indicted on charges related to a sports betting and money laundering conspiracy, federal prosecutors announced Sunday, the latest scandal tied to gambling across professional sports.

According to the indictment, Guardians pitchers Emmanuel Clase and Luis Ortiz took bribes as part of a scheme to rig bets on pitches thrown during Major League Baseball games. Prosecutors say the scheme started in May 2023 with Clase and then later included Ortiz.

The two players — who face federal charges of fraud, conspiracy and bribery — were placed on leave by MLB officials in July as the league conducted a gambling investigation. They face a potential punishment of up to 20 years in prison if found guilty of the top charges.

“MLB contacted federal law enforcement at the outset of its investigation and has fully cooperated throughout the process. We are aware of the indictment and today’s arrest, and our investigation is ongoing,” the league said in a statement.

The Major League Baseball Players Association declined to comment. The Cleveland Guardians said in a statement, “We are aware of the recent law enforcement action. We will continue to fully cooperate with both law enforcement and Major League Baseball as their investigations continue.”

Chris Georgalis, a partner and co-founder of Cleveland-based law firm Flannery Georgalis, told CNBC in a statement that his client Luis Ortiz “is innocent of the charges related to two pitches he threw,” adding that “There is no credible evidence Luis knowingly did anything other than try to win games, with every pitch and in every inning. Luis looks forward to fighting these charges in court. The government’s case is weak and circumstantial. He will defend himself, and he will be prevail.”

According to the indictment, the two pitchers agreed in advance with their co-conspirators on the specific pitches that they would throw during games. Those co-conspirators then used that information to place “hundreds of fraudulent bets on those pitches,” the indictment said.

For example, the indictment alleges, Clase agreed with sports betters to rig prop bets on particular pitches he threw, with the bets being placed on the speed and type of pitches, often those thrown on the first pitch of an at-bat. Clase would often throw those pitches well outside of the strike zone in the dirt, the indictment alleges. As a result, the players would receive bribes and kickbacks, and Clase also provided money to the bettors to advance the scheme.

The indictment includes an example of pitches that Clase allegedly rigged in a game against the New York Mets. The indictment charges that, in total, Clase caused his co-conspirator bettors to win at least $400,000 in fraudulent bets.

The scheme to rig bets is the latest case intertwining illegal betting and professional and college sports.

Last month, the federal government unveiled an indictment that alleges that confidential information about players was leaked to gamblers, including a charge that Miami Heat player Terry Rozier had tipped off betters so they could win prop bets.

Several leagues, including the National Football League, have suspended players for violating rules around betting.

This story is developing. Please check back for updates.

— CNBC’s Jessica Golden and Jim Forkin contributed reporting.