Federal prosecutors on Tuesday flagged a potential conflict of interest in the ongoing federal investigation involving NBA player Terry Rozier, warning that his payment of legal fees for a friend and co-defendant could compromise the case.
The concerns center on De’Niro Laster, a childhood friend of the Heat guard who is represented by M. Evan Corcoran. In the October indictment, federal prosecutors said that Rozier—while still a member of the Hornets—informed Laster he would pretend to be hurt and prematurely take himself out of a March 2023 game during the first quarter. Laster sold that information to multiple co-conspirators, who bet the under on multiple Rozier lines for about $100,000, according to the indictment.
Both are charged with conspiracy to commit wire fraud and conspiracy to commit money laundering. Each charge could result in up to 20 years in prison. They would also have to forfeit any ill-gotten gains if convicted.
The government says it has been informed by Corcoran that Rozier has been covering Laster’s attorney fees. It also says that Rozier’s attorney, Jim Trusty, has repeatedly made public comments indicating their plan is to place blame on Laster, including in interviews on CNN and Fox News.
For example, Trusty told Fox News in October, “This is a situation where a friend took information and ran with it. Terry didn’t do anything.” In the same interview, he said it’s “not a crime” to confide in a childhood friend that he was “banged up.”
“In these interviews, Rozier’s counsel has placed the responsibility for the actions alleged in the Indictment on a friend, who appears to be Laster,” the government’s new filing says.
Rozier’s attorney told Front Office Sports on Tuesday that “we plan on filing a formal response within the next day or two.”
“In the meantime, neither Terry’s longstanding generosity towards a friend since childhood nor Evan Corcoran’s representation create any actual ethical issues in this case,” he said.
Corcoran did not immediately respond to a request for comment.
According to prosecutors, the fact that Rozier is paying Laster’s legal fees “creates an obvious incentive for the attorney’s divided loyalties … particularly in light of Rozier’s attorney’s public comments placing the blame on a ‘friend’ who is almost certainly Laster.” The government is concerned this could impact the advice Corcoran gives Laster, including on how he should plead, what his defense should be, and whether he should seek to cooperate, “including against Rozier.”
In addition, the government says that a pretrial disclosure shows Laster doesn’t have much choice with regard to accepting Rozier’s help; he has an “estimated monthly cash flow” of $200 and “no additional assets.” Meanwhile, between roughly December 2022 and May 2025, Laster was paid more than $165,000 from Rozier’s company, GMB Chronicles LLC, the government says.
“In addition, based on his disclosure to pretrial services, it is not clear what alternative funds Laster has to pay for his attorney,” the filing says.
Prosecutors are not demanding that Corcoran withdraw as Laster’s lawyer, but they do want the court to initiate a probe to determine whether there is a conflict of interest that would necessitate action. In a footnote, the government says that while it does not currently have enough information to claim the potential conflict is “disqualifying,” it “respectfully reserves the right to change its position” if further information comes to light.
A former federal prosecutor tells FOS that “these sorts of conflicts are not uncommon, but that doesn’t mean such an arrangement isn’t of concern.”
Rozier and Laster both pleaded not guilty earlier this month. Rozier was released on a $3 million bond, while Laster was released on a $50,000 bond.
The charges brought against Rozier and Laster were part of a sprawling federal investigation that resulted in two indictments unsealed in October, one focused on insider information being sold for sports betting purposes, and another on an alleged illegal poker ring that was run by the mob and lured unsuspecting victims to play games with famous individuals, including Trail Blazers head coach Chauncey Billups.
