Gambling Probe Expected To Name 2 Asu Players

Two former Arizona State University basketball players will be named next month in a federal indictment charging that they were paid to fix games for gamblers during the 1994 season, sources have told The Arizona Republic.

The Phoenix-based grand jury inquiry is focusing on ex-players Stevin “Hedake” Smith and Isaac Burton, as well as several gamblers who reputedly paid the players tens of thousands of dollars in the alleged point-shaving scheme.

Two people reportedly targeted as gamblers by the inquiry are Joseph Gagliano Jr., a Phoenix investment adviser, and former Scottsdale resident Benny Silman.

Gagliano, 29, was living in Chicago and working as a trader on the Chicago Board of Exchange at the time the alleged point-shaving plan was hatched. Silman, 26, is a reputed one-time bookmaker in the Phoenix area and former partner in a cappuccino stand operating at America West Arena.

Gagliano’s and Silman’s names were among those listed on 27 subpoenas issued in July to employees of Las Vegas casinos who were directly involved in betting ctivities during the 1993-94 basketball season, according to sources.

Gagliano, Silman, Smith and Burton could not be reached for comment Monday. Gagliano’s telephone number is unpublished, and Silman has reportedly moved out of state.

Michael Liederman, of Scottsdale, Silman’s former partner and current owner of Cappuccino Etc., said Silman is no longer affiliated with the business. He said he has not seen Silman for some time.

Joe Lodge, senior litigation counsel for the Arizona U.S. Attorney’s Office, declined comment on the investigation.

Sources say federal investigators are looking into accusations that Gagliano and Silman paid the two players tens of thousands of dollars to either lose games or keep them close enough so that ASU did not cover the point spread. That allowed the gamblers to win large wagers made against ASU.

In a statement issued Monday, ASU Athletics Director Kevin White said the school could not comment on the investigation.

“As we have stated, ASU does not condone sports gambling and continues to cooperate fully with the FBI,” White said. “… ASU has and continues to educate its student-athletes and employees on issues related to gambling.”

Federal investigators have said that neither former ASU basketball Coach Bill Frieder nor any other ASU officials are the targets of the inquiry.

“Arizona State University is not, I repeat not, under investigation by the FBI,” Bruce Gebhardt, special agent in charge of the FBI office in Phoenix, said in a March news conference.

“Officials and faculty members at Arizona State University do not know the details of the investigation.”

Earlier this year, Smith said that he knew nothing about the FBI inquiry. Contacted while playing with Sioux Falls of the Continental Basketball Association, he would say only, “I’m in the CBA. I don’t know (expletive).”

Smith, 25, played with ASU from 1990 to 1994. He is the school’s second-highest career points scorer (1,673) and made the most three-point field goals (316).

During the 1993-94 season, Smith spent more time on the court than any other Sun Devil. He played in 28 games, averaging 38.5 minutes per 40-minute game.

Despite achieving star status at ASU, Smith was not drafted by the National Basketball Association and has yet to make an NBA permanent roster.

Last season, the Dallas Mavericks signed Smith to two consecutive 10-day contracts, but did not keep him on the roster. Before that, Smith played in the CBA.

Burton, 24, whose nickname is “Ice,” played Australian pro basketball this year with the Sydney Coca-Cola Kings. The media there have dubbed him Australia’s Michael Jordan.

Before playing with the Kings, Burton put in a stint with the International Basketball League’s Black Hills Posse.

He was a standout at ASU, where he played guard from 1993 to 1995. He and Smith were the starting ASU guards the year in which the point-shaving allegedly occurred. During his play at ASU he was the team’s top scorer during some games, and was known as a strong three-point shooter and a good defender.

Gagliano and Silman allegedly placed bets against ASU through accomplices on four ASU games in 1994: Jan. 27 with Oregon State, Jan. 29 with Oregon, Feb. 19 with Southern California and March 5 with Washington, sources said.