[14] He was notorious for his temper and “short fuse” dating at least to high school straight through the NBA scandal when a federal official described him as “a fucking loose cannon”.

[16] He was sued by neighbors for harassment and invasion of privacy (suit was dropped, but Donaghy was suspended from his country club as a result of his actions).

[21] When Donaghy's name was publicized in 2007 as the referee involved in the scandal, reporters reached out to his former colleagues, teammates, classmates, and associates to learn more about him.

[27] Donaghy was one of three referees who worked the Pacers–Pistons brawl at The Palace of Auburn Hills on November 19, 2004, which ended in a fight between Pacers players and Pistons fans.

[28][29][30][31] On July 20, 2007, columnist Murray Weiss of the New York Post reported an investigation by the FBI into allegations of an NBA referee betting on games and controlling the point spread.

[33] Reporters, especially those who worked crime beats and who had quality law enforcement and “street” sources, soon discounted the supposed involvement of the mob in the scandal, however.

[37] While the league devotes significant resources to monitor officials' performance, it found out about the affair only when the FBI stumbled upon Donaghy in the midst of a broader organized crime investigation.

[38] NBA Commissioner David Stern said in a statement, "We would like to assure our fans that no amount of effort, time or personnel is being spared to assist in this investigation, to bring to justice an individual who has betrayed the most sacred trust in professional sports, and to take the necessary steps to protect against this ever happening again.

"[40] Earlier that day, federal sources told the New York Daily News that Donaghy would surrender to the FBI and plead guilty to gambling charges.

The Daily News reported that at his friends' request, Donaghy had passed word about the crews working the games on which they planned to bet.

[41] The Associated Press identified one of the men as James Battista, a former owner of a sports bar in Havertown, Pennsylvania, a Philadelphia suburb.

[44] On August 15, Donaghy appeared in a Brooklyn federal court and pleaded guilty to conspiracy to engage in wire fraud and transmitting wagering information through interstate commerce.

Donaghy told U.S. District Judge Carol Amon that he used coded language to tip Battista about players' physical condition and player/referee relations.

[48] ESPN legal analyst Lester Munson believed that Battista was one of the FBI's prime targets, based on the large amounts of money he bet.

[50] On June 19, 2008, the NBA filed a demand that Donaghy reimburse the league for the costs of his airfare and meals, complimentary game tickets, and other expenses, including $750 in shoes.

[51] A judge delayed sentencing to allow for more time to decide how much restitution Donaghy and his two co-conspirators should pay the NBA for their roles in the betting scandal.

The NBA claimed Donaghy owed it $1.4 million, including $577,000 of his pay and benefits over four seasons, plus hefty legal fees and other expenses related to an internal investigation.

In a letter to Stern and FBI Director Robert Mueller, Thomas said that Donaghy's conduct may have violated Arizona criminal law, and could face charges there.

[53] On June 10, 2008, Donaghy's attorney filed a court document alleging, among other things, that Game 6 of the 2002 Western Conference Finals between the Los Angeles Lakers and Sacramento Kings had been fixed by two referees.

"[54] The Lakers won Game 6, attempting 18 more free throws than the Kings in the fourth quarter, and went on to win the 2002 NBA Finals.

[55] The document claimed that Donaghy told federal agents that to increase television ratings and ticket sales, "top executives of the NBA sought to manipulate games using referees.

[59] As a result of the betting scandal, Stern revised the guidelines on the behavior of NBA referees during the Board of Governors' meeting in 2007.

Despite the labor agreement for referees, which restricted them from participating in almost all forms of gambling, it was revealed that about half of the NBA's officials had made bets in casinos, albeit not with sportsbooks.

[60] In the federal prison camp in Pensacola, Florida, Donaghy started to write his memoir, Blowing the Whistle: The Culture of Fraud in the NBA.

The book was to have covered his NBA career, described his dealings with the "underworld" during the betting scandal, and explained how he would determine the winning team in the games he refereed.

[61] Donaghy found a new publisher, VTi-Group, willing to release the book, which was renamed Personal Foul: A First-Person Account of the Scandal That Rocked the NBA.

[64][65][66][67][68][69] In 2020, prominent sports journalist and frequent NBA betting scandal commentator Henry Abbott said, “I’ve never encountered someone who lies as much as (Donaghy).

"[71] Donaghy was released from prison after serving 11 months and was due to finish his sentence in a recovery house near Tampa, Florida, where he was to be treated for his gambling addiction, as mandated by the court.

On April 22, 2014, Donaghy claimed that the league office was going to push referees to fix playoffs games to have the Brooklyn Nets beat the Toronto Raptors, so they could advance to the second round and face the Miami Heat because it would be good for ratings,[76] which it was.