Others charged included promising prospects whose careers did not reach the heights that had been expected, including Darius Miles and Sebastian Telfair, both of whom were drafted out of high school.
The indictment said that one of the former players, Terrence Williams, who played for the New Jersey Nets and the Houston Rockets, had orchestrated the scheme and recruited other former players by offering to supply them with false invoices to support their fraudulent claims. The indictment charges that Mr. Williams also received $230,000 in kickbacks in the scheme.
The conspirators submitted claims totaling $3.9 million, and they ultimately received about $2.5 million in fraudulent proceeds, according to the indictment.
The charges were announced in New York on Thursday at a news conference held by Audrey Strauss, the U.S. attorney for the Southern District of New York, and Michael J. Driscoll, the head of the F.B.I.’s New York office.
Ms. Strauss said that the investigation was ongoing.
Several of the players charged played at least part of their career for New York-area teams, including Shannon Brown with the Knicks, and Mr. Williams, Antoine Wright and Chris Douglas-Roberts with the Nets.