Donaghy resigned from the league on July 9, 2007,
[4] after reports of an investigation by the
Federal Bureau of Investigation (FBI) for allegations that he bet on games that he officiated during his last two seasons and that he made calls that affected the
point spread in those games.
[5] Donaghy later admitted to betting on games he officiated in each of the
2003–04,
2004–05,
2005–06, and
2006–07 seasons.
[6] On August 15, 2007, Donaghy pleaded guilty to two federal charges related to the investigation. He was sentenced to 15 months in federal prison on July 29, 2008.
[7] He served 11 months in a federal prison camp in
Pensacola, Florida, and the remainder of his sentence in a
halfway house,
[8][9] but was sent back to prison in August for violating his release terms. After serving out his sentence, he was released on November 4, 2009.