Sebastian Telfair, a former NBA guard, is headed to federal prison after violating conditions of his release related to a health-care-fraud case, according to reports by TMZ. Telfair reported to a low-security federal prison, Federal Correctional Institution Fort Dix (Fort Dix) in New Jersey, in August 2025 to serve the final four months of a six-month prison sentence.This prison sentence follows his prior plea and supervised-release agreement related to a scheme to defraud the NBA Health & Welfare Benefit Plan. Media photos show Sebastian Telfair meeting up with longtime music personality Diddy (Sean Combs), who is also serving time at the facility.Fraud scheme & initial plea Sebastian Telfair is involved inReports by The Shadow League state that Sebastian Telfair was one of 18 former NBA players indicted in October 2021 for allegedly defrauding the league's health plan of nearly $4 million through fake medical and dental claims. Prosecutors said about $2.5 million was collected via the false scheme.According to The Independent, Sebastian Telfair pleaded guilty to his part in the fraud in March 2023. A judge initially gave him time served and three years of supervised release instead of immediate prison. As part of the deal, Telfair had to meet terms like reporting to his probation officer, completing community service, and staying out of trouble.But the supervised-release terms included strict conditions. He missed required check-ins with probation officials, failed to complete community service, and did not secure required employment. His job efforts were criticized by the judge, who noted he "thumbed his nose" at probation orders.Former NBA Players Charged In Alleged Health Care Scam - Source: GettyDue to those infractions, on June 26, 2025, the judge placed him in custody for six months, and upon his release, he would then be supervised for two years, according to Law 360. Sebastian Telfair stated to members of the media that he thought the punishment was unjust and that it was a matter of paperwork. He appealed for a pardon to former President Donald Trump. In Telfair's very own words:"I did too good to being sending anybody to jail."He surrendered to the prison system in August 2025 and began his sentence at Fort Dix.Violation of release terms & prison entryThe key turning point in Sebastian Telfair's legal path came when he failed to comply with the conditions of his supervised release. The probation rules required community service, regular contact with a probation officer, employment efforts, and other check-ins. Reports by the Blazer's Edge state that the judge found that Sebastian Telfair had not met those benchmarks. According to the court, he had "done absolutely nothing" to find a job and did not properly engage with his supervision.With the infractions confirmed, the judge withdrew the prior lenient disposition and sentenced six months of imprisonment beginning in August 2025. TMZ reports that Sebastian Telfair's prison sentence at Fort Dix had jail time and two years of supervision at the end of the sentence, sobriety, and a personal-finance course that must be taken in person, as well as a two-page letter to file with the court detailing what he had learned, how his life had changed overall, and what his financial status reads.In interviews, he had mentioned that he was trying to use that time to work on a book and other ways to improve himself. He spoke of repeated references to his past high school fame and NBA games, and frustration with what he has been through. His meeting with Diddy is noteworthy because he had a 50-month sentence, and the two reportedly chatted in the yard at Fort Dix.For Sebastian Telfair, the verdict is that he will serve months in prison before trying to build a life under supervision and abiding by some strict rules. Even for a player selected 13th overall, the reality of being a star on the court vs. a federal inmate can be stark.