 About this, AUSA Jeffrey Goldberg told the court, "...we’ve never taken the position that Mr. Donaghy has lied to us.But there is a difference between telling the truth and believing you’re telling the truth and finding out later that a number of the allegations don’t hold any water.”

On July 29, 2008, Donaghy was sentenced in the United States District Court for the Eastern District of New York to 15 months in prison for his participation in the gambling scandal.Donaghy could have faced up to 33 months, but Judge Carol Amon reduced his sentence to 15 months (two 15-month terms served concurrently, followed by 3 years of supervised release) in exchange for his cooperation.