U.S. District Judge Valerie Caproni in Manhattan federal court also sentenced him to pay $2.5 million in restitution to the NBA Players' Health and Welfare Benefit Plan, and forfeit $653,673, in accordance with his plea agreement.
Prosecutors had sought a 10- to 12-year prison term, while Williams sought no more than 50 months.
He was also accused of impersonating a health plan manager who questioned a reimbursement in order to "frighten" another player, who had not paid a kickback, into re-engaging with him.
Prosecutors said at least $5 million of false claims were submitted, with the defendants receiving $2.5 million in fraudulent proceeds.
Prosecutors recommended a prison term shorter than 21 months, citing his acceptance of responsibility and desire to make amends.
Persons:
New Jersey Nets Terrence Williams, Shannon Stapleton, Terrence Williams, Valerie Caproni, Williams, Prosecutors, Tony Allen, Allen, Jonathan Stempel, Diane Craft
Organizations:
New Jersey Nets, Dallas Mavericks, NBA, REUTERS, UNITED STATES, National Basketball Association, NBA Players ' Health, Welfare, Boston Celtics, Prosecutors, Thomson
Locations:
East Rutherford , New Jersey, Manhattan, Seattle, Brooklyn, New York