Photo: Peter Baba

Miami Heat guard Terry Rozier will not be paid while on leave following his arrest on federal charges connected to an alleged illegal betting scheme, reports Tim Reynolds of The Associated Press.

Reynolds later clarified that Rozier’s withheld salary will be placed in an interest-bearing account rather than in escrow, pending the outcome of the investigation.

ESPN’s Shams Charania confirmed that the veteran guard’s pay is suspended and added that Trail Blazers head coach Chauncey Billups, arrested in a related case, is also not being paid.

Rozier, who has a $26.6 million cap hit this season, was set to receive his first $1.1 million paycheck this week. A source told Reynolds he’ll receive all withheld salary if cleared and allowed to return.

The NBA has not granted the Heat any salary cap or luxury tax relief yet, though discussions are ongoing. Miami currently sits at the tax line and cannot sign another player without exceeding it.

Federal investigators allege the former Hornets star provided insider health information to a friend, who used it for betting purposes.

His attorney, Jim Trusty, denied wrongdoing, saying Rozier “never owed anyone $8 million” in taxes and that he’s being unfairly targeted.

“This is an innocent guy who’s getting completely screwed,” Trusty said. “They’re latching onto a game where the NBA literally cleared him two years ago and trying to suggest he was a conspirator, as opposed to just somebody who had a hurt foot.”