The NBA fined the Knicks $200,000 and scout Rodney Heard $20,000 on Thursday for violating league rules.
Heard broke the rule restricting contact between NBA teams and players eligible for the NBA Draft.
Heard violated the rules in May 2007 and again in May 2010.
A Yahoo! Sports report in November said that Heard held illegal predraft workouts. In one workout, Pacers guard Brandon Rush blew out a knee in Marietta, Ga., before the 2007 draft. The injury caused Rush to withdraw from the draft and return to school. He became the 13th pick in the 2008 draft.
Heard was hired by Isiah Thomas in 2006.