• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Offshore Sportsbook 5Dimes Reaches $46.8 Million Settlement With U.S. Dept. Of Justice

Company looking to enter legal U.S. market and has already incorporated at 5D Americas LLC in Delaware

Jill R. Dorson by Jill R. Dorson
September 30, 2020
in Industry
doj

(Shutterstock)

Share on FacebookShare on Twitter

Offshore sportsbook 5Dimes, which shut down U.S. operations earlier this month, has reached a $46.8 million settlement with the U.S. Department of Justice, according to a release Wednesday from the U.S. Attorney’s Office in the Eastern District of Pennsylvania (EDPA). Under the terms of the agreement, 5Dimes and owner Laura Varela will not be prosecuted criminally or civilly for any crimes committed before Sept. 30, 2020. The deal excepts any potential tax crimes, according to the release. According to a 5Dimes press release, the company has already incorporated as 5D Americas LLC in Delaware.

5Dimes, originally a Costa Rican-based offshore sportsbook, announced in early September that it would be closing down U.S. player accounts as of Sept. 21 and would have an announcement on Sept. 30 about next steps. The settlement theoretically could clear the way for 5Dimes to regroup and enter the legal U.S. sports betting market, as the company hinted earlier.

“This settlement would mark the first step in what is likely a very long road to rehabilitating the brand to the point where it could possibly become licensed by a U.S. regulator,” said John Holden, an assistant professor at Oklahoma State University who focuses on the gambling industry.

Such a rehabilitation would likely result in the removal of any individuals who were involved with day-to-day operations of the company while it was operating illegally.

Creighton ‘hid his control’ of 5Dimes

“The settlement agreement announced today is a victory for the United States in ceasing the illegal activity of a company that was being investigated for a multitude of crimes, including a sophisticated money laundering operation,” said U.S. Attorney William M. McSwain via press release. “As the Office has done with a variety of criminal and civil matters, we will use every tool at our disposal to hold individuals and businesses accountable and ensure their compliance with federal law.”

The DOJ first opened an inquiry into 5Dimes in mid-2016, when it partnered with the Department of Homeland Security to “investigate violations of federal criminal laws including, but not limited to, illegal gambling, money laundering, wire fraud, and other related offenses.”

The company was founded in 2011 by U.S. citizen Sean “Tony” Creighton, who was subsequently kidnapped and murdered in Costa Rica. According to the release, Creighton illegally founded and ran the company and “hid his control over the company by utilizing an alias and operating the business through several shell companies.”

Online sportsbook 5Dimes has agreed to $46.8 million settlement with US authorities, plans to enter American betting market. Story to follow.

— David Payne Purdum (@DavidPurdum) September 30, 2020

His widow, Varela, is a Costa Rican citizen, and according to the DOJ was not involved in the day-to-day operation of 5Dimes, either before or during Creighton’s lifetime. The DOJ explicitly wrote in the brief that Varela “sought to resolve the federal investigation and change the operations of the company in a manner that complies with U.S. law.”

According to 5Dimes, Varela approached the the EDPA in the spring of 2019 in an effort to settle with U.S. authorities. The agreement, according to 5Dimes, is “a direct result of Ms. Varela’s extraordinary cooperation with the EDPA to resolve the criminal investigation and clear the Company.” Among the terms of the agreement, 5Dimes does not have to disclose any information about its customers.

“It has been a very difficult two years for me and my family,” said Varela via press release. “But today marks a pivotal turning point and a fresh start for me and the 5Dimes brand, as well as a milestone for the legalization of sports gaming in the U.S. My husband’s death was tragic, but he loved 5Dimes and all of its loyal customers. Now his spirit will be able to live on as the 5Dimes brand begins this new chapter.”

Money laundered through precious metals, sports cards

Among the assets that the DOJ and Homeland Security seized during the investigation are several valuable sports trading cards and a rare coin collection. Creighton owned a 1948 George Mikan rookie basketball card, which he purchased for $400,000, as well as a 1970 Pete Maravich rookie basketball card. The Mikan card was the priciest in history when Creighton bought it, and according to the release is now on display at the Smithsonian Institute.

The DOJ determined that Creighton used third-party payment processors (TPPPs) to take payments from U.S. bettors, which is illegal. The TPPPs charged U.S. customers for 5Dimes and then took the proceeds and sent them to shell companies set up by Creighton. He also laundered money through physical investments in precious metals and sports trading cards.

The U.S. Treasury Department maintains a fund for DOJ asset forfeitures. The U.S. Attorney General can also dispose of forfeited assets pursuant to 28 U.S. Code § 524(c).

“This appears to mark the end for one of the more prominent offshore books, and adds clarity to a somewhat vague message released by the book several weeks ago,” Holden said. “One thing that remains to be seen is the impact this might have on other offshore books.”

ShareTweetShare
Jill R. Dorson

Jill R. Dorson

Jill has covered everything from steeplechase to the NFL and then some during a more than 30-year career in sports journalism. The highlight of her career was covering Oakland Raiders during the Charles Woodson/Jon Gruden era, including the infamous “Snow Bowl” and the Raiders’ 2003 trip to Super Bowl XXXVII. Her specialty these days is covering sports betting legislation across the country. You can reach Jill at jill@bettercollective.com

Related Posts

Credit: David Butler II-USA TODAY Sports
Promotions

FanDuel Promo Code: Bet $5, Get $150 in Bonus Bets for Friday Night NBA – Raptors/Warriors

January 27, 2023
get a grip graphic
Industry

Get A Grip — The Week In Sports Betting: Massachusetts Gets Ready

January 27, 2023
Load More

Top Stories

patrick mahomes

Mahomes’ Ankle Speculation Twists Line Movement In Chiefs-Bengals Rematch

January 27, 2023
fanatics-grand-opening

Fanatics Sportsbook At FedEx Field Offers Unique Retail Option In Maryland

January 23, 2023
Shutterstock

Missouri Legislators Lament Exodus Of Bettors To Neighboring States

January 27, 2023
rob gronkowski adam vinatieri

Rob Gronkowski Goes Training Montage Route In Latest FanDuel Spot

January 17, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
January 25, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
January 27, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
October 20, 2022

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

gambling therapy
ncpg
igaming ontario
If you or someone you know has a gambling problem, crisis counseling and referral services can be accessed by calling 1-800-GAMBLER (1-800-426-2537) (IL). Gambling problem? Call 1-800-GAMBLER (MI/NJ/OH/PA/WV), 1-800-9-WITH-IT (IN), 1-800-522-4700 (CO), 1-800-BETS OFF (IA), 1-888-532-3500 (VA) or call/text TN REDLINE 1-800-889-9789 (TN).
19+. Please play responsibly. Terms and conditions apply. 
Individuals must be 19 years of age or older to participate in igaming in Ontario. Gambling can be addictive, please play responsibly. If you, or someone you know, has a gambling problem in Ontario and wants help, please visit ConnexOntario or call their helpline at 1-866-531-2600. Operators on this website operate pursuant to an Operating Agreement with iGaming Ontario.

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
    • Guide To ‘Risk-Free’ Bets
  • News

loading

Please wait while you are redirected to the right page...

Please share your location to continue.

Check our help guide for more info.

share your location