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Dimes entered into a settlement agreement with the U.S. Attorney for the Eastern District of Pennsylvania (EDPA) that should make the Company eligible to apply to enter the legal, regulated U.S. gaming industry under a new corporate structure, free and clear of any restrictions on the use or transfer of its assets and in full compliance with U.S. law. A new corporate entity, 5D Americas LLC, has already been incorporated in the State of Delaware.
5Dimes formally operated for many years under the full and exclusive control of its founder, William Sean “Tony” Creighton. Prior to his tragic kidnapping and murder in 2018, both 5Dimes and Creighton were under federal investigation by the U.S. Department of Justice (DOJ), specifically the EDPA. After Creighton’s death, Laura Varela, the widow of the late Creighton, assumed responsibility for the 5Dimes assets, although she did not exercise day-to-day authority over the operations.
According to bookmaker, in the spring of 2019, Varela voluntarily contacted the EDPA to resolve any prior criminal activity by 5Dimes.As part of the settlement, Varela identified criminal assets associated with the Company and agreed to forfeit more than $46 million in value to the government. The cooperation did not include disclosing information or identities of any customers.
“It has been a very difficult two years for me and my family,” said Varela. “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.”
Varela added, “Along with a team of trusted advisors, I am exploring how we might relaunch 5Dimes as a legal sportsbook and casino in the legal, regulated U.S. market to continue serving our many loyal customers.”
The Agreement required 5Dimes to stop servicing U.S. customers by September 30, 2020. To satisfy that demand, 5Dimes stopped taking bets from U.S. customers as of September 21, 2020, until it is reconstituted as a new, legal and licensed entity in the U.S. 5Dimes notified its players to suspend their accounts and transfer their balances by September 25, 2020. Any customers who did not request a withdrawal of their funds by September 25, 2020 will have those funds transferred to Epiq, a third-party claims administrator, who will seek to deliver the funds to the account holder. In compliance with the agreement, any customer funds that are not claimed by September 30, 2021, will be forfeited to the U.S. government.
