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The U.S. Department of Justice’s National Fraud Enforcement Division has made its first significant impact by prosecuting Jason Noah Feinman, a California resident, for operating an illegal offshore sports betting platform from Costa Rica. Feinman was sentenced to 27 months in prison and ordered to forfeit $3 million after admitting to tax evasion, money laundering, and running an unlicensed gambling business.
Feinman, 52, operated the platform from 2015 to May 2024, facilitating bets for unlicensed bookmakers in the U.S. and Costa Rica. Despite generating over $4.2 million in revenue, he failed to report any income to federal authorities between 2018 and 2022, even claiming a $75,503 tax refund in 2020. The operation involved Costa Rican associates who laundered gambling proceeds for Feinman, receiving checks in exchange for cash payments.
Prosecutors detailed that one associate, identified as C.K., provided Feinman with 18 checks, including a $200,000 payment, in exchange for $1.5 million in cash. The transactions were disguised as loans to conceal their illicit nature.
Feinman pleaded guilty to the charges, stating in court: “I am pleading guilty because I am guilty of the charges.” His sentence of 27 months is a reduction from the potential 3.5 to five years he could have faced, reflecting his cooperation with authorities.
This case underscores the DOJ’s aggressive stance against illegal offshore gambling operations, particularly those leveraging jurisdictions like Costa Rica, which lacks a regulatory framework for online betting. The prosecution sends a clear message to operators exploiting such loopholes to evade taxes and operate outside legal boundaries.
