Feds Indict 22 in Northern Indiana Offshore Betting Ring

Federal prosecutors in Northern Indiana handed down an indictment charging 22 people with running offshore credit-betting sites, using local businesses to move cash and using threats to collect gambling debts. The document says the scheme ran from 2021 through April 2026 and involved bookmakers, enforcers and financial intermediaries.

The indictment names James Gerodemos, known as “Jimmy the Greek,” and Dean Gialamas, known as “Dean Gem,” as leaders of the alleged operation. Prosecutors identify offshore sites including abcwagering.ag and gardencitybets.com where accounts were managed through bookies rather than direct user sign-ups. Bettors were allegedly extended lines of credit that allowed wagering without upfront deposits.

Prosecutors describe routine tracking of weekly settlements using coded notes, with letters such as M for money owed and P for payouts. The filing also details a high-stakes Super Bowl “line pool” with entry amounts from $500 to $25,000 and estimated gross proceeds of $700,000 to $900,000 per game. Bookies were paid commissions on losing bets, and some collectors were reportedly promised 50% of debts they recovered.

Payments were routed through intermediaries and masked as loans or business expenses, according to the indictment. The group used multiple accounts, aliases and entities and moved funds with cash, checks, wire transfers and peer-to-peer apps including Zelle.

The indictment identifies restaurants owned by the Gerodemos family, including Gino’s Steakhouse in Merrillville and Paragon in Hobart, as places where proceeds were collected, winnings were paid and funds were laundered. The filing alleges employees at those establishments helped with collections, with individual transactions ranging from hundreds of dollars to $50,000. An Italian restaurant in Burr Ridge owned by Filippo Rovito is also named, though the indictment does not specify how that business was used. The filing notes Gerodemos received city approval in 2023 to open a fireworks facility and that he served six months in 2015 for dealing with explosive materials without a license.

Federal and state authorities carried out an enforcement operation called Operation Porterhouse Parlay, executing seven search warrants across Northern Indiana and making arrests in multiple states, including California, Florida, Illinois, New York and Puerto Rico. More than 150 law enforcement officers participated. Investigators from the FBI, the IRS, the Indiana Gaming Commission and other partners worked on the multi-year probe.

The indictment describes alleged extortion tactics used to collect debts, including persistent harassment, sending people to demand payments and contacting victims’ family members. One example in the filing includes a pizza box and roses delivered to a Texas victim with a note reading ‘Do the right thing or I’m heading to Valparaiso University,’ a reference to the victim’s daughter. In a separate exchange, a victim said he would file a police report; the indictment quotes an alleged reply that included a threat to the victim.

FBI Special Agent in Charge Timothy O’Malley warned that ‘This was not a case of harmless or casual gambling. It was part of a broader pattern of criminal behavior that included coercion, intimidation, and financial exploitation.’ U.S. Attorney Adam Mildred noted the investigation remains active and that prosecutors will pursue any additional crimes or subjects identified by the evidence.

Defendants face federal counts including operating an illegal gambling business, Hobbs Act extortion, extortionate debt collection, money laundering conspiracy and transmission of wagering information. Potential penalties range from up to two years for transmission of wagering information to as much as 20 years for extortion and money laundering offenses, along with fines, forfeiture and supervised release. Authorities have asked victims and witnesses to contact investigators as the case proceeds.