Advance Fee Canadian
Lottery Scams Sweepstakes Fraud -
Foreign International Scam Lotteries -
Western Union Transfers - Elderly Senior Victims
Some cons are even too lazy to operate a fake prize company which
stores and distributes worthless trinkets and consumer "goods".
They opt instead for the workings of the straight "advance
fee" scam which offers nothing but lies in exchange for a
down payment on a dream.
Every one has likely received one in the mail by now. A card stating "You've
won!" Just call this number to find out how much
you've won and how to collect your prize.
Likely you just threw it away. But if, like others who were convinced
they had won a valuable prize, you had called the number provided,
you would have been kept on hold, or slowly forced through an automated
response system until finally, after punching 12 for English and
not 1 for Lithuanian, you enter the ticket number and find you
are the big winner of exactly $1.00.
Companies mass mail these "Official Claim Certificates" with
the same "claim or ID number" to just about every person
in the country. The odds of receiving the various awards, or that
a purchase is required to receive the award, is disclosed in very
small print on the reverse side of the mail piece.
You need to read the entire card carefully to determine how prize
winners are selected. While the card may have a list of prizes
with a list of winning symbols beside it, you may find that the
order in which the prizes are listed does not correspond to the
order in which the winning symbols are listed.
If you call once, you are then deluged with a continuous stream
of sweepstakes solicitations, all urging you to place additional
900 number telephone calls. Although most consumers realize that
they have been scammed after one telephone call, one company, using
approximately 400 different false names in its sweepstakes solicitations,
tricked some into calling repeatedly.
Do you think they make any money doing this? Consider that it's
been going on for years and then try to imagine the cost of sending
out all those cards to every household in North America. You just
don't spend that kind of money unless it's coming back in droves.
Time Is Money
Thirty states will share in a $3 million bankruptcy claim settlement
involving one of the country's largest direct mail sweepstakes
operations, Direct American Marketers Inc., or DAMI. It is believed
to be the first effort by Attorneys General to collectively pursue
and settle claims for violations of individual state's consumer
fraud laws through the bankruptcy courts.
Formed in 1986, DAMI sent tens of millions of sweepstakes solicitations
nationwide, encouraged recipients to call a 900 number to claim
their prize, or learn if they had won. As a result of the 900 number
services sold through these sweepstakes, DAMI generated hundreds
of millions of dollars of revenue.
During 1994-97 more than 65,000 people in Rhode Island alone spent
more than $1.5 million to participate. Once connected, at a rate
of $3.98 per minute, it would take several minutes before the consumer
knew if they had won. The average call typically took seven minutes
so a charge of between $20 to $40 later appeared on their telephone
bill.
You would think people who have been tricked would tell their
friends how stupid they were so that others can avoid making the
same mistake. Right! They might just as well put a dunce cap on
as listen to the sanctimonious people they are trying to
help tell them how gullible they were.
"It's so obvious! Nobody would ever fall for that! You must
have more money than brains!"
This holds true for the victims of most scams and is something
that the people running them rely on. And as long as something,
however worthless, is received in exchange for their money, people
rationalize it as a "bad purchase" rather than a scam.
Once they add an element of chance to the operation the victim
can rationalize any losses as being "unlucky" or "an
investment gone bad". After all, if they were good enough
to give you a chance to win you can't get too upset about the possibility
of losing. In fact, you are probably used to it. And besides, they
say you are sure to win the next time around.
Pass the Salt Ed!
One pair of telemarketers falsely informed victims that they had
won the Publishers' Clearinghouse grand prize of up to $10 million,
conditioned on their prepayment of "federal income tax" on
the prize money.
To convince intended victims that they had truly won the Publishers'
Clearinghouse Prize, they even promised the victims that Ed McMahon
would deliver the prize to them and take them out to lunch.
In some instances, they attempted to gain the sympathy of the
victims by informing them that they were disabled Vietnam veterans.
The individual victims each paid "taxes" of between $20,000
and $270,000 to the co-conspirators, totaling over $1 million in
fraudulently induced payments.
It's Your Duty To Pay
The caller may even pretend to be a federal official or customs
agent requesting payment of taxes and custom fees on your winnings.
They will say there is the matter of a 7% customs duty to release
your $100,000 in winnings being held at the border.
"Just send that cheque for $7000 today please".
Our Mistake
Or you may get a call from someone claiming to represent American
Family Publishers. Apologetic, they explain:
"Through an administrative oversight, we failed to notify
you that you have been selected in our sweepstakes contest to
win $250,000. We have been able to arrange to deliver that prize
to you. All you have to do is send to us the $6,000 release fee
that you were supposed to originally pay."
"I want you to do just two things: First, go to your bank
and get a money order, payable to cash, for $6,000. Second, go
to your local Western Union office and pick up a mailing envelope.
I will call you back in a few hours to confirm that you have
these items. At that time, I will give you instructions on where
to send for your $250,000 check."
The Taxman Cometh - Tax Escrow Account Scam
The following scammer received a 30-month sentence after pleading
guilty to one count of wire fraud.
Using an assumed name, he contacted his victims by phone, identified
himself as a representative of Office Depot, and informed them
that they had won a cash prize (usually totaling between $100,000
and $250,000), in a sweepstakes conducted by his company.
In order to receive the prize money the "winners" would
have to set up an account with the IRS into
which they were required to deposit a taxation fee totaling one
percent of the prize. He would then offer to collect that money
and set up the account for the victim.
He instructed them to send the money in the form of a cashier's
check via express mail to "Tom Harvey, Marketing Office Depot,
2151 East 1st Street, Santa Ana, California."
The name was his alias, and the address was that of a hotel which
he temporarily called home and from where he made many interstate
phone calls to his victims.
You may realize that the government collects taxes on winnings,
but not that the payment is made directly by you to them without
a middleman.
A Penny For Your Thoughts
You could also get a call stating that you have won a "valuable
monetary prize" in a contest you do not remember entering.
There is just the issue of some money being needed to cover administration
costs. Send just $69 and your money is on its way.
The prize you receive is not money but a bronze coin encased in
plastic, which is said to be of Roman origin, along with a framed
certificate of authenticity. Actual value? $6.99. This is more
than the people who, promised a "presidential relief cast
in copper", wound up with a penny depicting Lincoln.
Time To Count Their Money
The owner and operator of Consolidated Premium Group, a large
telemarketing fraud ring that preyed on elderly citizens, was sentenced
to 135 months in prison on conspiracy, mail fraud, wire fraud and
money laundering charges in an 18-count indictment. He was also
ordered to pay $360,000 restitution in U.S. dollars to U.S. victims
and $1,380,828 in Canadian dollars to Canadian victims.
He falsely told people that they had won a sweepstakes or other
contest and would receive a valuable prize, promotional item or
cash. To receive the prize, they were told they had to pay a fee
to Consolidated supposedly for taxes, duties or promotional expenses.
He admitted that there were no prizes.
One of his telemarketers was sentenced to 21 months in prison
for his role which began by making almost daily calls to a widow
until he gradually won her confidence. He then informed her that
she had won $150,000 in a sweepstakes, and that she could claim
her winnings by first paying taxes and fees of $9000.
After she paid, he continued the frequent calls over the next
four months, and informed her that her prize, as yet unpaid, had
increased to $1.1 million, then to $3 million. In the end, she
had sent $199,000 to them for various purported taxes and fees.
They also got three other victims to send total amounts of $36,000,
$22,000 and $25,000.
It's Official
"Award/Entitlement Verification Form"
"Award
Transfer Claim."
"You
are positively confirmed, eligible for cash award of $15,000"
You get a personalized letter through the mail notifying you that
you are eligible to receive a cash prize of up to $15,000. The
letter states that the cash can be released after an attached claim
form, that requires payment of a "transferal and release fee",
is completed and returned.
The transferal fee is only $20. You respond and get, not a cash
award, but a "discount coupon book."
Using at least thirteen trade names including, "Award Notification
Service," "National Sweepstakes Audit Center," "Registered
Sweepstakes Systems" and "National Judging Services" one
company alone receives roughly $22,500 in 3,000 letters on a daily
basis from unsuspecting consumers.
At least two of their envelopes use the words "Internal Monitorings
Services" and "U.S. Entitlement Service," implying
an official government relationship. People who remit fees become
targets of similar sweepstakes solicitations that seek larger fees.
The backs of the letters contain lengthy, compressed, single spaced "Official
Rules" which are confusing, inconsistent, not personalized
and would seem not to apply to the recipient.
A Loonie Exchange
EMP 2000 located in Montreal, Quebec, has
been calling with promises of thousands of dollars in sweepstakes
winnings. EMP 2000 tells you that you have
won $50,000 that will be payable in five monthly payments of $10,000.
If you take the bait, you will receive a certified check which
purports to be written on the account of the law firm of Miller,
Jameson, McLaren & Associates and is sent by courier. You are
phoned upon its arrival and told that you must immediately wire
more than $3,000 to EMP 2000 to cover the difference in the exchange
rate between Canadian and US dollars which was accidentally paid
to you.
The certified cheque is discovered, ( too late to stop the real
one you couriered to them ) to be a forgery. The law firm doesn't
exist at all. A similar con follows the same procedure but demands
12% for "attorney fees".
Dumpster Draw
In one sweepstakes, which promised a big cash winning if you send
just $19.95 or $21.95 for priority service, investigators determined
that if the draw had been held the odds were only 1 in 750,000.
The fact that the dumpster in back of their building was full of
entry slips somewhat reduced your chances even further.
Gone But Not Forgotten
Sent in by Dwane Epp 10/25/01
I am writing to you in regard to a phone fraud perpetrated against
my mother which involves the so-called recovery of funds promised
by a former Quebec-based boiler room phone fraud operation.
She initially had forwarded money to a promotional prize distribution
company called Protel, which, at the time, claimed she was a contest
money winner. To release these prize winnings a large amount of
taxes needed to be paid.
After consistent urging by me she finally contacted the PhoneBusters
organization but not until she had lost a considerable amount of
her personal funds.
At that time the RCMP were involved in a number of fraud-related
investigations and charges laid against Protel. She was informed
not to expect to recover any of the money that she had lost.
Shortly thereafter she received a call from a "US customs
official" who claimed to have, in his possession, an amount
of money as a prize disbursement and that duty was required to
have these funds released to her.
She expressed that she did not have that amount available. Then,
as result of a subsequent conversation, the matter was apparently
to handed off to an Ottawa based customs brokerage firm.
She was to be contacted by a Mr. Parker in respect to finalizing
the transfer of these funds and satisfying the legal and financial
aspects (tariff) associated with this type of a transaction.
We had numerous conversations with Mr. Parker and his supposed
employer Mr. Stewart (Stuart?) who consistently assured my mother
and, subsequently myself, that this was all an entirely legitimate
attempt to provide us with these funds.
Our requests to have them legitimize their claims; provide a company
name; documentation, have never been realized yet to this day I
still receive telephone calls from Mr. Parker.
We have consistently been asked to provide additional funds to
cover various documentation/legal fees, to provide and expedite,
the safe, legal transfer of these funds which had now, because
of the interest accumulated, grown to a rather large sum. This
has always been used as a tool to overcome any resistance we offer.
Mr. Parker has left us with a telephone number that we have used
this entire time (five years) to contact him if we happen to miss
his calls. Every time he stresses the urgency to have the funds
transferred and every time he asks for additional money to be wired
with the promise that we will receive the winnings money the very
same day.
And of course this has never come to be. I have been informed
by the Phone Busters organization that this is most likely a continuation
of the organized fraud attempts that mother had been a victim of
initially.
It is very disturbing that these people operate with little or
no conscience and that they target those who are the most vulnerable.
I feel most concerned for the elderly who deserve to be left alone
and enjoy the time and resources that they need to enjoy their
latter years.
Sadly, my mother has since passed away from cancer. I strongly
believe that it was a result of this situation that her dignity,
and, subsequently, her health suffered. She was robbed of both
the time and energy she needed to recover from her illness, not
to mention the money.
The individuals involved have stolen those precious moments from
her along with the resources she needed to provide herself a little
bit of comfort during her greatest time of need.
I hope that, with this information, you are able to further reinforce
your efforts to investigate and provide evidence against those
who continue to cheat and steal from innocent and vulnerable people
and to help make those involved face the consequences of their
acts.
Too Late To Break Her Fall
5 Nov 2001
My jaw aches from dropping while reading your various reports.
Three months ago, when my 83-year old mother-in-law fell and broke
her tailbone I volunteered to take care of her during the day.
My first clue that something else was wrong occurred when I brought
her mail in from the box.
I had to carry in no less than FIFTY envelopes and packages, all
bearing markings such as "Official Notification," "Congratulations,
You're a Winner!" and "Immediate Response Required." I
asked her about all the mail, and she said it was just some of
my brother-in-law's mail and to leave it for her to open.
Each day, more and more envelopes and packages arrived. Finally,
by the fourth day, I asked the mailman about her mail. He said
he was concerned, too, and had even mentioned it to neighbors.
My brother in law, who is in and out of the area, said she had
called him earlier this summer and told him she'd won the Canadian
lottery, but that she had to send the tax money before she would
get her reward.
He told her not to do it of course but when he arrived several
days later, he saw her checkbook out on the table, and read it.
Horrified, he found countless entries to companies such as Puzzle-Rama,
CashOrama, Millennium Madness, and Top Choice, with amounts of
$10-$29.99 listed. He also found some unidentified withdrawals,
only with the notes "Canadian lottery" and in much larger
amounts, up to over $400.
Then, while helping to clean her apartment I also found many plastic
grocery bags full of envelopes with notations of check payments
and written comments such as, "Sent $29.99, when will
the check come?" and "I sent this in, but I don't
want the car, just the cash."
Totaling these check entries over the six months since March 2001,
I determined that she had sent over $6,000 to these companies,
representing most of her Social Security income.
I have not had the opportunity to delve further, but I do know
that her cash reserves are totally depleted and I think she started
with these companies about two years ago.
My brother in law has power of attorney, so we were able to go
over her current month's bank statement. We soon realized that
several marketing companies had her checking account number and
were making unauthorized withdrawals from her account as well as
those she "authorized" when these companies telephoned
her.
I intercepted one such call which was asking her to buy Canadian
lottery tickets. When I told the party to cancel the authorization
I had some rather rude comments personally directed to me.
The same party called back several hours later, but I was still
at the house. Unfortunately, when I called back the number posted
on the caller ID, it was a fax number, so I could not trace anything.
I have spent the past month freezing her old account; diverting
her mail to a post office box; reporting pertinent information
to PhoneBusters in Canada, writing a letter to the state attorney
general here; requesting refunds on withdrawals ( I was actually
successful in recouping $400 with this tactic); notifying the Direct
Marketing Association to withdraw her name and number from any
lists and writing some companies individually two, three and sometimes
four times. Whenever they mentioned a "satisfaction guaranteed
or your money back" opportunity, I also asked for that, too.
The mailings have dwindled to about ten per day. I know she is
not too happy with my handling of the situation, but we were all
headed for a financial crisis if we did not put a stop to this.
I am now in the process of gaining power of attorney, too, because
I believe it's absolutely necessary in these situations for one
family member to assume control. When I raised my children, I always
made it a rule that if they put themselves, or others, in danger,
I would take drastic action. I'm afraid I now find myself doing
this with someone who needs this protective attention just as much,
even if she is an adult. It is very hard.
The tragedy was that her friends and her other son TOLD her these
were scams, but to this day she will not admit it. I even found
among her papers news clippings regarding these kinds of mailings
and information about a "scam bill" our local senator
was planning to sponsor last year. She told me she just wanted
to have "fun" with these contests.
My suggestions include TELLING everyone involved about the situation.
Put aside any false sense of pride. Report, report, report. The
bank managers, the post office employees, the neighbors, and even
her friends know her predicament and know that I am dealing with
it.
I am amazed at the number of people who now share their own personal
experiences in this "newer" area of adult children caring
for parents once I tell them about my situation. Yet, until now
they've stayed silent, which I think is what allows these deceptive
companies to stay in business.
From my research, I know education efforts are circulated from
government agencies, such as the state attorney generals and the
U.S. Post Office, senior associations such as the AARP and the
media, both print and television. Unfortunately, I don't think
the senior group always "gets" the message.
However, the public must realize this is a true epidemic. These
mail and telemarketing scams create their own infection and cause
so much financial damage.
I have determined that a "Walter Karl" Company In New
York under the Donnelley Marketing group sells its sweepstakes
lists. The Walter Karl Co. apparently operates Millenium Madness,
Cashorama, and Puzzles Plus, among others, if I'm reading the on
web information correctly. So they make money not only on the various
sweepstakes, but also on selling names on the mailing lists.
I know we are fighting on many fronts today, but this one needs
attention, too. Thank you for taking the time to provide this site.
Taxing To Remember Aliases
On November 15, 2000, a federal grand jury in the Western District
of Louisiana indicted Nelson Guerrero, of British
Columbia, on six counts of conspiracy, wire fraud, and money laundering.
Guerrero and others allegedly operated a fraudulent telemarketing
business in Canada that telephoned victims and promised them a
substantial cash prize if they sent payments to cover "taxes" and
to convert Canadian currency to U.S. dollars. Guerrero also allegedly
used the aliases Nelson Ramirez, Alex Roberto, and Anthony Miranda.
Shark Takes The Bait
02/00 - An extradited Montreal telemarketer, Ronald
James Blum, 33, a/k/a "Sharky," pleaded guilty
to one criminal count of unlawful merchandising practices in
Missouri and was given the full five years to be served concurrent
with federal wire and mail fraud charges which netted him 52
months.
Caught in a sting operation, he identified himself as Randall
Parham, a Quebec judge who was disbursing prize money left by a
defunct contest company. He told a female investigator, in a recorded
call, that she could claim prizes totaling $100,000 by sending
him more than $18,000 as payment for taxes to the Canadian government.
He had been indicted by a Missouri grand jury in 1998 based partly
on undercover tapes made in late 1995.
Giving Banks a Bad Rep
07/01 - A group of three telemarketers operating a 'Sweepstakes'
fraud out of Quebec drove from Montreal to Toronto to further victimize
a 90-year-old woman had lost over $8,000 to them already during
the past year.
They went to the victim's house and identified themselves as being bank
representatives, and told her that she was the grand prizewinner of $800,000
in the Prestige Inc. Sweepstakes but in order to receive
the prize they required a percentage of the proposed cash deposit.
They then escorted her to her bank and assisted her in withdrawing
monies from her account leaving it overdrawn but with the assurance
that they would mail the winning cheque to her.
Arrested and charged with Fraud Over $5,000 prior to leaving the
Toronto area were Stephen Roberts, 42, Lysa Shanks, 31, and Michelle
Joseph, 27, all from Montreal.
Banks Seek to Protect Themselves
Several U.S. banks have recently experienced several large losses
from deposited Canadian checks which were returned as late as six
months later due to a claim of fraudulent origin.
In one case an elderly customer was contacted by someone who told
her she had won a car in a Canadian lottery but that they needed
a deposit from her of nearly $3,000. She must have sounded skeptical
so they told her to send along the check, made out to them - but
to leave it unsigned - so that they could not cash it.
She sent the check, completely filled out, but unsigned, to Canada.
They called her again saying that they needed her to send another
check for $2,500, again unsigned. At this point she refused and
requested that they send the first check back. The fraudulent telemarketer
then forged her name on the first check and cashed it.
Since the bank didn't catch the forged signature within the 24
hour deadline, they are going to be responsible for the $3,000.
In another case an elderly lady received both a letter and a check
from Canada saying that she had won the lottery. The check was
made out to her and displayed the name of a bank in Canada along
with the bank's phone number.
The letter gave the elderly recipient instructions to cash the
check and then immediately mail a cashiers check to the address
stated in the letter for the required payment of taxes on her winnings.
The bank diligently called the phone number that was on the check
to verify funds, but little did they know (until it was too late),
that the phone was, in fact, a cell phone and the bank was a fictitious
entity. The person on the cell phone officiously verified funds
available and so the bank cashed the check for the "winner" for
a very large amount of money.
The lady then took some of that money and dutifully bought a cashiers
check to pay the taxes on her winnings and mailed the check to
the address on the envelope, which was probably a post office box.
By the time the check that represented her lottery winnings bounced,
her check to pay the taxes had been cashed by the criminals.
With ready access to her account, the bank managed to get back
most of the money that the lady falsely thought were her winnings
and then held her accountable for the money she had sent off to
pay her taxes, which was a lot of money.
The cons suckered her in because she had actually received money
in hand. Once she thought she had her winnings in her account,
she gladly paid taxes on it. Ignorance of banking laws is no excuse
apparently.
In an FDIC alert about the Canadian Lottery scam, a Canadian Mounted
Police report indicates that they learned that U.S. banks "can
freeze funds for a period of up to 14 days in order to confirm
funds are secured" under an agreement between Canada and the
US for the timely return of checks, although no reference of this
can be found and a Canadian attorney consulted on the matter did
not believe any such agreement exists.
Some banks have therefore established a $1,000 threshold for consumers
and $5,000 for businesses based upon what they felt was an acceptable
risk level for banks of their size.
Two tiers were created based on the level of recapture risk -
the likelihood of being able to recapture funds from the customer
should a deposited Canadian check be returned later for reasons
of fraud.
However, even for deposits below these thresholds, they plan to
place holds on the funds for the average three weeks it takes for
a Canadian NSF check to be returned.
High collection fees imposed upon the customers by the banks correspondent
processor is apparently one reason not all Canadian checks are
sent as collection items.
Elder Wins, Falls and Breaks Her Hope
04/02 - A 75-year-old Palo Alto, CA woman's entire retirement
fund -- nearly $600,000 -- was lost to an advance fee sweepstakes
scam which used the name Windfall Investments Ltd.
The official looking letters indicated it was a lottery where
you just picked a series of numbers and if you got some of them
right you'd win millions. There was no obvious catch.
The woman played. She sent in a form with her picks. And then
the amazing calls began -- their voices filled with warm congratulations
and authority.
She had won $49.1 million. All she had to do was pay taxes on
the money and she would start receiving her "windfall." The
woman went to her retirement fund and her bank.
It began with two payments of $20,000, which were not wired to
Cyprus as she believed, but sent to the Chase Manhattan Bank. From
there, it was sent to an offshore account and disappeared..
She hadn't seen a dime yet and the calls from the lottery operation
were getting more frequent and frantic. They wanted more and more
money.
Never believing that the U.S. Postal Service would send something
bad through the mail system she waited patiently for her winnings.
Then, tapped out, she finally called the FBI.
When an FBI agent and a social service worker visited the woman
after her complaint, they showed up just as someone called her
on the phone, screaming and cursing at her to send more money.
Investigators have not traced the call or found out who is behind
the scam.
Once Bitten
North Of Superior Limited sent me a letter, along
with a bunch of confusing sweepstakes high-tech lingo, stating
they had a check for $1,000 or the same amount in merchandise waiting
for me, but I first had to send a payment of $9.95 so they could
promptly get my award off.
I did it and after finding they gave a bogus phone number I want
my money back.
I had the same thing happen to me with another company called American
Incentive and got a third letter from another company
called Contestant Representation Committee,
but of course I got the message by then that I was being had.
Jake 05/05/02
I just got a phone call from a Mr. John Smith who said:
"Congratulations, you have won $4 million. Isn't that wonderful!...What
are you going to do with all that money?"
He had my name and address and wanted to know if I received a
letter stating I had won. I said NO so we determined the zip code
was off. Then he says that to get my money I must first go to the
bank, take out $1,000.00, and send a Western Union money transfer
to John Smith, 205 E. 11th Street, Vancouver B.C., Canada.
Afterwards I was to call 1-604-788-9554 and get a confirmation
number. Only then would he send the $ 4 million by Fed-X.
I did not send any money and the next day he calls to ask: "Did
you send the money?" "Well, you have two options,
send me the money and I'll send yours, or I can send this money
to a charity of your choice. So which is it?"
I said: "To be honest, I do not believe you need $1,000 to
send this money. Besides, you can wire it directly to my bank.
It will be cheaper, it confirms receipt, and I could pay any taxes
then."
He thought I was not in my right mind, I guess, and didn't like
that at all.... I hung up the phone.
Pamela Bambula 7-10-02
The Bell Tolls For Thee
Often, the initial call is accompanied with a background sound-track
of ringing bells and other "prize-winning" noises usually
heard when one's slot machine pays off.
Canadian Man Charged With Telemarketing Fraud and Witness Tampering,
Reports U.S. Attorney
BOSTON, Nov. 18 /PRNewswire/ -- Two indictments were unsealed
yesterday in federal court, charging a Montreal man in connection
with his role in an extensive fraudulent telemarketing scheme and
witness tampering.
United States Attorney Michael J. Sullivan and Robin Avers, Special
Agent in Charge of the United States Immigration and Customs Enforcement
in New England, announced that David Chityal,
age 27, of Montreal, Canada, was charged in two separate indictments
with wire fraud, money laundering, and witness tampering. Chityal
was arrested yesterday in Canada by members of the Canadian Royal
Mounted Police and is being held in custody there pending a bail
hearing. Chityal will undergo extradition proceedings before he
appears in the United States on the charges.
The telemarketing indictment alleges that during the period of
at least September, 2002 through October, 2003, Chityal, a citizen
and resident of Canada, telephoned victims in the United States,
including in Massachusetts, and falsely identified himself as a
bank security officer or other member of law enforcement holding
a large sum of money for their collection in Canada. Chityal informed
his victims that, in order to collect the large sum of money, they
first needed to prepay taxes or fees.
In fact, the victims were not entitled to collect any sums of
money and the "taxes" or "fees" that they forwarded
to Canada, at Chityal's direction, were used for the personal benefit
of Chityal and others working with him, for purposes never disclosed
to his victims.
In addition to his phoney telephone calls to victims in the United
States, it is alleged that Chityal also caused his victims to receive
fraudulent documents, purportedly authored by various bank officials,
that appeared to substantiate his representations. It is alleged
that in fact, the documents were phony and were designed to lull
Chityal's victims into the belief that his representations were
legitimate and they should wire additional funds to Canada at his
direction.
In a separate indictment, unsealed yesterday, Chityal was also
charged with witness tampering in connection with his efforts to
arrange for the murder of a witness to the investigation of Chityal's
telemarketing scheme, in order to prevent that individual's testimony
before the grand jury.
If convicted on the wire fraud charges, Chityal faces up to 20
years' imprisonment, to be followed by 3 years of supervised release,
and a $250,000 fine. If convicted on the witness tampering charges,
Chityal faces up to 10 years' imprisonment, and a $250,000 fine.
The case was investigated by the U.S. Immigration and Customs
Enforcement. It is being prosecuted by Assistant U.S. Attorney
Lori J. Holik in Sullivan's Economic Crimes Unit.
A phone scheme told her she had won a prize in a sweepstakes
JODY LAWRENCE-TURNER - Statesman Journal
01/24/04 - A Salem woman who was bilked out of $194 narrowly avoided
being taken for thousands more by scam artists claiming to represent
a well-known sweepstakes, police said.
The scam came to light this week when the West Salem resident attempted
to get a $3,500 advance on her credit card to pay “taxes”on
a bogus $250,000 prize from Reader’s Digest.
However, a Visa credit card representative who questioned the 91-year-old
woman’s large transaction helped her avoid the fraud.
The woman said the credit-card representative’s questioning triggered
her to talk to her attorney, who then called police.
The Statesman Journal is not identifying the woman to help protect her
from possibly being victimized again.
“I wasn't using my mind with all the excitement and everything," she said, “even
though it didn't sound right."
Salem police took a report on the incident but said there was not much
they could do because the calls came from out of state.
The people claiming to be from Reader’s Digest first contacted
the woman by phone on Monday, said Lt. Dan Cary of the Salem Police Department.
The caller said the target had won $50,000 in a sweepstakes, and all
she needed to do was send $34 by Western Union to a man in Atlanta.
She did as he instructed, Cary said.
The next day, a man called and said there was a mix up. He told her she
had won $250,000 and all she needed to do was send an additional $160
to the same name and location.
Again, she did what the man told her, Cary said.
Then came a third call on Wednesday.
This time the man said he were going to add $10,000 to the woman’s
prize money to help pay for taxes on her prize, but she needed to send
$3,500 for the full tax payment.
This time, the money was to be sent to a different name via Western Union
in Decatur, Ga.
When she went to get the money advanced on her Visa, the representative
cautioned that it might be a scam.
Meanwhile, the woman called her lawyer and he contacted Salem Police
Department, Cary said.
While the police officer was taking a report from the woman, the man
called a fourth time.
Cary said she put the officer on the phone and the man promptly hung
up.
Sgt. Keith Blair, detective in charge of property crimes, said they will
send the report to the FBI.
Susan Brown, a spokeswoman for Reader’s Digest, said the company
planned its own investigation of the scam.
“We absolutely would never call the person. They are notified by certified
mail, and they contact us," Brown said in clarifying the Reader's Digest sweepstakes
policy. “And we never ask for money."
Brown cautioned that people should never send money to anyone unless
they have ordered something or know who the recipient is.
His Secret is Safe on the Web
02/04 - Ludlow, Vt. - Real Lussier should have known better. He
knows it.
But something about the idea of winning $396,000 was, frankly,
irresistible and exciting. So the 61-year-old retired tobacco farm
manager became a victim of telemarketing fraud, losing $5,801 in
cash he sent through Western Union to an account he thinks was
in Costa Rica.
"Please don't tell my three kids; especially my daughter,
she's going to kill me," Lussier said last week, adding that
his children live out of state so he's not worried they will read
about his mistake in the paper.
Telemarketing fraud is a $40 billion-a-year business, according
to the U.S. Department of Justice. The FBI says 14,000 fraudulent
telemarketing calls are made every day in the United States.
Lussier's troubles started Jan. 21 with a solicitation from a
man who called himself Joseph Moore and said Lussier had won $396,000.
Moore asked for a 3 percent delivery charge, about $11,000.
"I told him I don't have that kind of money - just send it
to me," Lussier recalled. The man called back two days later,
asking for $10,000, to "release" his winnings. Lussier
said he negotiated the charge down to $1,200, and sent cash to
Costa Rica.
A follow-up call a few days later asked for more money. Again,
Lussier sent money, this time in two different checks, $2,114 and
the other $2,325. He called Costa Rica to say he had sent the money.
The telephone number was dead the next day, after he spent the
morning waiting at his home for the call he expected, saying the
money had arrived in Burlington.
Lussier said his bank manager, his friends, and even the manager
of the Western Union office in Ludlow tried to warn him against
sending the money.
Now, he hopes others learn from his mistake.
Lee Pugh, senior counsel at the FBI regional office in Albany,
N.Y., said his office receives dozens of similar complaints each
month.
"There's no reason to be ashamed. Anybody can be fooled," Pugh
said Friday. He said the "advance fee scheme," which
tripped up Lussier, has been used on unsuspecting people for about
100 years.
"It's almost like the Venus fly trap. They know what buttons
to push," he said.
Officialy Endorsed Advance Fee Fraud
03/04 - Nevada Attorney General Brian Sandoval has warned that
someone posing as him has been telephoning Nevadans and trying
to scam them out of money.
Sandoval said Wednesday that people are reporting calls from a
person who claims they’ve won as much as $350,000. The caller
then says the money must be insured before the winner gets it —and
the insurance costs $3,500.
Moments later, residents get a call from someone claiming to be
Sandoval, who says he has investigated the company and the prize
offer is legitimate.
“The verification call, allegedly from me, is nothing less
than an outrageous and misleading endorsement of the company and
a false claim of a guarantee from our office that the prize offered
is legitimate," Sandoval said.
Sweepstakes scam artist steals $4,000
03/14/04 - BETHLEHEM, PA -- An elderly woman was conned out of
about $4,000 by a man who claimed she had won a Canadian Sweepstakes,
police said.
Miriam Griffing, 74, received a call from a man who identified
himself as "Allen Blakely" of U.S. Customs, who said
she had won $5 million, a police report says.
Griffing, of the 700 block of Main Street, was reportedly told
she had to send about $2,000 to Canada via a "Moneygram" from
a nearby Wal-Mart.
Griffing promptly took out a $5,000 loan and sent the money, plus
a $103 fee, on Thursday, the report says.
On Friday she was told by Blakely to send another $1,900 to Canada
and two FBI agents would escort her to a bank to collect her prize,
the report says.
Griffing sent the money and paid the fee, but no one showed up,
the report says.
She called police, but by then the money had been picked up, the
report says.
The people involved in this scam reportedly use false identifications
to collect the money.
By JEFF SCHOGOL The Express-Times
Man Arrested, Targeted Elderly Victims
in Sweepstakes Scam
DECATUR, GA 04/02/04 - (AP) - A DeKalb County man who admitted
guilt in a phony sweepstakes scheme has been sentenced to 10 years
in prison.
Undra Fletcher, 37, pleaded guilty Monday to telemarketing fraud
and other charges related to telephoning elderly people and telling
them they had earned about a million dollars in a sweepstakes but
had to send him $8,500 to pay taxes on the winnings.
He was jailed after being arrested in the spring of 2002, but
authorities said he tried the scheme again after being released
on bond in October.
Fletcher was convicted in 1997 of using the same scam against
an elderly victim. He was sentenced to probation and ordered to
pay restitution.
We Caught Them, You're Next
04/02/04 - Streator Illinois police are warning citizens to be
aware of a telephone scam that has reached the area.
According to police, two women received a similar telephone call, today
and last Wednesday, from a person claiming to be Detective William
Grant from Internal Investigations of Canada.
The caller said his badge number is 6225 in both cases.
The caller claims that the IIC busted a ring of Internet hackers last
August who supposedly stole over $1.3 million over the World Wide Web.
The caller then said the money was stolen from Publishers Clearinghouse
of Canada and the United States, and told both women they are eligible
to claim $680,000 if they send $2,950 to him via Western Union.
After the money is wired to the caller, then he claimed he would send
federal tax exemption and insurance refund forms to be filled out, and
an attorney would contact the women regarding how to collect their “winnings.”
Sweepstake Mania - Scam from Romania
04/16/04 (KFOR.com) An Oklahoma woman said she was thrilled to
learn she had won $1 million from the Publisher's Clearinghouse
Sweepstakes. But now she's worried she may be the victim of a con.
It was a shocker a day ago when Delores McMillion picked up the phone
and heard the words we would all love to hear: you have won $500,000
from the Publisher's Clearinghouse Sweepstakes.
"And, he said, 'This is for true. It's for real.' "
Now McMillion has been dealing with Publisher's Clearinghouse for years
and gets a lot of mail from them. Could this be her time?
The man on the phone said he would be bringing the check right to her
house in Oklahoma City, but there were some rules.
"One thing, you send the money and don't tell anyone about the money," she
said.
Now the money she was to send was for the taxes, they said. Did she go
along with it?
"Oh, I sent them $1,100 yesterday," she said.
"Were you able to stop payment on the check?"
"No, it wasn't a check it was Western Union and they received
it by the time I walked out the door," she said.
Strangely enough, the money had to be wired to Romania where it was picked
up. And, amazingly, after sending the money they called her again and
said the million-dollar winner was disqualified and McMillion would get
that money. All she had to do was send them $30,000 for taxes. She said
she couldn't do that, then they started negotiating down to $1,000, which
helped her figure out it was a scam.
"He said, 'Can you borrow the money?' and I said, 'No, I can't.' And at
that moment he hung up," she said.
That's when McMillion realized she had been taken and called the real
Publisher's Clearinghouse. They don't work that way. If you win, they
will not call, they'll just show up at your house with marked cars and
cameras.
An embarrassed McMillion said she doesn't want this to happen
to you. So, if you get the call, remember this story and the fact
the Clearinghouse doesn't call, they just knock on your door.
Who to Believe, Crooks or Cops?
Minnesota - On April 20, 2004, an employee at the Money Center
called to report that an elderly woman might be getting scammed.
The 93-year-old woman was trying to wire $1,200 to an address that
the Money Center had listed as a bad account in Canada.
Investigating officers learned that she had been told by telephone
that she had won a sweepstakes from New Zealand, and that she had
to send the $1,200 to receive it. Police intervened before she
could send the money, although she was insistent that she had won
and did not want their intervention.
An 81-year-old woman received a call during which she was told
she had won a $3.5 million Canadian lottery prize. She was instructed
to send appropriate taxes – more than $3,000 – to an
address in Jamaica. She sent it in two payments, then asked her
son for a $2,000 loan for a final payment. Her son alerted police.
According to the police report, the victim insisted that her lottery
money would have been on the way if she had sent the last $2,000.
Victims’ reluctance to believe they’re being duped
is a source of frustration, said the investigating officer.
“I talked to her [the woman who lost more than $3,000] for
an hour about these scams," he said. “I thought she understood,
but at the end she said that they would be at her door if she had
only sent that $2,000."
Another frustration, he said, is the fact that follow-up investigations
into the culprits are not likely to yield any arrests. Not only
are they savvy, but the investigation is multi-jurisdictional.
This poses many problems for law enforcement.
Lottery scam alert - Scammers from Quebec
cost local woman thousands
BY AUSTIN L. MILLER - STAFF WRITER - Ocala Start
Banner
06/12/04 - OCALA - Sheriff's deputies are asking residents to be aware
of a scam that informs unsuspecting callers that they have won the U.S.
and English lotteries. But, according to sheriff's officials, before
the money can be sent, you must purchase an insurance policy.
On Thursday, a sheriff's deputy was notified by a Bank of America manager
that a customer had withdrawn large amounts of money.
The customer, a 72-year-old Silver Springs woman, told the bank employee
that she had won the England and U.S. lottery and the money was being
used for insurance purposes, according to the Sheriff's Office.
The deputy then contacted the woman and she told him that on June 2, "Tiffany" called
her home and told her she had won the U.S. lottery and was slated to
receive $250,000. However, before she could receive the money, she would
have to purchase an insurance policy for $1,400.
The woman told the deputy she bought a Moneygram for $1,400 and sent
it to an unknown address in LaSalle, Quebec.
The next day, June 3, "Tiffany" again contacted the woman and
told her that her name had been drawn in England and she had won that
country's lottery. Before she could receive the prize money, the woman
had to purchase another insurance policy, this time for $1,775. She then
sent another Moneygram to the same address in Canada.
On June 4, "Eric Johnson" - from an unknown insurance company
- called and told her that she would have to send more money to secure
the insurance policy she bought. Before the day ended, the woman had
sent a total of $3,875. The money was sent by Western Union.
Three days later, "Vince" from Quebec called five different
times and told her she needed to send more money for insurance policies.
She then sent $2,900 by Western Union. The money was charged on her Visa
card. Authorities said the scam victim spent $900 in Western Union charges
for sending the funds.
In two days, on three separate occasions, according to the Sheriff's
Office report, she sent $8,700, which was charged to her Visa credit
card. Then, on Thursday, the woman withdrew $1,900 from her account and
was going to send it to Canada when the bank manager called the Sheriff's
Office.
Throughout the scam, she sent a total of $18,650, according to Sheriff's
Office reports. However, deputies contacted Visa, and the company was
able to cancel four $2,900 charges placed on the woman's credit card.
In the end, she lost $7,950, including Western Union fees.
A federal immigration and customs detective from Jacksonville, who was
notified by a sheriff's deputy about the scam, said the government has
received reports about a similar scam in that area a month ago. Authorities
in Canada have been notified about the scam, according to the Sheriff's
Office report, and they are following up on the case.
Sheriff's Office spokesman Lenny Uptagraft said residents need to be
careful about any information they receive that may be too assuring.
"If it sounds too good to be true, then probably it is," Uptagraft
said.
Sgt. Russ Kern of the Ocala Police Department said people should always
verify any information they receive about winning any prizes.
"People should be very leery of those who don't want you to verify any information,
or, when they contact you, they want your money right now. If that happens, then
you should contact law enforcement immediately," Kern said.
Canadian Lottery Sweepstake Scams - article was at www.pjstar.com/news/local/b1ko0j6p014.html
Costa
Rica Advance Fee Insurance Bond Sweepstakes Scam
Costa
Rica Prize Scam Western Union Payment Fraud - article
Fake
Publishers Clearing House Sweepstakes scam - article
Canadian
Sweepstakes Scam Dupes Elderly Victims - article
Readers
Digest Winner Scam
Astra
Loto Prize Inc Canadian Lottery Scam - article
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