Sweepstakes scams target seniors in at least ten states
PROVIDENCE, R.I. — An investigation by Homeland Security Investigations (HSI) and the Warwick Police Department resulted in three individuals from Georgia being charged in federal District Court in Providence due to their alleged roles in a wide-ranging lottery and sweepstakes scam which, according to court documents, defrauded senior citizens in Rhode Island and several other states out of at least $1 million.
Court documents allege that Patrick Dallas, 36, and Stacey Robinson, 28, of Atlanta, Georgia, and Owen Demoy Byfield, 32, of Cumming, Georgia, defrauded individuals through a bogus “Publishers Clearing House” (PCH) or similar sweepstakes scam and laundered the proceeds through entities and bank accounts they controlled. All three are charged with conspiracy to commit mail and wire fraud, and conspiracy to commit money laundering.
The court filings allege that seniors were duped into believing that they had won significant sums of money, often times millions of dollars, in a PCH lottery or sweepstakes. These seniors were advised they had to provide personal identifying information for prize verification and pay upfront fees or taxes to collect winnings. Some of the victims were directed to send money, gift cards, or high value items such as Rolex watches and iPhones, purportedly to cover these fees, to various addresses controlled by the defendants.
It is alleged that one victim, a 77-year-old Rhode Island man, received what purported to be a notification from PCH, informing him that he had been randomly entered into a raffle and had won $17,500,000. After contacting the “prize representative” listed in the notification as instructed, the victim was contacted multiple times by another person purporting to be from PCH who instructed him to wire transfer $100,000 to an account later determined by law enforcement to be controlled by a member of the conspiracy. Over time, the victim was repeatedly instructed to purchase a total of three Rolex watches valued together at $42,746 and to ship them to addresses later determined to be associated with a member of the conspiracy. The 77-year-old was further instructed to write and send four checks, each written for $30,000, to an address he was provided. When this 77-year-old gentleman attempted to send the checks, a FedEx employee advised him that he was likely being victimized by scammers and that he should contact the Warwick Police Department. The FedEx employee refused to accept the mailing.
According to court documents, an investigation by the Warwick Police Department, HSI New England, and the U.S. Postal Inspection Service determined that seniors in numerous states had fallen prey to similar scenarios on multiple occasions, and victims provided significant amounts of money to various entities or bank accounts allegedly controlled by members of the conspiracy. It is alleged that the fraudulently obtained funds were often moved around by members of the conspiracy to other entities and bank accounts they controlled. Some of the funds, including the money wired by the Rhode Island victim, were allegedly used to purchase a home. It is alleged that in applying for a mortgage, altered and fraudulent documents were submitted to a mortgage lender.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The matter was investigated by HSI New England’s Providence Resident Agent in Charge office, United States Postal Inspection Service, and the Warwick Police Department, with the assistance of HSI Atlanta, the Georgia State Patrol, the Forsyth County Sherriff’s Office, the Fulton Count Sherriff’s office, the U.S. Marshals Service, and the East Providence Police Department.
If you or someone you know is a victim of elder fraud, call the HSI Tip Line at 877-4-HSI-TIP or the National Elder Fraud Hotline at 833-FRAUD-11.