Federal authorities announced indictments of seven people alleged to be involved in a lottery scam that stretched across the U.S. and Jamaica and bilked the elderly out of millions of dollars.
A grand jury in Pittsburgh, Pennsylvania, indicted the group on various charges related to conspiracy to commit mail fraud, wire fraud, and money laundering. The charges come after a wide-ranging investigation to protect older adults from fraud and financial exploitation.
“These defendants allegedly enriched themselves at the expense of elderly victims who believed they had won the lottery,” U.S. Attorney Eric G. Olshan said. “Protecting our most vulnerable populations from the proliferation of targeted fraud schemes like the one alleged in this case remains a significant priority of our office. We will continue to work with all of our domestic and foreign law enforcement partners in our shared pursuit of justice on behalf of crime victims.”
Details on the Scheme and Charges
In the U.S., federal authorities arrested and indicted: Tashane Murray, 30, of Miramar, Florida; Clevon McKenzie, 31, of Mount Vernon, New York; Gyzzell Byfield, 27, of Bridgeport, Connecticut; and Daneil Reid, 27, of Fort Lauderdale, Florida.
Three men were also arrested and indicted in Montego Bay, Jamaica, including: Jason Plummer, 31; Troy Williams, 38; and Tajay Singh, 26. Those charged in the scheme now face up to 20 years in prison and significant fines.
Prosecutors allege the defendants devised and executed a scheme that stole more than $2.8 million from the elderly and vulnerable victims in Pennsylvania and other parts of the U.S. The scheme involved contacting the victims and telling them that they’d won millions of dollars in a sweepstakes or lottery.
The suspects are then alleged to have told the victims they needed to pay taxes and fees before claiming the prize. Victims often received forged documents describing the winnings and required taxes and fees. Some of the forms included actual seals of government agencies.
The victims were then told to send money, including cash, checks, and money orders, to people designated by the conspirators. Additionally, some of those receiving the funds were also victims of the scam who were unwittingly fooled into accepting and moving funds on behalf of the group.
Prosecutors say the funds were laundered through a network of bank accounts and money mules before eventually being withdrawn by the members in Jamaica.
“Those charged targeted and took advantage of some of the most vulnerable people in our society,” FBI Pittsburgh special agent Mike Nordwall said. “This was a wide-reaching conspiracy that cost victims millions of dollars. Unfortunately, it’s a crime that is increasing every year, and Pennsylvania remains one of top states in the country that is impacted. The FBI is dedicated to stopping crime groups abroad and here at home who exploit our seniors with financial fraud schemes.”
Along with the FBI, the investigation included various other law enforcement agencies including the U.S. Postal Inspection Service, Department of Homeland Security, the U.S. Marshals Service, the Jamaica Constabulary Force, and numerous others. The suspects’ alleged use of the mail system played a role in investigating the scheme.
“The U.S. Postal Inspection Service is committed to investigating fraudulent lottery schemes designed to defraud innocent victims,” Pittsburgh postal inspector Lesley Allison said. “Combating international fraud schemes is a priority of the Postal Inspection Service particularly since the fraudsters prey on our most vulnerable US citizens. Postal Inspectors will exhaust all efforts to identify and indict those responsible for using the U.S. Mail to facilitate these egregious criminal acts against our seniors.”
‘Bad Bets’ Boost U.S. Sports Betting
In other gaming news, a key U.S. hedge fund manager announced last week that as an investor, he feels positive about the U.S. online sports betting industry. Hedge fund manager Jim Chanos is bullish on the industry for what he referred to as “bad bettors.”
Chanos previously was down on the industry after noting that gaming companies like DraftKings faced huge marketing budgets before ever reaching a profit. However, as more states legalize wagering and more Americans continue betting, that pessimism has apparently changed.
“The betting numbers have continued to be strong in the US, stronger than we thought they’d be,” he told the Financial Times. “The thing that we underestimated — that I think is going to be a benefit for all these companies for a while anyway — is what bad bettors the U.S. gamblers are.”
Chanos said that riskier wagers such as in-game betting, proposition bets, and others with longer odds “boost margins.” He told the outlet that these types of bets include “really bad-odds bets for gamblers?.?.?.?so it’s become a better business than we thought it would be and we saw that during last year’s football season.”
