Federal Law Enforcement Tackles Two Separate Lottery Scammers

As lottery sales continue to climb, so does the volume of scams attached to them. Federal law enforcement agencies are taking a stand, bringing a couple of major cases of lottery fraud to an end.

In one case, Fiona Lorraine Walters, 50, of Newburgh, New York, entered a guilty plea last Thursday to charges of conspiracy to commit money laundering. A DOJ press release reports that Walters admitted her involvement in laundering over $300,000 obtained through fraudulent means. Her sentencing is set for Sept. 23.

Between July 5, 2016, and Aug. 15, 2020, Walters and her co-conspirators targeted victims, predominantly elderly, deceiving them into believing they had won lottery or sweepstakes prizes. The U.S. Postal Inspection Service led the investigation and determined that the victims were persuaded to send money, purportedly to cover fees associated with claiming their winnings.

However, no such prizes existed, and the funds were funneled through various bank accounts held by Walters and her family members. The illicitly obtained funds were either transferred or retained by the conspirators.

A conviction for conspiracy to commit money laundering carries severe penalties, including a maximum prison sentence of 20 years, a fine of $500,000 or twice the amount of the laundered funds — whichever is greater — and a three-year term of supervised release.

South Florida scam gang facing prison

On a similar topic, federal prosecutors have charged Nickoy Campbell, a 29-year-old Jamaican-American resident of Margate, Florida, in a separate multi-million-dollar lottery scam. Also charged are brothers Dwayne and Wayne Anthony Henry from Landover Hills, Maryland.

South Florida media outlet WPLG explained that the scammers reportedly targeted at least 20 people, all of whom were at least 55 years old at the time. The group defrauded the victims of over $9.5 million.

Campbell was arrested by U.S. Marshals and booked into Broward County jail on Thursday. The Henry brothers were apprehended back in January and are also facing charges of conspiracy to commit mail fraud.

According to court documents, the three alleged criminals contacted victims with claims of winning substantial sums from lotteries or sweepstakes, including the Publishers Clearing House sweepstakes. Victims were instructed that they would have to pay taxes and fees upfront to claim their winnings.

Victims from across the U.S.

Campbell and the Henry brothers allegedly had a sophisticated network of operations running across several states, including Alaska, Florida, Maryland, North Carolina, Oregon, and Tennessee. In one instance, a Florida victim was told they had won $8.4 million but needed to pay $100,000 in taxes and fees. The victim sent a $40,000 cashier’s check to Campbell, who deposited it into his own bank account.

Another scheme involved an Oregon victim who was told they had won $5.5 million. The scammers sent a briefcase allegedly containing a portion of the winnings, along with a warning that the briefcase contained an ink pack that would destroy the money if opened without the correct code. That code would only be provided after the payment of taxes and fees.

An Alaska victim was instructed to send cash hidden in a hollowed-out children’s coloring book via FedEx to Walgreens stores in Maryland.

Like Walters, Campbell and the Henry brothers are facing up to 20 years in prison, along with fines, if a court finds them guilty.