News writer
A man in Georgia has admitted his role in a sweeping lottery and sweepstakes fraud scheme that authorities say stole at least $1 million from elderly victims across multiple states.
Guilty plea entered
Patrick Dallas, 38, of Cumming, recently pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering, according to court documents obtained by 11 Alive.
Officials said Dallas and his two co-conspirators orchestrated a bogus prize operation. This operation targeted seniors in Rhode Island and elsewhere by convincing them they had won a life-changing amount of money.
Instead of collecting this life-changing money, the victims lost money. They were allegedly pressured to send payments to claim the winning that never truly existed.
How the scheme worked
According to court documents, the fraud scheme seemed to mirror legitimate sweepstakes promotions, kind of like those similar to Publishers Clearing House, or online multi-state lottery draws. The victims were told they had won millions of dollars in a lottery or sweepstakes drawing.
To receive their prize, the victims only needed to complete a few final steps. According to prosecutors, those “steps” included providing personal identifying information for their so-called verification purposes. They were also told to pay upfront fees or taxes on the prize money.
To cover the costs of these fees or taxes, the victims were directed to send money in various forms, which included cash, gift cards, and even high-end luxury items like Rolex watches and iPhones. These payments were sent to addresses that were linked to the defendants.
Authorities said the proceeds were then laundered through bank accounts and business entities tied to the conspirators. This all helped disguise the origin of the funds, officials said.
The scheme crossed state lines
According to investigators, the operation specifically targets elderly individuals, which is a group that is often targeted in these sweepstakes and lottery scams.
These fraudsters frequently exploit excitement over large prizes. They create a sense of urgency, pressuring the victims to act quickly or lose out. This is to make sure the victims don't have time to verify the legitimacy of the claim.
Court documents state the scheme operated across state lines, which added to the complexity of the investigation and resulting charges.
Dallas will now be sentenced on May 7. Under federal sentencing guidelines, he could face significant prison time.
A reminder to stay safe
Authorities are warning players that legitimate lotteries will not require winners to pay upfront fees or taxes to claim a prize. They also do not ask winners to send gift cards, cash, or luxury items to secure their winnings.
Consumers are being encouraged to be cautious of unsolicited calls, emails, or social media messages claiming they have won a large prize. This is especially true if they are asking you to provide personal information or send payment.
Yes, real lottery wins do happen, but officials are stressing that any request for advance payment is a major red flag. This case is another reminder that when it comes to lottery and sweepstakes claims, if you're asked to pay first, it's almost certainly not a prize; it's a scam.
Enjoy playing the lottery, and please remember to play responsibly.
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