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Woman admits role in $15M fake prize scheme targeting seniors

She mailed millions of fake notices, but no one ever won the “big prize.” Surprised?

The United States District Court, District of Nevada.
The United States District Court, District of Nevada, handled the case against Kimberly Stams. Photograph credit to Google Maps.
Todd Betzold

When a glittering prize lands in your mailbox, it's hard not to dream big, but not all that glitters is gold. For years, one Arizona woman convinced thousands of seniors that they had hit the jackpot — only to find out the “winnings” were more smoke and mirrors than cold, hard cash. From clever mailings to tiny trinkets posing as prizes, her scheme raked in millions before authorities finally stepped in.

Fake mass-mailing prize scheme

According to court documents, Kimberly Stamps, 48, of Gilbert, was the owner and operator of a mass-mailing prize notice scheme that operated from 2012 to February 2018. Her company mailed out millions of fraudulent prize notices, which mainly targeted senior citizens.

These prize notices informed the victims that they had been individually selected to receive a large cash prize. However, to receive that prize, they would need to pay a $20 to $50 fee. Because the fee was minimal, they were able to get more and more people to participate. However, none of the victims actually received a large cash prize from Stamps or her co-conspirators.

In place of the large cash prize, the victims said they received a “report” describing sweepstakes opportunities they could join or a trinket of minimal value.

When the victims responded to one fraudulent prize notice mailing, Stamps and her co-conspirators bombarded the victims with even more fraudulent mailings. This group allegedly used the mailing scheme to steal over $15 million from the victims, who were mainly elderly or vulnerable.

In February 2018, the U.S. Postal Inspection Service executed multiple search warrants. The Justice Department then obtained a court order, which shut down the fraudulent mail operation.

Guilty plea accepted

On Tuesday, September 23, 2025, Stamps pleaded guilty to conspiracy to commit mail and wire fraud. As part of her plea, she acknowledged running nearly every aspect of the scheme — purchasing consumer mailing lists, selecting the fraudulent notices, scheduling the mailings, and setting up P.O. boxes to collect responses.

She also coordinated with printers and translators, ordered low-cost trinkets to send as “prizes,” tracked how victims replied, and even opened bank accounts to handle the payments.

In addition, Stamps admitted that by operating this fraudulent mailing scheme, she violated a U.S. Postal Service cease-and-desist agreement and consent order reached in 2012. According to that agreement and order, she was barred from mailing fraudulent prize notices.

Stamps' co-conspirators have already been charged and pleaded guilty for their role in the mailing scheme. John Kyle Muller and Barbara Trickle pleaded guilty on April 12, 2024, and April 28, 2025, respectively.

Be on the lookout

With the rise in scams taking place, officials are urging individuals to be on the lookout for fraudulent lottery, prize notification, sweepstakes, and psychic scams.

If you happen to receive a phone call, letter, or email promising you a large prize in exchange for some kind of fee, do not respond. Authorities said these fraudsters will often use an official-sounding name or the names of real lotteries or sweepstakes to pull people in. They will also pretend to be a government official trying to help them secure a prize. Ignore, ignore, ignore!

Enjoy playing the lottery, and please remember to play responsibly.

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