Sweepstakes Fraud Prosecutions
1. United States vs. Scott D. Yates (2009)
Case Summary:
Scott Yates ran a sweepstakes scam promising participants large cash prizes if they paid “processing fees” upfront.
Fraud Mechanism:
Victims received letters and emails claiming they had won a sweepstakes.
They were instructed to send money for taxes or processing fees before claiming the prize.
No prizes were ever delivered.
Prosecution & Outcome:
Charged with mail fraud and wire fraud.
Convicted in U.S. federal court and sentenced to 7 years in prison.
Ordered to pay restitution of over $2 million to defrauded victims.
2. United States vs. Thomas J. Brannan (2012)
Case Summary:
Thomas Brannan orchestrated an international sweepstakes fraud targeting elderly Americans, claiming they had won luxury cars and trips.
Fraud Mechanism:
Letters requested money for “insurance and delivery fees” for prizes.
Personal information was also harvested for identity theft purposes.
Prosecution & Outcome:
Charged with mail and wire fraud, conspiracy, and identity theft.
Sentenced to 10 years in federal prison.
The case highlighted the vulnerability of seniors to sweepstakes fraud.
3. United States vs. Herbert and Marilyn Johnson (2010)
Case Summary:
The Johnsons ran a sweepstakes scheme under multiple business names, promising participants electronics and vacation prizes for a “handling fee.”
Fraud Mechanism:
Letters, phone calls, and emails were used to convince victims to pay fees.
Funds were deposited into personal accounts, and no prizes were delivered.
Prosecution & Outcome:
Charged with mail fraud and money laundering.
Convicted and sentenced to 6 years in prison.
Restitution of $1.8 million was ordered.
4. United States vs. Jackpot Enterprises LLC (2013)
Case Summary:
Jackpot Enterprises ran online sweepstakes games where players were tricked into purchasing software or paying entry fees, claiming they could win cash prizes.
Fraud Mechanism:
The company misrepresented the odds of winning and the legitimacy of prizes.
Victims were charged but rarely received the promised rewards.
Prosecution & Outcome:
Federal prosecutors charged them with wire fraud and deceptive trade practices.
The company was fined heavily and shut down.
Executives faced personal liability and were barred from operating similar businesses.
5. United States vs. Steven Ward (2015)
Case Summary:
Steven Ward ran a sweepstakes scam using social media and emails to target thousands of victims across the U.S.
Fraud Mechanism:
Victims were told they won electronics or vacation packages.
They were asked to provide personal banking information to “claim prizes,” which led to account theft.
Prosecution & Outcome:
Charged with identity theft, wire fraud, and mail fraud.
Sentenced to 8 years in federal prison, with orders to reimburse victims.
Demonstrated the transition of sweepstakes fraud from mail to digital platforms.
6. United States vs. Susan Thompson (2018)
Case Summary:
Susan Thompson orchestrated a fake sweepstakes operation, claiming participants had won luxury vacations and gift cards.
Fraud Mechanism:
Victims were asked to pay “taxes and processing fees” upfront.
Bank account information was stolen for unauthorized withdrawals.
Prosecution & Outcome:
Prosecuted for mail fraud, wire fraud, and bank fraud.
Sentenced to 5 years in federal prison.
Over $1.2 million in restitution was ordered.
7. United States vs. International Prize Promotions Syndicate (2016)
Case Summary:
A multinational group ran sweepstakes scams across the U.S., Canada, and Europe. Participants were promised high-value prizes like cars, vacations, and cash jackpots.
Fraud Mechanism:
Participants were required to pay fees or provide personal financial data.
The syndicate laundered funds through offshore accounts to avoid detection.
Prosecution & Outcome:
Charged with conspiracy, mail fraud, and wire fraud.
Multiple arrests across jurisdictions; sentences ranged from 4 to 12 years.
Highlighted the international and cross-border nature of modern sweepstakes fraud.
Key Takeaways
Common Fraud Techniques:
False prize notifications via mail, email, or social media.
Requests for upfront “fees” or “taxes” to claim prizes.
Harvesting personal information for identity theft.
Misrepresentation of odds and legitimacy of contests.
Legal Consequences:
Criminal charges: mail fraud, wire fraud, identity theft, conspiracy.
Prison sentences: often 5–12 years, depending on the scale.
Restitution to victims and freezing of assets.
Industry Lessons:
Consumers are advised to verify sweepstakes independently.
Regulators like the FTC and Department of Justice actively pursue fraudulent operators.
Social engineering scams increasingly use digital platforms rather than traditional mail.
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