United States v. Tully Lovisa et al.
United States v. Tully Lovisa, Shaun Sullivan, and Lorraine Chalavoutis
18-CR-349
An indictment charges Tully Lovisa, 55, of Huntington Station, New York; Shaun Sullivan, 37, of Merrick, New York; and Lorraine Chalavoutis, 61, of Greenlawn, New York, with mail fraud, money laundering, and conspiring to commit those offenses. The indictment also charges Lovisa with perjury and additional wire fraud and money laundering offenses. The defendants’ prize-promotion mailings led recipients, many of whom were elderly and vulnerable, to believe that they could claim a large cash prize in exchange for a modest fee, according to the indictment. This was false; victims who submitted fees did not receive large sums of money, the indictment alleges.
View a list of mailing names associated with the scheme.
The scheme alleged in the indictment began after the Federal Trade Commission (FTC) sued Lovisa in 2010 for sending deceptive prize-promotion mailings. In response to that suit, a court enjoined Lovisa from any involvement with prize-promotion mailings. But, as alleged in the indictment, Lovisa did not stop. Rather, the indictment alleges that he worked with Sullivan and Chalavoutis to set up numerous prize-promotion companies using straw owners and aliases to continue defrauding hundreds of thousands of consumers. Chalavoutis, who provided various important operational services, allegedly helped conceal Lovisa’s and Sullivan’s control of the operation and misled others about the nature of the business.
All three defendants charged in the indictment have entered guilty pleas. Tully Lovisa pleaded guilty on October 12, 2018 to conspiracy to commit mail fraud and to wire fraud. Shaun Sullivan pleaded guilty on May 14, 2019 to conspiracy to commit mail fraud. Lorraine Chalavoutis pleaded guilty on July 12, 2021 to conspiracy to commit mail fraud.
Lorraine Chalavoutis was sentenced by the Court on January 5, 2023 to a term of imprisonment of 6 months. Once released from prison she will be on Supervised Release for a term of 3 years.
Two additional defendants were charged in connection with the scheme. Richard Winters pleaded guilty on September 4, 2018 to conspiracy to commit mail fraud. Steven McClenahan pleaded guilty on July 26, 2019 to conspiracy to commit mail fraud.
Richard Winters was sentenced by the Court on May 16, 2023. The Court ordered Time Served as Richard Winters’ sentence.
Steven McClenahan was sentenced by the Court on February 9, 2023 to Probation for a term of 5 years.
Scheduled Court Hearing
- Sentencing as to Lorraine Chalavoutis, August 2, 2022, 3:00 p.m.
- Sentencing as to Steven McClenahan, September 9, 2022, 10:30 a.m..
- Sentencing as to Tully Lovisa: July 26, 2023 at 1:30 p.m. before the Honorable Joanna Seybert,
- Sentencing as to Shaun Sullivan: November 16, 2023 at 3:00 p.m. before the Honorable Joanna Seybert
United States District Court
Eastern District of New York
Long Island Courthouse
100 Federal Plaza, Room 1030
Central Islip, NY 11722
Court documents
If you are a victim of the offense being charged in this case, you may contact the Victim-Witness Coordinator in the Eastern District of New York to help you exercise your rights.
For information or assistance, please contact:
Lisa Foster
718-254-6256
List of mailing names associated with the scheme:
Addleshaw Bird & Mitchell |
Analytical Distribution Authority |
Anderson Burges & Smith |
Automated Marketing Management |
Butler Rose & Jameson |
Cantor Benjamin & Associates |
Capital Management Group |
Capital Reporting Partners |
Capital Research Consultants |
Certified Distribution Specialists |
Consumer Affiliate Network |
Direct Notification Advisors |
Direct Research Consultants |
Donaldson Baker and Associates |
Entitlement Distribution Center |
Exclusive Selection Committee |
Federated Allocation Bureau |
Global Worldwide Enterprises |
Immediate Disbursement Division |
Kingsley, Harper & Hatfield |
Media Opportunities Direct |
Monetary Allocation Group |
Monetary Disbursement Associates |
Morgan Phelps & Stern Associates |
National Asset Allocation |
National Data Advisors |
National Monetary Holdings |
Northrup Winslow & Partners |
Pierce Greene & Associates |
Portfolio Management Fund |
Rappaport, Hiltner & Crenshaw |
Registered Asset Advisors |
Registered Disbursement Division |
Registered Entitlement Services |
Registered Fulfillment Advisory |
Research Advisory Associates |
Research Fulfillment Bureau |
Securities Disbursement Division |
Settlement Notification Advisory |
Unified Reporting Services |
Universal Acquisition Partners |
Universal Disbursement Associates |
Universal Research Unlimited |
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- Mail Fraud
- Money Laundering
- Conspiracy to Commit Mail Fraud
- Conspiracy to Commit Money Laundering
- None