Three Charged in Multi-State Fraud and Money Laundering Conspiracy

PROVIDENCE, RI – Three individuals from Georgia have been charged in federal District Court in Providence, RI, for their alleged roles in a wide-ranging lottery and sweepstakes scam that, according to court documents, defrauded senior citizens in Rhode Island and several other states out of at least one million dollars, announced United States Attorney Zachary A. Cunha.

Court documents allege that Patrick Dallas, 36, and Stacey Robinson, 28, of Atlanta, GA, and Owen Demoy Byfield, 32, of Cumming, GA, defrauded individuals through a bogus “Publishers Clearing House” (PCH) or similar sweepstakes scam and laundered the proceeds through entities and bank accounts they controlled.  All three are charged with conspiracy to commit mail and wire fraud, and conspiracy to commit money laundering.

As detailed in court filings, it is alleged that seniors were duped into believing that they had won significant sums of money, often times millions of dollars, in a PCH lottery or sweepstakes. These seniors were advised that, in order to collect their winnings, they were required to provide personal identifying information for prize verification purposes, and they were informed that they had to pay upfront fees or taxes. Some of the victims were directed to send money, gift cards, and/or high value items such as Rolex watches and iPhones, purportedly to cover these fees, to various addresses controlled by the defendants.

It is alleged that one victim, a 77-year-old Rhode Island man, received what purported to be a notification from PCH, informing him that he had been randomly entered into a raffle and had won $17,500,000. After contacting the “prize representative” listed in the notification as instructed, the victim was contacted multiple times by another person purporting to be from PCH who instructed him to wire transfer $100,000 to an account later determined by law enforcement to be controlled by a member of the conspiracy. Over time, the victim was repeatedly instructed to purchase a total of three Rolex watches valued together at $42,746 and to ship them to addresses later determined to be associated with a member of the conspiracy. The 77-year-old was further instructed to write and send four checks, each written for $30,000, to an address he was provided. When this 77-year-old gentleman attempted to send the checks, a FedEx employee advised him that he was likely being victimized by scammers and that he should contact the Warwick Police Department. The FedEx employee refused to accept the mailing.

According to court documents, an investigation by the Warwick Police Department, Homeland Security Investigations, and the United States Postal Inspection Service determined that seniors in numerous states had fallen prey to similar scenarios on multiple occasions, and that victims provided significant amounts of money to various entities or bank accounts allegedly controlled by members of the conspiracy. It is alleged that the fraudulently obtained funds were often moved around by members of the conspiracy to other entities and bank accounts they controlled. Some of the funds, including the money wired by the Rhode Island victim, were allegedly used to purchase a home. It is alleged that in applying for a mortgage, altered and fraudulent documents were submitted to a mortgage lender.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant United States Attorney John P. McAdams.

The matter was investigated by Homeland Security Investigations, United States Postal Inspection Service, and the Warwick Police Department, with the assistance of  Homeland Security Investigations in Atlanta, Georgia State Patrol, Forsyth County Sherriff’s Office, Fulton Count Sherriff’s office, the U.S. Marshalls Service, and the East Providence Police Department.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available by calling the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, http://www.elderjustice.gov.

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