All news

New York woman pleads guilty to laundering $300K from lottery scam

You never owe “fees” for winning the lottery!

A New York Police car in front of Precinct F.
Todd Betzold

A woman from New York has reportedly admitted to duping elderly victims into thinking they won lottery or sweepstakes prizes and collecting “fees” to collect their winnings.

Fees to collect their big winnings

Fiona Lorraine Walters, 50, profited off of people, mostly older individuals, who were told they won a massive lottery jackpot or sweepstakes prize. They would have to pay “fees” to collect their prize.

However, there were no “winnings” to be paid, according to the U.S. Attorney's Office for the District of Arizona.

Prosecutors said the victims were contacted by “scammers” and convinced that they had lottery winnings that needed to be claimed, according to court documents obtained by The Sacramento Bee. Some of these victims were told they had won millions of dollars.

Over $300,000 was laundered from the victims

Walers and unidentified co-conspirators kept or transferred money they received from these victims through the lottery scheme, court documents state.

Prosecutors said Walters laundered more than $300,000 of the money stolen from the victims through her and her family's bank accounts. This was done between July 2016 and August 2020.

Once Walters had the money, officials said she spent it on “high-end” goods and travel and transferred some of the money to Jamaica as the victims were left with financial losses.

Pleading guilty

On July 11, Walters pleaded guilty to a charge of conspiracy to commit money laundering, authorities said.

In a statement, one of her attorneys, Grant Wille, said that:

Although Ms. Walters's role in the offense was relatively minor related to other conspirators, she is wholeheartedly and sincerely remorseful to the victims hurt by this conduct and grateful to the government for this opportunity to make amends.

A briefcase with fake winnings inside

One of the victims linked to Walters was an 81-year-old Arizona resident. In October 2018, an accused scammer told the victim they had won a fake $2.5 million sweepstakes prize, court records state.

The scammer solicited “fees” in order to release the “winnings” to the victim. The woman did make $80,000 in payments, but she never received the prize, according to the criminal complaint.

Officials said that between October 2018 and December 2018, Walters directly received $20,400 from the woman.

According to prosecutors, a locked briefcase was shipped to the woman's home on December 8, 2018. A “scammer” told the woman her $2.5 million was inside.

The woman was told that once she made several payments, she would be given the lock combination. However, if she tried to open the briefcase herself, an “ink bomb” would explode, authorities said.

The woman did report it to police and a deputy from Pima County “forced open the briefcase.” Once open, they discovered the case was filled with pamphlets and magazines and not money.

The guilty plea

Walters pleaded guilty to the money laundering charge. She is facing up to 20 years in prison, as well as a fine of $500,000 or twice the value of the funds involved in the offense, whichever is greater, prosecutors said.

She is scheduled to be sentenced on September 23.

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

Comments

0
Loading comments

Related articles

An electronic display at a lottery retailer displaying a $965 million Mega Millions jackpot.
Featured
Record $965M Mega Millions jackpot marks longest run in history

Mega Millions draw yields big second and third-tier winners, but the jackpot keeps climbing.

Halley Bondy profile pic

Halley Bondy

Joshua Johnston, Lead Director of the Mega Millions Consortium.
Featured
Slower jackpots, bigger payouts: Inside Mega Millions' new formula

Joshua Johnston, Lead Director of the Mega Millions Consortium, tells Lottery USA how they bet big on players.

Samantha Herscher profile pic

Samantha Herscher

Lottery players queuing up at a local lottery retailer in Illinois.
When the jackpots disappeared: Inside state lotteries' redirection

How state lotteries survived the year without mega jackpots.

Samantha Herscher profile pic

Samantha Herscher

An electronic display with a $900 million Mega Millions jackpot and a $490 million Powerball jackpot.
$900M Mega Millions jackpot inches closer to historic $1B mark

38 drawings and counting. Will someone claim the jackpot on Tuesday?

Samantha Herscher profile pic

Samantha Herscher

Recent articles

View All
An electronic display at a lottery retailer displaying a $965 million Mega Millions jackpot.
Featured
Record $965M Mega Millions jackpot marks longest run in history

Mega Millions draw yields big second and third-tier winners, but the jackpot keeps climbing.

Halley Bondy profile pic

Halley Bondy

Lottery players queuing up at a local lottery retailer in Illinois.
When the jackpots disappeared: Inside state lotteries' redirection

How state lotteries survived the year without mega jackpots.

Samantha Herscher profile pic

Samantha Herscher

The Michigan Lottery and the Lotto 47 logos over a green background  with dollar signs.
Michigan lottery fever grows as Lotto 47 climbs past $20 million

Only three other times has the jackpot climbed this high. Will this be the one that breaks records?

Todd Betzold profile pic

Todd Betzold

The Washington Lottery Hit 5 logo over a white background.
Washington Lottery player scores $195,000 Hit 5 jackpot

It's another reminder that even smaller draw games can deliver big dreams and bigger payouts.

Todd Betzold profile pic

Todd Betzold