A Florida man has been arrested in connection with a sweeping federal fraud case in which more than 100 people were told they had won cash prizes, then instructed to pay taxes and fees before they could collect their supposed winnings.
Federal prosecutors say victims sent money through the mail and by wire transfer, collectively losing more than $3.5 million.
A substantial portion of the victims were elderly, according to prosecutors. Authorities allege participants laundered the proceeds, sending some of the money to people in Jamaica while keeping portions for themselves.
Evans Class Brown, 27, of Coral Springs, was taken into custody Aug. 19 and remained in Broward County while awaiting transfer to South Carolina, where the federal case is being prosecuted, according to Local 10.
The Victims Were Told They Had Won Cash Prizes
The U.S. Attorney’s Office for the District of South Carolina described the operation in March when prosecutors publicly announced charges against five defendants.
According to the indictment, recipients were convinced that legitimate sweepstakes prizes were waiting for them. They were then directed to make payments before the winnings could be released. Authorities say the money was sent by mail or wire to people involved in the operation. No prizes followed.
Federal authorities allege the money passed through a laundering operation after it was received. Some proceeds were transferred to co-conspirators in Jamaica, while participants allegedly kept other portions.
Homeland Security Investigations and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Whit Sowards is prosecuting it.
The Case Includes More Defendants Than the Five Announced in March
The Justice Department’s March announcement identified Xavier Gordon, 25; Warner Gordon, 27; Kevin Milton Simpson, 30; and Kemar Christopher Edwards, 28, all of Charleston, along with Tashagae Narcia Leslie, 25, of Orlando.
Local 10 reported that a Jan. 28 grand jury indictment also identifies Brown, Justine Danielle Smith, 34, and Marcia Minora Lawrence in the wider federal case.
Federal court records reviewed by the station show Smith was arrested in Connecticut in June. The current public reporting does not provide the same procedural update for every defendant named in the case.
Brown Is Awaiting Transfer to South Carolina
Brown was arrested Aug. 19 and was being held at the Broward Sheriff’s Office Main Jail in Fort Lauderdale on behalf of the U.S. Marshals Service as of Aug. 24.
Local 10 reported that authorities were preparing to transfer him to South Carolina. He is among the defendants facing federal allegations arising from the mail fraud, wire fraud and money laundering investigation.
The precise penalties he could face will depend on the counts applicable to him and the eventual outcome of the case. Brown and the other defendants whose cases remain unresolved are presumed innocent unless proven guilty in court.
A Real Sweepstakes Does Not Require an Upfront Payment to Release a Prize
Consumers should independently verify any unexpected prize notification before sending money, particularly when the notice arrives by mail, phone or email and claims payment is required immediately. The Federal Trade Commission warns that legitimate sweepstakes do not require winners to pay taxes, processing charges or other fees in advance to claim a prize.
Someone receiving a notice can contact the company supposedly offering the prize using contact information found independently. It is also worth checking whether the recipient ever entered the sweepstakes in the first place.
Suspected sweepstakes fraud can be reported through the FTC’s ReportFraud.ftc.gov. Schemes involving mailed payments can also constitute mail fraud, victims can report suspicious mail to the U.S. Postal Inspection Service.