Freya Pearson, 43, of Georgia, formerly of Kansas City, Mo., was convicted by a federal jury on all nine counts of a fraud scheme that stripped a disabled lottery winner of $441,830—part of a broader crime that bled more than $640,000 from her victim and federal programs. The verdict, handed down in Kansas City, marks the end of a years-long con built on lies, gambling, and government handouts funded by stolen luck.
Pearson, who once claimed to be unemployed and homeless, convinced her 61-year-old victim—a former housekeeper living in public housing who won $2.4 million in the Missouri Lottery in 2008—that she was a trusted friend and financial advisor. In reality, Pearson created a sham nonprofit, Recidivism at Work (RAW), the day before her victim made the first wire transfer. Between April and June 2010, the victim wired $480,000 into RAW’s account, believing it was for investment or a business loan.
She was lied to at every turn. Pearson never used the money for any legitimate purpose. Instead, within 24 hours of the first transfer, she began gambling—dropping over $96,000 in casinos. She bought a Cadillac Escalade, a Pontiac Sunfire, and a Chevrolet Tahoe, spent $12,000 on travel, and lived lavishly across St. Louis, dining out and shopping while her victim scraped by. She paid back only $38,000—$1,200 a month for just over a year—before vanishing from her victim’s life.
Even as she funneled hundreds of thousands in stolen funds through her accounts, Pearson applied for Section 8 housing in March 2010, claiming she was unemployed and homeless. The Weston Housing Authority paid $875 monthly for her rent while she paid just $200. She moved to Orange County, Calif., in 2012 and continued collecting federal housing benefits until 2014, when she was kicked off the program for fraud—raking in $76,837 in total. She also collected welfare and food stamps in 2011.
While living off stolen cash and taxpayer support, Pearson committed further crimes: on Dec. 2, 2010, she filed for Chapter 7 bankruptcy, hiding RAW bank accounts that held $56,506. She received a full discharge of her debts on March 15, 2011, shielding her fraudulently acquired assets. Even more brazen, she filed no tax return for 2010—evading $122,000 in federal income taxes on the $441,830 she stole.
The jury’s conviction sends a message: stealing from the vulnerable and gaming the system carries consequences. Freya Pearson now faces decades behind bars, restitution, and the public exposure of a crime rooted in greed and betrayal. The case was prosecuted by the U.S. Attorney’s Office for the Western District of Missouri, with support from the IRS and HUD Office of Inspector General. Sentencing is scheduled for a later date.
Related Federal Cases
- Lottery Loot & Lies: Freya Pearson Gets 5 Years · Kansas
- Dr. Dawn Rhodes Convicted in $1.4M Medicare Fraud Scheme · Kansas
- Georgia Hunter Banished for Kansas Poaching Scandal · Alabama
- Georgia Woman Pleads Guilty to Law Enforcement Spoofing Scam in Missouri · Kansas
- Amgen Pays $71M for Pushing Drugs Off-Label · Washington
Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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