Sweepstakes Scammers Sentenced to Prison

Sweepstakes Scammers Sentenced to Prison

Three US citizens, Jeffrey Robert Bonner, Frank M. Schiavone, and Lewis E. Ricker, have been sentenced to prison for their roles in sweepstakes fraud schemes that targeted hundreds of US residents, many of whom were elderly.

Bonner, 41, of Sacramento, California, received a 180-month prison sentence, while Schiavone, 76, and Ricker, 65, both of Lutz, Florida, were sentenced to 48 months and 42 months in prison, respectively. The court also ordered Bonner to pay $9,688,486.47 in restitution and to forfeit the same amount, while Schiavone and Ricker were ordered to each pay $399,852.56 in restitution.

The schemes, which operated through call centers in Costa Rica, targeted victims with false claims of winning substantial cash prizes in sweepstakes. The victims, often elderly, were told to pay for a ‘refundable insurance fee’ to receive the prize. Once they paid, the scammers would contact them again, claiming the prize amount had increased, and demanding additional fees and insurance to receive the larger prize.

Bonner admitted to owning a call center in Costa Rica that placed phone calls to US residents, using voice over internet protocol (VoIP) phones to display a 202 area code and give the false impression that they were calling from Washington, D.C. The scammers often falsely claimed to be calling on behalf of a US federal agency to lure victims into a false sense of security.

The victim loss associated with Bonner’s scheme is nearly $10 million. The U.S. Postal Inspection Service, FBI, Internal Revenue Service-Criminal Investigation, Federal Trade Commission, and Department of Homeland Security investigated the cases. Trial Attorneys Gustav Eyler and William Bowne of the Criminal Division’s Fraud Section are prosecuting the cases.

The sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach and engagement with the public to prevent financial fraud.

The Fraud Section plays a pivotal role in the nation’s fight against white-collar crime. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud.