A federal grand jury in New Haven, Connecticut, has returned a seven-count indictment against Howard Chambers, a 32-year-old Jamaican citizen residing in Waterbury.
Chambers stands accused of engaging in a fraudulent sweepstakes scheme that primarily targeted elderly victims across the United States, resulting in the defrauding of millions of dollars.
Arrest and Plea in Court
The indictment, issued on October 17, led to the arrest of Chambers on Thursday.
Reports are that he appeared before US Magistrate Judge Maria E. Garcia in New Haven, where he entered pleas of not guilty to the charges.
Chambers was subsequently released on a US$150,000 bond and placed under home detention with electronic monitoring, pending trial.
Announcement by U.S. authorities
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, alongside Ketty Larco-Ward, Inspector in Charge of the US Postal Inspection Service, Boston Division, jointly made this announcement.
Sweepstakes scam operation
The indictment alleges that Chambers, along with his associates, has been orchestrating a sweepstakes scam since at least 2018.
The operation aimed to deceive primarily elderly victims into providing money.
Initially, the scammers contacted victims via telephone, informing them of their supposed winnings from Publishers Clearing House sweepstakes.
Victims were then instructed to pay various fees and taxes to claim their winnings.
The deceptive scheme
It is reported that after the initial phone contact, Chambers and his accomplices sent victims fraudulent documents, including a “winning notification” letter from Publishers Clearing House and a letter from the Internal Revenue Service, falsely asserting that taxes were due on their winnings.
As instructed, victims sent cash, money orders, or checks via mail to multiple addresses in Connecticut and across the United States.
Money laundering allegations
Furthermore, the indictment alleges that Chambers and his associates laundered the money obtained from victims by funneling it through various accounts under different company names.
One such entity was a limited liability company registered in Connecticut, with Chambers serving as its managing member and agent.
Exploiting victims as intermediaries
The indictment reveals that the scammers sometimes exploited victims as intermediaries, tasking them with receiving money from other victims and redirecting it to members of the scheme.
“For example, at least one victim received checks and cash in the mail from people she believed were ‘sponsors’ who were helping her pay the fees to receive her winnings, but actually were other victims. The victim deposited the checks into her bank account, withdrew cash, and mailed the cash to various addresses as directed by the conspirators,” the indictment said.
Charges and maximum penalties
Chambers now faces one count of conspiracy to commit mail fraud and wire fraud, five counts of mail fraud, and one count of conspiracy to commit money laundering.
Each of these offenses carries a maximum term of imprisonment of 20 years.
US Attorney Avery emphasizes that an indictment represents allegations, not evidence of guilt. In the eyes of the law, a defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
Elder Fraud Hotline and support
In response to the growing issue of financial fraud targeting seniors, the Justice Department has established a National Elder Fraud Hotline.
This hotline offers assistance to seniors who may have fallen victim to such schemes. Experienced case managers staff the hotline, providing personalized support to callers. They aid in reporting suspected fraud to relevant agencies and offer resources and referrals to other necessary services.
When applicable, case managers will also complete complaint forms with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for internet-facilitated crimes and submit consumer complaints to the Federal Trade Commission on behalf of the caller. The toll-free number for the Hotline is 833-FRAUD-11 (833-372-8311).
