Lottery
Scam Money Recovered
Attorney General Tom Corbett
today announced that more than $175,000 has
been recovered and will be released to consumers
in Pennsylvania and throughout the country,
who were defrauded in a 1998 Canadian-based
telemarketing scam that promised an opportunity
to win a share of the Australian Lottery. The
funds were recently released following a protracted
bankruptcy proceeding in British Columbia where
the scam originated.
The
Attorney General's Bureau of Consumer Protection
will disperse the funds to victims throughout
the United States who lost money in the scheme.
Those eligible for refunds must come forward
and submit a claims form and signed affidavit
before a May 2, 2006 deadline.
Corbett
said U.S. District Court Chief Judge Sylvia
H. Rambo awarded final judgment in the Attorney
General's 1998 lawsuit against Sushila Devi
Kumar, also known as Sheila Kumar, and Sandhya
Murthi, also known as Kelly Williams. Kumar
and her British Columbia-based company did business
under the names Systems 3 Marketing Inc., SMI
or Systems Marketing.
According
to the lawsuit, the defendants' were accused
of engaging in the illegal sale of foreign lottery
tickets via telephone in the U.S. The telemarketers
allegedly contacted mostly elderly consumers
to encourage them to participate in a lottery
"pool" that would enhance their chances
of winning large prizes from the Australian
Lottery.
Consumers
said they were asked to pay various amounts
to purchase a share in a lottery ticket or series
of tickets. Some unsuspecting consumers were
told that they had already won and were encouraged
to roll over their winnings in the lottery "pool."
The suit also claimed that consumers were never
informed that participating in foreign lotteries
is illegal under federal law.
"Unfortunately,
some consumers were conned out of significant
amounts of money in this scheme," Corbett
said. "The funds awarded in this case belong
to these victims and our immediate goal is to
encourage those entitled to the money to come
forward and obtain their share."
Corbett
said any consumers who paid money to Systems
3 Marketing Inc., Systems Marketing or SMI for
chances to participate in the Australian Lottery
are eligible for a refund.
Any
U.S. resident who suspects that he or she is
eligible for a refund must submit a SMI claim
form and signed affidavit before May 2, 2006.
No other documentation is necessary. The form
and affidavit can be downloaded by visiting
the Pennsylvania Attorney General's website
at http://www.attorneygeneral.gov. Those without
access to the Internet may call (814) 471-1831
to receive the forms in the mail.
Once
completed, the SMI claim form and signed affidavit
must be mailed to the following address before
the May 2 deadline:
Pennsylvania
Office of Attorney General
171
Lovell Ave., Suite 202
Ebensburg,
PA 15931
Corbett
said the amount of money consumers will receive
will depend upon the total dollar amount of
all claims submitted. If the total amount of
all claims received exceeds the amount available
for distribution, pro rata refunds will be issued.
The funds are expected to be distributed to
consumers nationally before July 2006.
The
cross-border prosecution was led by Senior Deputy
Attorney General E. Barry Creany of the Attorney
General's Bureau of Consumer Protection and
the British Columbia Director of Trade Practices.
Corbett also thanked the U.S. Department of
Justice Office of Foreign Litigation for its
assistance in the case. |
