A Rhode Island woman was arraigned today following her indictment on June 17 by a federal grand jury on charges of mail fraud and conspiracy for operating a direct-mail sweepstakes scheme that defrauded seniors and other vulnerable individuals across the country out of more than $10 million.
According to court documents, Megan E. Shine, 47, of Warwick, utilized the U.S. Mail to engage in a predatory mail fraud scheme that duped elderly and other vulnerable individuals into sending payments, usually between $20 and $30, using mailings that falsely led recipients to believe they were entitled to cash prizes or other valuable items or benefits. Many victims reported being contacted multiple times and sending multiple payments. The scheme was allegedly perpetrated through businesses Shine created and operated in Rhode Island, including Lucky Dog LLC, doing business as Premium Ops & Incentives, and Destiny Merchandise LLC, doing business as Independent Catalog Services.
“Mass mail fraud schemes defraud elderly and vulnerable consumers out of millions of dollars every year,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department’s Consumer Protection Branch and its law enforcement partners are committed to vigorously pursuing all individuals who prey on vulnerable and elderly victims through these types of fraudulent schemes.”
“Preying on the hopes of elderly and vulnerable victims for profit, and using fraudulent mailings to persuade them to part with their hard-earned money takes a terrible toll—financially and mentally,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Working with our partners at the Department’s Consumer Protection Branch, the Postal Inspection Service, and federal, state, and local law enforcement, we are determined to ensure that those who seek to profit from fraud are held accountable.”
According to the indictment, Shine mailed deceptive solicitations that led recipients to believe they had been individually pre-selected or verified and were entitled to claim a large amount of money in a lottery or receive a valuable item. In the mailings (often personalized with the name of the recipient), recipients were instructed to send money frequently by a deadline to a post office box in Providence for the “processing” or “handling” of their purported winnings. The mailings were printed on official-looking paper often carrying what appeared to be seals of governments or government agencies along with bar codes, document control numbers, printing that appears rubber-stamped such as "authorized document," highlighted text, bank-check style typeface formatting as well as identification codes.
The solicitations contained text and graphics creating a false overall impression that recipients were already winners of substantial awards often totaling millions of dollars. Instead according to the indictment Shine sent victims booklets containing publicly available sweepstakes rules or small inexpensive pieces of jewelry.
Shine is charged with four counts of mail fraud and one count of conspiracy. If convicted she faces a maximum penalty of 20 years in prison; any sentence will be determined by a federal district court judge considering U.S. Sentencing Guidelines among other statutory factors.
The United States Postal Inspection Service is investigating this case while Trial Attorneys Charles Dunn Ann Entwistle Colin Trundle from Civil Division’s Consumer Protection Branch along with Assistant U.S. Attorneys Denise M Barton Peter I Roklan from District Rhode Island are prosecuting it.
If you or someone you know aged 60+ has experienced financial fraud professionals are available at National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). Managed by Office for Victims Crime this Justice Department hotline offers personalized support assessing victim needs identifying next steps reporting appropriate agencies providing information connecting directly resources referrals case-by-case basis Reporting can help authorities identify perpetrators recover losses if reported promptly Hotline open Monday-Friday 10:00 am–6:00 pm ET English Spanish other languages available
More details about department efforts helping American seniors can be found at Elder Justice Initiative webpage For information about Consumer Protection Branch enforcement efforts visit www.justice.gov/civil/consumer-protection-branch Elder fraud complaints may be filed FTC www.reportfraud.ftc.gov/ 877-FTC-HELP Justice Department offers resources elder fraud victimization through Office Victims Crime www.ovc.gov
An indictment is merely an allegation All defendants presumed innocent until proven guilty beyond reasonable doubt court law