FTC, Mounties Allege Lottery Scam

Share this article:
A federal court froze the assets of a pair of Canadian companies on charges of operating a cross-border foreign lottery scam that defrauded consumers, including the elderly, out of millions, the Federal Trade Commission said yesterday.

The FTC, along with the Royal Canadian Mounted Police, filed the complaint against Newport Group and West Star, both of Vancouver, British Columbia, and their principals Steve and Bruce Ironside, brothers and co-owners of the two companies.

According to the FTC, the companies contacted mainly elderly U.S. consumers to tell them they had won or were likely to win $140,000 to $10 million in a foreign lottery. To collect, the consumers had to pay a fee to Newport or West Star ranging from $500 to $35,000, the FTC said.

Most consumers who paid the fees received nothing, according to the FTC. The rest got well below the winnings promised, with one consumer receiving a check for $200.

The FTC said it was now seeking a court order for the two companies to return all money collected from consumers.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

Day Two at DMA2014

Day Two at DMA2014

It was awards day in San Diego, with Teradata's Lisa Arthur being named Marketer of the Year, and Google Japan being feted for its direct mail prowess.

Today's Forecast: Chilly With a 10 Percent Lift in Parka Sales

Today's Forecast: Chilly With a 10 Percent Lift ...

The Weather Company launches a website offering marketers free advice on how to take advantage of shifts in the weather.

DMA 2014 Kicks Off Under New Management

DMA 2014 Kicks Off Under New Management

Thomas Benton and Jane Berzan will preside over an event indicative of an association serving a wider array of industry segments.