This morning, a New York citizen admitted to participation in a multimillion-dollar fraudulent mass-mailing operation in which consumers were deceived into paying fees in exchange for falsely promised cash awards. The plea was entered in the Eastern District of New York.

United States District Court

Court filings state that from August 2014 to August 2019, Scott Gammon, 47, of Broad Channel, New York, participated in a direct-mail scheme in which he sent false award notification mailings to thousands of consumers, according to court documents. Consumers were enticed to pay a charge in exchange for a chance to win a substantial financial award, according to the mailings. No prize of this nature was ever received by any of the consumers who paid a charge. As a result of this plot, Gammon has become the third defendant to plead guilty to the charge of conspiracy to conduct mail fraud.

Principal Deputy Assistant Attorney General Brian M. Boynton, Fraud

Victims, including the elderly, are frequently duped into sending funds in exchange for false promises of substantial monetary wins, according to Principal Deputy Assistant Attorney General Brian M. Boynton, chief of the Justice Department’s Civil Division. “This guilty plea is the latest example of the Department of Justice continuing to pursue and prosecute the perpetrators of these schemes.”

“The defendant admitted he deceived elderly and vulnerable victims into believing they had won cash prizes by inducing them to pay bogus ‘fees’ to him and his co-conspirators,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “This office will continue to protect our seniors and other consumers from harm caused by predatory solicitation schemes.”

“Postal Inspectors remind consumers, if you have to pay to win a prize, you’ll lose your money,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service. “These are all scams designed to lure consumers into sending their hard-earned money — not for a prize, but to fatten the pockets of a fraudster. Mr. Gammon may have thought he got away with this scheme, but he was sadly mistaken when he was confronted by the full investigative power of law enforcement.”

End result of the fraud

Fraud, United States Courthouse

As a result of their participation in the scam, two additional defendants previously pleaded guilty to conspiracy to conduct mail fraud. On September 15, 2021, Christopher King, 36, of Oceanside, New York, entered a guilty plea. On December 15, 2021, Natasha Khan, 38, of Elmont, New York, entered a guilty plea.

Gammon entered his plea in front of Magistrate Judge Steven I. Locke on Tuesday. Gammon will be sentenced at a later date, according to court records. For each of the three defendants, the potential punishment is up to 20 years in prison. Following consideration of the United States Sentencing Guidelines as well as other statutory circumstances, a federal district court judge will determine the appropriate punishment.

Source: Justice.gov