LAS VEGAS (KTNV) — Three Nevada men have been convicted for their roles in a prize-notification scheme that stole more than $6 million from victims.
The scheme led victims to believe that they could claim a large cash prize when they paid a fee of $20 or $30, though investigators say victims would never receive anything of value. Many of the schemes’ victims were retirees or other older adults.
According to court documents and evidence presented at trial, Mario Castro, 55, and Miguel Castro, 58, of Las Vegas, and Jose Luis Mendez, 49, produced the fraudulent prize notices at their business in Las Vegas. The three defendants also were partners in companies that sent the fraudulent prize notices.
The defendants used money from victims to print and mail prize notices and also received a share of the profits.
The defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the DOJ obtained a court order shutting down the fraudulent mail operation.
Mario Castro, Miguel Castro, and Jose Luis Mendez worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices.
The defendants and their co-conspirators ignored multiple cease and desist orders from the U.S. Postal Service that prohibited their companies from sending fraudulent mail. The defendants responded by changing the names of their companies and using straw owners to hide their continuing fraud.
Mario Castro was convicted of conspiracy to commit mail fraud and seven counts of mail fraud. He was found not guilty of five counts of mail fraud. Miguel Castro was convicted of conspiracy to commit mail fraud and five counts of mail fraud. He was found not guilty of seven counts of mail fraud. Jose Luis Mendez was convicted of conspiracy to commit mail fraud and eleven counts of mail fraud. He was found not guilty of one count of mail fraud. A fourth defendant, Salvador Castro, was acquitted by the jury on all charges.
The convicted defendants are scheduled to be sentenced on Aug. 23 and face a maximum penalty of 20 years in prison on each count of mail fraud and conspiracy to commit mail fraud.
Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this prize notice scheme: Patti Kern, 65, of Henderson, Nevada; Andrea Burrow, 43, of Las Vegas; Edgar Del Rio, 45, of Las Vegas; and Sean O’Connor, 54, of Las Vegas.
The USPIS investigated the case.
“The defendants mailed fraudulent prize notices to prey upon and trick victims, many of them elderly, out of millions of dollars,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “This guilty verdict should be a warning to individuals who commit fraudulent acts. We are committed to working together with the Civil Division’s Consumer Protection Branch and the U.S. Postal Inspection Service to identify and hold fraudsters accountable. We will continue to protect older Americans and prosecute individuals who seek to carry out fraudulent schemes targeting seniors.”
“Vulnerable and older Americans have been victimized for far too long by individuals who hide in the shadows to commit their crimes,” said Inspector in Charge Eric Shen of USPIS' Criminal Investigations Group. “This verdict unmasks these criminals and holds them to account for their conduct. The U.S. Postal Inspection Service is proud to have contributed to this result and will be relentless in protecting American consumers from fraud through the U.S. Mail.”
The Department urges individuals to be "on the lookout for lottery, prize notification, and sweepstakes scams." If you receive a phone call, letter, or email promising a large prize in exchange for a fee, do not respond. Fraudsters often will use official-sounding names or the names of real lotteries or sweepstakes, or pretend to be a government agent purportedly helping to secure a prize.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
