Duped ‘lottery winners’ receive briefcases full of newspapers — and no cash, feds say
In April 2020, a Colorado couple received life-changing news — they were told they won $8.5 million in the lottery. But the pair was actually one of many targeted in a scheme in which victims were told they had won the lottery only to be later swindled out of hundreds of thousands of dollars in bogus taxes and fees.
They never won any money.
Terry Lynn Miller, from Virginia Beach, was sentenced to 57 months in prison after pleading guilty to one count of mail fraud and one count of aggravated identity theft for her role in the scheme, court documents show.
Miller’s defense attorney did not immediately respond to a request for comment from McClatchy News on May 23.
Prosecutors said the 62-year-old played an “instrumental role” in a scam that told victims they had won a large amount of money but had to pay certain fees to claim their winnings.
Court documents show Miller was one of the people who received the fees sent by victims.
In June 2019, prosecutors said Miller signed a “cease and desist order” agreeing to stop participating in “deceptive lottery and sweepstakes schemes.” But that month, Miller resumed, and for two years, until March 2021, she defrauded at least 10 older victims across the country, court documents state.
Prosecutors said individuals involved in the scam contacted victims throughout the country by phone or email and falsely informed them of huge wins — often in the millions. Victims were told they had to first pay taxes and fees before receiving the winnings.
Victims were told to mail the fees to Miller’s residence in Virginia Beach, court documents state.
In exchange, prosecutors said Miller mailed victims a briefcase with a combination lock, and she said the briefcase contained the winnings. Victims were told they would be given the combination to open it after they had paid the fees.
The briefcases actually contained newspapers and a phone book, court documents show.
In one instance, a Colorado couple was told they won $8.5 million in a Mega Millions lottery in April 2020, according to court documents.
The couple received the same directions as other victims targeted in the scam: They were told to pay the required fees to obtain the combination to the briefcase they had received.
Between April and June 2020, the couple sent about $129,670.45 in money orders and checks — and never received the bogus winnings, according to court documents. Prosecutors said the couple lost their life savings in the scheme.
Court documents show the United States Postal Service intercepted some of the fees sent by victims in the mail. Had they not, prosecutors said Miller would have defrauded them out of $304,472.91.
In total, Miller stole about $220,223.68, court documents show.
In a sentencing document on behalf of his client, Miller’s defense attorney said “she did not profit to any appreciable degree or have any lavish lifestyle as a result of her involvement in this offense.”
In a letter submitted to the court, Miller wrote that “life is not much fun anymore. I don’t work anymore and my cash flow is very low. I’m sorry for getting myself in this mess I got in. I will do right from now on.”
Miller was sentenced to three years of supervised release upon completing her prison time, court records show. She will also have to pay $220,223.68 in restitution.
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