Wilmington, DE – Attorney General Joseph R. Biden, III today issued a warning about a growing
trend of unsolicited counterfeit check, lottery and sweepstakes scams that claim a recipient has won a
prize. In these scams, consumers are tricked into wiring or sending cashiers checks worth thousands of
dollars to claim prizes. These scams are designed to defraud money and gain personal information
from consumers.
These schemes typically follow one of three basic forms:
A victim receives an unsolicited letter announcing they have won a lottery or a sweepstakes,
along with a realistic-looking phony check. The recipient is asked to deposit the check and
immediately wire a portion of money back to the scammer to cover fees or taxes associated
with the winning.
A victim is asked to help move a large amount of cash out of a foreign country. Respondents
receive an authentic-looking phony check with instructions to deposit it and wire a large
portion of the funds to an overseas address.
A victim is directed to claim a lottery winning by quoting a reference, batch and winning
number and provide their full name, address and telephone number. Afterward, winners are
directed to deposit money to an international bank where their winnings are allegedly located,
allegedly to cover courier costs.
“The criminals receive the money and victims are left holding the bag in these fraudulent schemes,”
said Attorney General Biden. “Victims typically lose $2,500 or more, and never received the promised
winnings. And the crooks are almost certainly from outside the United States, impossible to trace and
punish.
High quality printers and scanners are often used to make the fraudulent checks look authentic. They
may be printed with the names and addresses of legitimate financial institutions, contain watermarks,
and reflect real bank account and routing numbers. Victims often believe that a check must be
authentic if their bank accepts it and makes the funds available. However, federal law requires banks
to make funds from a check available by the next business day for bank cashier’s checks and Postal
money orders, and within five days for corporate checks. Meanwhile, it may take several days for a
bank to fully “clear” a check and catch a forgery.
Officials rarely recover such funds and catch and punish the con-artists. Consumers who fall victims
to these fraudulent schemes can be liable to the bank for all of the money they wired overseas in
addition to any of the proceeds they have already spent.
Moreover, scammers often ask their victims to keep the information confidential until their claim is
processed, alleging that the confidentiality is an important anti-fraud measure.
“The Delaware Department of Justice Consumer Protection Unit has received increasing numbers of
reports in recent months from Delawareans who have received fraudulent lottery or sweepstakes
winnings letters,” Attorney General Biden stated. “Theses crooks prey on vulnerable, often elderly,
consumers who trust their offenders. I caution every consumer to be aware of these schemes and to
report them to the authorities.”
Unfortunately, it is likely that the money is gone, with little hope of tracing or recovering it – usually
in a foreign country. Wired money can be received almost anywhere around the world, no matter
where it appears to be addressed.
Contact the Delaware Department of Justice for advice and information on agencies that may be able
to open an investigation or assist you. Visit the Delaware Department of Justice website at
www.attorneygeneral.delaware.gov and click on “Protecting Consumers” for more information about
ways to report this fraudulent activity.
Tips to avoid counterfeit check sweepstakes and lottery scams:
If something sounds too good to be true, it probably is.
Never provide your credit card or personal information to anyone unless you are certain the
contact is legitimate and from a reputable company.
Never believe a solicitation from a party which claims to guarantee you a prize.
Never send funds from a check you’ve received to pay “taxes or fees” for a promised
sweepstakes or lottery prize.
If you receive a telephone call from a direct marketer who promises instant lottery prizes, end
the call immediately. Lotteries in the U.S. do not conduct business in this matter.
If you accept payment by check, ask for a check drawn on a bank with a local branch and
contact the bank to ensure the check is valid. If that’s not possible call the bank on the check
and ask if it is valid. Get the bank’s phone number from directory assistance or an Internet site
that you trust, not from the check or the person who gave you the check.
Contact information:
Department of Justice Consumer Protection Unit:
Consumer Hotline (******) (toll-free.) E-mail: *******, website. The Consumer Protection Unit can advise you on how to proceed if you’ve lost money.
State and Local Police Departments
Contact the Delaware State Police and local police departments to file a report if you’ve lost money. You need to document your loss and you may need to explain that you did not intend to defraud your bank. You may need to make repayment arrangements with your bank.
U.S. Secret Service
The U.S. Secret Service recommends that victims call them if they’ve lost money.
Federal Trade Commission
Contact the FTC’s Consumer Response Center at www.ftc.gov, 1-877-FTC-HELP (1-877-382-4357, or 600 Pennsylvania Ave. NW, Washington, DC 20580.
“Phonebusters”
If there is a clear connection in Canada to the scam, and if you have lost money, contact Phonebusters – the Canadian anti-fraud call center that is a cooperative effort of the Royal Canadian Mounted Police, Ontario Provincial Police, and the Federal Competition Bureau (equivalent to the U.S. FTC.) Call toll-free to 888-495-8501. The address is: Phonebusters, PO Box 686, North Bay, Ontario, P1B8J8 CANADA. E-mail: info@phonebusters.com
The U.S. Postal Inspection Service
Contact your local post office through your local telephone directory or www.usps.gov/websites/depart/inspect. See USPIS flyer on lottery and sweepstakes scams through the mail.
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Wilmington, DE – Attorney General Joseph R. Biden, III, joined by Attorneys General from 30 states and the District of Columbia, has urged the U.S. Senate to enact The Student Loan Sunshine Act,
federal legislation designed to safeguard students from deceptive practices in the college loan
industry.
In a letter to Majority Leader, Senator Harry Reid, Minority leader, Senator Mitch McConnell, Senator
Edward Kennedy, Chairman of the Senate Education Committee and Senator Michael Enzi, the
ranking member of the Committee, the Attorneys General requested that the Senate pass The
Student Loan Sunshine Act without delay. Starting this week the Senate Education Committee will
consider the Higher Education Amendments of 2007, during which The Student Loan Sunshine Act is
expected to be offered.
The U.S. House of Representatives recently passed this legislation in a near unanimous vote of 414-
3.
“Two-thirds of students rely on loans to finance their college education,” Attorney General Biden
stated. “Students and their families need to have access to unbiased information from schools and
lenders in order to make informed borrowing decisions. This legislation imposes appropriate new
procedures to ensure fairness and transparency across the student loan industry.”
The Student Loan Sunshine Act requires every school that participates in the Title IV program or has
students obtaining private educational loans to adopt a Code of Conduct. The legislation will restore
trust in schools by banning gifts from lenders, participation in lenders’ advisory boards, revenue
sharing between schools and lenders, and staffing of school financial aid offices by lenders.
In addition, the legislation:
• Requires that schools’ “Preferred Lender Lists” be created with only students’ best interests in
mind.
• Ensures access to any lender, whether or not they appear on preferred lender lists.
• Provides oversight of lenders offering private loans.
• Requires schools to disclose federal loan options before students take out private loans.
• Compels lenders and institutions to fully disclose terms, conditions and incentives for all loans.
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Suspect arrested in “Sweetheart Scam” for bilking 85-year-old man out of more than $27,000
In a joint investigation between the Delaware Department of Justice Fraud Division and the
New Castle County Police, investigators have arrested Gina Mitchell, 30, of 301 Collins Drive,
Springfield, PA on a charge of felony theft from a victim over 62 years of age.
Mitchell, in what investigators describe as a “sweetheart scam,” approached and befriended
an 85-year-old North Wilmington resident as he was leaving a store in the Silverside Road
area of New Castle County in January 2007. After several weeks of lunches and
conversations she asked the victim for $25,000, claiming that she needed the money to buy a
property in Baltimore, MD. Mitchell tricked the senior into giving her the money in February
2007. A short time later she asked the victim for an additional $8,000 to repair the roof of the
building, and the victim provided her with another $2,300.
Mitchell was arrested in the Rocky Run Shopping Center in New Castle County on June 13,
2007 as she was preparing to meet the victim. She was also arrested on an outstanding
Superior Court warrant for an unrelated fraud charge in which she bilked another victim out of
more than $9,000 in a psychic scam investigated by the Delaware State Police.
Mitchell, who has addresses in Delaware, Maryland, Pennsylvania, and Texas, was arrested
and convicted in Texas for running a similar “sweetheart scam” in 1999. In that scheme, she
and her associates, described as “travelers,” swindled several male senior citizens out of
approximately $90,000.
Mitchell was arraigned and committed to the Women’s Prison in lieu of $20,000 secured bail
on both theft charges. Subsequently, $20,000 cash bail was posted and she was released.
The investigation is ongoing.
“Scam artists like Gina Mitchell who target seniors count on their victims to not report their
crimes,” said Attorney General Joseph R. Biden, III. “They rely on the silence of their victims
in order to violate some of our most vulnerable community members. But through the
cooperation of state and local law enforcement, we are giving seniors a voice in this fight.”
Anyone who may have had contact with Gina Mitchell, shown below, is urged to contact
Special Investigator Gary Tabor of the Delaware Department of Justice Fraud Division at
(302) 577-8508.
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Wilmington, DE – Attorney General Joseph R. Biden, III today announced the settlement of a civil law enforcement action against the makers of the popular oral contraceptive product Ovcon. The lawsuit, joined by thirty-three other states and the District of Columbia, charged Warner Chilcott and Barr Pharmaceuticals (“Barr”) with antitrust violations that have prevented generic versions of Ovcon from reaching the marketplace.

As part of the settlement, Warner Chilcott will pay $5.5 million to Delaware and the other litigating states.

“The presence of generic drugs in the marketplace creates competition and helps control the cost of prescription drugs,” Attorney General Biden said. “The Delaware Department of Justice will actively use its resources to protect access to affordable prescription drugs for Delaware’s consumers.”

The civil complaint, filed in 2005 in the U.S. District Court for the District of Columbia, alleges that Warner Chilcott paid Barr $20 million to keep Barr from marketing a generic version of Ovcon. According to the lawsuit, Ovcon has been sold in the United States since 1976 as an oral contraceptive, and Warner Chilcott became the exclusive U.S. distributor of Ovcon in early 2000.

During 2003, Barr publicly announced that it planned to introduce a generic version of Ovcon to the market by the end of that year. The lawsuit alleges that Warner Chilcott paid Barr $1 million in September 2003 for an option agreement designed to prevent Barr’s generic product from coming to market. Under the terms of the alleged agreement, after Barr received FDA approval to market generic Ovcon., Warner Chilcott had 90 days to pay Barr an additional $19 million, after which Barr would refuse to bring the cheaper generic version to the market.

Because this lawsuit was filed as a law enforcement action, the litigating states sought civil penalties and equitable relief. The relief obtained through this settlement will help ensure that Warner Chilcott will not engage in similar conduct in the future. The lawsuit against Barr will continue moving forward in the U.S. District Court for the District of Columbia.

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Wilmington, DE – Attorney General Joseph R. Biden, III, along with attorneys general from 43 other states, have announced a settlement with ChoicePoint to resolve allegations that the company failed to adequately maintain the privacy and security of consumers’ personally identifiable information.

ChoicePoint, a provider of identification and credential verification services, collects, maintains, and distributes consumers’ personally identifiable information. In February 2005, ChoicePoint announced that criminals posing as legitimate businesses gained access to consumers’ personally identifiable information that it maintained. Afterward, ChoicePoint notified more than 145,000 consumers whose information may have been viewed or acquired by the criminals.

ChoicePoint settled its case with the Federal Trade Commission (FTC) in January, 2006 and paid $5 million into a pool to be used for consumer redress. The agreement entered between the states and ChoicePoint goes beyond the FTC settlement. ChoicePoint will make significant, ongoing changes to the way it credentials new customers who have access to personally identifiable information. This represents the first time a data broker has agreed to protect publicly available information using the same credentialing methods used to safeguard financial information protected by law. Certain sensitive publicly available information, including Social Security numbers, will now receive greater protection.

.Identify theft is a growing threat,. stated Attorney General Biden. .This agreement establishes concrete steps to be taken to better protect sensitive information of thousands of Delawareans. The Department of Justice will continue to be vigilant in safeguarding consumers’ information in Delaware..

As part of this agreement, ChoicePoint will also pay $500,000 to the states.

Consumers who suffered out of pocket expenses relating to identity theft that resulted from the ChoicePoint breach may obtain redress through the FTC by completing a redress form for consideration. The deadline to submit a claim is June 22, 2007. More information is available on the FTC website at: http://www.ftc.gov/bcp/conline/cases/choicepoint.
 
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