Two arrests have been made in Milton, Ont. in a $400,000 lottery scam that targeted American senior citizens.
It is alleged that the suspects sent unsolicited mail containing phony lottery letters and cheques to senior citizens across the United States.
When the unsuspecting victims called the claims agent listed in the lottery letter, they were instructed to cash the cheques and remit the proceeds in order to collect their prizes, Toronto police said Friday.
Victims never received the promised prizes and later learned that the cheques were fraudulent. Police allege the proceeds from the scheme were laundered by suspects in the U.S. and Canada. The operation, police say, was directed from Canada.
A joint investigation by the Toronto police’s financial crimes unit, United States Homeland Security and the United States Internal Revenue Service has led seven arrests in the case.
In December 2015, five people were detained in connection with the scheme. They are now before the courts. Harry Cole, 46 and Elo Cole, 39 were arrested in Milton on Tuesday and have since been charged with possessing proceeds of crime, laundering the proceeds of crime, fraud over $5,000, and participating in/contributing to a criminal organization.
