Clerks Accused of Lottery Fraud
By Gerri L. Elder
In Minnesota, five convenience store clerks at five Twin
Cities stores have been charged with felony lottery fraud for allegedly
stealing winning lottery tickets. The alleged theft was discovered during the
Minnesota State Lottery's first compliance test. Lottery officials say the
compliance test was part of an ongoing effort to ensure that players receive
the correct prizes.
Authorities say that when undercover agents presented
winning scratch-off lottery tickets, instead of verifying and paying out on the
winning tickets, the clerks pocketed them and collected the payout for
themselves later. Three accomplices were also arrested
and charged with felony lottery fraud in the sting and are now in need of criminal defense.
A total of eight suspects were charged with felony lottery
fraud. If convicted, the suspects face a maximum of five years in prison for
each charge. Fraud
is a white-collar crime that can be classified as a misdemeanor or a felony,
usually depending on the amount and extent of damages. Felony charges generally
carry harsher penalties than misdemeanors with longer jail sentences and larger
fines. A person convicted of fraud may also be ordered to pay restitution for
the damages.
During December and January, lottery officials conducted
undercover investigations at 186 randomly selected stores. Agents presented the
clerks with specially marked winning scratch-off lottery tickets with prizes
ranging from $7,000 to $21,000 and asked for verification of the prizes. The
investigations were primarily to ensure that clerks were correctly advising
winners how to claim their winnings, but what they found was shocking.
Clerks are trained to advise customers with winning tickets
worth $600 or more that the tickets must be verified and cashed in at the state
lottery headquarters. However, some clerks told undercover agents that the
tickets were losers and offered to throw them away. These clerks then retrieved
the tickets and cashed them in at the lottery headquarters themselves or
through an accomplice.
Lottery officials say that fewer than three percent of
clerks at the stores that were screened broke the law. A similar lottery
investigation in California uncovered that 18 percent of the 350 stores that
were screened were violating the law. The Twin Cities stores where violations
occurred may face penalties, including a suspension of lottery ticket sales or
cancellation of their contracts.
Considering the problem of lottery fraud seems to be
widespread, players should beware of scams. The next time you play the lottery
and think you have a winning ticket; it may be wise to head directly to the
state lottery commission for verification of the prize, rather than risk being
lied to and having your winnings stolen.