A 43-year-old Canadian resident was convicted of operating a bogus lottery scheme targeting mainly elderly Americans, according to federal officials.
Henry Anekwu, of Vancouver, was convicted in U.S. District Court in downtown Los Angeles late Thursday of 16 counts of fraud, according to FBI spokeswoman Laura Eimiller.
Anekwu was the owner of Platinum Award, Inc. and Capital Award, Inc., both fraudulent lottery companies he operated in Vancouver, from approximately 1998 through 2003.
Anekwu operated the scheme by having telemarketers contact potential victims in the United States to inform them they had won a lottery. Victims were advised that, in order to collect the winnings, they were required to pay taxes or fees that were described as transaction, conversion, registration or processing fees, said Eimiller.
Victims were instructed to deposit cashier's checks or personal checks in amounts ranging from approximately $475 to $60,000 into commercial mailboxes located in Vancouver. Many were contacted repeatedly and instructed to send additional monies in order to obtain their winnings, according to Eimiller.
In some cases, victims were talked into selling assets, charging money on credit cards, borrowing from friends and family, and even mortgaging their homes to send money to the fraudulent companies. Investigators and prosecutors estimated the total loss to victims exceeded $600,000.
The Royal Canadian Mounted Police arrested Anekwu in Canada in 2005. He was released on bail after his arrest and, in December 2009, was extradited to Los Angeles, said Eimiller.
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Anekwu is scheduled for sentencing in Los Angeles federal court on July 12, when he faces a maximum statutory penalty of 160 years in federal prison, said Eimiller.
