$30 million settlement in sweepstakes scam aimed at elderly
ST. LOUIS (AP) — The operators of a sweepstakes scam that affected senior citizens and others will forfeit $30 million in cash and assets under a settlement announced by the Missouri Attorney General’s Office and the Federal Trade Commission.
The agencies said Thursday that the settlement is a record for both the attorney general and FTC for a sweepstakes scam.
The agencies say Kevin Brandes, William Graham and Charles Floyd Anderson sent deceptive mailers to consumers worldwide. Th trio operated out of Kansas City, Missouri, along with corporations under their control.
The mailers falsely claimed recipients won large cash prizes but had to pay fees of up to $140 to get them. Other mailers involved fraudulent “games of skill.”
The defendants must forfeit more than $21 million in cash along with property that will be liquidated to help reimburse victims.