Mail fraud scheme had Las Vegas victims

A pair of Canadian nationals are accused of defrauding thousands of “elderly and vulnerable victims” and collecting the proceeds in Las Vegas and across the country, the Department of Justice announced Tuesday.

Alex Quaglia and Patrick Fraser were indicted last month in connection with a scheme that authorities said spanned upward of 18 years to defraud many elderly victims of millions after promising huge cash prizes, sometimes more than $1 million, in exchange for a nominal fee.

The indictment alleges that “no later than 2000 and continuing through in or around February 2018” Quaglia and Fraser sent prize notifications to “thousands of people” in the names of phony companies such as “Economic Disbursement Services” and “National Prize Reporting Agency.”

They collected the victims’ money at mailboxes in Las Vegas and other parts of the country before trucking the proceeds to Ontario, Canada, according to the indictment.

“In addition to the false and misleading language that was intended to make recipients think they had already been selected to win a large cash prize, the fraudulent prize notifications typically included language that said the company was a ‘research and reporting service’ and the recipient had not yet won,” according to the indictment. “This language, which typically was in smaller font on the reverse side of the notification, did not correct the false and misleading representations.”

The mailings included return envelopes and asked the victims to send a fee between $19.95 and $39.95 to various addresses. No cash prize was ever sent to the victims, according to prosecutors.

Quaglia faces charges of mail fraud and conspiracy to commit mail fraud. Fraser was charged with conspiracy to commit mail fraud and a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud.

Nevada U.S. Attorney Nicholas Trutanich said people around the world were targeted.

“Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals — both foreign and domestic — who prey on our seniors and other vulnerable Nevada residents,” Trutanich said in a news release. “These fraud schemes can happen to anyone.”

In March, the DOJ announced that more than 400 defendants had been charged in a nationwide elder fraud sweep.

Contact David Ferrara at dferrara@reviewjournal.com or 702-380-1039. Follow @randompoker on Twitter.