Jamaican Lottery Scam Manager Pleads Guilty: Fake Prizes, Fake Police and Victims Over 80

What happened

On December 16, 2019, the U.S. Attorney's Office for the Western District of Pennsylvania, part of the Department of Justice (DOJ), announced that Kristoff Cain pleaded guilty before U.S. District Judge Cathy Bissoon to one count of conspiracy to commit wire fraud.

Sentencing was set for April 7, 2020. The law provides for a maximum of 20 years in prison, a fine of up to $250,000 and up to three years of supervised release. Cain was detained pending sentencing.

The admitted conduct

According to what the court was told at the plea:

• From about September 2013 to about April 2018, Cain conspired with others to defraud elderly victims by contacting them by phone and other means.
• Victims were told they had won large cash prizes in a lottery and had to send money to pay taxes or other assessments to claim them.
• Members of the conspiracy also called other victims, claimed to be law enforcement officers, and told them to send money in connection with investigations into their bank accounts.
• The conspirators knew there was no lottery, no prize and no investigation.
• The loss attributable to Cain was more than $250,000.
• Victims were unusually vulnerable due to age. The conspiracy targeted multiple victims over the age of 80.
• Cain was a manager of the conspiracy and directed his co-conspirators' extensive criminal activity.

The Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), Homeland Security Investigations (HSI) and the Office of the Pennsylvania Attorney General investigated.

Why it matters

This case shows two features common to prize and lottery phone scams. The first is the advance fee: the victim must pay "taxes" or "assessments" before collecting a prize. The second is the pivot to impersonation, where callers switch to posing as police when the prize story stops working.

Legitimate prize promotions are regulated precisely because of schemes like this. The Telemarketing Sales Rule (TSR) requires prize promotions to disclose that no purchase or payment is necessary to win, and it prohibits misrepresenting the costs or conditions of receiving a prize. The TSR also bars selling or participating in foreign lotteries by telephone.

The plea findings on vulnerable victims and on Cain's managerial role are significant. Under the federal sentencing guidelines, both can increase the recommended sentence.

Practical steps

• Never ask winners to pay taxes or fees up front to collect a prize.
• Make the "no purchase necessary" disclosure clearly in any prize promotion.
• Never use law enforcement themes in sales or collection calls.
• Families: warn older relatives that real lotteries do not call winners asking for fees.