Peter Rugg

of the Muscatine Journal

MUSCATINE, Iowa — When Sondra Colberg got the unsolicited check in the mail, she saw her children inheriting the family house that she would finally be able to repair, and a future free of debt.

The feeling didn’t last long after the Muscatine resident took it to the bank.

“I thought, ‘finally, I’m catching a break,’” Colberg said. “But then the whole thing turned out to be a scam.”

The official-looking check in question, for $2,993.65, came along with an official-looking letter from the Swiss Lotto, notifying Colberg that they were pleased to inform her that she had emerged as one of the winners of the European International Lottery Program. The letter went on to say that if she’d cash the enclosed check, it would take care of the tax and clearance fee of $2,851 and she’d receive an $80,960 prize.

The letter concluded with a notice on where to contact a designated North American agent, Jennifer Smith (at 902-412-1427), who would confirm her winning and tell her where to send the tax and clearance fee.

When Colberg took the check to First National Bank, the cashiers weren’t so sure, so they checked into it. It turned out Colberg wasn’t so lucky after all. Instead, she was the victim of a popular con, often based out of African or Canadian offices.

“They copy these checks, which was probably stolen or, in some cases, an extremely impressive counterfeit version, and then they send them out. If the victim takes it to the bank, a lot of the time the bank will honor the check and give the victim money,” said Bob Brammer, a spokesman for the Iowa Attorney General’s office.

“That’s why they’re so nasty, because a lot of the time the banks just don’t even voice suspicions and not every teller and officer knows how to catch these things, but this is very rampant right now.”

In Colberg’s case, she said when she looked up the mailing address, it turned out to be a cemetery in Canada. As for the check, it was labeled as property of the El Toro Animal Hospital of Lake Forest, Calif.   

Stolen checks

In a phone interview with the Muscatine Journal, El Toro employee Fred Saad confirmed that a batch of checks had recently been stolen from the business, they had received complaints about fraudulent letters the authorities were investigating, and the account numbers had been changed.

“Once you cash the check, you’re supposed to wire them money,” Brammer said. “I call it wiring down a rat hole because only sometimes can you get it traced, and it can be wired from anywhere in the world, and it’s impossible to punish.”

The Journal faxed Brammer a copy of the letter and check Colberg received. Brammer  said he would send the copies to federal authorities, although offenders are difficult to catch and prosecute, and the crime is so common.

“I hear about this every day,” Brammer said.

Some advice

He said that some red flags in spotting a scam like this one are enclosed check amounts, usually ranging from $2,000 to $8,000,  and any offer that asks you to wire money.

Julie Frye, assistant vice president compliance officer for First National Bank, had another suggestion to spot phony lottery letters: You usually have to purchase a ticket to win if the lottery is genuine. 

“And if it sounds too good to be true, it probably is,”she said.

The Iowa Attorney General’s office advises residents to first contact local police or sheriff’s offices if they receive a suspicious letter.

The phone number on the  letter Colberg received was still in service, and when it was called by a Muscatine Journal reporter, a woman identifying herself as Jennifer Smith answered. She hung up when questioned about the mailing of stolen checks.

During a second call about Colberg’s letter, Smith whispered, “Please tell the real winner to contact us,” before hanging up again.

Contact Peter Rugg at: 563-263-2331 Ext. 322 or peter.rugg@muscatinejournal.com