November 7, 2006
Morgan Keegan clients have been among those targeted with a recent spate of fraudulent sweepstakes/lottery letters and bogus checks drawn on non-existent Morgan Keegan or Regions accounts.
The sweepstakes/lottery award letters are supposedly sent by companies claiming that the recipient has been identified as a winner of a substantial amount of money. Company names used in the scams brought to our attention are Zilos Management Consultants, Saks Management and the Ontario Lottery and Gaming Corporation.
The bogus checks included with the letters are supposedly drawn on Morgan Keegan or Regions accounts, include Morgan Keegan’s corporate headquarters’ address and have ranged in amounts from $4,680.23 to $4,975.00. The Zilos Management Consultants letter references Publisher’s Clearing House and includes an award check that appears to be issued by Morgan Keegan. The Ontario Lottery and Gaming Corporation letter references a North American/European Sweepstakes Lottery and includes a check drawn on a phony Regions account with OLGC’s name and Morgan Keegan’s address.
THESE LETTERS AND CHECKS ARE FRAUDULENT. Morgan Keegan has no affiliation with Zilos Management, Saks Management, OLGC or any other sweepstakes/lottery organization.
How does this scam work?
First, you receive an official-looking sweepstakes letter claiming to be from a legitimate sweepstakes. As demonstrated by the rash of scams that have recently hit our firm, these letters may illegally use the name of a well-known company like Publishers Clearing House or a phony company in an attempt make you feel confident you have truly won. In most cases, there will be a check enclosed that appears legitimate. Even banks may be fooled.
The letter instructs the victims to call a telephone number. They are told when they call that, in order to collect their prize, they need to deposit the enclosed check and immediately forward the required “tax payment” or “lottery fees” due, usually by Western Union or via a Money Order. They may also attempt to obtain personal information that can be later used for identity fraud or to access your accounts.
What’s the catch?
Banks are required by law to make the funds you deposit available quickly – usually within one to five days. Depending on the type of check and your status as a client, your bank may choose to release funds to you immediately. However, just because you can withdraw the money does not guarantee that the check is good. It can take weeks for the forgery to be discovered and the check to bounce. That’s what the scam artists are counting on – that you believe the check is legitimate and send them money back.
Whatever the set-up, the ending is always the same. If you send money back, you’ll lose twice. Since you are responsible for checks or monies deposited into your account, when the fraudulent check bounces, you will be required to pay back to the bank the money you withdrew. The scammer has your funds and now you owe the bank as well.
A legitimate sweepstakes will NEVER ask you to send money to enter or to claim a prize, or to pay a fee, tax or deposit. If you are asked to send money to claim a sweepstakes prize for any reason you are being scammed.
If you receive a sweepstakes letter, do not respond with any personal information or attempt to cash the fraudulent check. If you receive a check, please contact Morgan Keegan immediately by calling 1-800-366-7426, extension 3474 or 901-531-3474; or fax information to 901-579-4473 so we may provide as much information as possible to the authorities. Thank you for your cooperation.
