A federal court in South Carolina sentenced Jamaican national Alando Gentles to 36 months in federal prison for running a multi-year lottery telemarketing scam that defrauded at least 115 elderly victims out of $349,433.75.
Gentles, 43, pleaded guilty in federal court to wire fraud conspiracy linked to a scheme based out of Myrtle Beach, South Carolina. Following his prison term, Chief United States District Judge Sherri A. Lydon ordered Gentles to serve three years of court-ordered supervision and pay $349,433.75 in restitution to his victims. Federal sentences do not offer parole, requiring defendants to serve nearly all of their court-ordered time.
Federal court hands down prison sentence and restitution order
Federal authorities extradited Gentles from Jamaica to face prosecution in South Carolina after federal prosecutors unsealed an indictment charging him with conspiracy to commit wire fraud. The investigation was led jointly by Homeland Security Investigations (HSI) and the United States Postal Inspection Service (USPIS).
Court documents reveal that the fraud ring operated from approximately June 2015 through May 2022. The operation targeted senior citizens across the United States through phone calls and direct mail campaigns. Fraudsters informed victims that they had won a major sweepstakes or cash award but insisted that mandatory taxes, legal fees, and administrative charges had to be paid before any money could be disbursed.
How the South Carolina lottery telemarketing scheme operated
The conspiracy relied on a structured phone script designed to exploit senior citizens. Callers pretended to represent official sweepstakes or government lottery agencies, using high-pressure tactics to convince victims that millions of dollars were waiting in trust accounts.
To collect the fake prize, victims were instructed to send advance payments. Scammers used multiple financial channels to collect funds, including:
- United States Postal Service (USPS) money orders and commercial bank money orders
- Direct wire transfers and cash sent via postal mail or courier services
- Prepaid debit and gift cards
- Personal checks and direct bank deposits into accounts opened by co-conspirators
Operating from Jamaica, Gentles coordinated the receipt of stolen funds. Investigators documented that Gentles managed international wire transfers sent from the United States and withdrew cash from automated teller machines (ATMs) in Jamaica using bank accounts holding scam proceeds.
How to spot the difference between real winnings and lottery scams
Legitimate lottery operators and sweepstakes organizations never require winners to pay money upfront to receive cash prizes. Federal law strictly prohibits state lotteries from demanding advance tax payments, processing fees, or shipping costs prior to disbursing official prize payouts.
When players win verified state or international drawings—such as an Illinois Powerball winner claiming a $1 billion jackpot—applicable federal and state withholding taxes are automatically deducted by the lottery commission at the time of payout, or managed through standard income tax returns. Similarly, verified winners like a UK woman who won a £1 million EuroMillions prize claim awards through established regional lottery headquarters without wire-transferring processing fees to third parties.
| Feature / Requirement | Legitimate Lottery Claims | Fraudulent Telemarketing Schemes |
|---|---|---|
| Upfront Payment Demand | Never required. Fees or taxes are never collected in advance. | Always demanded via wire, prepaid cards, or mailed cash. |
| Ticket Verification | Requires holding a valid ticket purchased from a licensed retailer. | Claims entry was automatic or tied to a random phone number. |
| Tax Withholding | Deducted directly from total prize money at claim time. | Requires winner to wire tax money directly to callers. |
| Official Contact Method | In-person claims at official lottery offices or secure web portals. | Unsolicited phone calls, text messages, or direct mailings. |
Participating safely in legitimate lottery games
Players looking to participate in official draw games should purchase entries directly from state-authorized brick-and-mortar retailers or registered digital options. Using licensed online lottery platforms guarantees that ticket receipts are recorded legally in state databases, eliminating reliance on unverified phone calls or third-party mailing notifications.
State lottery boards maintain public claim rules. Winners must present signed physical or digital tickets along with government-issued identification to claim authorized awards.
How to report suspicious lottery communications
Individuals who receive unsolicited phone calls or letters claiming they have won a contest they never entered should refrain from sending funds or sharing financial details. Victims or target recipients can file reports directly with federal regulatory and law enforcement databases:
- Federal Trade Commission (FTC): Submit complaints online at ReportFraud.ftc.gov.
- United States Postal Inspection Service: File reports regarding mail fraud at uspis.gov or by calling 1-877-876-2455.
- FBI Internet Crime Complaint Center (IC3): Register wire and internet fraud reports at ic3.gov.
Frequently asked questions
Do legitimate lotteries ever ask for money upfront to release a prize?
No. Authorized state and international lottery commissions never demand fees, administrative payments, or advance taxes prior to releasing winnings. Any requirement to send cash, gift cards, or wire transfers to collect a prize is a clear indicator of fraud.
What penalties did Alando Gentles receive in federal court?
Chief US District Judge Sherri A. Lydon sentenced Gentles to 36 months in federal prison, followed by three years of supervised release. The court also ordered him to pay $349,433.75 in restitution to victims.
How do legitimate lotteries collect income taxes on major wins?
For US lotteries, federal and state tax withholdings are automatically subtracted from prize payouts exceeding statutory threshold amounts before the net balance is distributed to the winner.
Play responsibly. Lottery is a form of entertainment, not investment.
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