Scam artists impersonate gaming officials

By Liz Benston (contact)

Thursday, Feb. 27, 2003 | 11:02 a.m.

Nevada regulators today warned consumers of a scam in which victims are told that they are finalists in a drawing for a significant cash prize and are deceived into thinking they are talking to gaming agents.

In the scheme, callers posing as representatives of the Nevada Gaming Control Board or the Nevada Gaming Commission telephone victims, saying they must send certain fees and taxes to Canada to claim prizes that are usually in the "millions of dollars."

"The Gaming Control Board and the Gaming Commission do not endorse products or promotions of any kind," the board said today.

The theory behind the fraud isn't new and resembles a well-publicized scam discovered a few years ago that requires victims to send money to claim "Canadian lottery" winnings.

"It's new because they're utilizing (Nevada regulators) as part of the scam," said Jerry Markling, deputy chief of the Gaming Control Board's enforcement division.

In a second call, the scam artist confirms that the victim has won the drawing, the board said. The caller will typically bring a "supervisor" on the line to tell the victim that in order to collect the prize, the winner must first put up money in an escrow account for federal withholding taxes.

The winner is instructed to wire fees via Western Union to an address in Canada. State taxes and insurance deposits have also been asked for.

The board has received periodic calls from individuals and law enforcement agencies in different states where the scam has occurred, Markling said. The fraud may have been going on as long as a year.

The board decided to notify Nevadans because it recently received its first complaint from a Nevada resident in Searchlight.

"The callers may be expanding their operations to include Nevada," Markling said.

The board isn't aware of how many people have fallen victim to the scam or how much money has been lost.

The board has been referring complaints to Canadian authorities, who are leading the investigation with help from a telemarketing fraud task force in that country, Markling said. The Royal Canadian Mounted Police and the Ontario Provincial Police also are involved in the investigation, he said.

The victim is often given an 800 number to call with questions. The victim who calls will usually reach a recording that begins, "You have reached the offices of the Nevada Gaming Commission."

More recently, suspects have also identified themselves as "U.S. Customs officials" who advise the victim that an "insurance deposit" also is required. Another 800 number is offered that leads to the following greeting: "Thank you for calling the United States Customs holding facility in Buffalo, New York."

In at least once instance involving a hesitant victim in Texas, callers identified themselves by using the names of Nevada Gaming Control Board Chairman Dennis Neilander and Nevada Gaming Commission Chairman Peter Bernhard, the board said.

Residents who are contacted in this manner are urged to notify Gaming Control Board Enforcement Division agent Paul Jeffrey at 702-486-2020.