Federal Bureau of Investigation Los Angeles Division

VANCOUVER RESIDENT CHARGED IN LOS ANGELES WITH RUNNING LOTTERY SCAM ARRESTED IN CANADA, IN COURT TODAY FOR EXTRADITION PROCEEDING

A man charged in connection with an advance-fee scam where scores of victims were told they would receive lottery winnings, was arrested and will be in a Vancouver courtroom today for an extradition hearing, announced J. Stephen Tidwell, Assistant Director in Charge of the FBI in Los Angeles and Superintendent Gord McRaeof the Royal Canadian Mounted Police - Commercial Crime Section.

Sundip Dhanda, 23, of Vancouver, British Columbia, was arrested at his residence on October 18th on charges of mail fraud and wire fraud. That same day, Dhanda’s residence and business were searched pursuant to a request facilitated by a Mutual Legal Assistance Treaty.

According to a criminal complaint filed in U.S. District Court in Los Angeles, multiple victims of the fraudulent scheme received a letter in the mail which contained a post-dated counterfeit /fraudulent check, advising the victims they had won a lottery. Various company names were used by Dhanda, according to the complaint, including BC Holding Group; BC Securities; Secure Trading Services Inc.; UK Legal Services; and Capital Liberty Service, Inc.

In addition to the letter’s false representation that the victims were lottery winners, the letter also instructed victims that, in order to cash the winning check, a required international tax fee should be sent via cash wire transfer service, personal check or money order. The letters also contained a toll-free number which many victims dialed, only to be connected to a telemarketer who would confirm that the victim had won the money, but that a fee was required in order to receive it.

Victims were told that before they could deposit their checks, they had to send fees ranging from $521 to $1,590 to the address of the company listed on their letter. When the victims attempted to deposit their checks, they learned that the checks were worthless. No victims interviewed to date have received any money promised by the companies. Victims in this case received letters across the United States, including Los Angeles, and aggregate losses are estimated to be in excess of $300,000.

In recent years, the RCMP Project Emptor task force has successfully investigated advance-fee and cross border fraud matters, resulting in over forty indictments, over thirty arrests and twenty convictions, on charges ranging from wire fraud, mail fraud, mailing materials related to lotteries and telemarketing fraud against the elderly.

The Project Emptor Task Force recommends the following tips to citizens who may be targeted for cross-border fraud or advance-fee fraud solicitations.

1. Be suspicious of any offer that sounds too good to be true.
2. Fraudulent telemarketers may misrepresent themselves as government officials, law enforcement officers, banking representatives and attorneys, in order to convince a potential victim to send money. In addition, they may also attempt to send documents falsely representing their company or governmental agency.
3. If you have legitimately won a lottery or sweepstakes prize, you will never have to pay money in advance of receiving your winnings.
4. Hang up on anyone who solicits your money in advance of awarding a prize.
5. Never provide personal information over the telephone including your date of birth, social security account number, credit card or bank account information.
6. Do not attempt to deposit checks sent by companies whose representatives claim the check is being sent to pay fees or taxes on lottery winnings. These checks may appear to be legitimate but they are not. Some of the checks may even be drawn on legitimate accounts and may include actual routing numbers so that they appear to be authentic even when presented for deposit at a bank.
7. Fraudulent telemarketers will apply high pressure sales techniques by falsely representing that the fees are required immediately in order to obtain the winnings.
8. Report cross-border or advance-fee scams over the Internet or over the phone to the following:
a. FBI’s Internet Crime Complaint Center: www.ic3.gov
b. Phonebusters: (888) 495-8501
c. Federal Trade Commission: (877) 382-4357
9. Visit the following websites for more information and helpful tips:
www.fbi.gov
www.ftc.gov/crossborder

This investigation was conducted by the RCMP Project Emptor Task Force which includes U.S. members from the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service and the United States Attorney’s Office, which is prosecuting the case against Dhanda. Canadian members of the task force include the RCMP - Commercial Crime Section, British Columbia Business Practices and the Consumer Protection Authority and the Canadian Competition Bureau.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.