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 CTV.ca News Staff

 


Mogens Olesen thought he won a $500,000 lottery.
.[ copy of lottery letter_1    lottery scam_2]

All the ninety-two year old widower had to do was pay a processing fee. Olesen sent $700. Then another $1,500.
But when the "lottery" folks asked for a third payment of $2,500, Olesen grew suspicious.

Olesen told the company that promised the lottery winnings that he couldn't afford to send more money. So the company told Olesen they would send him a cheque to cover all further fees. Still suspicious, Olesen asked his bank to examine the cheque. It was a fake and of course, so was the lottery.

Luckily, Olesen's bank was able to detect the fake cheque right away. Most cheque-clearing systems used by North American banks don't know, with 100% certainty, for months if a cheque is good.

That's because cheques have to physically travel between banks, branches and processing centres to be truly verified. Until the journey between the bank where the cheque is deposited and the paying bank is completed, there is no confirmation that a cheque is legitimate.

The depositing bank essentially credits the depositor with the funds while the cheque undergoes the "clearing" process.

It can take a long time for a bank to figure out a cheque is fake and conmen rely on those bank lag times in order to pull off their crime.

Turns out Olesen, living in North Carolina, was just one of the many seniors targeted by the latest kind of fake cheque fraud. A new twist on an old con. Olesen is one of thousands who were told they'd won a lottery, but had to pay fees in order to receive their prize. But this time fake checks were part of the equation. Victims were told to deposit the check and return the money. By the time the fake checks bounced, the crooks were long gone and the victims were on the hook for the money from the banks.

While Olesen lost a couple thousand dollars, others lose much more.

It's estimated that gangsters flood Canada and the United States with billions of dollars worth of fake checks, every year.

As Vancouver RCMP Staff Sergeant Tim Olmstead, who investigated the Mogens Olesen case, explains, check fraud schemes, operating out of Canada are a growing problem.

"Well, it's a huge problem and we actually have a fairly significant task force right out of this section [where] that's all they do is that type of mass marketing fraud," Olmstead told W-FIVE.

The RCMP, in fact, had the Burnaby, BC check fraud operation under surveillance and eventually caught the criminals red-handed. "As we entered the building, two of the suspects were actually in the process of stuffing so-called bait letters destined for Americans."

Three men were charged with 41 counts of operating a counterfeit check lottery scam. One, Michael Onesmus, was found guilty and sentenced to three and a half years in prison.