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Financial Crimes
09/24/2010

ICE agents return $2,000 to Minnesota telemarketing scam victim

MINNEAPOLIS - Agents with U. S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI) returned $2,000 to an elderly resident of Wayzata, Minn., who was a victim of telemarketing con artists operating from Canada.

The money was returned to the victim following an investigation by a multi-agency joint U.S.-Canada initiative called Project COLT. Although there are many variations to the scam, in this case the callers fraudulently represented themselves as lottery officials. The scammers told the elderly victim she had won the lottery but had to pay fees and service charges to be able to collect the fictitious winnings. ICE HSI special agents warn that con artists often pose as lawyers, customs officials, police officers or lottery company officials to scam their victims out of millions of dollars.

Project COLT was formed in 1998 to identify, disrupt and dismantle telemarketing fraud operations in the United States and Canada. Project COLT members include the following law enforcement agencies: ICE HSI, the Royal Canadian Mounted Police, Surete du Quebec (Quebec Provincial Police), Montreal Police, FBI, and the U.S. Postal Inspection Service (USPIS).

"Don't be fooled by scam artists. These criminals prey on people's insecurities, especially the elderly," said Mike Feinberg, acting special agent in charge of ICE HSI in St. Paul. "Be very suspicious of anyone asking for money so you can collect prizes. Together, with our law enforcement partners, we will do our best to put this criminal enterprise out of business."

Fraudulent telemarketers often instruct their victims to pay for service charges, federal or provincial taxes, customs duties, handling, insurance or other charges. Victims are told to send the funds via mail, courier or wire-transfer companies, such as Western Union or MoneyGram. Scammers are often able to then receive the transferred funds using false identification. Con artists frequently pose as government officials to convince their victims to send money.

Project COLT includes a unit of officers who intercept funds and work to prevent further victimization through public education. They also investigate these cases to bring to justice those who commit the fraud. Project COLT intercepts about $1 million annually. These funds are returned to victims who are instructed how they can avoid future victimization.

Project COLT members have formed partnerships with the Canada Border Services Agency, Canada Post Corporation, Federal Express, Purolator, UPS, DHL and other companies to assist with intercepting and returning funds to the victims.

ICE encourages the public to report suspected telemarketers or fraudulent activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators.