Lottery Scam Money Launderer Pleads Guilty

TUCSON, Ariz. – Fiona Lorraine Walters, 50, of Newburgh, NY, pleaded guilty today to Conspiracy to Commit Money Laundering. Sentencing is scheduled for September 23, 2024, before United States District Judge Scott M. Rash.

Walters admitted that, between July 5, 2016, and August 15, 2020, she laundered over $300,000 in fraud proceeds, through her and family members’ bank accounts. The funds were fraudulently obtained from victims, many of them elderly, who sent the money under the belief they were paying fees associated with winning a lottery or sweepstakes, but which were scams. Walters and her co-conspirators fraudulently transferred or kept the victims’ money and no “winnings” were ever paid. 

A conviction for Conspiracy to Commit Money Laundering carries a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the funds involved in the offense, whichever is greater, or both, and a term of three years supervised release.

This case was prosecuted as part of the Department of Justice’s Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10 a.m. to 6 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.

The United States Postal Inspection Service conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, AZ, is handling the prosecution.
 

CASE NUMBER:            CR-23-01158-TUC-SHR
RELEASE NUMBER:    2024-092_Walters

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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