http://www.ago.state.ma.us/sp.cfm?pageid=986&id=1781 FIVE PEOPLE INDICTED FOR THEIR ROLES IN ILLEGAL PYRAMID SCHEME Lottery scheme allegedly victimized hundreds of Dorchester residents December 15, 2006 CONTACT: BETH STONE (617) 727-2543 BOSTON -- Five people have been indicted on charges they allegedly operated an illegal lottery scheme that caused hundreds of victims in the Boston area to lose thousands of dollars, Attorney General Tom Reilly announced today. State Police and investigators in AG Reilly's Office began their investigation, named 'Operation Clear the Table,' this past August after complaints were received from more than 300 victims who reported losing thousands of dollars by participating in an illegal lottery. Further investigation revealed that the five individuals who were indicted today were involved in soliciting people to participate in the illegal pyramid scheme.A Suffolk Superior grand jury indicted the following five individuals on charges of promoting an illegal lottery: Eric Johnson, 47, and Margarita Stewart Johnson, 50, who are married, Natalina Pereira-Tavares, 28, Alcides Semedo, 44 and Rosalina Barros, 37. They are all from Dorchester. The indictments allege that from January 1, 2006 through September 14, 2006, these five individuals allegedly organized, managed or recruited people to participate in a type of illegal lottery known as a pyramid scheme. In order to join the game, which used pyramid-shaped tables, individuals were required to pay either $100, $1,000 or $5,000. For this entry fee, each participant received a place on the bottom level of the pyramid and was promised that if they moved to the top of the pyramid, they would receive eight times their initial investment. In order to move up the pyramid, participants were required to recruit at least two new players, with each new player paying the entry fee in exchange for a place at the bottom of the pyramid. Each pyramid-shaped table had four levels. The entry level at the top of the pyramid was called the "appetizer." As new players were recruited, participants would move up to the "soup and salad" level, and then to the "entree" level, and finally to the "dessert" level. Once a participant reached the "dessert" level, he was entitled to eight times his initial investment (either $800, $8,000 or $40,000). Whether a participant made it to the top of the pyramid depended upon every new participant successfully recruiting at least two new players. As with other pyramid schemes, in this game, hundreds of participants paid entry fees but never won any money because insufficient numbers of new players entered the game at the "appetizer" level. The defendants allegedly focused their scam on residents in the Dorchester area, using word-of-mouth to spread news of the lottery and encourage friends and others to participate in the bogus game. The lottery carried different names, including "Women's Circle of Trust," "Table of Honor," and "Women/Men of Valor." The sheets often times contained an actual picture of a dinner table with food. In total, AG Reilly's investigation has identified thus far more than 300 individuals, who either lost $100 or $5,000 as a result of participating in this game. Under state law, pyramid schemes and other games that require a participant to pay an entry fee in order to participate and have an opportunity to win a prize that is dependent on chance, are illegal lotteries. Defendants are presumed innocent until proven guilty. Assistant Attorneys General Melissa Gavegnano and Kathleen Healey of AG Reilly's Criminal Bureau are prosecuting the case, which was investigated by State Police assigned to the Attorney General's Office and Financial Investigators David Baker and Sallyann Nelligan. Boston Police assisted with the arrests and execution of search warrants. |