FTC Action Leads to Sweepstakes Ban for Individual Who Helped Run Massive Scheme that Cost Consumers Millions

As a result of a Federal Trade Commission case, one of the operators of a sweepstakes scam that cost consumers millions has agreed to a settlement that permanently bans him from operating sweepstakes or making claims to consumers about prizes they have won or may win.

The FTC first filed its complaint against Victor Ramirez in 2015, alleging that he helped operate a sprawling sweepstakes operation that took more than $28 million from consumers throughout the United States and other countries, including Australia, Canada, France, Germany, Japan, and the United Kingdom.

“We are pleased that this settlement will keep the last individual defendant in this sweepstakes scam from harming consumers with bogus prize claims,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Since the Supreme Court’s decision in AMG, we are no longer able to return money to consumers who’ve been harmed. It is urgent that Congress restore the Commission’s ability to make consumers whole when they are targeted by scammers.”

The FTC’s complaint charged that Ramirez, along with three other individual defendants and eleven corporate defendants, mailed personalized letters falsely telling consumers that they had won large cash prizes, typically more than $2 million. To collect the “guaranteed” money, consumers had to mail the defendants a $20-$30 fee by cash, check or money order typically within 10 days, and the letters warned consumers they would forfeit their winnings if they didn’t pay on time. In reality, consumers had not won anything. The defendants had no connection to any sweepstakes and could not award or pay anyone the promised prizes.

Under the terms of the settlement Ramirez is permanently banned from any involvement in any sweepstakes or other form of prize promotion that tells consumers that they either have won or could be eligible to win a prize. In addition, the settlement prohibits him from any further deception related to any product or service and from making use of any consumer information acquired through running the sweepstakes scam.

The Commission vote approving stipulated final order was 5-0. The FTC filed the proposed order in the U.S. District Court for the Southern District of Florida and it has now been entered by the court.

NOTE: Stipulated final orders or injunctions have the force of law when approved and signed by the District Court judge.

The staff attorney on this matter is William J. Hodor of the FTC’s Midwest Region.