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

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.

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.