Former Lottery Security Official Stole Winning Lottery Tickets, Pleaded Guilty to Wire Fraud Charges
A former security official for the Arkansas Scholarship Lottery pleaded guilty in federal court on Friday, July 11th, to wire fraud and money laundering charges. The defendant, who is from South Carolina, reportedly stole tens of thousands of dollars in winning lottery tickets.
Remmele Mazyck, who is also a former employee of the South Carolina Education Lottery, served as the deputy director of security for the Arkansas Scholarship Lottery, which, like SC’s Education Lottery, uses money from losing tickets to fund scholarships. Mazyck admitted in federal court on Friday that he stole tickets that were intended to be free promotional items at the State fair and other public events, scratched them, and cashed the ones that were less than $500 in winnings.
He had been charged with wire fraud and money laundering, which are both serious federal offenses.
The original Arkansas lottery law banned employees from playing, but a 2011 amendment allowed workers to collect winnings that were less than $500. However, Mazyck’s theft began in 2009, before the amendment was passed. He reportedly focused on smaller cash prizes so that he would not be recognized. Prizes of $500 or more had to be cashed at the lottery office, which meant that Mazyck would have been recognized by his coworkers.
The lottery said that Mazyck cashed 22,710 tickets over a three year period, totaling $478,000 in winnings.
Lottery Director Bishop Woosley said that Mazyck’s theft was not discovered until October 2012, when a clerk for a Jonesboro retailer raised questions about tickets that Mazyck cashed, which belonged to a store that was no longer in business.
Woosley questioned Mazyck about the theft on October 26th, then fired him three weeks later. “His reaction was calm, denial,” Woosley said about the interview.
While the lottery’s security is currently under investigation, Woosley said that the integrity of the games has not been compromised. “This is a simple theft of lottery tickets,” he said. There was no rigging of the game to skew winnings in Mazyck’s favor.
The maximum penalty for wire fraud charges is 20 years in prison, and a $250,000 fine. Money laundering charges carry fines of up to $250,000 as well, and prison sentences up to 10 years. Mazyck will be sentenced later, but at his plea hearing on Friday, he agreed to pay $482,000 in restitution for the wire fraud and money laundering charges, and was released on his own recognizance.
The Strom Law Firm Understands Federal Wire Fraud Defense
The law broadly defines wire fraud as devising or intending to devise a scheme to defraud others of money or property under false or fraudulent pretenses, representations or promises by means of electronic communications, or “wires.” Because they typically involve interstate matters, most wire fraud cases are considered federal crimes with convictions carrying heavy fines, prison sentences of up to 20 years, or both.
Our federal criminal defense lawyers handle cases involving:
- Fraudulent insurance claims
- Bond issuances and investment schemes
- Falsifying loan applications
- Check fraud schemes
- Bribes or kickbacks
- False advertising or misrepresentation in sales transactions
Our firm provides extensive experience representing clients in major criminal cases and investigations involving wire fraud, mail fraud, bank fraud, and RICO violations. While we strive to resolve matters discreetly through aggressive negotiation, our fraud attorneys will not hesitate to take your case to trial.
If you face federal charges including wire fraud and money laundering, the attorneys at the Strom Law Firm can help. We offer free, confidential consultations to discuss the facts of your case, so do not hesitate to contact us. 803.252.4800.
