LOCAL PAIR NOT FOOLED BY LOTTERY SCAM DEPUTY: CASE OF CASH, IDENTITY FRAUD.

Byline: CAROL ROCK Staff Writer

SAUGUS -- A well-worn scam aimed at fleecing individuals of identifying information is making the rounds of local mailboxes again.

One of the recipients is Saugus resident Peggy Veal, who was told she'd won $88,000 from a Canadian lottery and $750,000 from a lottery in Spain.

Her husband, David, sensed a fraud and forwarded the letters to the Sheriff's Department and the Daily News. He was suspicious because the couple had never visited either country, nor had they purchased lottery tickets.

Local law enforcement officials were not surprised to hear of the letters, saying that these scams are a continuing problem and have contributed to the rise in identity theft, Los Angeles County's fastest-growing crime.

According to the Federal Trade Commission, there were 45,175 victims of identity theft in California in 2005.

Sgt. Jim Anderson of the Santa Clarita Valley station's fraud detail said lottery letters such as the one received by Veal are a continuous problem.

``Some of these letters are so obviously fake, but I've taken reports where people believed them and sent money,'' he said.

The first letter came from Virgin Lottery Inc., requesting that Veal call a 416 area code number to ``confirm everything we have on file.'' In addition, the letter explains that ``prize winnings are released as soon as your Clearance Fee is deducted ... a calculated amount ... required by Federal and International law.''

Although she was told she had won $88,000, the percent or fee amount was not indicated.

The second letter originated at the International Lotto Commission Loteria Primitiva and included a form that the reciepient is asked to fax back that includes a copy of her identification, bank name and account number and next of kin ``in the absent or lost of contact with you.''

``A couple of years ago, we got a letter like this and threw it away,'' David Veal said. ``But when these came and asked for all this detail, I thought it could be dangerous for a gullible person.

``I suspect it's similar to the Nigerian scams that have been around for years, and hope this will help in preventing others from being scammed,'' he added.

Peggy Veal doesn't intend to respond to the letters, but sheriff's deputies say some people have fallen for what they perceive is a windfall.

``It's hard to believe that people think they've won a lottery they've never played,'' said Anderson.

``If they haven't bought a ticket or been to the place where the lottery originates, then they couldn't possibly win,'' he said. ``But there are people who will send thousands of dollars to cover some `tax payment' in the hopes of getting the $40 million or $50 million they've been promised.''

More prevalent is a face-to-face fraud that Anderson has seen in the Latino community.

Last month, Anderson had a case involving a Latino woman who was approached by a young Latino man who told her he had just won the lottery but couldn't claim it because he was not a citizen, and lottery officials demanded proof of citizenship.

``She gave him $6,000 with his promise to double it, then he disappeared,'' Anderson said.

Anderson said most of the people victimized by these sorts of scams can ill afford to lose thousands of dollars. He said some of the victims have taken cash advances or extended their credit, leaving them out a lot of money with no recourse.

Both Loteria Primitiva and Virgin Lottery Inc. are listed on fraud-watchers Web sites as fake.

carol.rock(at)dailynews.com

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