Cedar Rapids woman pleads guilty to swindling elderly couple out of $40,000 in lottery scam

CEDAR RAPIDS - A 36-year-old Cedar Rapids woman pleaded guilty in federal court Thursday to swindling an elderly couple out of $40,000 in a lottery tax scheme.

Tea Lynette Ware was charged with two counts of mail fraud and one count of using a fictitious name in mail fraud.

U.S. Chief Magistrate Jon Scoles told Ware she faces up to 45 years in federal prison and up to $250,000 in fines for each of the three charges. Her prison time will likely be less, based on sentencing guidelines. She also was charged with one count of money laundering, but that charge will be dismissed at sentencing, according to the plea agreement.

According to the indictment, Ware called a 74-year-old woman in Bushnell, Ill., and told her she had won a lottery or sweepstakes and was going to receive large sums of money, but could only collect her winnings if she would first mail Ware the taxes or fees for payment.

Ware admitted during the hearing that she participated in the scheme with the intent to defraud the woman and her husband. She also admitted to setting up a post office box in the fictitious name of 'Ray Ware” to receive the money.

The scheme started in September 2015 and continued through February 2016, according to the indictment. Ware admitted to receiving at least two checks, for $16,000 and $13,000, from the victims.

Prosecutors don't typically include all transactions in an indictment or criminal complaint, but there are more checks, based on the $40,000 forfeiture the prosecution is seeking. The forfeiture would come from any property Ware obtained from the illegal activity.

Ware admitted the winnings didn't exist and the telephone calls were designed to deceive the woman, who has short-term memory problems, and her husband, a U.S. Navy veteran suffering from dementia who lives in a long-term care facility.

The couple received unsolicited phone calls and even changed their telephone number to avoid them, but the calls resumed after they changed their phone number, the indictment shows.

Sentencing hasn't yet been set.