Man made $46,800 selling chances to win a Dodge Challenger, feds say. It was a scam
For $105, people could buy a koozie that gave them the chance to win a limited edition Dodge Challenger SRT Demon, according to federal authorities.
But the raffle was fake, officials said, and now a 48-year-old man from Iola, Texas, has pleaded guilty to running the years-long giveaway scheme.
Authorities said the man began promoting the “exotic car” raffle in 2018 and continued through at least March 2022. He promoted the scheme across the U.S. at auto shows, on websites and on social media, according to an Aug. 31 news release from the U.S. Attorney’s Office for the Southern District of Texas.
The man’s defense attorney did not immediately respond to a request for comment from McClatchy News on Sept. 1.
People could buy a “ticket” into the raffle by purchasing a $100 foam drink holder — and paying $5 in processing fees, according to the man’s signed plea agreement.
“The raffle’s website made it appear as though the participant is not purchasing a ticket, but rather a BCS Mopar Club ‘Koozie,’” officials said. And while the site said no purchase was necessary to enter the giveaway or win the vehicle, authorities said there were no other ways to enter.
The website also said “money back guaranteed,” but the rules and regulations stated that customers only had 30 days to request a refund, and the site left out how to get money back, according to the plea agreement. These terms are in violation of Texas law.
Authorities said the raffle was supposed to take place when 2,000 koozies were sold.
“Despite the raffle being in existence for almost four years, there was no drawing or receipt of prizes by any participants,” authorities said in the release. “No one has ever received a koozie.”
The man was arrested on Aug. 31, 2020, but even after his arrest, the scheme continued, according to court records. The raffle website said “total ticket sales reached 765,” which would result in $76,500 at $100 per ticket, or koozie.
But the man said 297 of the tickets were issued for free, so he actually obtained $46,800 at $100 each, authorities said.
“Such a raffle is illegal for to conduct for various reasons,” according to the release. “A charitable organization does not run it, there was no date ... set for the drawing, there was no end date, proceeds were not spent on a lawful purpose, and it included statewide and interstate advertising.”
In pleading guilty to interstate transportation of waging paraphernalia, the man faces up to five years in prison and a $250,000 fine. He also may be ordered to forfeit his earnings and pay restitution.
The 2018 Dodge Demon, which was on the man’s property at the time of his arrest, was seized, authorities said.
Iola is about 95 miles northwest of Houston.
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