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PASS GO, COLLECT $200
The familiar imperative from the real estate trading game Monopoly is known
the world over. But it might come as a surprise to players that the original
version was based on the streets of Atlantic City, New Jersey, in 1933. In the
66 years since Monopoly put Marven Gardens on the map (if only because the game
producers Parker Brothers mistakenly spelt it "Marvin," an error
perpetuated to
this day but for which local residents received a belated apology in 1995, more
than 200 million sets have been sold. The game has been published in 26
languages, and numerous regional versions, sports editions, and other landmarks
have been used.
MONOPOLY FRAUD!
FBI Arrests 8 in McDonald's Game Fraud
Get Quote, Company Info: MCD
By KAREN GULLO
.c The Associated Press
WASHINGTON (Aug. 21) - Federal authorities working with McDonald's broke up a
criminal ring they say rigged the popular Monopoly and ''Who Wants to be a
Millionaire'' games played by millions of the fast-food chain's customers over
the past six years.
The FBI alleged Tuesday that the ring fixed winners of $1 million and other
big-money prizes who then shared the cash with members of the group. In all, the
ring ''won'' more than $13 million in prizes. Authorities said it was not clear
whether there were ever any legitimate winners of large prizes in McDonald's
Monopoly and ''Who Wants to be a Millionaire'' games.
Eight people have been arrested so far. At the center of the scheme was Jerome
Jacobson, 58, a security employee of Simon Marketing Inc., a company hired by
McDonald's to handle game promotions and security, authorities said. Jacobson
had almost total control over the distribution of winning game pieces, according
to a criminal complaint filed in federal court in Jacksonville, Fla.
''In producing and distributing game pieces, Simon is responsible for insuring
the integrity of the game,'' the complaint said.
As advertised, the $1 million prizes can be won by either collecting game pieces
from drink cups and french fry boxes at McDonald's or in Sunday newspaper
inserts.
But the complaint alleges that Jacobson embezzled winning game pieces and
distributed them to friends and business associates who found others to take the
winning pieces and claim the prizes. The ''winners'' then paid money back to
Jacobson and his associates, the complaint said.
In many instances, the winners allegedly turned over the first $50,000 of their
prize money to Jacobson, who was arrested Tuesday in Georgia.
''This fraud scheme denied McDonald's customers a fair and equal chance of
winning,'' said Attorney General John Ashcroft. ''Those involved in this type of
corruption will find out that breaking the law is no game.''
Authorities said that no McDonald's Corp. employees were involved and that
McDonald's assisted the investigation. At the FBI's request, McDonald's ran a
Monopoly game in July that helped investigators nab a fraudulent $1 million
winner.
Jack M. Greenberg, McDonald's chairman and chief executive officer, said,
''Customer confidence is at the very heart of McDonald's business. We're
determined that nothing gets between us and our customers, and we're outraged
when anyone tries to breach that trust.''
Greenberg said millions of McDonald's customers won free food, cash and other
prizes but many of the biggest prizes went to the fraudsters. To make it up to
customers, McDonald's will give away $1 million and $100,000 prizes at randomly
selected restaurants.
McDonald's has terminated its contract with Simon Marketing.
All eight people arrested were charged with conspiracy to commit mail fraud, and
felony complaints were filed against them in federal court in Florida. The FBI
is also looking for a number of other suspects.
The FBI first learned of the alleged scheme in April 2000 through an informant,
senior officials said, speaking on condition of anonymity.
The bureau contacted McDonald's in May. The company provided investigators with
a list of winners from 1995 to the present. The names matched up with the names
provided by the informant, according to the complaint.
Jacobson and an accountant from a nationally recognized public accounting firm
were the only two people who had custody of the winning game pieces, the
complaint said. FBI officials declined to identify the accountant or say whether
he was the informant.
Instead of randomly distributing the winning pieces to regional publishers and
distribution centers, Jacobson gave them to recruiters, the complaint alleges.
Through surveillance and wiretaps, the FBI identified the alleged recruiters,
many of whom recruited family members as fraudulent winners.
Earlier this month, FBI agents posing as a production crew hired by McDonald's
videotaped one of the scam winners describing how he had obtained an ''instant
winner'' game piece from a magazine he purchased.
Phone taps showed numerous phone calls between a man who allegedly recruited the
winner and Jacobson, the complaint said.
For more than 10 years, McDonald's has offered big prizes - $1 million in cash,
diamonds or gold, cars and vacations - to Monopoly game winners. Customers
collect game pieces attached to drink cups or other packaging materials and use
them to fill game boards available at McDonald's restaurants.
Besides Jacobson, those arrested included: Linda L. Baker, 49, of Westminster,
S.C.; Noah D. ''Dwight'' Baker, 49, of Westminster, S.C.; John F. Davis, 44, of
Granbury, Texas; Andrew M. Glomb, 58, of Fort Lauderdale, Fla.; Michael L.
Hoover, 56, of Westerly, R.I.; Ronald E. Hughey, 56, of Anderson, S.C.; and
Brenda S. Phenis, 50, of Fair Play, S.C
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