On Monday, a Long Island woman pleaded guilty to mail fraud for her participation in what is being described as a multimillion-dollar mail fraud scheme.

Lorraine Chalavoutis, 64 of Greenlawn, New York is accused of having mailed out fake prize notices to thousands of “elderly and vulnerable” individuals throughout the nation. As part of the scheme, Chalavoutis led her elderly victims into believing they would receive a large cash prize if they paid a modest fee. As part of the scheme, victims collectively turned over more than $30 million. None of the victims ever received a large cash prize. Chalavoutis’ guilty plea is the latest development in an extensive fraud scheme that targeted the elderly between December 2010 and July 2016.

Chalavoutis operated with several other co-conspirators including Shaun Sullivan, 37, of Merrick, New York, and Tully Lovisa, 55, of Huntington Station, New York. Officials explain that the trio was able to obtain the information for their victims from consumer lists.

The investigation into this multimillion-dollar scheme began after the Federal Trade Commission (FTC) filed a lawsuit against Lovisa in 2010 for sending out fraudulent prize-promoting mailings to the “elderly and vulnerable.” Following the lawsuit, Lovisa violated the court’s push to stop the fraudulent mailing. Instead, the DOJ explains that Lovisa continued in a partnership with Sullivan and Chalavoutis to continue the fraudulent prize promotion scheme.

In 2019, Sullivan pleaded guilty to conspiracy to commit mail fraud after sending out the fraudulent promotions. Tully Lovisa also pled guilty in October 2018 for the same charges.

In court documents, the trio was described to have put together a cunning scheme that was intended to defraud the elderly. The documents explain, “Lovisa and Sullivan, who ran the direct-mail scheme, paid Chalavoutis for operational services. In order to facilitate this operation, defendants used multiple different company names (the "Shell Companies") as purported senders of the promotional mailings (the "Straw Owners"). Chalavoutis used Straw Owners to form the Shell Companies and open accounts with banks and payments processors. She controlled these accounts, and transferred money received from the victims to Lovisa, Sullivan, herself, and others involved in the operation.”

In the Indictment, The Justice Department’s Civil Division Acting Assistant Attorney General Brian M. Boynton explained of Chalavoutis’ role, “Those who knowingly facilitate fraud schemes, including individuals who play administrative roles in setting up and maintaining the criminal operations, bear responsibility for the harm caused to victims.” Boynton adds, “The Department of Justice is committed to protecting elderly and vulnerable Americans and to prosecuting individuals who perpetrate and knowingly enable such schemes.”

Chalvoutis is set to be sentenced in mid-January 2022. As part of her charges, she could face up to 20 years behind bars.