F.Y.I
FEDS BUST MCDONALD'S SWEEPSTAKES SCAM
Director of Marketing Company Named as Alleged Ringleader
Aug. 21, 2001
By Kate MacArthur
OAK BROOK, Ill. (AdAge.com) -- The Federal Bureau of Investigation has arrested members of a ring accused of stealing top prize awards intended for
Photo: Hoag Levins..
No McDonalds' employees were involved in the alleged scam.
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McDonald's Corp. sweepstakes, according to the world's largest quick-service chain.
The security director for Simon Marketing, Wakefield, Mass., allegedly led the ring, said the FBI, which worked with the U.S. Attorney's office and the U.S. Department of Justice in the investigation leading to the arrests.
No current or former McDonald's employees or franchisees were connected to the promotions, the FBI said.
McDonald's is terminating its relationship with Simon Marketing, which develops game concepts, contracts the manufacturing suppliers and is responsible for game security.
"Given the duration of the alleged conspiracy, the lack of any meaningful oversight and the magnitude of the losses, it was the only responsible course of action," McDonald's Chairman-CEO Jack Greenberg said in the statement.
Task force named
In addition, the marketer has created an independent task force comprising anti-fraud and game security experts to review procedures for future promotions.
"Customer confidence is at the very heart of McDonald's business," said Mr. Greenberg, who added that the company is cooperating with law enforcement officials. "We're determined that nothing gets between us and our customers, and we're outraged when anyone tries to breach that trust.
"Once the FBI contacted us, we agreed immediately to cooperate fully with them in an effort to ensure our customer interests were protected," he said.
"This case is an excellent example of how cooperation between corporate America and the FBI can work to protect the American people from those who would victimize them for their own selfish gains," Special Agent in Charge Thomas Kneir said in the statement.
New contest
McDonald's will conduct a five-day instant giveaway contest from Aug. 30 through Sept. 3. Consumers can win 55 cash prizes, which range from $100,000 to $1 million. The company will run newspaper ads starting Aug. 22, along with information on mcdonalds.com to explain the contest.
"McDonald's is committed to giving our customers a chance to win every dollar that has been stolen by this criminal ring," Mr. Greenberg said. "This initial $10 million giveaway is the first important step towards fulfilling this commitment. When the FBI concludes its investigation and ultimately determines the total amount stolen, we will announce plans to give our customers an opportunity to win any additional dollars taken."
Copyright August 2001, Crain Communications Inc.
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