U.S.

McBusted!

By CBSNews.com staff CBSNews.com staff

August 21, 2001 / 2:09 PM EDT / CBS

The FBI has arrested eight people in connection with what federal investigators call a scheme that fraudulently netted more than $13 million worth of McDonald's game prizes.

Authorities said Tuesday a criminal ring involved Simon Marketing, Inc., a company responsible for McDonald's game security. Among those arrested was an employee of the company's security department, based in Lawrenceville, Ga. The employee embezzled winning game pieces, officials charged.

"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 no McDonald's Corp. employees were involved and that the fast food giant assisted in the investigation.

Those arrested are: 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.; Jerome P. Jacobson, 58, of Lawrenceville, Ga., and Brenda S. Phenis, 50, of Fair Play, S.C.

For all those fast food eaters who feel cheated, McDonald's said it was planning to give away $10 million in a new game at the end of summer.

Law enforcement authorities said those arrested were charged with fixing the outcome of "McDonald's Monopoly," "Who Wants to Be a Millionaire," and other McDonald's promotional games by controlling the distribution of the high-value prize pieces, such as the $1 million grand prize.

The odds of winning that $1 million Monopoly jackpot weren't that good to begin with, CBS News Correspondent Jim Stewart reports - McDonald's put them at about one in 440 million.

The FBI said Tuesday the real odds were really zero.

Most McDonald's customers shrugged off news of the arrests. "I won't come to McDonald's just trying to win a million bucks," said one patron. "I know what the odds are."

Some who had played the board game seriously, however, always wondered if everything was on the up-and-up. One woman who has played the game explains, "You get a couple of pieces here, you get a couple of pieces there, but you never could get that third piece. And if you ever got Park Place, you never would get a Boardwalk."

More than $13 million worth of grand prizes were "won" by the conspirators in this scheme, the FBI said in a statement.

The bureau's investigation, called operation "Final Answer," is continuing. All eight individuals were charged with conspiracy to commit mail fraud, and felony complaints were filed against them in federal court in Florida.

The FBI said the scheme began as early as 1995. The government says those involved provided winning game pieces to friends and associates who acted as recruiters. These recruiters then solicited individuals who falsely and fraudulently represented that they were the legitimate wnners of the McDonald's games.

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 obtained through writing to McDonald's. The pieces are redeemable for "instant win" prizes or can be used on a game board available at McDonald's.

The company has offered the Monopoly promotion for 10 years, according to McDonald's Web site.

"This investigation has required the utilization of some of the most sophisticated and innovative investigative techniques," said acting FBI Director Thomas J. Pickard.