A Virginia Beach woman was sentenced to 12 years in prison for running one of biggest coupon counterfeiting rings in U.S. history that led to more than $31.8 million in retail loss, authorities said.
Lori Ann Talens, 41, ran the scheme from April 2017 through May 2020, and pleaded guilty to mail fraud, wire fraud and health care fraud before she was sentenced Tuesday by a federal judge in Norfolk.
Her husband, 43-year-old Pacifico Talens Jr., previously pleaded guilty for his role in supporting the scam and was sentenced to seven years behind bars.
“This massive counterfeit coupon scheme harmed consumers, retailers, and manufacturers nationwide, and the economy at large," Acting U.S. Attorney for the Eastern District of Virginia Raj Parekh said in a statement.
While most coupon campaigns have a unique bar code, the individual pieces of paper shoppers might clip from a newspaper are not distinctive, according to Bud Miller, executive director of the industry group Coupon Information Center, which looks out for fake vouchers.
Unlike, for example, tickets to a major sports event, it's virtually impossible for organizers of a coupon campaign to print hundreds of thousands or millions of vouchers, each with a unique bar code.
And that level of uniformity opens the door for skilled counterfeiters like Talens — with a background in graphic arts and marketing — to recreate coupons, according to Miller.
"Lori Ann Talens had an extensive knowledge of how point-of-sale systems operate so she really had, in one person, all the of the talents necessary to create counterfeit coupons," Miller told NBC News on Friday.
The couple used Facebook and Telegram "to find groups of coupon enthusiasts and sell them counterfeit coupons," prosecutors said.
Lori Ann Talens used the online name “MasterChef" and made counterfeit vouchers that "were virtually indistinguishable from authentic coupons and were often created with inflated values, far in excess of what an authentic coupon would offer, in order to receive items from retail for free or for a greatly reduced price," according to a prosecution statement.
The biggest victims of the scam included makers and sellers of of Kimberly-Clark paper products ($8.99 million), Proctor & Gamble household goods ($2.8 million), food giant Unilever ($2.5 million) and Henkel Corporation cleaning supplies ($1.7 million).
While manufacturers and retailers are developing new technologies to weed out fake coupons, the very nature of the business makes full-proof safeguards out of reach.
"Coupons themselves are a mass distribution," Miller said. "The mass distribution is the most effective, cheapest way to get these things to millions of people at once. It's very difficult to do, just the printing process only is a challenge."
Lawyers for both Lori Ann Talens and Pacifico Talens Jr. could not be immediately reached for comment on Friday.
The wife is ordered to report to prison no later than Oct. 31, while her co-defendant husband must surrender by Tuesday.
Lori Ann Talens was sentenced just as a new movie about coupon scams is hitting big screens and a streaming TV service.
The Kristen Bell comedy "Queenpins" is a fictionalized comedy inspired by a trio of Phoenix women who produced and passed fake coupons worth millions of dollars.
FAQs
Federal prosecutors said retailers lost $31.8 million due to the phony discounts created by Lori Ann Talens. A Virginia Beach woman was sentenced to 12 years in prison for running one of biggest coupon counterfeiting rings in U.S. history that led to more than $31.8 million in retail loss, authorities said.
What is the biggest coupon scam in the US history? ›
Police discovered coupons stuffed into every nook and cranny of the house. Talens was sentenced to 12 years in federal prison, and prosecutors estimated the loss for retailers at $31.8 million making this the biggest coupon scam in U.S. history.
Did the coupon lady go to jail? ›
Ms. Talens, 41, was sentenced to 12 years in prison on Tuesday for operating what prosecutors called “one of the largest coupon fraud schemes” in U.S. history, saying it cost retailers and manufacturers more than $31 million in losses.
Who is Lori Ann Talens? ›
Lori Ann Talens and her husband operated an audacious fraud scheme that stole more than $31 million directly from retailers and manufacturers,” said Brian Dugan, Special Agent in Charge of the FBI's Norfolk Field Office, after Lori Ann was sentenced.
How did Lori Talens get caught? ›
How did she and her husband get caught and what happened to them? Reportedly, their astonishing approximate $31.8 million fake coupon scheme came in front of people when one of the customers from their large base reported about them to the CIC or Coupon Information Center.
What state in the US has the lowest scam rate? ›
The states with the least amount of reports of fraud in 2022 include North Dakota, South Dakota, Iowa, Wyoming, and West Virginia.
Why is couponing illegal? ›
It involves deliberately modifying and/or using a coupon in a way not allowed by its terms and conditions for undue financial or material gain. This is almost always a violation of federal and regional laws in the US and other countries and can result in charges such as theft, larceny, and counterfeiting.
Who went to jail from Extreme Couponing? ›
Lori Ann Talens, 41, ran the scheme from April 2017 through May 2020, and pleaded guilty to mail fraud, wire fraud and health care fraud before she was sentenced Tuesday by a federal judge in Norfolk.
Where are the coupon ladies now? ›
Fountain and Johnson both still live and work in the Phoenix area, in professions that have nothing to do with coupons. Neither of them responded to requests for comment about their case, and how or whether they have managed to move on from it.
Can you go to jail for couponing? ›
Additionally, coupon fraud can actually lead to some pretty significant fines and even jail time, depending on how extreme it is.
Police recovered $40 million in counterfeit coupons, as well as $2 million in other assets like guns, cash, vehicles, a speed boat, and more. The three women also faced charges including fraud, forgery, counterfeiting, and operating a criminal enterprise.
How many years did the coupon ladies get? ›
In September, Talens was sentenced to 12 years in prison for “perpetrating a counterfeit coupon fraud scheme” that amounted to $32 million in losses for retailers and manufacturers, according to the Department of Justice.
Does Lori Ann Talens have kids? ›
Both had pleaded guilty to fraud charges. The couple, however, was allowed to remain free on bond for a few weeks while they work on arrangements for their children. Lori Ann Talens has a 17-year-old child from a previous marriage, and shares two others, ages 6 and 9, with Pacifico Talens.
Why was Extreme couponing cancelled? ›
The show has come under fire by consumer bloggers and experts such as Jill Cataldo about potential coupon misuse on the show. Actions such as the use of coupons for incorrect items, using counterfeit coupons, and encouraging compulsive hoarding have been cited as reasons to question the show's authenticity.
How much did Lori Ann Talens make? ›
On Tuesday, a judge sentenced Lori Ann Talens to 12 years in prison for running what prosecutors called one of the largest coupon scams in history after she pleaded guilty earlier this year to multiple counts of fraud. The Talenses made nearly $400,000 selling the fakes to more than 2,000 customers across the country.
Who was the largest scam in US history? ›
Plea, sentencing, and prison life
The plea was the response to a criminal complaint filed two days earlier, which stated that over the past 20 years, Madoff had defrauded his clients of almost $65 billion in the largest Ponzi scheme in history. Madoff insisted he was solely responsible for the fraud.
What is the largest cyber scam in American history? ›
26 Biggest Data Breaches in US History
- 1. Yahoo! Date: 2013-2016. ...
- Microsoft. Date: January 2021. ...
- Real Estate Wealth Network. Date: December 2023. ...
- First American Financial Corp. Date: May 2019. ...
- 5. Facebook. Date: April 2021. ...
- LinkedIn. Date: April 2021. ...
- JPMorgan Chase. Date: June 2014. ...
- Home Depot. Date: April 2014.
The Mantria Corporation Ponzi scheme has been described as the "biggest green energy scam" in United States history.
What was the 2008 scam in the US? ›
The Madoff investment scandal was a major case of stock and securities fraud discovered in late 2008.
