Author: Danielle Antosz

Retired veteran David Alvarado thought he’d found the perfect place to build a new family home in Port St. Lucie, Florida. In 2023, he hired a builder to do just that.

But all he got from Mark Montalto of Port St. Lucie Properties was an empty lot and a $19,000 lien from a landscaping company that said Montalto never paid them.

“It’s been traumatic, to say the least,” Alvarado told WPTV.

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Alvarado not only had to pay off the lien but hire a new builder — all while suing Montalto. Between the lien, legal fees, rental housing and the new contractor, he says he spent $150,000 extra.

“It’s just gut-wrenching,” he said. “I know people know what I’m referring to when you feel that pit in your stomach. It’s just hollow.”

WPTV reports that Alvarado is one of at least 19 people who have filed suits against Montalto in St. Lucie Court.

In April, the builder was arrested for construction fraud, including 17 charges of grand theft and four counts of theft from people 65 and older.

If convicted, Montalto, 61, could be sentenced to over 100 years in jail. But Alvarado fears the builder’s victims will never get their money back; Montalto filed for bankruptcy last month.

Justice is hard to come by

Dorothy Calixte and her husband are among those suing Montalto. She told WPRV they had to pay $90,000 in liens to finish their dream home and take out a mortgage at a higher rate.

She also had to get a second job to pay down the debt.

“You shouldn’t have to live like that, and you don’t even have time to enjoy the dream home that you wanted,” she said.

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There is some recourse for homeowners like Alvarado and Calixte who are trying to recover money they lost to builders who don’t fulfill their contracts and have declared bankruptcy. One option is the Florida Construction Industry Recovery Fund.

The maximum award a Florida homeowner can recover from this fund has traditionally been $50,000 per claim.

But that’s just been raised to $100,000 for claims on homebuilding contracts signed after Jan. 1, 2025.

How to protect yourself from shady contractors

There’s no foolproof way to prevent contractor fraud — but you can take several steps to lower your risk:

• Research the contractor’s background. Look up licensing status and check for complaints or lawsuits on your state’s contractor licensing board and county court websites.
• Get everything in writing. A clear, detailed contract can help protect you if something goes wrong.
• Request lien waivers. This helps ensure subcontractors are paid and reduces the chance they’ll file liens against your property.
• Watch for red flags. Frequent delays, evasive answers about payments, and requests for large upfront deposits can all be signs of trouble.

If you find yourself in a similar situation, taking action is crucial to protecting yourself. While laws and regulations vary by jurisdiction, here are a few steps to consider:

• File a complaint with the state licensing board and your local consumer protection office.
• Dispute wrongful liens in court if you believe they’re invalid or were filed in error.
• Hire an attorney to explore your legal options, including suing the builder or filing a claim in bankruptcy court.
• Apply to your state’s Contractor Recovery Fund (also known as a Homeowner’s Recovery Fund) if the contractor was licensed and your case qualifies.

For Alvarado and others like him, justice may still be far off. But the arrest of Montalto is, at the very least, a step in the right direction.

“Thank God,” said Calixte, after learning of Montalto’s arrest. “That’s all I ask for. At this point, I need justice.”

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A group of international gamblers legally purchased nearly every number combination in a Texas state lottery drawing — a scheme designed to guarantee a win. It worked — and it may be why another woman is now suing the Texas Lottery Commission after being denied her own $83.5 million prize.

“I’m being treated as the bad guy,” the anonymous winner said in April, before filing the lawsuit.

The group’s $95 million win, which the New York Post described as “something out of a heist movie,” was spearheaded by London-based trader Bernard Marantelli and bankrolled by Zeljko Ranogajec, an Australian professional gambler known as “the Joker.”

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Together, they exploited a simple math trick: when the jackpot is large enough, you can make a profit by buying almost every possible ticket. According to the Wall Street Journal, the group teamed up with Lottery.com and used warehouses packed with printing terminals to produce 99.3% of those combinations in just three days.

The team won a lump-sum prize of $57.8 million, but lottery officials are closing loopholes so that they may keep other winners from collecting.

International scheme could cost another winner their jackpot

Buying every ticket wasn’t illegal under Texas Lottery Commission (TLC) rules at the time. As the Post reports, “nothing in the Texas state lottery code says a person can’t buy every number combination.”

Winners are also allowed to remain anonymous, so the group initially claimed their prize through a local company called Rook TX. But the victory didn’t stay quiet for long.

When the aforementioned Texas woman won an $83.5 million jackpot this past February, after buying her ticket through the Jackpocket app, she was told she couldn’t collect her winnings. State officials are now cracking down on anything that falls outside of tightly controlled, in-person lottery purchases — especially when foreign actors are involved or the ticket-buying process becomes hard to regulate.

“Sometimes there are reasons to investigate things, but I don’t think mine is one of them.” the winner told Nexstar in April, speaking on condition of anonymity.

Dawn Nettles, a longtime lottery watchdog, disagrees.

“It doesn’t matter that the courier apps weren’t officially banned in Texas when she bought her ticket, because she purchased it over the internet and paid an added fee — and those things are against the law,” she told the Post in April.

Even so, Nettles admits that others have gotten away with similar purchases in the past. She is now part of a class action lawsuit targeting the original $95 million payout to Rook TX and says that it should never have been allowed.

Texas Lt. Gov. Dan Patrick has called the team’s win “the biggest theft from the people of Texas in the history of Texas,” reports the Post. Others have raised concerns that international groups are siphoning off winnings that should benefit Texas residents.

“If you win $50 million in the lottery, you are probably going to buy a new car, new home, buy things for friends — all that is going to assist [the state’s] economy. But not if the money is leaving the state,” said Nettles.

The TLC formally banned lottery courier services in February 2025. In a press release, the commission said it would revoke the licenses of any retailer working with such services. The new policy became effective immediately and is expected to be written into official rules.

In a recent statement to KVUB ABC News, lawyers respsenting the woman now suing the TLC said, "When you win, the Lottery should pay you – not stall, not waffle, not haw, not try and change the rules and not try to back out of the deal."

In a request for comment on the lawsuit, the TLC told KVUB that it does not comment on pending litigation.

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How to play the lottery legally

If you’re trying your luck with the lottery, make sure you follow Texas law to avoid trouble, especially now that enforcement is tightening. Here are a few guidelines:

• Buy in person. Texas law prohibits the sale of lottery tickets by mail, phone or internet. You must buy tickets from a licensed retailer within the state.
• Avoid courier apps. As of February 2025, services like Jackpocket are no longer permitted in Texas. Even if they’re still operating, your ticket may not be valid.
• Read the rules. Each state has different regulations. Before purchasing a ticket, check with your state’s lottery commission for the latest guidelines.
• Keep your receipt. Whether claiming a prize or disputing a decision, having proof of your purchase can help your case.

With rule changes underway, lottery players should take care to avoid any missteps. That means you’ll need to play the lottery in both the letter and the spirit of the law.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A dollar store in the Bronx has gone viral after a TikTok video showcased its $4 “mystery packages.”

The boxes, which contain returned merchandise from retailers like Amazon, Walmart and others, can hold anything from brand-new sandals to toilet plungers. The thrill of the unknown is part of the appeal — and business is booming.

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“Just hope and pray, let’s see what happens,” said one shopper outside Dollar Universe.

Store manager Luis Almonte sources the boxes from liquidators in Brooklyn and New Jersey, paying around $600 for pallets of roughly 400 items. The goods are customer returns from across the country, many originally sold by Amazon or Walmart, and resold in bulk through liquidation channels.

But as the store’s popularity grows, so do the questions.

Are these sales legal?

Almonte insisted to WABC 7 Eyewitness News that he’s just trying to run a fun, affordable business. Still, he’s aware there may be legal or ethical lines he doesn’t want to cross.

“I’m going to do an investigation to see, because I don’t want to do anything illegal that hurts myself,” Almonte said.

To test the process, reporter Kemberly Richardson purchased one of the returned items and discovered the original buyer’s full name, phone number and home address were still on the box.

She called the phone number, and the stunned buyer confirmed they had returned what was supposed to be a yoga mat. They were shocked to hear their personal information was still floating around on a resold package.

Almonte said he normally uses a marker to obscure personal information and is willing to go further if needed.

“I scratch the name dark that way nobody sees,” he said, adding that if that’s not enough, he’ll remove items from the packaging altogether.

Walmart told Eyewitness News it requires all its liquidators to remove personal customer information before resale. Amazon said it’s now investigating the matter, including “the possibility that these products may have been delivered to customer addresses, were stolen and are now being resold by unauthorized third parties.”

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What happens to those Amazon packages you return?

Returned Amazon packages don’t always go back on the digital shelves. Many are routed to liquidation warehouses where they’re bundled into pallets and auctioned off to resellers. These buyers — like Almonte — often have no idea what’s in each box until it’s opened.

While this resale model isn’t new, the viral popularity of $4 “mystery boxes” is raising fresh concerns about data privacy and consumer protection.

If you return items online, you might assume your personal data is wiped — but that’s not always the case. In rare instances, as this story highlights, packaging labels with full names, phone numbers and addresses can end up in the hands of strangers.

To protect yourself, make sure to:

• Remove or deface shipping labels before returning items, when possible.
• Avoid returns that include sensitive items or personal documents.
• Monitor your accounts and credit reports for unusual activity, especially if you’ve recently made several returns.

This incident doesn’t necessarily mean you need to stop shopping online, but it’s a reminder that once you send a package back, what happens next is often out of your control.

Major retailers like Walmart and Amazon allow third-party liquidation of returns, and they typically have policies in place to protect customer privacy. But as this case shows, gaps can occur — especially when items move through multiple hands.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

In just the first four months of 2025, people in Prince George’s County, Maryland, have lost at least $1 million to scams, according to police.

One person lost $700,000. Another area resident lost $40,000 after being tricked by fraudsters who posed variously as a Microsoft tech support agent, a rep from his bank and even a federal agent.

“I was dealing with people I would call evil geniuses,” he told WTOP, asking not to be named. “At the time, I thought I was actually safeguarding the money.”

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While he may not get his $40,000 back, he’s sharing his story in the hope that he can protect other people from falling for the same con.

Rehearsed responses and fake credentials

It started when the man saw a pop-up on his computer saying his computer had been hacked. The pop-up message included a phone number to call for tech support.

He called the number and was soon speaking with someone he thought was a Microsoft employee. He was then transferred to a woman who claimed to be from his bank. Then he was connected with another person impersonating a federal official.

Despite his skepticism, each of the imposters had rehearsed responses and fake credentials.

He recalled actually saying to one of them, “This is exactly what a scammer would do.”

“But something about her polished rhetoric came back and convinced me otherwise,” he said.

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The scammers warned him not to use his phone, laptop, or email, claiming that all his devices were compromised. He was told not to speak to friends or even Google the word ‘scams’— as that could be a red flag.

Believing his accounts were at risk, he handed over $40,000 to someone he thought was a legitimate carrier. That’s when the Prince George’s County Police Department stepped in.

So when Gyoung Lee, 47, of Flushing, New York, arrived at the victim’s home expecting more cash, officers with the Financial Crimes Unit (FCU) arrested him on the scene.

Officers also arrested Parmveer Parmveer, 25, of Grove City, Ohio, in connection with the case involving a $700,000 loss.

Sgt. John Quarless of the Prince George’s County FCU said it’s important for victims not to be embarrassed because these kinds of tech scams are so common.

“What I encourage, no matter how much information you have, is to call the police and report it,” he told WTOP. “Let us do our due diligence.”

The tech scam and red flags

According to the FBI’s Internet Crime Complaint Center (IC3), Americans lost $1.4 billion to tech support scams in 2024, with more than 36,000 reported incidents.

While most victims of such scams are over 60, scammers target people of all backgrounds: young and old, rich and poor, highly educated or not.

What is consistent is the con artists’ approach.

“They’re going to create a sense of urgency, a sense of privacy and don’t want you to talk to anybody about it,” Sgt. Quarless said.

It’s how scammers gain control. Don’t let them. Here are red flags to watch out for.

A sense of urgency

Scammers often claim your money is in immediate danger or your account has been compromised. They’ll push you to act fast, hoping you don’t slow down and think it through. Don’t fall for it. Instead, hang up the phone and talk to someone you trust. Visit the bank in person if you’re worried about calling in.

Isolation tactics

Victims are frequently told not to talk to anyone — not friends, not family, not even their bank. That’s a major red flag. They’re worried that if you ask for help, someone will stop their scam in its tracks. Instead, make sure you ask for help. Talk to a trusted friend, financial advisor, or bank employee.

Demands for untraceable payments

Any request for money through cash couriers, wire transfers, crypto or gift cards is a giveaway. Real businesses and agencies don’t work this way. Never send money to someone you don’t know through these methods.

Offering to protect your money

Federal regulations already protect most bank accounts. Pulling the money from your account won’t protect it in most cases. If someone offers to protect your money from a scam, there’s an excellent chance they are the scammers. They’ll say you’re moving the money to a ‘safe account,’ but that account belongs to them.

If you’re being scammed, officials recommend slowing down, hanging up the phone and calling your bank. Look on the back of your debit or credit card for the legitimate customer service number; don’t trust online pop-up ads.

Many victims stay silent, feeling ashamed that they were fooled. But speaking up like this victim did helps law enforcement track down suspects and potentially warn others before they’re targeted.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

In 2023, Emily Howell bid $1,026 on a 1996 GMC Sierra listed for auction by the Louisville Metro Police Department (LMPD) — largely because the photos showed a kayak, fishing poles and a toolbox she was interested in.

But when the truck was delivered she says all those items were gone. Her experience now appears to be part of a larger problem at the LMPD tow lot, with employees having allegedly removed items from impounded cars before they went to auction. Howell calls it theft, but the law might not be so clear.

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"You don’t steal from people, you don’t take things that aren’t yours," Howell told WHAS11 News.

"Surely when you sign on for a job like that, you have to sign some paperwork that says, ‘Hey, we don’t steal from the community.’”

Tow lot employees caught on video

An internal police investigation found that civilian employees at the Louisville tow lot were captured on surveillance video taking items from cars slated for auction.

In footage from June 11, 2024, obtained by WHAS11, an on-duty lot attendant and a woman in street clothes can be seen walking through the "auction corral" and opening several vehicles. At one point, the lot attendant leaves the frame carrying a suitcase they did not enter with. Another employee is also seen rifling through other vehicles.

An LMPD spokesperson provided the following statement to WHAS11:

"The screenshots you provided depict two civilian tow lot employees taking items from vehicles in the LMPD tow lot prior to auction. When LMPD became aware of this incident last year, we immediately launched a criminal investigation through our Public Integrity Unit (PIU). The PIU conducted a lengthy investigation, reviewing surveillance videos and conducting interviews. Following this investigation, the PIU referred the case to the Jefferson County Attorney’s Office (JCAO), which ultimately recommended that criminal charges not be filed. After examining all the evidence, the JCAO determined a conviction on any criminal charge was unlikely. However, this case remains an open and active internal investigation within LMPD."

The county attorney’s letter, obtained by WHAS11, identified one man and one woman as the subjects of the investigation but did not provide specific reasons for declining to file charges.

At this time, it appears no employees have been fired or disciplined, reports WHAS11. And when asked for a statement by the news channel, LMPD Chief Paul Humphrey declined to comment on specifics, citing an ongoing internal investigation.

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Who owns the contents of a car about to go to auction?

According to WHAS11, Kentucky law and Louisville Metro codes state that vehicles impounded for 45 days become government property. However, ownership of personal items inside the cars remains a gray area. Local ordinances allow original owners to retrieve personal belongings until the auction sale is finalized. After that, unclaimed items may become the property of the government or the buyer, depending on local policy.

This lack of clarity can create situations like Howell’s, where buyers assume the car and everything inside it will be theirs, only to find valuable items missing.

There is no federal law that clearly states whether personal items inside auctioned vehicles must be included in the sale. Federal auction partners typically sell items "As-Is/Where-Is", meaning buyers receive the vehicle and whatever is inside at the time of sale, unless the listing specifies otherwise.

Planning to buy an auctioned car? Here’s what you need to know

Buying a car at auction can sometimes feel like winning the lottery, but buyers need to do their homework to avoid disappointment.

1. Research local statutes

Understand who owns the car’s contents at auction. Some cities allow original owners to claim items up until the moment of sale; others may automatically include personal property with the vehicle.

2. Ask clear questions

If you are bidding on a vehicle because of specific items pictured inside it, like Howell did, contact the auctioning agency before placing your bid. Ask whether those items are guaranteed to come with the vehicle.

3. Get it in writing if possible

If an auction house or government agency says items are included, try to get that in writing. Verbal assurances may not hold up if disputes arise after the purchase.

4. Inspect if allowed

Some auctions allow potential buyers to inspect the vehicles in person or virtually. Use that opportunity to check for the items you are interested in and clarify any doubts.

5. Manage your expectations

Auction vehicles, especially impounded ones, are typically sold as is. Personal items, even if pictured, may not be guaranteed to be included when you purchase.

While federal auctions typically include everything inside the vehicle unless noted otherwise, state and local rules can vary widely. If you’re bidding on a car for what’s inside it, be sure to ask questions and read the fine print, because once the gavel drops, what’s missing may be gone for good.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A 76‑year‑old Franklin County, Ohio woman thought she’d hit the jackpot when an unexpected caller told her she’d won $3 million in a Publishers Clearing House sweepstakes. All she needed to do, he said, was pay taxes on her winnings, according to The Columbus Dispatch.

So, she mailed more than $89,000 in “tax” checks to an Arkansas address before realizing the prize was a scam. Detectives traced the money to a 68-year-old man in Little Rock, Arkansas who was arrested on a felony‑theft warrant and remains in an Arkansas jail waiting to be extradited.

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Scams like this are increasingly common because the scammers are smart and know how to convince you that they’re from legitimate companies. They often use pressure or fear tactics to keep you on the hook.

But understanding how these scams work — and how to protect yourself — can be key as fraud attempts grow.

How do scams like this work?

Investigators say the fraudster posed as a sweepstakes employee, phoning the victim in March and insisting the windfall couldn’t be released until upfront taxes were paid — an approach straight out of the classic prize‑scam playbook.

Scammers often add pressure by invoking trusted names — like Publishers Clearing House — claiming official oversight and urging victims to “act now” before the offer expires, says the Federal Trade Commission (FTC). They may direct targets to wire money, send gift cards or — in this case — mail checks to out‑of‑state addresses that are hard to trace.

Con‑artists may also spoof caller ID so the number looks like it comes from Publishers Clearing House or even a government agency. Or, they might mail official‑looking letters, complete with fake seals or phony tax forms to build trust.

Once the victim pays the first fee, the scammer often invents new hurdles — customs duties, courier charges or even “anti‑terror compliance” certifications to milk the victim for even more payments.

The FTC notes three tell‑tale signs of prize and sweepstake scams:

• Real prizes never require payment
• Odds of winning can’t be boosted by a fee
• No legitimate contest needs your banking or Social Security numbers.

Fraud like this is increasingly common, especially for seniors, who may be lonely, less tech-savvy or less aware of new scam techniques.

According to the FTC, Americans over the age of 70 lose more per scam than any other age range. But young people fall for scams more often, so people of all ages need to know how to spot these scams.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

How to avoid falling victim to prize or sweepstake scams

According to the FTC, genuine sweepstakes are free and random. Any request for cash, gift cards, cryptocurrency or personal data is a red flag. If a stranger contacts you about a prize, look the company up yourself — using a verified phone number or website — to verify the company is real. Never rely on numbers or links that the caller or an email provides.

If you’ve paid already, the quicker you act, the better. Report the transaction to your bank or card issuer, file a complaint at ReportFraud.ftc.gov and contact your state attorney general. If the scammer contacted you by mail, notify the U.S. Postal Inspection Service. The faster you report the scam, the more likely you are to get some of your funds back.

If personal data was shared, visit IdentityTheft.gov for recovery steps. Spreading the word to friends and relatives — especially older family members — can prevent the next would‑be winner from becoming the next victim.

A final reminder: Unsolicited prize calls, emails or brochures in the mail are almost always too good to be true. The safest response is to hang up, delete or recycle — before the only thing you’re left holding is an empty checkbook.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As dozens of home insurance companies flee Florida, even homeowners with coverage feel abandoned.

Chad Zalva, a single dad in Riverview, Florida, has coverage but recently discovered that the damage to his home from Hurricane Milton won’t be covered.

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His insurance company estimated the damage at around $2,500. However, a contractor quoted him $4,500 to repair. Either way, he doesn’t have the cash to cover the repairs, which include damage to a screen door, soffit and a downed fence.

"Do you have that kind of money laying around?" asked ABC Action News anchor Nadeen Yanes.

"No, not at all," Zalva laughed.

Why won’t the insurance company pay?

After rebuilding his life following a divorce, Zalva intentionally chose the lowest-cost home insurance plan due to its affordability. What he didn’t realize was that a lower premium came with a sky-high deductible.

"I did go for the lower amount," he said. "Unfortunately, my deductible is outrageous. I was like, ‘This is insanity.’"

His home insurance deductible — the amount he must pay before coverage kicks in — is $7,200. As a result, his insurance company denied his claim after Hurricane Milton. And Zalva is not alone. A growing number of Florida homeowners are facing a similar situation: Their insurance company won’t pay because their storm-related damages don’t exceed their deductibles.

According to the Florida Office of Insurance Regulation, nearly half of all Hurricane Milton claims were closed without payment. The biggest reason? More than 40% of those cases had damages that fell below the homeowner’s deductible.

Many Floridians face an uncomfortable trade-off: Higher deductibles mean lower premiums, but in the event of a storm, they risk massive out-of-pocket costs before insurance kicks in. Michael Peltier, a spokesperson for Citizens Property Insurance, Florida’s state-backed insurer, explained the problem to ABC Action News.

“Typically, hurricane deductibles run 2%, 5%, or even 10% of a home’s insured value,” he said.

That means a homeowner with a $300,000 home and a 10% deductible would have to pay $30,000 before receiving any payout. Florida’s State Insurance Commissioner, Mike Yaworsky, says these deductibles are required by law.

"The statute actually mandates that there be a hurricane deductible of some kind — 2%, 5%, 10% — on every single policy. And so that’s baked through the entire system," Yaworsky told ABC Action News.

Yaworsky added that while the law could be changed, for now, it’s up to consumers to understand the trade-offs between deductibles and premiums.

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Should you pick a higher deductible to save money?

Florida homeowners face a tough decision when choosing an insurance plan. Opting for a higher deductible lowers monthly premiums but could leave you struggling to afford repairs after a disaster. On the flip side, lower deductibles mean higher premiums, which may not be affordable for some homeowners.

Pros of a higher deductible:

• Lower monthly costs: With rising Insurance rates, finding an affordable policy is essential.
• Potential long-term savings: If you’re handy or rarely file claims, a high deductible could save you money in the long run.

Cons of a higher deductible:

• Large out-of-pocket expenses: You’ll pay significantly more before insurance kicks in.
• May not be worth claiming moderate damage: If the damage is minor, you may end up footing the bill yourself.

For many homeowners, a higher deductible is either a financial strategy or the only option. To avoid being caught off guard, start reviewing your insurance policy. Know your deductible amount in an emergency fund, start saving and decide if it makes sense for your financial situation.

Then, make sure you have enough savings to cover your deductible. If you don’t already have that amount in an emergency fund, start saving — even saving just $10 a month can add up over time.

Zalva’s experience highlights the risk of prioritizing low premiums over affordability in a crisis.

"They’re just making straight profit. It’s definitely frustrating, and they need to do something about it,” he told ABC Action News.

As Florida lawmakers and insurers debate possible reforms, thousands of residents like Zalva wonder: Is their homeowners insurance protecting them when they need it most?

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.