Although they may receive only a fraction of the money they were cheated out of, the victims of a Canadian-based lottery scam have the satisfaction of knowing they helped put it out of business.

"I feel good about that," said Ron Schorr, who lost $398.

"I hope someone learns from my foolish mistake," said a retired woman who lost more than $5,000.

In one of the few success stories involving a foreign lottery scam, state Attorney General Tom Corbett yesterday said more than $175,000 has been recovered from Sushila Devi Kumar, also known as Sheila Kumar, and Sandhya Murthi, also known as Kelly Williams. He said Ms. Kumar did business under the names Systems 3 Marketing Inc., SMI or Systems Marketing.

The money will be sent to victims in Pennsylvania and throughout the country who were defrauded in a 1998 telemarketing scam that promised an opportunity to win a share of the Australian lottery. The money was released recently after a protracted bankruptcy proceeding in British Columbia where the scam originated.

The defendants were accused of engaging in the illegal sale of foreign lottery tickets in the U.S. The suit said telemarketers called an unknown number of persons, primarily elderly, and encouraged them to participate in a lottery "pool" that would enhance their chances of winning large prizes from the Australian lottery.

Victims said they were asked to pay various amounts to purchase a share in a lottery ticket or in a series of tickets. Some were told they already had won and were encouraged to roll over their winnings in the lottery "pool." The suit said the victims never were told that participating in foreign lotteries is illegal under federal law.

"The guy who called me said I had a high chance of winning," said Mr. Schorr, 47, of Shaler, a baker for Schorr Bakery on the North Side. "He was a real smooth talker. I sent a check for $398. I'll never make that mistake again."

After he realized he had been taken, Mr. Schorr contacted the state Bureau of Consumer Protection. He sent it a copy of the canceled check he made out to SMI.

The woman who lost more than $5,000, and asked not to be identified, said she got hooked by buying scratch tickets from Canada. That led to a call from a man who said she had won $79,000. All she had to do was send a money order to pay a $1,200 "fee," a photocopy of her driver's license and a photo that was to be used for a brochure "of all the winners.

"So, like an idiot, I sent everything he asked for," she said. When the "prize money" didn't arrive, she called the man every week and then every day and then the phone was disconnected. "I was so angry with myself," she said. "I beat myself up for a year after that."

Mr. Corbett said anyone who paid money to the defendant companies is eligible for a refund. To receive it, they must submit an SMI claim form and a signed affidavit before May 2.

The form and the affidavit can be downloaded by going to www.attorneygeneral.gov or by calling 1-814-471-1831 between 8:30 a.m. and 5 p.m. on weekdays. The SMI claim form and signed affidavit must be mailed to Pennsylvania Office of Attorney General, 171 Lovell Ave., Suite 202, Ebensburg, PA 15931.

Mr. Corbett said the amount of money each victim recovers will depend on the total amount of the claims submitted. If the claims exceed the amount available for distribution, "pro rata refunds will be issued," he said. That means victims would receive less than a dollar, perhaps pennies, for each dollar they lost.

"That's OK with me," the woman said. "I'm just glad they got those people."

The refunds are expected to be distributed by June 30.