A letter bearing the Mega Millions logo was used in a string of lottery scams designed to trick people into providing personal financial information by cashing bogus checks.
The Freemen, some of whom are wanted on charges of circulating bogus checks and threatening to kill a Federal judge, do not recognize the United States Government.
The Justice Department said Mr. Kahn's clients had sent $2.2 million in bogus checks to the I.R.S. to pay taxes.
He is accused of depositing three bogus checks totaling $775,000.
The telegram was dated from New York and read as follows: "Harold Melville just arrested here for passing a bogus check under an assumed name.
"He's into credit cards, bank fraud with bogus checks, the Snoop knows his way around."
"He was creating bogus checks as well as counterfeit New York State insurance cards, social security cards and various other documents."
He also used Pan Am's preferred hotels, paid the bills with bogus checks, and later cashed fake payroll checks in Pan Am's name.
Both of them were working as Congressional aides in 1981, when the group got its start with the help of a king-size bogus check.
Mr. McLaren also faces Federal charges related to bogus checks passed by the Republic group.