Consumer Protection Law
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Generally any lottery prize that requires an upfront payment should be carefully scrutinized and unless proven otherwise deemed a scam. Lotteries don't require up front payment. In this case if I read correctly they sent you a check for $3,950.00. Is that correct? Were you then instructed to send a portion of that payment back to them? If so this would be more along the line of the counterfeit check scam where they purchase something from you can come up for a reason they will pay you extra then upon receipt of payment want you to send certified funds to them. You might clarify if they sent you a check.
You might also confirm whether you received any actual physical address for them as I can look at that.