Massachusetts man pleads guilty in lottery tax fraud scheme

lottery scams

A Massachusetts man pleaded guilty Tuesday in U.S. District Court in a very theme to shop for countless dollars’ value of winning Massachusetts State Lottery tickets at a discount to assist the ticket holders avoid taxes, in line with the U.S. attorney’s workplace.

Clarance Jones, 80, of Lynn, Massachusetts, was inactive last fall and charged with tax fraud and filing false tax returns. enforcement authorities alleged he used a “10-percenting” ploy to become the nation’s prime prize winner.

lotto fraud

Under the scam, price ticket holders oversubscribed the winning tickets to Jones for fewer than face price. He conferred them to the lottery as his own, and picked up the complete winnings. Jones reported  the winnings on his tax returns, however offset them with putative gambling losses.

From 2011 through 2017, Jones has paid over seven,300 winning lottery tickets with a complete of $10.8 million.

It is alleged that in that six-year amount, Jones paid but $16,000 in federal tax on a complete of $52,000 of reported  financial gain. throughout this era, Jones claimed that he was an expert gambler and every one of his winnings were offset by alleged losses.

He is regular to be sentenced by U.S. District Court choose F. Dennis Saylor on August thirteen. He may pay as several as eight years in federal jail and pay $350,000 in fines.

Jones, UN agency has had a minimum of seven Lynn addresses since the Nineteen Nineties, in line with public records, couldn’t be reached for comment.

In addition, 2 co-conspirators, store homeowners whose businesses weren’t known in court filings, have pleaded guilty in reference to the theme.

lotto fraud

George Kinslieh, 68, of Lynn, was charged with one count of filing false tax returns. he’s regular to be sentenced on Gregorian calendar month twenty six.

Bhavna Patel, 44, a Peabody resident, pleaded guilty to 1 count of conspiring to bunco the office and is regular to be sentenced on might twenty eight.

From a minimum of 2013 through 2015, store homeowners Kinslieh and Patel purchased winning lottery price tickets from the ticket holders for money at a reduction to the worth of the tickets. This allowed the winners to avoid coverage the winnings on their tax returns, in line with court documents.

Kinslieh and Patel gave the winning tickets to Jones, UN agency conferred them to the Massachusetts State Lottery as his own, and picked up the complete winnings. Jones and therefore the store homeowners then shared the surplus winnings.

Patel and Kinslieh couldn’t be reached for comment.