×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Skip to main content
Tags: lottery fraud tax evasion

Father, Son Get Jail Time for $20M Lottery Tax Fraud

Father, Son Get Jail Time for $20M Lottery Tax Fraud
(Dreamstime)

Tuesday, 23 May 2023 08:34 AM EDT

A father and son from Massachusetts have both been sent to prison for running an elaborate lottery fraud scheme designed to enrich themselves and help prize winners avoid paying taxes on their windfall, prosecutors said.

Ali Jaafar, 63, and Yousef Jaafar, 29, both of Watertown, cashed in 14,000 winning lottery tickets over a roughly 10-year period, laundered more than $20 million in proceeds, and then lied on their tax returns to cheat the IRS out of about $6 million, the U.S. attorney's office in Boston announced Monday.

The Jaafars purchased winning lottery tickets at a discount from people who wanted to avoid identification by the state lottery commission, which withholds taxes and outstanding child support payments from payouts.

After purchasing the tickets, using the stores that sold them as go-betweens, the Jaafars claimed the full prize amount. Although they reported the winnings on their tax returns, they also claimed equivalent fake gambling losses as an offset to avoid federal income taxes, prosecutors said.

Ali Jaafar was sentenced to five years in prison. Yousef Jaafar received a sentence of more than four years. They were also ordered to pay $6 million in restitution and forfeit the profits from their scheme.

They were convicted in December of conspiracy to defraud the IRS, conspiracy to commit money laundering, and filing a false tax return.

Mohamed Jaafar, another of Ali Jaafar’s sons, pleaded guilty to his role in the scheme in November and awaits sentencing.

The defendants paid the owners of dozens of stores that sell lottery tickets to facilitate the transactions, and the state lottery commission is in the process of revoking or suspending the licenses of more than 40 lottery agents, authorities said.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


StreetTalk
A father and son from Massachusetts have both been sent to prison for running an elaborate lottery fraud scheme designed to enrich themselves and help prize winners avoid paying taxes on their windfall, prosecutors said.
lottery fraud tax evasion
281
2023-34-23
Tuesday, 23 May 2023 08:34 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
Get the NewsmaxTV App for iOS Get the NewsmaxTV App for Android Scan QR code to get the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved