A Watertown father and son were sentenced to prison in federal court on Monday after participating in a near decade-long scheme that involved claiming more than 14,000 winning lottery tickets and laundering more than $20 million in revenue, ultimately leading the state Lottery Commission to pursue suspending or revoking the licenses of more than 40 lottery agents, officials said.
Ali Jaafar, 63, was sentenced to five years in prison and Yousef Jaafar, 29, was sentenced to 50 months behind bars, acting US Attorney Joshua S. Levy’s office said in a statement. They were ordered to pay more than $6 million in restitution and forfeit their profits from the scheme.
The pair was convicted in December of one count of conspiracy to defraud the Internal Revenue Service, one count of conspiracy to commit money laundering, and one count of filing a false tax return. Their attorneys did not immediately respond to requests for comment Monday.
Valerie S. Carter, a lawyer for the Jaafars, said her clients plan to appeal.
“We think the convenience stores were the major wrongdoers and used the Jaafars,” Carter said via e-mail.
Another of Ali Jaafar’s sons, Mohamed Jaafar, pleaded guilty to conspiracy to defraud the IRS in November. He is set to be sentenced on July 25, federal prosecutors said.
“This case should serve as a warning to those who think they can cheat the system for their own financial gain: you will be identified, prosecuted, and held accountable,” Levy said.
Between 2011 and 2020, the defendants purchased winning lottery tickets from people who wanted to sell the tickets for a cash discount instead of claiming their prizes themselves from the State Lottery Commission, prosecutors said.
“This allowed the real winners to avoid identification by the Commission, which is legally required to identify lottery winners and withhold any outstanding taxes, back taxes and child support payments before paying out prizes,” prosecutors said.
They also paid the owners of dozens of convenience stores to facilitate these transactions, prosecutors said.
“These defendants worked together to recruit a wide network of co-conspirators and spread their lottery scam across Massachusetts, avoiding detection by repeatedly lying to government officials,” Levy said. “In total, the Jaafars laundered more than $20 million in proceeds.”
The Jaafars claimed the full winning amounts as their own and reported them on their tax returns. But they claimed fake gambling losses to offset the liability, allowing them to avoid federal income taxes and receive $1.2 million in fraudulent refunds, prosecutors said. The scheme is known as “ten-percenting,” prosecutors said.
“This case is, at its core, an elaborate tax fraud,” Levy said.
In 2019, Ali Jaafar cashed more lottery tickets than anyone in the state. Mohamed Jaafar cashed the third most and Yousef Jaafar cashed the fourth most, prosecutors said.
The licenses of more than 40 state lottery agents are in the process of being suspended or revoked as a result of the case, prosecutors said. State Treasurer Deborah B. Goldberg, who chairs the Massachusetts State Lottery Commission, said the convictions are “an example of the extensive efforts the Lottery will take in partnering with law enforcement to assist in the prevention of illegal activities.”
“This decision is the culmination of years of hard work to maintain the integrity of the Lottery,” she said.
Travis Andersen of the Globe Staff contributed to this report.
Breanne Kovatch can be reached at breanne.kovatch@globe.com. Follow her on Twitter at @breannekovatch.
U.S. - Latest - Google News
May 23, 2023 at 10:15AM
https://ift.tt/AmxQXfo
Watertown father, son sentenced to federal prison for near decade-long lottery scam - The Boston Globe
U.S. - Latest - Google News
https://ift.tt/Mmif89x
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Watertown father, son sentenced to federal prison for near decade-long lottery scam - The Boston Globe"
Post a Comment