Lottery-Winning US Family Evades $6M in Taxes with 14,000 Tickets

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Source: Yahoo! Voices
Lottery-Winning US Family Evades $6M in Taxes with 14,000 Tickets
Photo: Yahoo! Voices
TL;DR Summary

A father and son in Massachusetts have been sentenced in the state's largest lottery fraud scheme, involving more than 14,000 winning tickets. The scheme, known as "ten-percenting," involved buying winning tickets from individuals at a discounted price and then claiming the prizes as their own, while reporting the winnings on their tax filings and offsetting them with fabricated gambling losses. The family pocketed over $2 million this way, evading taxes and costing federal taxpayers over $6 million. The Massachusetts State Lottery Commission noticed their statistically improbable winning streak and the family was eventually caught. The father and son were sentenced to prison and ordered to pay back their ill-gotten gains and $6 million in restitution to the IRS.

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