father & two sons cashed 13,000 winning lottery tickets, allowing real winners to avoid garnishment

[Demovictory9]

No statistical model could explain it, and when a Massachusetts man and his two sons cashed in more than 13,000 winning lottery tickets worth nearly $21 million over eight years, federal prosecutors and lottery officials said it was anything but luck.

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From 2011 to 2019, according to the indictment, the Jaafars claimed the prizes on behalf of the actual winners, who potentially avoided having their winnings garnished for unpaid taxes or child support, a requirement for any prize over $600 in Massachusetts.
The Jaafars then falsely reported six- and seven-figure gambling losses on their tax returns, allowing them to drastically reduce the taxes they paid on the winnings, prosecutors said.

The family had previously raised the suspicions of lottery officials in Massachusetts, where prosecutors said that Ali Jaafar, 63, of Watertown, Mass., was the “top individual lottery ticket casher” in 2019. Mohamed Jaafar, 31, of Watertown and Waltham, Mass., ranked third that year, and Yousef Jaafar, 28, of Watertown was fourth.

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Ali Jaafar and Mohamed Jaafar pleaded not guilty on Monday afternoon, appearing by videoconference in federal court in Boston. They had both been arrested earlier on Monday and were later released on their own recognizance. Their lawyers did not immediately respond to requests for comment.

https://www.nytimes.com/2021/08/23/us/lottery-ticket-fraud.html

[SYFROYH]

1. It never ceases to amaze me how people find their economic niche

How did those with garnishments know to go to the Jaafars?
How did the Jaafars know to offer their services to those with wage garnishments?

The average winning ticket was $1,615 ($21M/13000). Seems like a lot of risk for not so much money.

[Demovictory9]

2. the $1600 would have been garnished for child support or something. big money for low income person

[SYFROYH]

3. I'm not minimizing that the people owed that money should have gotten it or needed it.

Still surprised at people willing to take the risk to avoid paying it.

I would imagine the Jaafars took a big cut to make it worth their risk, too.

[A HERETIC I AM]

6. "How did those with garnishments know to go to the Jaafars?"

I'll bet it is a small neighborhood, everyone knows them, and they provided this service to those that knew them as well as friends and family members living elsewhere.

[obamanut2012]

7. Reddit MRA forums do this stuff, too

Most have been shut down, now, but that used to be a place.

I know this because a friend's sleazeball deadbeat dad brother did it to avoid child support. And yes, she turned him him -- he was talking literal food and clothes away from her niece and nephew.

[SYFROYH]

11. Amazing.

[zuul]

4. A whole lot of children not receiving support from a parent.

People suck.

[Tomconroy]

5. It must have sounded like a great idea at the time!

[berniesandersmittens]

8. I had no idea gambling debt was a tax write off

The Jaafars then falsely reported six- and seven-figure gambling losses on their tax returns, allowing them to drastically reduce the taxes they paid on the winnings, prosecutors said.

[Tomconroy]

9. I think you can only write them off to the extent of your winnings

And you need proof of both.

[Demovictory9]

10. T hey are.. Lose $1000 but win $1000.zero gambling winnings

For tax purposes

[Iggo]

12. That's some gangster shit right there.