Massachusetts Patriots Thrown In Jail

#1
Rasputin_Vol

Rasputin_Vol

"Slava Ukraina"
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#1
The Jaafar family name should go down with the Adams family and Mayflower Colony names in the commonwealth.

Father And Son Sent To Prison Over $20 Million Lottery Scam | ZeroHedge

Watertown residents Ali Jaafar, 63, and Yousef Jaafar, 29, cashed in roughly 14,000 winning lottery tickets over a 10-year period, laundering more than $20 million in proceeds. The pair then lied on their tax returns to cheat the IRS out of roughly $6 million, according to a Monday announcement by the US attorney's office in Boston, AP reports.

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.​
 
#8
#8
What a stupid stream.

BTW, MA probably does what most other states do, i.e. lottery proceeds go to education. So who did they hurt with their fraud? Mass schools. But I understand, it's normal in Russian for elites to steal from the general populace, so it makes sense for Raz to say that this was a legitimate business practice.
 
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#9
#9
so wait, you can claim gambling losses as a tax reduction to your income? I figured that was the part that was a crime, fraudulent deductions. but it seems the crime was that they claimed other people's losing tickets as their own, which makes a lot more sense.

definitely see it as fraud, not sure I really get the money laundering part though.
 
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#10
#10
WBO said:
What a stupid stream.

BTW, MA probably does what most other states do, i.e. lottery proceeds go to education. So who did they hurt with their fraud? Mass schools. But I understand, it's normal in Russian for elites to steal from the general populace, so it makes sense for Raz to say that this was a legitimate business practice.
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Explain how them cashing winning lottery tickets defrauded the educational system.
 
#11
#11
LouderVol said:
so wait, you can claim gambling losses as a tax reduction to your income? I figured that was the part that was a crime, fraudulent deductions. but it seems the crime was that they claimed other people's losing tickets as their own, which makes a lot more sense.

definitely see it as fraud, not sure I really get the money laundering part though.
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Yep. My brother does it all the time. It definitely mitigates tax impact on winnings.
 
#12
#12
gcbvol said:
Yep. My brother does it all the time. It definitely mitigates tax impact on winnings.
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I took advantage of it one year when I played in a few poker tournaments. But that was the only time because I figured that deduction would more likely trigger an audit.
 
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#13
#13
Rasputin_Vol said:
I took advantage of it one year when I played in a few poker tournaments. But that was the only time because I figured that deduction would more likely trigger an audit.
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Would be my concern, too. But he's been doing it for years and hasn't been audited yet.
 
#14
#14
gcbvol said:
Yep. My brother does it all the time. It definitely mitigates tax impact on winnings.
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I had no idea. learn something new every day.

Can it only be used to mitigate the tax impact of winnings, or any/all income?
 
#16
#16
Rasputin_Vol said:
Explain how them cashing winning lottery tickets defrauded the educational system.
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it was them claiming other people's tickets (losses) that defrauded the education system. they fraudulently inflated their losses to pay less taxes.

Not sure how much it gets reviewed, but theoretically them claiming other people's losses as their own precludes those other individuals from rightly claiming their own losses as reductions. Or at the least probably triggering an audit.
 
#22
#22
LouderVol said:
so wait, you can claim gambling losses as a tax reduction to your income? I figured that was the part that was a crime, fraudulent deductions. but it seems the crime was that they claimed other people's losing tickets as their own, which makes a lot more sense.

definitely see it as fraud, not sure I really get the money laundering part though.
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You can offset gambling winnings with gambling losses. However, you can't deduct gambling losses in excess of gambling winnings.
 
#23
#23
#24
#24
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