Kenneth Grossman, 69, of Revere, is facing one count each of conspiracy to evade taxes, attempting to impede/obstruct administration of state tax laws and money laundering. Selbee claims to have won around $8 million since he started tackling lotteries in 2003. "Between on or about March 23, 2020 and on or about June 12, 2020, the Defendants together claimed approximately $360,807 in Massachusetts lottery winnings by submitted the claims through the. The inspector general's report claims that lottery officials actually bent rules to allow the group to buy hundreds of thousands of the $2 tickets, because doing so increased revenues and made. with approximately 98 percent of funds generated go directly back into the economy through prizes (73 percent),. Twelve people and three stores in Boston, Chelsea and North Reading have been indicted in connection with an ongoing scheme to rob the state of Massachusetts of tax revenue by laundering lottery winnings and lying under oath on numerous lottery claim forms.Massachusetts Attorney General Maura Healey announced Tuesday that the following defendants were indicted by a statewide grand jury of the following charges:Frank Obey, 80, of Lynn, is facing two counts of false statement under penalty of perjury and one count each of conspiracy to evade taxes, attempting to impede/obstruct administration of state tax laws and money laundering.Kenneth Grossman, 69, of Revere, is facing one count each of conspiracy to evade taxes, attempting to impede/obstruct administration of state tax laws and money laundering.William McNamara, 67, of Revere, is facing one count each of false statement under penalty of perjury, conspiracy to evade taxes, attempting to impede/obstruct administration of state tax laws and money laundering.John Heller, 73, of Revere, is facing one count of conspiracy to evade taxes.Adam Derebala, 29, of Revere, is facing one count of failure to file a tax return.Peter Marano, 52, of Boston, is facing one count of tax evasion.Karl Voelker, 67, of Boston, is facing one count of conspiracy to evade taxes.Paritosh Patel, 48, of Reading, is facing one count of conspiracy to evade taxes.Nelson Tejada, 43, of Chelsea, is facing one count of conspiracy to evade taxes.MDGolam Talukder-Manik, 57, of Lynn is facing one count of conspiracy to evade taxes. It has been called Dr. Seuss Day because of this. "By taking these types of necessary actions to prevent crimes, we are maintaining the integrity of the Lottery and the best interests of the people of the Commonwealth," the treasurer said. In this particular scheme, store owners and employees allegedly funneled the winning tickets to Obey, Grossman and their runners. As per reports, Cash WinFall was shut down in January 2012. Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. Joseph Daniel Malone (born November 18, 1954) is an American businessman, former Treasurer and Receiver-General of Massachusetts, and a former member of the Republican Party. Syndicates have long used the tactic of buying up large combinations of numbersa method known as a brute force attackto beat lotteries. Jackpot $145 Million Cash value: $74.3 Million 1 day 19 hours 55 mins Latest Numbers See More Numbers MA Mega Millions Quick Picks 11 32 57 58 62 18 Copy Mega Millions Hub Click here for more Mega Millions info. And theSelbeesmade their final trip back to Michigan, after their 55th week of playing. According to the charging documents,the defendants conspired with others to purchase winning lottery tickets from the actual winners for cash, at a discount that was typically between 10-20 percent of each tickets value, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns a scheme commonly known as ten-percenting. The defendants and co-conspirators then allegedly presented the winning tickets to the Massachusetts Lottery Commission as their own and collected the full value of the tickets. Amy Sokolow is a general assignment and statehouse reporter for The Boston Herald, a position she started in June 2021. The problem with rollovers is that winnerswho are good publicity for a lotterycan be rare. Based upon their submitted lottery claims, in 2019, Ali Jaafar was the top individual lottery ticket casher for Massachusetts. Healey's office said Lottery retailers and employees would direct winning tickets and their holders to Frank Obey, 80, of Lynn, and Kenneth Grossman, 69, of Revere. Please do not include personal or contact information. The stores indicted are: Underground Express in Boston, Richdales in North Reading and NT Lucky Variety in Chelsea, all of which are charged with conspiracy to commit tax evasion. The business Richdale, located at 4 Lowell Road in Reading, is facing one count of conspiracy to evade taxes. Aug. 23, 2021 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,. The inspector general concluded that because lottery officials received no personal benefit from the syndicates manipulations of the game, no further action was necessary. The Massachusetts Lottery has a broad selection of multi-jurisdictional and state-based games, including opportunities to win significant sums of money each day. The DOR program is an automated process used to intercept and collect Massachusetts State Lottery Commission winning payouts, over $600, to satisfy delinquent debt. It stars Bryan Cranston and Annette Bening and is . This also required a 12-hour drive each way to play--standing in convenience stores, for days at a time. The scheme allows the true winners to avoid financial obligations, including state and federal taxes. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, restitution and forfeiture. Adam Derebala, 29, of Revere, was charged with failure to file a tax return. People soon spotted that the odds of winning money were far better in a roll-down week than at other times, which meant ticket sales always surged before these draws. One is called Destiny, a result of its cash-strapped inhabitants selling the naming rights on eBay; the winning bid was $36 from a man who wanted to name it after his daughter. The attorney general's office said three businesses -- Underground Express on Winter Place in Boston, Richdale on Lowell Road in North Reading, and NT Lucky Variety on Arlington Street in Chelsea -- that sold Lottery products also face charges of conspiracy to evade taxes. The charge of conspiracy to defraud the Internal Revenue Service provides for a sentence of up to five years in prison, three years of supervised release, a fine of$250,000 or twice the gross gain or loss, whichever is greater, and restitution. Both are alleged to have circumvented the legal ticket-claiming process.The "ten-percenting" scheme is designed to defeat government collection of back taxes through the Department of Revenue Intercept Program, which is an automated process used to intercept and collect Massachusetts State Lottery Commission winning payouts over $600 to satisfy delinquent debt. The lottery is usually a lousy return--but for a husband and wife team who figured out a math error in games run by two states, it became a wildlyprofitable investment strategy. The roll-down happened when the jackpot money hit $2 million. Sullivan, in his report, wrote that Cash WinFall was a financial success for the Massachusetts Lottery. Stay up to date with everything Boston. He discovered a flaw in the system of the game and found that a positive return is possible if the number of tickets bought to bet is high enough. 2023 Cinemaholic Inc. All rights reserved. The two actual winners, Peter Marano and Adam Derebala, were charged with tax evasion and failing to file a tax return, respectively. Prizes Over $100,000. The defendants presented the Massachusetts State Lottery Commission with false claim forms in which they declared, under the pains and penalties of perjury, that the winnings were their own. Are They Still Together. This also required a 12-hour drive each way to play--standing in convenience stores, for days at a time. The charges are the result of an investigation by State Police assigned to the AGs Office, State Police assigned to the State Treasurers Office of Investigations, the State Police Gaming Enforcement Division, and the Massachusetts State Lottery Commission (MSLC) into a calculated scheme carried out by the defendants to defraud the state of taxes on lottery winnings and other debts owed to the Commonwealth. After watching thousands of customers, Jerry figured out how to hackthe odds in a certaintype of lottery: called Winfall in Michigan, and later Cash WinFall in Massachusetts. For some who frequent licensed check-cashing stores, the gamble is worth it. State Attorney General Maura Healeys office said the con, allegedly perpetrated by store owners and clerks along with two Massachusetts State Lottery winners, involved laundering lottery winnings and lying under oath on numerous lottery claim forms.. Store owners and employees funneled winning tickets to Obey, Grossman and their runners, authorities said. Thrilling Prizes Mega Millions Drawing Tomorrow, 11:00 pm Est Jackpot Est Cash: $74.3 million Powerball Drawing Today, 10:59 pm Est Jackpot Est Cash: $66.9 million Megabucks Doubler Drawing on Mar 1, 9:00 pm Est Jackpot Watch McMillion$ for Free Start from the beginning and watch the first episode of McMillion$ for free. According to the AG's office, store owners and employees funneled winning tickets to Obey, Grossman and their runners. One team consisted of biomedical researchers from Boston University. Lottery officials announced the Powerball drawing will expand to three nights a week, Copyright 2023 NBCUniversal Media, LLC. Players will also be able to play an interactive game and winners can . Massachusetts Lottery faced precisely that challenge in 2003, when its Mass Millions game went without a winner for an entire year. 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