A father and son were convicted of conspiracy to defraud the Internal Revenue Service, money laundering and filing a false tax return. Another son, Mohamed Jaafar, previously pleaded guilty to conspiracy to defraud the Internal Revenue Service.
Ali Jaafar, 63, and Yousef Jaafar, 29, were convicted of conspiracy to defraud the IRS, money laundering, and filing a false tax return. The defendants conspired with others to purchase winning lottery tickets from gamblers all over Massachusetts, and presented the tickets to the Massachusetts Lottery Commission as their own and collected the full value of the tickets.
The Jaafars claimed fake gambling losses to offset the claimed winnings, thereby avoiding federal income taxes and receiving tax refunds. The father and sons claimed three winning tickets and filed false tax returns, paying far less than they should have.
The Jaafars cashed over 14,000 lottery tickets and claimed more than $20 million in winnings, officials said. Ali Jaafar was the top lottery ticket holder in Massachusetts in 2019, and his son Mohamed Jaafar was third highest ticket casher.
They received more than $1,200,000 in total tax refunds by claiming other peoples’ lottery tickets as their own.
A federal district court judge imposes sentences based upon the U.S. Sentencing Guidelines and other statutory factors for conspiracy to defraud the Internal Revenue Service, conspiracy to commit money laundering, and filing false tax returns.
Investigators said the Jaafars conspired with others to purchase winning lottery tickets from actual winners for cash, and presented the tickets as their own to the Massachusetts Lottery Commission.
U.S. Attorney Rollins and Joleen Simpson of the Internal Revenue Service’s Criminal Investigations in Boston announced the arrests.