In a case that exposed a massive lottery scam, a Massachusetts father and son have been sentenced to federal prison.

A Massachusetts father and son were sentenced to federal prison in connection to a $20 million lottery scam. (Photo: Daily Hive)

Massachusetts Father and Son Lottery Scam

The lottery scam operation, known as “ten-percenting,” involved numerous convenience stores, thousands of lottery tickets, and an astonishing $20 million in illicit profits, according to authorities, CBS News reported.

Between 2011 and 2019, Massachusetts father and son ,Ali Jaafar and his son Yousef Jaafar, cashed in on over 14,000 lottery tickets as part of their scheme. They managed to amass more than $20.9 million in proceeds from these winnings, which they deliberately failed to report on their tax returns.

Consequently, this resulted in federal tax losses amounting to approximately $6 million, according to the U.S. Attorney’s Office in Massachusetts. Notably, in 2019, Ali Jaafar held the distinction of being the top individual lottery ticket casher in the state, while Mohamed Jaafar ranked third and Yousef Jaafar fourth.

The Massachusetts father and son are believed to have pocketed at least $1.2 million from the government’s lost tax money. Meanwhile, Mohamed Jaafar, who pleaded guilty to conspiracy to defraud the IRS in November, is set to be sentenced at the end of July.

The Massachusetts father and son’s modus operandi involved purchasing lottery tickets from legitimate Massachusetts winners who were looking to sell their prizes at a discounted price. By doing so, they bypassed the state’s lottery commission, which typically identifies winners and checks for any outstanding financial obligations. Normally, this includes verifying taxes, back taxes, and child support payments before disbursing the prize money.

The investigation into the Massachusetts father and son scam also implicated several convenience stores across Massachusetts. The U.S. Attorney’s Office  revealed that the trio enlisted the help of numerous convenience stores, paying them to act as intermediaries for their discounted ticket purchases.

Subsequently, the Massachusetts father and son falsely claimed the entire lottery prize winnings as their own with the state lottery commission. To offset these reported winnings on their tax returns, they fabricated gambling losses of equivalent amounts. This allowed them to receive fraudulent tax refunds while evading federal income taxes, according to Massachusetts authorities.

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Massachusetts Father and Son Receive Federal Prison Sentences

The Massachusetts father and son, Ali Jaafar and his son Yousef Jaafar, both residents of Watertown, received their sentences on Monday in federal court. The term “ten-percenting” refers to a scheme where winning lottery tickets are resold illegally at a discounted price. This allows the winners to avoid reporting the actual amount on their tax returns.

The Massachusetts father and son, along with another son named Mohamed Jaafar, were initially accused in 2021 of defrauding the Massachusetts lottery. Their alleged method involved collaborating with legitimate winners, purchasing their winning tickets at a fraction of their true value, and subsequently filing false tax returns, as reported by CBS Boston.

In December of last year, Massachusetts father and son, Ali and Yousef Jaafar were found guilty of multiple charges, including conspiracy to defraud the IRS, conspiracy to commit money laundering, and filing false tax returns.

U.S. District Court Judge Nathaniel M. Gorton handed down sentences of five years for Ali Jaafar and 50 months for Yousef Jaafar.

In addition to the prison terms, the Massachusetts father and son were ordered to pay back the $6 million in restitution and forfeit their profits from the elaborate scheme.

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