A U.S. family has been arrested for a decade-long scam, defrauding $20 million from 14,000 lottery tickets by manipulating winners.
A shocking case from Massachusetts reveals a family involved in an elaborate lottery scam.
The scheme lasted over a decade, leading to their arrest.
The Jaafar family, including a father and his two sons, defrauded the state of about $20 million.
They claimed winnings from over 14,000 lottery tickets. This case has been described as one of the largest frauds in the state’s history.
How did the Jaafar Family’s lottery scam operate?
The mastermind behind this scheme was 63-year-old Ali Jaafar, who began the fraudulent activities in 2011.
Initially, he started by claiming a relatively modest amount of winnings, but as time went on, the scale of the operation grew exponentially.
By the time they were caught, the family had amassed significant wealth through their fraudulent claims.
Ali’s two sons, Yousef and Mohamed, became involved in the scheme a few years later.
Yousef, aged 29, was sentenced to 50 months in prison for his role, while Mohamed faced charges as well.
The family would approach convenience store owners to help them identify lottery winners.
Once they found a winner, they would offer to claim the prize on their behalf, taking a 10 percent cut of the winnings in return.
This practice, known as “10 percenting,” is a form of money laundering where lottery winners enlist the help of middlemen to claim their prizes.
By doing this, the actual winners could avoid hefty deductions due to taxes or child support payments that might affect their winnings.
The Jaafars would then cash in the tickets and report fake gambling losses on their tax returns, allowing them to evade taxes on their earnings.
The operation continued undetected for years, with Ali and his sons claiming large sums from winning tickets across the state.
Authorities discovered their criminal behavior relating to 14,000 lottery tickets.
In 2019, however, the Massachusetts Lottery Commission began to investigate the unusually high number of claims coming from the Jaafar family.
Authorities noted that the volume of tickets claimed was statistically improbable, suggesting foul play.
It was estimated that they would need to purchase around 16 tickets per minute to achieve their level of winnings, which raised red flags.
The investigation uncovered that the family had established a network of accomplices, including convenience store owners.
These store owners received a portion of the winnings for their assistance in the fraudulent scheme.
The Jaafars frequently bought winning tickets for less than their full value, creating a deceitful arrangement.
This scheme benefited everyone involved except the state.
The IRS also noticed the family’s unusual actions
In a twist of fate, the IRS also started to take an interest in the Jaafar family’s activities.
An undercover agent sold winning tickets to a store.
These tickets ended up in the hands of Yousef’s friends, further implicating the family in fraudulent activities.
By the summer of 2020, law enforcement agencies were closing in on the Jaafars.
The brothers were turned away at the lottery office when attempting to claim another prize.
US family arrested after scamming $20M from 14,000 lottery tickets for over 10 years
Ali Jaafar was sentenced to five years in prison, while Yousef received a substantial prison term as well.
Mohamed, who had previously interned for a prominent politician, admitted his guilt.
He was sentenced to six months in jail and required to pay hefty restitution.
During his sentencing, he expressed regret for the actions of himself and his family, stating that it felt like a dark cloud had finally lifted.
The case has highlighted the vulnerabilities in the lottery system and how easily it can be exploited.
Authorities are now investigating over 40 lottery agents who may have been involved in supporting the Jaafars’ scam.
The Massachusetts State Lottery Commission is working to stop these kinds of fraud.
They want to make sure it doesn’t happen again.