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Financial Fraud Law

Bankruptcy Fraud Alleged Involving Winning Lottery Tickets

 A ticket and a dream? Maybe, but the lottery also can lead to trouble. Consider the allegations that have just been filed against Massachusetts resident James Gregson. According to the government, in 2002, Gregson purchased a $1 million winning lottery ticket that paid $35,000 annually after taxes, and also purchased the right to at least 15 $35,000 annual payments from a second $1 million winning lottery ticket. However, the government alleges, Gregson failed to disclose either in his 2005 bankruptcy filing. In addition, according to the government, when his bankruptcy trustee received information about one of the lottery tickets, Gregson testified falsely under oath that his parents had funded the purchase of the first ticket when in fact he himself had done so. Finally, the government alleges that Gregson filed a 2003 federal income tax return that falsely stated his total taxable income as $0, when in fact it was at least $452,332.69 during that year. 

If convicted on these charges, Gregson faces up to five years' imprisonment, to be followed by three years of supervised release, and a $250,000 fine on each of the bankruptcy fraud charges; and three years' imprisonment, to be followed by one year of supervised release and a $100,000 fine on the false tax return count.