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Two get probation in scheme to avoid taxes on lottery win

Insider BuzzInsider Buzz: Two get probation in scheme to avoid taxes on lottery win

WILMINGTON, Del. — A pair of men who conspired to hide from the tax man that one of them won $500,000 in the lottery were each sentenced to two years of probation Tuesday.

Pennsylvania convenience store owner Charig R. Patel and frequent lottery player Kendrick D. Francis each admitted to conspiracy to defraud the IRS and making a false statement on a tax return in March and faced up to three years in a federal prison.

However, attorneys for each of the men argued to Chief District Judge Gregory M. Sleet that the actions of both were an aberration and society would not be served if the pair were sent to prison. Both Patel and Francis had no significant criminal history and defense attorneys said both were remorseful.

Assistant U.S. Attorney Lesley Wolf declined comment.

According to prosecutors, in Feb. 2008, Wilmington resident Francis won a 10,000-to-one bet on the Pennsylvania Lottery's Big 4 game and because he had purchased 360 tickets with the same number — 4177 — he won $532,000.

The problem came when Patel, owner of Conley's Market in Woodlyn, Pa., suggested to Francis that he could help him avoid paying income taxes on the proceeds by having others appear to cash a number of Francis' winning tickets. Francis agreed and paid Patel a $50,000 "fee" to have others cash in about half of his winning tickets.

Patel's attorney, Edmund "Dan" Lyons Jr., said his client did not act out of greed but out of economic necessity as he has been struggling during the recession. Lyons, however, noted that Patel has since paid back the approximately $11,000 that the government said he owed.

Prosecutors had pressed for a more stern sentence for Francis because he has not yet paid the $100,000 he owes. Francis' attorney, John S. Malik, said the lottery winnings are tied up in a house and his client is working to get cash to pay the debt, adding Francis made a $10,000 payment Tuesday.

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24 comments. Last comment 5 years ago by rdgrnr.
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time*treat's avatar - radar

United States
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March 30, 2005
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Posted: July 13, 2011, 9:32 pm - IP Logged

"Pennsylvania convenience store owner Charig R. Patel ... "

LOL

In neo-conned Amerika, bank robs you.
Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.

    haymaker's avatar - Lottery-012.jpg
    Egg Harbor twp.south Jersey shore
    United States
    Member #112968
    June 29, 2011
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    Posted: July 13, 2011, 9:40 pm - IP Logged

    whoa...these ppl.... are bringing a lot of pride to their name .

    Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

      RJOh's avatar - chipmunk
      mid-Ohio
      United States
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      March 24, 2001
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      Posted: July 13, 2011, 9:40 pm - IP Logged

      So much for that scheme of only playing multiples of pick3 and pick4 because as long as each ticket wins less than $600, you can avoid paying taxes on them.Bang Head

       * you don't need to buy more tickets, just buy a winning ticket * 
         
                   Evil Looking       

        dr65's avatar - black panther.jpg
        Pennsylvania
        United States
        Member #74096
        May 2, 2009
        22893 Posts
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        Posted: July 13, 2011, 9:41 pm - IP Logged

        Oh no...busted in PA. It's becoming epidemic.

        Pay the taxes and do the right thing, please people. Don't steal or cheat or launder.

        The Patel name is being drug through the mud.

          time*treat's avatar - radar

          United States
          Member #13130
          March 30, 2005
          2171 Posts
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          Posted: July 13, 2011, 10:02 pm - IP Logged

          So much for that scheme of only playing multiples of pick3 and pick4 because as long as each ticket wins less than $600, you can avoid paying taxes on them.Bang Head

          In this particular case, if nothing else, the time-codes would have indicated that the tickets were all bought in too short a span to have been bought by different people.

          In neo-conned Amerika, bank robs you.
          Alcohol, Tobacco, and Firearms should be the name of a convenience store, not a govnoment agency.


            United States
            Member #75358
            June 1, 2009
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            Posted: July 13, 2011, 10:02 pm - IP Logged

            How many  store owners named Patel are there?


              United States
              Member #75358
              June 1, 2009
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              Posted: July 13, 2011, 10:06 pm - IP Logged

              In this particular case, if nothing else, the time-codes would have indicated that the tickets were all bought in too short a span to have been bought by different people.

              No doubt. With that kind of circumstance, you couldn't get away with it. I'd be happy turning the tickets in the office and sleeping peacefully at night...

              These people, both the players and store owners need to visit LP. You can learn a lot in the lottery news forum, and avoid the traps....


                United States
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                March 25, 2011
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                Posted: July 13, 2011, 10:24 pm - IP Logged

                just having the name patel should get you 2 1/2 years from the getgo. i suppose jail wouldn't get the state their money so restitution it is...

                  RJOh's avatar - chipmunk
                  mid-Ohio
                  United States
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                  March 24, 2001
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                  Posted: July 13, 2011, 10:26 pm - IP Logged

                  This player will be smarter next time and I have little doubt about there being a next time because if he had enough faith to put $360 on a pick4 number and win once, he'll do it again.

                   * you don't need to buy more tickets, just buy a winning ticket * 
                     
                               Evil Looking       

                    rdgrnr's avatar - walt
                    Way back up in them dadgum hills, son!
                    United States
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                    April 28, 2009
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                    Posted: July 13, 2011, 10:58 pm - IP Logged

                    I'm glad it wasn't Harddik Patel again!

                    That reminds me of a Confucius proverb. Confucius say: Man who walk through airport turnstile sideways going to Bangkok.


                                                                 
                                         
                                                             

                     

                     

                     

                     

                                                                                                                       

                    "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                --Edmund Burke

                     

                     

                      sully16's avatar - sharan
                      Ringleader
                      Michigan
                      United States
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                      October 28, 2009
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                      Posted: July 13, 2011, 11:18 pm - IP Logged

                      Green laughrotflmao, They never learn.

                      Did you exchange a walk on part in the war ?

                      For a lead role in a cage?

                       

                                                                  From Pink Floyd's " Wish you were here"

                        dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                        Oklahoma
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                        Posted: July 14, 2011, 8:26 am - IP Logged

                        Patel, Patel, Patel, oh those pesty Patels........ROFLROFLROFL

                          sully16's avatar - sharan
                          Ringleader
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                          United States
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                          October 28, 2009
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                          Posted: July 14, 2011, 9:01 am - IP Logged

                          The Patel family re-union has been cancelled, due to the fact they are in jail, hehehehe.

                          Did you exchange a walk on part in the war ?

                          For a lead role in a cage?

                           

                                                                      From Pink Floyd's " Wish you were here"

                            surimaribo24's avatar - photo11 zpsfffd70be.jpg
                            NEW YORK. RIVERHEAD
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                            February 17, 2011
                            9702 Posts
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                            Posted: July 14, 2011, 10:50 am - IP Logged

                            another patel What?. patel allertDupe Alert. they should join together and make a store call patel brothers2 . which actualy exsist and sell anything beside lottery .