Welcome Guest
Log In | Register )
You last visited October 21, 2020, 2:09 pm
All times shown are
Eastern Time (GMT-5:00)

N.Y. men arrested for redeeming winning lottery tickets for people in debt

Jun 10, 2017, 7:40 am

Share this news story on Facebook
Tweet this news story on Twitter
New York LotteryNew York Lottery: N.Y. men arrested for redeeming winning lottery tickets for people in debtRating:

Seven retailers suspended for colluding

Two New Yorkers were tossed behind bars in the state's first-ever arrests of lottery scammers accused of secretly claiming winning tickets for people who owe child support, back taxes or other debts.

Eduardo Moran-Barrera, 63, of the Bronx, claimed a total of 686 tickets worth a whopping $1.48 million in lottery winnings between 2012 and 2016, officials said.

Neil Ferguson, 50, of Manhattan, raked in $273,139 after claiming 91 winning tickets over the same period.

Both were charged with criminal tax fraud after a joint investigation by the state Gaming Commission and the Department of Tax and Finance.

"This is a unique partnership that we formed and one that we're excited about in that we have a novel way of finding these individuals," said Lee Park, spokesman for the New York State Gaming Commission.

"We expect there to be more of these cases in the future."

The arrests were revealed roughly two weeks after an investigation was published about frequent lottery winners.

State law calls for winners of prizes worth at least $600 to settle their child support and tax debts before they're allowed to collect any money.

Officials say Moran-Barrera and Ferguson acted as corrupt middlemen for shady lotto winners eager to rake in big bucks despite owing money to the state.

The so-called discounters agreed to cash in the winning tickets in exchange for a cut of the prize money. They appeared on investigators' radars after failing to pay taxes on the winnings, officials said.

"The New York Lottery ensures that claimants who owe child support, back taxes or public assistance obligations first pay what is rightfully owed before collecting any winnings," said Gweneth Dean, of the state Gaming Commission.

"With the help of our partners in Tax and Finance, we are putting a stop to those who try to circumvent financial obligations through discounting schemes."

Lawyer Mike Jurena, who represented Moran-Barrera and Ferguson at their arraignments, declined comment.

As part of the investigation, officials also suspended the licenses of seven lotto retailers accused of abetting the scheme.

Six are located in the Bronx; one in Manhattan.

Daily News, Lottery Post Staff

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

23 comments. Last comment 3 years ago by KY Floyd.
Page 1 of 2
rustysmom's avatar - Lottery-031.jpg
ohio
United States
Member #706
September 14, 2002
890 Posts
Offline

Why would they want to share their winnings with someone else, use that

money to pay off your bills.

    Raven62's avatar - binary
    25
    New Jersey
    United States
    Member #17842
    June 28, 2005
    131941 Posts
    Offline

    To Be Fair: The folks that Owned the Winning Lottery Tickets should also be Procecuted!

    A mind once stretched by a new idea never returns to its original dimensions!

    Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

    Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.


      Belgium
      Member #173928
      March 26, 2016
      1396 Posts
      Offline

      Another thing, should people who have little money or debts get tickets and payouts tax free?

      Consider this, the tickets were bought with taxed money. ...

      In the end, you only think that playing and winning a bit is unfair.

      Someone with high debts winning big money, not wanting to pay back his debts and live on the won money? ... USA, today?

        Avatar

        United States
        Member #164719
        March 12, 2015
        1300 Posts
        Offline

        Odd. The way it is written it sounds like unless you pay all your debts you cant collect as opposed to the state seizing the prize as partial or full payment of the debts.  If you cant collect during the allotted time, does the lottery just keep the jackpot? Then you end up with no winnings and still have the debt. Disapprove

          Teddi's avatar - Lottery-008.jpg

          United States
          Member #142495
          May 13, 2013
          1391 Posts
          Offline

          Why would they want to share their winnings with someone else, use that

          money to pay off your bills.

          Because the cut they give to the middlemen is invariably less than they owe. They are only obligated to repay debt from what income they earn. If there is no record of them winning a lottery, then they get an income that's under the radar and therefore can't be seized...or so they thought.

            Teddi's avatar - Lottery-008.jpg

            United States
            Member #142495
            May 13, 2013
            1391 Posts
            Offline

            This is incomplete reporting. It took 3 sets of people to pull this scam yet only two sets are reportedly being punished. The biggest culprits in this fraud are the actual winners. They are the linchpins in the entire fraud as nothing can happen without them. What are their names, how much did they owe, how much did they win and what were the punishments meted out?

              mamamary517's avatar - Lottery-024.jpg
              Brooklyn, NY
              United States
              Member #115849
              August 29, 2011
              77 Posts
              Offline

              Its about time! I hear these stories all around my neighborhood.

                Avatar
                100
                New York, NY
                United States
                Member #140630
                March 23, 2013
                10697 Posts
                Offline

                It's tax fraud. The guys pay less for the tickets. How much less well that depends. It can be close to $1000 or more you pay them. The guys cashing the tickets are idiots. How hard it is to win a win4 game and they're cashing in millions like nothing. Of course they're gonna be investigated. Whatever you owe they deduct, then you get whatever is left. Also not sure but I've heard some convicts or parolees have trouble cashing tickets, so for them it's a win win.  You don't know where or who's cashing those tickets. Or where that money's going. Could be anyone anywhere. Out of the country too.

                Sometimes you do the right thing just because it’s right.

                  Cassie8620's avatar - oGH0ok
                  California
                  United States
                  Member #180566
                  March 13, 2017
                  4319 Posts
                  Offline

                  I've heard of men who are parolees like yourself too, heard much stuff about that. wow. smh. i wonder how much prison time, if any the store owner, will get.Get a great lawyer,because a good attorney is not enough."

                  13G's!+ total (2019)& P4 total >>>  22,000!(So Far in 2020!)  Time 2 break the bank, baby!Banana 0131 0068 0809     

                  0518 0159 6442 0305 0306,1020,1021, 1061 1106,1120,1211, 1212,1031 1034,1035 1038,1140 1141,1177 1215, 1301, 1310 3100, 3101, 7678 7897, 7898 8768 8486  4764 4774 6747 7466 7664  7640, 1129, 1114 1177 1569 1623 5910 2600 1711 1850 3009 4764 1140,1411,4774 7077 7462 7467 6159, 6230 6231 3533, 5592,5593, 5925,9335 9615.

                    Avatar

                    Sweden
                    Member #153624
                    March 20, 2014
                    213 Posts
                    Offline

                    Another problem that wouldn't occur if all games were registered with personal gambling cards in store or online like here in Sweden.

                    Return of Lotto Investment, ROI: 2019: 39% | 2018 50% | 2017 47% | 2016 12,6% | 2015 20% | 2014 20%

                    Return of Stock market investment: 145% (2017-2020)

                    Notable wins: Viking Lotto $1.152 - 2017

                      pickone4me's avatar - lightbulb
                      Wisconsin
                      United States
                      Member #104958
                      January 23, 2011
                      1153 Posts
                      Offline

                      Another problem that wouldn't occur if all games were registered with personal gambling cards in store or online like here in Sweden.

                      That is rich considering sweden has let their borders wide open!

                        Avatar

                        United States
                        Member #164719
                        March 12, 2015
                        1300 Posts
                        Offline

                        This occurred from 2012 - 2016 or over a 5 year period.  The amount of the winnings:  $1.48 mil + $273,139 = $1,753,139.  However, federal, state, and NYC taxes were deducted from that and any remaining taxes, if they were any owed, had to be paid by the claimant the following year.  What the gov did not get was the back taxes, child support, liens, which may have been much less, owed by the purchaser.   

                        I'm just not impressed with this investigation/arrests.  Seems very ginned up. 


                          Germany
                          Member #164597
                          March 8, 2015
                          803 Posts
                          Offline

                          That is rich considering sweden has let their borders wide open!

                          What a charming ad hominem.

                            TheGameGrl's avatar - Lottery-012.jpg
                            A long and winding road
                            United States
                            Member #17083
                            June 10, 2005
                            6507 Posts
                            Offline

                            This occurred from 2012 - 2016 or over a 5 year period.  The amount of the winnings:  $1.48 mil + $273,139 = $1,753,139.  However, federal, state, and NYC taxes were deducted from that and any remaining taxes, if they were any owed, had to be paid by the claimant the following year.  What the gov did not get was the back taxes, child support, liens, which may have been much less, owed by the purchaser.   

                            I'm just not impressed with this investigation/arrests.  Seems very ginned up. 

                            Sensible commentary.  I agree with your objective thought process.

                            2500,2202,4441,6506,202, *13***