Shifty player thought he could skirt the IRS
By Kate Northrop
An Ohio Lottery player who won $1 million is in hot water with the IRS after falsely claiming gambling losses of $1 million and wiring his winnings abroad.
Mustafa Shalash, of Hillard, was charged with one count of filing a false tax return with the IRS after winning a $1 million prize and then claiming gambling losses of an equal amount.
In 2015, Shalash won a $1 million prize on a single lottery ticket and received $710,000 after $290,000 was withheld in taxes, court documents show. However, he reported gambling winnings of $1,069,100 and simultaneously claimed gambling losses of $1,069,100 on his 2015 tax return.
However, he reportedly knew that his actual gambling losses did not even top $300,000. He attempted to hide his lottery winnings by wiring $690,000 overseas, $440,000 of which was transferred to one of his bank accounts in Jordan.
Shalash was discovered to have been accumulating money in foreign bank accounts over time in addition to wiring his lottery winnings by moving sums more than $10,000 across the U.S. border. Between 2014 and 2019, he had as much as 409,000-645,803 Dinar (US$576,077-US$909,614) in one account in Jordan.
According to the U.S. Department of Justice the lottery winner purchased a $19,000 cashier's check in 2015 and flew to Jordan, where he deposited the check into his Jordanian bank account. He repeated his trip after purchasing two more checks for $15,000 and $25,000. However, he failed to file the required Form 105, or the Report of International Transportation of Currency and Monetary Instruments, as well as the FinCen Form 114, or the Report of Foreign Bank and Financial Accounts.
Shalash landed himself in more trouble when he failed to disclose the foreign bank account on his 2015 tax return and when he overstated his gambling losses. As a result, he avoided paying $255,967 to the IRS.
"Concealing bank accounts overseas and inflating losses on a tax return is a recipe for criminal tax prosecution," Bryant Jackson, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office said. "IRS CI will continue to apply substantial resources towards and vigorously investigate criminal tax fraud."
The lottery winner pleaded guilty in U.S. District Court to one count of filing a false tax return with the IRS. He faces a maximum 3 years in prison and an additional fine of up to $100,000.
Nice try Mustafa!
Mustafa made a mistake
Biggest one he could make
The money the G-men will take
He'll need a saw blade inside of a cake
So please don't laugha at Mustafa.
Another one for 'Most stupid criminals'. Waving red flags @ the IRS and implying catch me if you can. Well they did and you will pay the Lady!
My beef is not with good ole Mustafa..After all, being hyphenated does have some expected misgivings...Course there is that TM thing that concerns me... I am a bit surprised,that wasn't better understood by the IRS folks...But what really gets my goat on this whole matter is that staff misspelled the first word wrong....There should have been 2 T's in the first word, instead of an F.....<shoulder shrug>..oh well..Congrats on the win Mr. Shalash and best of luck on dealing with the court system
What an azzhat, you can claim reasonably... but that is stupid, they are going to catch that.
Thanks for the reminder....I have to hurry up and win/collect this year......Cause next year, ain't gonna be better for my wallet.....Again..Best of luck Mustafa and thanks for the contribution to Uncle Sam.
"In 2015, Shalash won a $1 million prize on a single lottery ticket and received $710,000 after $290,000 was withheld in taxes, court documents show. However, he reported gambling winnings of $1,069,100 and simultaneously claimed gambling losses of $1,069,100 on his 2015 tax return."
I'm not familiar with your taxes there. Lottery wins are paid after deduction of taxes in CA, I suppose also in other states. They won't miss the chance to tax immediately. Normally they should hide the tax part and only publish the net payout and declare it free of taxes as it is paid out after deduction of taxes. You can't tax that twice. If the state forces you to declare what you won, then see your local state laws or tax offices to see how it is done properly! - Maybe the state is trying to find money laundrettes.
Maybe his real name is Shishalash.
Stupid is as stupid does, Forrest.
If you would stop buying bigger mansions every couple years your wallet would get fatter.
Shoulda used a Swiss Bank Account.. their lips are alwayz sealed.. they'll tell all Govts to mind their own Business..
I'm cancelling my trip to Mustafa's investment seminar.
Unfortunately that is not true with American citizens. Our IRS strongarmed the banks over there to release information on US Investors. Personally I wish they would have said 'screw off, we're a sovereign nation.'
In Australia, all lottery prize money is tax-free!
You can be a millionaire. and never pay taxes! You say.. ‘Steve.. how can I be a millionaire.. and never pay taxes?’ First.. get a million dollars. Now.. you say, ‘Steve.. what do I say to the tax man when he comes to my door and says, ‘You.. have never paid taxes?’ Two simple words. Two simple words in the English language: ‘I forgot!'” — Steve Martin
where have we all seen this scheme before lol
let's go steve O !
"he reportedly knew that his actual gambling losses did not even top $300,000"
Considering $200 in losses a week for 20 years is about $200,000, Shalash probably needed to win the $1 million just ot break even. While we can claim gambling losses up to the amount we won, those pesky IRS people want to see proof of our losses.
My tax man told me two years ago that the IRS would only allow so much gambling losses as we had a bunch of losing lottery tickets. Do believe the casino win/loss statements were fully deductible. Honestly don't pay that much attention to it!!
A few years ago my friend was trading in his Kia Sorento on a Nissan Rogue. The salesman thought he as being slick. $3514 or thereabouts offered for the Kia and conveniently TRIED to add the cost of auto repair insurance to the Rogue and you guessed correctly. It was for $3514. No go buddy and especially since the Rogue was gifted to him somehow it didn't matter. Wish someone would buy me a brand new Subie!!
He probably cheated anyway
"He probably cheated anyway"
Even when it's so easy to win?
Wow