Jury convicts conman on wire fraud, money laundering charges
By Kate Northrop
SALEM, Ore. — The famous — and still anonymous — winner of the record $1.4 billion Mega Millions lottery jackpot from South Carolina emerged from her legendary silence to deliver a testimony against New York "Lottery Lawyer" Jason "Jay" Kurland that explains how he stole $83 million from her in his schemes.
On July 26, the United States Department of Justice announced that a jury found Kurland, 48, guilty of defrauding his own lottery winner clients of more than $100 million. One of those familiar lottery winners, who lost $83 million to the conman, stepped back into the limelight to explain how he stole so much from her.
One morning, on Oct. 24, 2018, a woman in South Carolina woke up a billionaire. After scanning the numbers on her lottery ticket, she recalled feeling a mix of emotions — "astonishment, disbelief, joy, anxiety."
She got in her car and drove off for the now-famed KC Mart in Simpsonville to see if there would be any commotion. Maybe, if no one was there, surely she would be mistaken to think she had won, and she would drive back home to move on with her life.
But that was not the case.
"If no one was there, I would say, 'Okay, well, this was a disaster. We made a mistake,' and I'd drive home and all would be good," the winner said in her testimony. "But as we went by the convenience store, there was every media — there was helicopters, there was every piece of media, there was locals, you know, national. I so badly wanted to get out of there, I wanted to go under the seat. I became anxious."
More than four months after making her fateful lottery ticket purchase, the winner of the second-largest jackpot the world had ever seen stepped forward anonymously to claim a one-time payment of $877.78 million.
Kurland acted as the winner's spokesman and legal representation. At that point, he had already represented multiple lottery winners in the past, including a $254.2 million Connecticut Powerball winner, a $336.4 million Rhode Island Powerball winner, and a $121.6 million Delaware Powerball winner, but by far this would be his biggest client.
According to his firm's website at the time, he branded himself as a knowledgeable advisor who helped lottery winners navigate legalities and managing money. He has represented players from every corner of the nation, even appearing on national television during jackpot surges to offer advice to lottery players everywhere.
"The biggest mistake people make is doing it on their own," he said of winning a big prize in 2019. "All the horror stories you hear when people do it on their own."
Then, in August 2020, the self-titled "lottery lawyer" who advised dozens of significant jackpot winners across the country was charged with conspiracy, wire fraud, and money laundering, essentially robbing millions of dollars from his trusting clients.
The South Carolina winner was one of his largest clients and biggest victims. In Kurland's trial, she re-entered the public eye but allowed to testify under the pseudonym, Beth Smith, to preserve her identity.
Winning the second-largest lottery prize in the world was a blessing, she thought, but it came with a new set of complications. A woman in her 50s with grown children and marking 36 years of marriage with her husband, a lawyer, she was content with how her comfortable her life was.
When she visited the KC Mart convenience store the morning after the fateful drawing, she felt that people were looking at her and somehow knew who she was. After that experience, she knew nothing was more important than securing her family's safety and anonymity.
So for the time being, she stashed the ticket in a safety deposit box and brainstormed the next steps with her husband.
"We considered attorneys. We considered financial advisors. We considered accountants," she recalled. "We considered, you know, investment firms — that kind of thing."
Low and behold, they saw Kurland appearing on television talking about the lottery jackpot they had just won. The self-proclaimed title "Lottery Lawyer" felt gimmicky, but with his track record of representing other lottery winners plus the trustworthy appeal of a Long Island family man who would contractually be bound to keep their confidences, they were swayed.
"He was on, you know, the morning shows and the like, and it looked like he certainly knew about lottery — he had a specialty in lottery winners," "Beth Smith" explained. "And, you know, we looked online and he seemed very capable."
Her husband, given the name "Steve" for the sake of preserving his anonymity in the trial, called Kurland from a burner phone in December 2018 and arranged a meeting in Las Vegas without revealing their names.
All that mattered to them was that Kurland would be able to help them claim their prize and help distribute the money to charities of their choosing without revealing who they are, but little did they know that his management of their finances would turn into illegal meddling.
On March 4, 2019, the "Smiths" claimed their prize in a heavily orchestrated series of steps. First, the couple met Kurland in Columbia, South Carolina, where a South Carolina Lottery security team picked them up and escorted them to an underground garage at the city's lottery office. Security cameras were disabled, and windows were covered. The lottery winners presented the $1.5 billion winning ticket, and Kurland was paid the $200,000 flat fee for his services.
Then, Kurland came forward to the media with information the country was yearning for — how and where the ticket was purchased, who the winners were, and what they wanted to do with the money.
Kurland publicly informed news outlets that the winners wanted to donate to various charities, although he did not say how much would go to each. Behind the scenes, however, he was setting his clients up for what they thought was financial success.
"We were very adamant that we wanted this to be invested in a very conservative way because my husband and I believed this was — this blessing was going to be provided — to my family and generate — and we would have it generationally," "Beth" related. "So, we didn't need to take any, any risk in doing that."
Kurland began by opening an account at Bank Leumi USA, a New York-based bank now known as Valley Bank, which would be distributed to four other U.S.-based banks. Two housed $100 million each, while the other two housed $50 million each. In-house money managers were to supervise the investments.
The only thing is, the accounts were being set up in Kurland's name to protect the "Smiths'" anonymity.
"He had access to it. We did not. He set it up as if it was, basically, his account," "Beth" said.
The "Smiths" did not have access to bank statements or balance information. They were essentially relying on Kurland for any information they might have needed. They paid him a $50,000 monthly fee for him to continue managing the accounts.
The services the "Smiths" were paying for included favors and luxuries that Kurland provided, such as helping "Steve" go to the Master's Tournament, arranging for "Beth's" sister and brother-in-law to go to the Kentucky Derby, and even getting "Steve" an autographed photo of Daniel "Rudy" Ruettiger, a Notre Dame football legend.
Whether they were true favors or deals complimentary of his services, in all likelihood, they were methods to pull the wool over eyes to conceal something else that was going on in the background.
This is where Cheddar Capital and JBMML come into play — two businesses that Kurland had ties to. Both companies provide funds to other businesses in exchange for a percentage of their daily credit card income.
It is the same Cheddar Capital that Nandlall Mangal, a $245.6 million Powerball winner, said Kurland was pressuring him to invest in.
Kurland did not divulge his connection to the company, nor was he forthright about how his money would be invested. Mangal said, had he known that he would be buying an ownership stake in the business, he would have considered the investment differently.
At an interest rate of 9%, the "Smiths" would invest $10 million in Cheddar Capital and $20 million in JBMML, after which the interest would go to a family fund called Cedar Ridge Partnership to be allocated to ten family members as a monthly income of $12,500 per person.
He came to them with several other investment deals he said other lottery winners had success with — from a diamond merchant to thoroughbred race horses.
He also persuaded them to invest $19.5 million in a company that would resell personal protective equipment (PPE) to the state of California, but he must have forgotten to mention the part about how it was a plan to recoup losses from a $200 million Ponzi scheme that had gone sour.
Regardless, the "Smiths" unknowingly went along with the "Lottery Lawyer's" suggestions, having bought a new house in South Carolina, another in a different state, and then one more outside the U.S. They spent tens of millions on other real estate transactions, including buying a hotel. But something started to seem off.
"The payments [to family members] were very irregular," "Beth" revealed. "Sometimes it would go direct from the company to my family member, Cheddar Capital, and JBMML. They were not the amounts of monies that we were, you know, guaranteed in these documents and it was very concerning. Terribly concerning."
Turns out, the diamond merchant she was encouraged to invest in was Gregory Altieri, a Long Island jeweler who she found out was being investigated after the FBI reached out to her for more information. He was arrested, but Kurland soothed her worries that something was wrong.
In August 2020, Kurland three co-conspirators who were involved in deals to do with defrauding the "Smiths" and other lottery winners were arrested.
Kurland's arrest immediately meant two very concerning things — he was somehow conning the "Smiths," and they had no idea whether her money was actually in her control.
"I didn't even know who the wealth investors — the wealth advisors were," "Beth" said. "You don't just call the 800 number and, you know, be talking to someone."
With Kurland in jail, she had no way to access her money or information regarding her account. She also feared that, with Kurland out of reach, he would go rogue and be able to access her money at his own will.
"I wanted, you know, a stop put to that," she continued.
Each of the banks housing her money had their own hoops to jump through for her to prove that the money was really hers. To begin the process, she had to acquire a certified copy of the winning lottery ticket. She contacted the South Carolina Lottery, and the commissioner drove it over to her house.
"We were very grateful," she remarked.
During the process, she discovered that Kurland had failed to disclose just how much money he had taken from her, from a 1% finders fee on investments he procured and that he had personal ties to Cheddar Capital and JBMML that resulted in kickbacks he would then use to fund other schemes. He also bought three racehorses, not two.
What was most concerning was that he had straight up stolen a chunk of money from her account.
"Kurland convinced his largest lottery client to invest $19.5 million," Assistant U.S. Attorney Louis Pellegrino said in court. However, the accomplices in charge of the [PPE] deal told him that they needed double the amount, so he just stole the cash directly from the winner's account without permission, the money "never seen again."
"He took it right out of his lottery client's bank account, which he controlled," Pellegrino went on.
Kurland's co-conspirators include former securities broker Frank Smookler, Frankie Russo, the son of a Colombo crime family capo, and Christopher Chierchio, who is supposedly a big-name player in a Genovese crime family but described as a Genovese family soldier in court documents. All three pleaded guilty. Through the funds made available by Cheddar Capital, his cohorts bought houses, yachts, and luxury cars.
Kurland pleaded not guilty, hoping to convince the jury that he was under the influence of his co-conspirators, who he claims manipulated him and mocked him behind closed doors.
On Tues., July 26, the U.S. Department of Justice announced Kurland's conviction after a Brooklyn, New York jury unanimously convicted Kurland of five counts of wire fraud, honest services wire fraud, and money laundering. It is estimated that he stole over $100 million from three different lottery winners.
"Jason Kurland marketed himself to the public as the leading lottery lawyer in the country and was successful in recruiting as clients some of the biggest lottery winners in U.S. history," the Department's statement reads. "But then he used his position as a lawyer—a profession founded on duties of honesty and loyalty—to steer his clients to invest millions of dollars in companies that he secretly owned and took illegal kickbacks based on his clients' investments without their knowledge. Ultimately, the defendant and his co-conspirators lined their own pockets while his clients suffered massive losses from their crimes."
"Do you think if you just asked better questions in this case, that these things wouldn't have happened?" a prosecutor asked "Beth."
"Oh, I don't believe that at all. I think they would have happened, regardless of the number of questions I asked," she replied.
Glad the jury saw fit to place guilt where it belonged.
83 million is its own win for some players! Wow! That he scammed that much!
Validates that no one should manage your funds or at the very least report once a month it's activity. No way would I put the funds into another person's name. He has legal total control.
Wow. Just fyi, if you win a jp, you can set up brokerage accounts, etc. in the name of a trust. It does not have to be the name of a person. I would set up two entities and funnel investments through to the trust . Legal and easy to do. I am surprised that the winner's husband (an attorney) did not know this and allowed accounts to be set up in Kurland's name. And to rely on one person to tell you about your money is just the height of stupudity.
That crook might rat her out. A total shame he ripped her off for $83 million.
The issue isn't him claiming on their behalf but what happened afterwards. They could have easily moved on but instead they failed for his investment schemes which he took full advantage of. That's a completely separate issue and unrelated to the claiming process which the media is now conflating. Claiming anonymously is still the best option. Just don't let your lawyer become your financial adviser.
By trust, I was not referring to Kurkand claiming on their behalf. I am referring to separate trusts created post receipt of the money... investment trusts.
These winners were unusually lazy and did not attempt even once to oversee their money. They would have been cheated at some point by someone and I bet it will happen again. I kind of lost a lot of sympathy for them.
I just wanted to say thanks to Kate, who did a heroic job of writing an excellent article about this very complex topic.
I agree Todd and a great closing line. This couple has not learned their lesson on any level.
Wow, I can't believe these people were that Naive! I certainly hope they can recoup some of their stolen money.
This is exactly my point Anonymous or no Anonymous won't protect you from scams. Like I said you either free spending your money or someone else is free spending it for you. If you wish to be anonymous don't play Biglotto play small lotto pick3 lol :)
If this crooked lawyer rat out this anonymous winner, he should get life in prison. It's sad he already stole $83 million. It makes everyone think twice, before choosing any attorney ,if you win big .
" He had access to it. We did not. He set it up as though it was basically, his account"
No words..
I don't really get the whole "anonymous" thing. All you did was buy a $2 lottery ticket and got incredibly lucky (and rich I might add). Either way this couple still got taken.
They're biggest downfalls is entrusting so much money to someone you barely met on the internet. Kurland did a great job of marketing his services. Paid handsomely for said services too. Maybe if they started out small then gradually increase their assets under management things would have turned out differently. Personally I'd prefer a team of professionals I would hire watching over one another. Limited access if you will. You need A and B to move money but Kurland would only have A. Kurland would need another party on my team of experts to grant B.
Thanks to the new design my long message didn't get lost. The old one I'd have to type it out all over again. Thanks Kate for the great article.
My issue is your husband is a lawyer. If they could have just asked when will our statements come and I need to be on the account too.
He probably agreed with the wife since she purchased the tkt
I mean buying horses and then going back to the account to get more
that's like losing on slot machine and getting a cash advance bcuz u know u abt to hit and lose again
this case of all is mind blowing
What's there not to get about the need for anonymity? What the ticket cost is completely irrelevant. The new found wealth can be overwhelming, attracts a level of attention one is unable to handle, and even worse can put lives at risk. I think it's great you're not bothered by all of that but a lot of people are and the option to do should ALWAYS be available to them.
Do you think that the real winner's names in some cases filter thru to agencies and thatz how people find out?
So after taxes and $$ to charity, what's left? Is there enough to continue paying 10 family members $125 kyr
I couldn't sleep and within 24hrs demanded my name be on the accnt or a family member, something
No, the state lottery would be violating state law and their reputation would be ruined if they released the name of an anonymous winner. And courts allow anonymous names in legal proceedings in certain situations and that is protected as well.
It's unfortunate the winners were not lottery post members. Otherwise they would know exactly what to do!
So back to anonymity. Illinois law says anything over $250K can remain anonymous...but the next line is what gets me. Paraphrasing here: However if someone uses the FOIA we will comply with that law and give them the name and city of the winner. Darned if you do, darned if you don't.
Does this just pertain to the average Joe Doe who uses anonymity without a trust? I'd think a trust lawyer would be the way to go. No matter what, in this day and age if someone wants to unearth something seems like they get their way.
that what am thinking, the winner husband a lawyer himself. Some thing is not right
1. You have to first ask if the lottery allows trusts to claim....regardless of anonymity.
2. If yes, you need to see if the Foia law specifies the release of the winners'name---claiming entity or the actual winner behind the trust. If it does not specify, it should be narrowly read. I would look to the legislative history of the state foia law for clarification.
Wonder if their thought was "too much $ to handle" let someone handle it and we just sit back n live a carefree life
And to think the winners husband is a lawyer yet he allowed Kurland sole access/control over the accounts! Her lawyer husband didn't even know enough to have his name on the accounts so he could receive bank statements too???
Wouldn't want her husband representing me even if he was working pro bono! (For free) G5
Claiming anonymously has only one benefit. It simply protects you from people coming at you. Other than that, you're on your own as to who you approach to help you manage your new lottery windfall
There are liars, cheats, thieves and scoundrels in every profession. It's your responsibility to figure out who you trust. You could do an excellent job of vetting people to help you and still wind up hiring a con artist. And most con men do an excellent job of making you think they're legitimate. They're too good at it actually. G5
Yep! If they over talk you, talk too fast, look at you with daring eyes yikes
ran into a guy at Flamingo in Vegas who was watching people play, he had on a maintenance outfit and said he had people in technical ofc that could help you win a jkpot
but u had to give him ur players card
i heard him make a call like he was talking to someone who managed the machines
we walked to a machine n sat down but I refused to gv him my card--alerted security and then saw him at another casino working another lady
watch people talk and their movements
the day Kurland bought over 2 investors, it wld hv been ova--street hustlers
Did they ever find out who won that latest big jackpot mm in vermont?
I always thought anonymity meant the lottery wouldn't publish the name and location of winners. Doubt any state lottery can prevent a store clerk or even a neighbor that noticed a huge change in lifestyle from knowing their identity and revealing it.
The day after it was known the MM jackpot was won, the store were the ticket was sold became national news.
"The winning $1.337 billion ticket was purchased at the Speedy Café Speedway gas station in Des Plaines, Ill., a suburb northwest of Chicago, according to the Illinois Lottery."
Just a guess, it's possible up to a hundred people or more might already know the winner's identity. And the winner still hasn't come forward.
Over the years, I have kept a list of what to do when I win the big big lottery. Since finding USAMega and reading your stories over the years, I have added many little things to that list. You know, things like get rid of your cell phone #, don't quit your job right away, make a HUGE contribution to this website, etc. You know, the important things to do!
My wife will tell you how much I do not trust people. I tell her all the time to zip her purse shut because I don't trust people when we are out. Now I just told her I need to change my Lottery Notes again. When I told her about this story, it seems I may need to a second lawyer to keep and eye on the first lawyer. Do I then need a second accountant to keep an eye on the first?
Mr Kurland needs to be put in general population and let be accidentally known he's into child porn.
Too Harsh? I don't think Beth would think so 🤔
What if the lottery fairy promised one a huge jackpot win on one condition-that condition being that one would have to spend 2 hours every month double checking and verifying the winning assets and investments first hand?
I think the majority of winners would not follow through.
It does not matter how many attorneys or accountants a winner hires. It starts with the winner exercising a little effort and common sense.
I agree--sometimes people want to win but it probably was too much hassle and they didn't want to worry abt keeping track
now they have to
lawyers are not financial analysts
I know they have to be kicking themselves that's a lot of $$
They would hide from public to protect themselves' but couldn't protect their wealth from evil Lawjer kurtland. Karma is a Bicth "
"However if someone uses the FOIA we will comply"
It seems that the policy is to not publicize the winners, but that's very different from allowing winners to be anonymous (which obviously isn't the case if they'll release the information in response to a FOIA request. Over the years I've seen an awful lot of information that said various lotteries were required to release the names of winners and I assumed there was actually a specific law or rule regarding lottery winners in those states. When the PB winner in NH sued to keep the lottery from releasing her name the case went in her favor because instead of an actual law or rule the NH lottery was simply interpreting a generic open records law as including lottery winners among those whose financial dealings with the state are public records.
If there's a specific law or rule there's probably little chance of getting around it, but for any policy based on interpretation of a generic law the actual wording of the law will be important. One thing that seems certain is that if a state allows a prize to be claimed by a trust or LLC then the trust or LLC is the winner. Trusts are generally private because the name of the trustee will be released while the name of the beneficiary won't be released. For LLCs the name of the managing member will be released, but state law may or may not protect the names of the other members.
"And to think the winners husband is a lawyer "
What kind of lawyer was he? It sounds like he may have gone to law school 30 years ago, and maybe the only thing he's done since then is something like patent law that has very little overlap with stuff that's relevant to wealth management. One thing that seems certain is that until recently he was far too trusting, so I'm pretty comfortable thinking he didn't deal with criminal defense, prosecution, or probate.
That said, there were an awful lot of red flags, so I suspect a major factor was realizing that handling the money was beyond their skills and the belief that they should let somebody with suitable experience make the decisions.
"Doubt any state lottery can prevent a store clerk or even a neighbor that noticed a huge change in lifestyle "
The lottery could impose a rule that their retailers aren't allowed to reveal the information but most employees wouldn't be bound by the retailer's contract, and the first amendment means anybody who's not contractually obligated to keep the secret is free to offer their opinion. I've got no idea how many people may have bought lottery tickets from that store, but if I were to win any major prize I wouldn't dream of going back to the store for at least a week because I wouldn't want to remind anybody that I'd bought lottery tickets there,
Fortunately, I think most non-attorneys know that attorneys are trained in facts and evidence and documentation and tend to have a great deal of intellectual curiosity.
Most 30 plus year attorneys are at the top of their game. Attorneys rarely retire at 55. It is more plausible that he never actually practiced or worked as an attorney and/or has some sort of health related limited intellectual disability.
"Doubt any state lottery can prevent a store clerk or even a neighbor that noticed a huge change in lifestyle from knowing their identity and revealing it." Very true.
But it's also true that maybe it means something that the ticket was purchased at The Speedy Cafe Speedway in Des Plains, and maybe it doesn't mean anything. There's no guarantee that a regular customer of the store bought the winning ticket. The winner could easily have been passing through Des Plains, stopped to buy gas, used the restroom, and bought the ticket before returning to their car and jumping on the interstate to continue on to their final destination two states away. As for not coming forward yet is concerned it's also possible the winner doesn't know they won.... I hate the thought of they don't know, but it could happen. G5
Agreed. A lot does depend upon the type of lawyer involved.
The winners husband could possibly have a specialized practice and limited it to for instance to Real Estate. If that's the case then it wouldn't be unusual for them to feel the need to hire an attorney with a different specialization. Why not hire a lawyer that bills himself as a "Lottery lawyer"?
I'm sure Jason Kurland is as professional looking and sounding as can be, and his legal credentials are legitimate. But it's also the case that his moral character is that of a conman. He'd be a very hard guy to throughly vet as being "clean".
People say "Trust but verify" but that really doesn't guarantee anything. Ya gotta do the best job you can do, but there's a limit as to what you can learn. I don't know how to go about verifying someone 's moral compass. That's not a very tangible thing. G5
I used to live in the eastern part of the state of New York about a two drive north of Long Island where Kurland's law office was located. I'd heard of Jason Kurland and thought to myself; "He'll the first guy I'll call should I win big." Lucky me in that I never won big. But from reading the above article, you can see how easy it is to get hooked up with the wrong guy.
Although it wont be anytime soon, it's going to be interesting to see the length of Kurland's sentence. I hope he hasn't gotten out on bail since his guilty verdict was announced, and I hope the judge hits him hard. I also hope he'll be housed in a state penitentiary overflowing with violent hardcore felons. He deserves it.
Getting hooked up with the right guy isn't all that difficult, but even then nothing is guaranteed. If you win big, you most likely need a financial adviser that's a "Fiduciary". They're obligated to put your interests ahead of theirs. There are a few different types of Fiduciary's, some specialize in retirement planning, others focus on building their clients wealth. Even though a Fiduciary has pledged to put your best interest ahead of theirs, it's impossible to be 100% certain that they'll actually do that in every transaction you have with them. I'd venture to say that you'll be very hard pressed to find a fiduciary that doesn't put you first, but unfortunately you can never be 100% positive about that. G5
If you can't trust the liars in 3 piece suits to look out for you, who can you trust?
Monthly seems excessive, at least a monthly sit down. But a semiannual sit down would work, provided they are working monthly or weekly or so forth on making sure I'm not getting screwed. I might see myself paying for that.
Illinois won't publish the name of the person validating the winning ticket, but there are other ways to find out that information without waiting for someone to file for discloser using the FOIA. And knowing which store sold the winning ticket is a good starting place.
Illinois sold 11.5 million tickets for that drawing so without knowing where the ticket was sold and at that point made finding the identity of the ticket holder, mission impossible.
As for people going to the store trying to find out who won, from the women in Kate's article:
"But as we went by the convenience store, there was every media — there was helicopters, there was every piece of media, there was locals, you know, national. I so badly wanted to get out of there, I wanted to go under the seat. I became anxious."
And that happened before her ticket was even validated. At that moment whether or not the state lottery offered anonymity was moot. My point isn't about the "what ifs", it's about the possibility of someone or lots of people finding out the winner's identity even before the lottery knows.
"I think most non-attorneys know attorneys are trained in facts and evidence and documentation "
Sidney Powell's legal defense: "Reasonable people wouldn't believe her election fraud claims".
True. It's very possible someone could learn the winners identity before the lottery knows.
The only way I can think of that nobody could find out the winners name is if the winner told absolutely no one they have the winning ticket and did nothing with it (other than put it a safe deposit box) for five or six months.
How anybody could keep a secret like that to themselves for that amount of time is beyond me!!! If it was me, I'd be bursting at the seams and want the money in my possession as soon as I could get it. Many people that know me well would immediately sense something was up simply by the way I'd be acting.
And there's this: Nobody has a lock on tomorrow. What if the winner told absolutely no one, stashed it in a safe deposit box, and died three weeks later! The ticket would expire sitting in the safe deposit box. That scenario has one heck of a longshot from happening, but crazy things like that can and do happen. G5