A Massachusetts man pleaded guilty Tuesday in U.S. District Court in a scheme to buy millions of dollars' worth of winning Massachusetts State Lottery tickets at a discount to help the ticket holders avoid taxes, according to the U.S. attorney's office.
Clarance Jones, 80, of Lynn, Massachusetts, was arrested last fall and charged with tax fraud and filing false tax returns. Law enforcement authorities alleged he used a "10-percenting" ploy to become the nation's top lottery winner.
Under the scam, ticket holders sold the winning tickets to Jones for less than face value. He presented them to the lottery as his own, and collected the full winnings. Jones reported the winnings on his tax returns, but offset them with purported gambling losses.
From 2011 through 2017, Jones has cashed more than 7,300 winning lottery tickets with a total of $10.8 million.
It is alleged that during that six-year period, Jones paid less than $16,000 in federal tax on a total of $52,000 of reported income. During this period, Jones claimed that he was a professional gambler and all of his winnings were offset by alleged losses.
He is scheduled to be sentenced by U.S. District Court Judge F. Dennis Saylor on August 13. He could spend as many as eight years in federal prison and pay $350,000 in fines.
Jones, who has had at least seven Lynn addresses since the 1990s, according to public records, could not be reached for comment.
In addition, two co-conspirators, store owners whose businesses were not identified in court filings, have pleaded guilty in connection with the scheme.
George Kinslieh, 68, of Lynn, was charged with one count of filing false tax returns. He is scheduled to be sentenced on June 26.
Bhavna Patel, 44, a Peabody resident, pleaded guilty to one count of conspiring to defraud the IRS and is scheduled to be sentenced on May 28.
From at least 2013 through 2015, store owners Kinslieh and Patel purchased winning lottery tickets from the ticket holders for cash at a discount to the value of the tickets. This allowed the winners to avoid reporting the winnings on their tax returns, according to court documents.
Kinslieh and Patel gave the winning tickets to Jones, who presented them to the Massachusetts State Lottery as his own, and collected the full winnings. Jones and the store owners then shared the excess winnings.
Patel and Kinslieh could not be reached for comment.
Congratulations to law enforcement for catching these three criminals. These penalties should put the fear of God into future crooks.
Clarance Jones, 80, might have replied, "I was just lucky". Ya right! Lock him up.
That's Jones, Kinslieh and Patel all rolled into one.
Just like Al Capone, the IRS got Clarence Jones for tax fraud.
"Book 'em Danno"
Law enforcement authorities alleged he used a "10-percenting" ploy to become the nation's top lottery winner.
It looks like the enforcement people or whomever wrote this article never heard of "ten percenters" that are usually found at race tracks. But maybe because they never heard of one declaring to be a professional gambler to avoid paying taxes.
From at least 2013 through 2015, store owners Kinslieh and Patel purchased winning lottery tickets from the ticket holders for cash at a discount to the value of the tickets. This allowed the winners to avoid reporting the winnings on their tax returns, according to court documents.
Wonder what percentage they got considering Jones got $1.08 million. With the number of stories about multiple large prize winners, I always assumed most of them bought the winning tickets at a discount; maybe even 50 cents on the dollar. Interesting scheme to say the least.
He is scheduled to be sentenced by U.S. District Court Judge F. Dennis Saylor on August 13. He could spend as many as eight years in federal prison
Jones' crime was falsely declaring gambling losses so I really doubt someone claiming they lost as much as they won would say "I was just lucky". And at 80, eight years is almost equivalent to a life sentence.
Found Him..
Courtesy of Lottery Critic.
As unbelievable as it sounds, there are players out there who have won the lottery more than 100 times. It’s true! These so-called “Frequent Fliers” have defied the odds over and over—racking up thousands, if not millions in winnings over time. Ask Clarence W. Jones, a self-proclaimed “professional gambler” who has won over 10,000 times!
Nice catch!!
I want to see what sentences Kinslieh and Patel get. Jones was the patsy they sent to cash the tickets they bought from winners.
K&P should have employed a flock of seniors, but it looks like Jones convinced them he was "da Man".*
*Not to be confused with "The Man".
It’s possible that K&P brought this up with Jones. The spreading of the wealth amongst Seniors to throw off any suspicion , but Jones being the man that he is, probably deep sixed that idea. Telling these two “ l have been around for a long long time, l know how to game the system, everything will be alright, you’ll see.” Probably telling them that he is paying peanuts to the IRS. Added that no one is going to mess with an old man, least of all the IRS. You know the old saying “ it’s all fun and games until someone loses an eye.” I find it extremely difficult to believe that K&P are charged with one or two offenses. They probably drew up a contract with Jones, which he signed stating he will take “ full responsibility “ should things go south. I mean whose going to lock up a 80 year old, could have been the thinking. Well think again Jonesy!
"Don't mess with the IRS" Al Capone
When will they ever learn?