Man wins lottery, loses in court

Comment #21

Teddi — Sat, 21 Jun 2014 02:57:03 GMT

I agree with you to a certain extent, but there is only so much one can learn without going to get a degree. Tax laws are so convoluted and so constantly changing that they confuse many who deal with it for a living. If it's simple accounting then I'm sure most can do it themselves with the right software but if you have multiple properties, business(es), several large ticket items that appreciate or depreciate over time, offshore investments, things start getting very tricky. There's only so mu... [ More ]

Comment #20

Teddi — Sat, 21 Jun 2014 02:13:57 GMT

Again, I didn't miss it and I understand it perfectly well. An advisor gave advice, the client didn't think much of said advice, the advisor then says hey, you don't have to take my word for it, talk to so-and-so at XYZ company. The client contacts so-and-so and likes what he hears. Obviously so-and-so was very convincing and the client had no reason to believe so-and-so and the advisor were in a racket together in order to swindle him. Why would he, when advisor has no ties to XYZ company? Hind... [ More ]

Comment #19

KY Floyd — Sat, 21 Jun 2014 01:42:15 GMT

You may not have missed it, but it sounds like you misunderstood that part.

When Flannery brushed off Singer, the court said Singer steered him to MacGrady

The correct analogy would be if you talked to Bernie Madoff and decided not to invest with him, and then went to PriceWaterhouseCoopers because Madoff said you should. I'm not putting 100% of the blame on the guy, either, but he made a really poor choice.

Comment #18

TheGameGrl — Fri, 20 Jun 2014 23:53:03 GMT

I am a beleiver in managing for oneself. Consult with folks, sure ,but ultimately manage your own finances, no matter the size. You ultimately have the name on the check. It is your responsibility. Knowledge is power. Learn.

Invest in your own provisions, and stop thinking that others know what is best for you.

I absolutely feel for this guy, the time it takes to draw up the legal paperwork and the delays...

Comment #17

mrcraft — Fri, 20 Jun 2014 18:04:28 GMT

When you build your team to help manage your sudden wealth, each component (tax, legal, accounting) has to be independent of each other. That serves as a de facto checks and balances.

Comment #16

kapla — Fri, 20 Jun 2014 17:53:27 GMT

Ok, the reason I am saying its his fault is YOU Don't GO TO THE GUY THE SCAMMER TELLS YOU TO!! You pick up the phone and call ANYONE else. You don't have to give your name or anything 'So I have an annuity and I am being told if I sell it to someone I will save on my taxes ..... that basic question to any tax professional would have kept **ALL** of this from happening. As they ALL would have said 'WHAT? NO, you still have to pay the capitol gains!' Sorry its YOUR money and its up to YOU to prote... [ More ]

Comment #15

Teddi — Fri, 20 Jun 2014 16:53:31 GMT

Agreed, especially when the IRS didn't tell him it was a no-no until 2 years later.

Comment #14

Teddi — Fri, 20 Jun 2014 16:50:51 GMT

No, I didn't miss that part. I just don't think it makes that much of a difference. If someone had told me to invest with Madoff and I wasn't much interested, if they then said to talk to an auditor at PriceWaterhouseCoopers, and that auditor told me that Madoff was a safe bet, I'd consider that advice as a secondary source from a person who is part of a longstanding and reputable company.

A doctor can give you the names of specialists to get a second opinion on a condition, I don't think th... [ More ]

Comment #13

Pita Maha — Thu, 19 Jun 2014 16:29:52 GMT

So it was simply the technicality of lapsed time that let the parasites and leeches get away with ripping off that man. I also usually side against such people when it's due to their own greed but in this case the guy trusted the professionals that lottery winners are constantly advised to seek the services of. Few people understand the more intricate aspects of finance and tax so they can be easily bamboozled by lies, which they don't know are lies because it comes from so-called professionals... [ More ]

Comment #12

KY Floyd — Thu, 19 Jun 2014 06:11:38 GMT

He got (or thought he got) independent experts all saying the same thing.

If you missed it, here's the smoking gun: When Flannery brushed off Singer, the court said Singer steered him to MacGrady

If he didn't think what Singer was offering was a good deal, why would he take advice from somebody they steered him to? They obviously shouldn't have deliberately misled him, but he made a stupid decision.

It's difficult understanding why he thought a one time payment was taxed as capital g... [ More ]

Comment #11

Teddi — Wed, 18 Jun 2014 19:48:09 GMT

I usually don't take the victim's side in these scam cases because it almost always boils down to their own greed and stupidity, but I side with the victim here. He got (or thought he got) independent experts all saying the same thing. If two or three unrelated advisors guide you to a certain course of action, I can't really blame him. He wasn't taking one person's word.

And if a company has never been sued, never had red flags raised on their practice, how are you to know that they aren't r... [ More ]

Comment #10

kapla — Wed, 18 Jun 2014 10:02:35 GMT

Exactly! How long would it take to make some calls and ask around? Even my small credit union has a on-site tax guy that you can just walk into and ask about how this transaction would be taxed. I am sorry but this one to me is totally on the winner.

Comment #9

Get paid — Tue, 17 Jun 2014 19:56:55 GMT

If ur lucky enough to win millions of dollars,u have to be vigilant,proactive,an everything else.Do ur research,trust no one.If u win an they r seekin u out red flag.Do ur own research.Get with repeatable firms that have a good track record with dealing with lottery winners. Did I leave out anything.

Comment #8

Stack47 — Tue, 17 Jun 2014 18:52:52 GMT

In 2000, Flannery filed a 1999 tax return that listed the payment from Singer as a capital gain. Two years later the IRS disagreed. It said he owed an additional $163,523 in taxes.

Annuities were taxed as ordinary income then and still are today. It's difficult understanding why he thought a one time payment was taxed as capital gains when the first 12 installments weren't, but probably because Flannery was given really bad advice by his lawyer. An average CPA would have told him the payment... [ More ]

Comment #7

mrcraft — Tue, 17 Jun 2014 16:32:28 GMT

I think legal, tax, and financial advisers that seek out winners like in this case are akin to ambulance chasers. The biggest mistake was choosing one of them. Do your own research and hire reputable firms to represent your interests.

Comment #6

noise-gate — Tue, 17 Jun 2014 14:17:38 GMT

There is no statute of limitations on Murder ONLY- as much as l can say that this guy got the short end of the stick, it was his responsibility to cross his t and dot his I .. The fault lies with him as well, you need to be aware of predators out there seeking to seperate you from your money. What's the adage a fool and his money are soon parted .

*For a moment when l read JD- I thought of our bud down in Southern California, but figured his not that foolish to begin with.

Comment #5

Gleno — Tue, 17 Jun 2014 14:10:16 GMT

Bad actors once again appearing on the scene. Not surprised to read that Singer Asset Finance is no longer in operation.

Comment #4

RedStang — Tue, 17 Jun 2014 14:08:19 GMT

He should of used a more reputable firm like Mohammed Sons.

Comment #3

dallascowboyfan — Tue, 17 Jun 2014 12:28:32 GMT

Comment #2

pawint — Tue, 17 Jun 2014 12:16:48 GMT

I agree. This statue of limitation is hogwash. By the time you find out something is wrong, investigate to be able to make a charge, and then take this issue a lawyer to file paperwork (3 years my @ss). Wrong on day 1 is wrong on day 100. Why would anyone care about how long you take to seek justice when you obviously need to get the money to sue and do your homework to prove the wrong?

This is the bad guy trying to get away with bad things by lobbying for this 3 year period to catch me... [ More ]

Comment #1

mypiemaster — Tue, 17 Jun 2014 12:07:13 GMT

This is not justice, my friend, statute of limitations or not.

Man wins lottery, loses in court

Lottery Post — Tue, 17 Jun 2014 11:28:04 GMT

A lottery winner who claims he was deceived when his lawyer teamed up with a finance company and persuaded him to take a lump sum for his annualized jackpot narrowly lost a split decision at the state Supreme Court Monday in a case that turned on how long victims have to sue.

In his suit against the finance company, John D. Flannery claimed and the Supreme Court concluded that he was given bad tax advice by attorney Glenn MacGrady and Singer Asset Finance to induce him to take a one-time paym... [ More ]