Boston Federal Court

Watertown Father, 2 Sons Charged with Avoiding Taxes on Millions in Lottery Winnings

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The following announcement was provided by the U.S. Attorney’s Office, District of Massachusetts:

A father and his two sons were charged yesterday in connection with a “ten-percenting” scheme in which they allegedly cashed winning Massachusetts state lottery tickets on behalf of the ticket holders to avoid taxes on the winnings.   

Ali Jaafar, 62, and Yousef Jaafar, 28, both of Watertown, and Mohamed Jaafar, 30, of Watertown and Waltham, and were each indicted on one count of conspiracy to defraud the Internal Revenue Service, one count of conspiracy to commit money laundering and multiple counts of filing false tax returns. According to the charging documents, the defendants conspired with others to purchase winning lottery tickets from the actual winners for cash, at a discount that was typically between 10-20 percent of each ticket’s value, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns – a scheme commonly known as “ten-percenting.” The defendants and co-conspirators then allegedly presented the winning tickets to the Massachusetts Lottery Commission as their own and collected the full value of the tickets. It is also alleged that the defendants reported the ticket winnings as their own on their income tax returns and improperly offset the claimed winnings with purported gambling losses, thereby avoiding federal income taxes. 

Between 2011 and 2019, the defendants together cashed more than 13,000 lottery tickets and claimed more than $20,989,284 in Massachusetts lottery winnings. Based upon their submitted lottery claims, in 2019, Ali Jaafar was the top individual lottery ticket casher for Massachusetts. Mohamed Jaafar was the third highest individual ticket casher and Yousef Jaafar was the fourth highest individual ticket casher.

Around Town

Watertown Comes Out to Celebrate the Town’s Creative Talents at First Arts Market

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Charlie BreitroseVisitors at the first Watertown Arts Market had a variety of tables to visit. People strolling around Arsenal Park on Saturday got a glimpse of the artistic creativity that Watertown has to offer during the first Watertown Arts Market. More than 70 artists and crafters and community groups set up tables along the oval path that rings the field at Arsenal Park. The event attracted painters, quilters, ceramic sculptors, authors, jewelry makers, and more. The east end of the park featured a series of bands, and grab a bite to eat.

Business

Russo’s Property Sold for North of $30 Million, Will be Closing in October

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Russo’sA produce shelf in Russo’s market, which will be closing in October. The price tag for properties on Pleasant Street owned by Russo’s came in well above the assessed value, according to reported sales prices, and the beloved market and garden center will be closing in October. Loyal customers mourned the news of the impending closing of the Watertown institution. Russo’s began as a family farm in 1893 and they sold their produce in Faneuil Hall and Quincy Market. It was started by owner Tony Russo’s grandfather Antonio, who emigrated from a village near Naples, Italy.

Around Town

Construction at Cunniff School Nearing Completion, See Photos Inside New Building

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Charlie BreitroseLight pours into the cafetorium at the new Cunniff Elementary School. The room has a stage as well as a full kitchen to prepare lunch for students. Watertown officials who got an inside look at the new Cunniff Elementary School gazed around in amazement at the nearly completed school building on Tuesday afternoon. Watertown Public School officials broke ground on the school on Warren Street on June 24, 2020, and the school is expected to open in mid-October 2021. Charlie BreitroseA view of the length of the new Cunniff Elementary School, with the cafetorium/gym entrance extending out at the end.

Entertainment

Watertown Arts Market Coming Saturday With Over 70 Tables, Music & More

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The wealth of arts and culture that Watertown has to offer will be celebrated this weekend when dozens of artists, musicians, authors and others gather together. The first ever Watertown Arts Market will take place Saturday, Aug. 21, at Arsenal Park. More than 70 artists, craftspeople and others will attend the event, said Jacqueline Dentino, chair of the Watertown Arts Market Committee. The Arts Market will take over Arsenal Park from noon to 5 p.m. and will be similar to a farmers market.

Police/Fire

Police Warn of Dangerous Coyotes After Pack Attacks Dogs Being Walked in Watertown

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Clipart PandaA coyote. A dog was killed and another was injured when they were attacked by a pack of coyotes in Watertown. Watertown Police put out a warning on Monday about the attack that took place at about 11 p.m. on Sunday, Aug. 15. They warned residents to be aware of coyotes, that have been spotted recently in on the streets and bike paths in the East End of Watertown.