BOSTON—A father and son from Massachusetts have both been sent to prison for running an elaborate lottery fraud scheme designed to enrich themselves and help prize winners avoid paying taxes on their windfall, prosecutors said.
Ali Jaafar, 63, and Yousef Jaafar, 29, both of Watertown, cashed in 14,000 winning lottery tickets over a roughly 10-year period, laundered more than $20 million in proceeds, and then lied on their tax returns to cheat the IRS out of about $6 million, the U.S. attorney’s office in Boston announced Monday.
The Jaafars purchased winning lottery tickets at a discount from people who wanted to avoid identification by the state lottery commission, which withholds taxes and outstanding child support payments from payouts….