ANDOVER MAN CHARGED WITH CONCEALING LOTTERY TICKET PROCEEDS FROM BANKRUPTCY CREDITORS
BOSTON, Mass. - An Andover man, formerly of Wakefield, was charged today in federal court with two counts of bankruptcy fraud for concealing his interest in two $1 million winning lottery scratch tickets, as well as one count of filing a false tax return.
United States Attorney Carmen M. Ortiz, Susan Dukes, Special Agent in Charge of the Internal Revenue Service - Criminal Investigations, Boston Field Office and James C. Burrell, Acting Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office announced today that JAMES S. GREGSON, 40, of Andover, and formerly of Wakefield, has been charged in an Information with two counts of bankruptcy fraud and one count of filing a false tax return.
The Information alleges that in 2002 GREGSON had purchased a $1 million winning lottery ticket that paid $35,000 annually after-taxes, and in 2002 had purchased the right to at least fifteen $35,000 annual payments from a second $1 million winning lottery ticket, but that GREGSON failed to disclose either in his 2005 bankruptcy filing. In addition, the Information alleges that when his bankruptcy trustee received information about one of the lottery tickets, GREGSON testified falsely under oath that his parents had funded the purchase of the first ticket when in fact GREGSON himself had done so. Finally, the Information alleges that GREGSON filed a 2003 federal income tax return which falsely stated his total taxable income as $0, when in fact it was at least $452,332.69 during that year.
If convicted on these charges, GREGSON faces up to 5 years imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine on each of the bankruptcy fraud charges; and 3 years imprisonment, to be followed by 1 year of supervised release and a $100,000 fine on the false tax return count.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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