BOSTON — A Lynn man faces one year of probation in connection with a “10-percenting” lottery scam.
George Kinslieh was sentenced Wednesday in U.S. District Court by U.S. District Court Judge Leo Sorokin.
Last fall, the 69-year-old retiree pleaded guilty to one count of filing false tax returns.
Prosecutors alleged he purchased millions of dollars’ worth of winning Massachusetts state lottery tickets at a discount to help ticket holders avoid taxes on the winnings.
Co-conspirator Bhavna Patel was sentenced in May to one year of probation and ordered to pay a fine of $1,000 after pleading guilty to one count of conspiracy.
Co-conspirator Clarance Jones, 80, also pleaded guilty in May to conspiracy to commit tax fraud and filing false tax returns. He is scheduled to be sentenced in August.
The U.S. Attorney’s Office, which prosecuted the cases, said from at least 2013 through 2017, Kinslieh and Patel, who were convenience store owners, purchased winning lottery tickets from the ticket holders for cash, at a discount to the value of the tickets. That allowed ticket holders to avoid reporting the winnings on their tax returns.
They gave the winning tickets to Jones, who presented them to the Massachusetts State Lottery Commission as his own, and collected the full winnings.
Kinslieh did not report to the Internal Revenue Service or pay taxes on the income that he received from the ticket scheme.