By Chris Kramer
A former Wakefield, Massachusetts attorney was collecting an income from lottery tickets at the time of his 2005 bankruptcy filing, but did not reveal this to the trustee, and has recently received a three-year sentence bankruptcy fraud.
James Gregson purchased from the original owner a $1 million lottery ticket that paid $35,000 per year, after taxes, the Boston Globe reports. He also reportedly purchased the rights to 15 more $35,000 payments from a second winning ticket. Prosecutors say that after the trustee was tipped off to this hidden asset, Gregson lied about owning the tickets and said his parents had paid for them, the Boston Business Journal reports.
For two counts of bankruptcy fraud and one count of filing a false tax return, Gregson will serve three years in prison, and will pay $232,971 to the IRS and $790,000 in restitution to his bankruptcy creditors. The latter amount is the estimated value of the lottery tickets he concealed at the time of his filing, according to the Globe.