Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

A LOSER IN LIFE'S LOTTERY

December 13, 2007

Things have gone so badly for Jose Betancourt that even a lottery jackpot does him no good.

The Fifth Circuit Court of Appeals puts in directly:

Jose Betancourt was convicted of two counts of possession with intent to distribute cocaine and one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine. He was sentenced to serve 292 months in prison and to forfeit, inter alia, his fifty percent share of the proceeds from a Texas lottery jackpot of over five million dollars.

I'm willing to bet his $2.5 million in lottery winnings exceeds what he will earn during his 292 months in prison.

Mr. Betancourt also was given a $150,000 payment by his lottery ticket co-owner to forfeit his claim on the winnings. The IRS found out, and they wanted that to go against outstanding tax liabilities. Mr. Betancourt's attorney wanted the money to cover his legal fees. The IRS won.

The Moral? Don't buy your lottery tickets with your drug earnings, I suppose.

Cite: U.S v. Betancourt, No. 06-40266

      Bookmark: del.icio.us • Digg • reddit