Malden man, four Revere residents indicted in alleged Mass. Lottery ticket cashing scheme

AG: Suspects, stores involved in ‘10-percenter’ money laundering scam which deprived state of tax money

  A 45-year-old Malden man and four Revere residents were among 12 suspects and three stores in the area indicted in connection with an alleged ongoing “10-percenter” lottery ticket cashing scam. The indictment alleges the 12 individuals and employees at the three stores robbed the state of tax revenue by laundering lottery winnings and lying under oath on numerous lottery claim forms. The charges are the result of an investigation by State Police assigned to the Massachusetts Attorney General’s Office, State Police assigned to the State Treasurer’s Office of Investigations, the State Police Gaming Enforcement Unit and the Massachusetts State Lottery Commission (MSLC) into an alleged calculated scheme carried out by the defendants to defraud the state of taxes on lottery winnings and other debts owed to the Commonwealth.

  Ghanshyam Patel, 45, of Malden, was indicted on a charge of Conspiracy to Evade Taxes. In the indictment Patel was identified as an employee of Robinson’s News Convenience Store, which is located at 556 Eastern Ave. in Malden’s Linden Square. The other 11 defendants were also indicted by a statewide Grand Jury with the following charges:

  – Kenneth Grossman, 69, of Revere, Conspiracy to Evade Taxes; Attempting to Impede/Obstruct Administration of Massachusetts Tax Laws; Money Laundering

  – William McNamara, 67, of Revere, False Statement Under Penalty of Perjury; Conspiracy to Evade Taxes; Attempting to Impede/Obstruct Administration of Massachusetts Tax Laws; Money Laundering

  – John Heller, 73, of Revere, Conspiracy to Evade Taxes

  – Adam Derebala, 29, of Revere, Failure to File a Tax Return

  – Peter Marano, 52, of Boston, Tax Evasion

  – Karl Voelker, 67, of Boston, Conspiracy to Evade Taxes

  – Frank Obey, 80, of Lynn, False Statement Under Penalty of Perjury (2 counts), Conspiracy to Evade Taxes, Attempting to Impede/Obstruct Administration of Massachusetts Tax Laws, Money Laundering

  – Peter Marano, 52, of Boston, Tax Evasion

  – Karl Voelker, 67, of Boston, Conspiracy to Evade Taxes

  – Paritosh Patel, 48, of Reading, Conspiracy to Evade Taxes

  – Nelson Tejada, 43, of Chelsea, Conspiracy to Evade Taxes

  – MDGolam Talukder-Manik, 57, of Lynn, Conspiracy to Evade Taxes

  – Muhammad Khan, 52, of Medford, Conspiracy to Evade Taxes

  The following businesses were also indicted on charges specified:

  – Underground Express, 31 Winter Place, Boston, Conspiracy to Evade Taxes

  – Richdale, 4 Lowell Road, North Reading, Conspiracy to Evade Taxes

  – NT Lucky Variety, 137 Arlington Street, Chelsea, Conspiracy to Evade Taxes

  All of the defendants, including representatives of the businesses, will be arraigned in Suffolk Superior Court at a later date.

  The AG’s Office alleges that from April 2020 through May 2021, the defendants, who are ticket-cashers, store owners or employees, purchased winning lottery tickets from the true winners for cash, at a discount to the value of the tickets. This scheme – commonly known as “ten-percenting” – is a practice where individuals claim winning lottery tickets and retain a percentage of the winnings, sometimes as high as 10 or 20 percent of the proceeds as fee from the true winner. This arrangement allows the true winners to avoid financial obligations, including state and federal taxes.

  According to the indictments, store owners and employees funneled winning tickets to Frank Obey, Kenneth Grossman and their runners. According to three indictments, the defendants then presented the Massachusetts State Lottery Commission with false claim forms in which they declared, under the pains and penalties of perjury, that the winnings were their own.

  Two true winners, Peter Marano and Adam Derebala, were identified and stand charged respectively for tax evasion and failing to file a tax return. Both are alleged to have circumvented the legal ticket-claiming process.

  The “ten-percenting” scheme is designed to defeat government collection of back taxes through the Department of Revenue (DOR) Intercept Program. The DOR program is an automated process used to intercept and collect Massachusetts State Lottery Commission winning payouts, over $600, to satisfy delinquent debt. Massachusetts law prohibits the unlawful assignment of winning lottery tickets.

  This investigation also identified Frank Obey, Kenneth Grossman and William McNamara as individuals who were using the Massachusetts State Lottery to launder money.

  The Massachusetts State Lottery aided in this investigation, by working with investigators in the AG’s Office to identify claims of the alleged perpetrators of this scheme. The MSLC’s Compliance and Internal Audit Department focuses on the prevention, detection and investigation of those who defraud or attempt to defraud the lawful ticket-claiming process.