A New York man known as the “Lottery Lawyer” faces felony fraud charges in a scheme that tricked his jackpot-winning clients into believing they were investing millions of dollars in legitimate businesses.
A federal indictment unsealed Tuesday in a Brooklyn federal court accuses 46-year-old attorney Jason Kurland of allowing “co-conspirators to pillage his clients’ bank accounts for their own enrichment,” acting U.S. Attorney Seth DuCharme said in a statement.
» FROM MAY: Family turns in $1 million cash it found in middle of road
Kurland and three other men face multiple counts of wire fraud, wire fraud conspiracy, money laundering and money laundering conspiracy, federal prosecutors said. Kurland was also charged with honest services fraud, according to The Associated Press.
The scheme bilked more than $107 million from Mega Millions and Powerball winners after getting them to invest in companies run by Kurland's alleged accomplices.
Kurland is accused of pocketing hundreds of thousands of dollars while more than $80 million of the loot remains unaccounted for.
» FROM FEBRUARY: 22-year-old grocery store bagger wins $70 million lottery prize
One victim of the scheme was the anonymous South Carolina resident who claimed a $1.5 billion Mega Millions jackpot back in March 2019 — the largest payout to a single winner in U.S. history. Another of Kurland’s clients won $245 million from a Powerball ticket, and a third was a winner of a $150 million jackpot, according to NBC News, citing the U.S. attorney’s office.
The lottery winners first came to Rivkin Radler, Kurland's law firm, seeking investment advice, prosecutors said.
» 2019: Winner of $14.6 million lottery jackpot never shows up to claim prize
Kurland initially presented traditional options with reputable corporations, but later he allegedly convinced them to invest in dubious companies run by his partners — Christopher Chierchio, 52; Francis Smookler, 45; and Frangesco Russo, 38.
The ongoing investments kept the scheme alive and funded "lavish lifestyles" for Kurland and the others, prosecutors said.
Chierchio is alleged to be a foot soldier in the Genovese crime family, court documents said, and Smookler is a former securities broker.
All four pleaded not guilty, and all were released on bond the same day except Russo, whose $2 million bond was pending an appeal from prosecutors, AP reports.
» FROM JANUARY: Lucky Powerball ticket sold in Florida hits for $396 million
Kurland's firm issued a statement, saying the federal investigation came as a "complete surprise" and that it would be "taking immediate steps to remove Mr. Kurland as a partner," AP reported.
Chierchio's attorney proclaimed his innocence and also denied that his client was a member of the mafia.
"If he were not Italian, there would be no accusation of this nature," Gerald J. McMahon told the AP.
The defendants became aware in July that the FBI was closing in and began calling each other to discuss their unease, court documents said.
Smookler is alleged to have told Chierchio in one call that "we have to [expletive] give that money back to these people," according to court papers.
Smookler and Russo are also accused seperately of strongarming jewelry salesman Gregory Altieri for repayment on a $400,000 "street loan."
Altieri was indicted in July in a pyramid scheme valued at $200 million, and court papers allege that some of the money from the lottery victims also passed through his hands.
About the Author
