The self-proclaimed “Lottery Lawyer” who represented a South Carolina woman who cashed in on a $1.5 billion ticket sold in the Upstate has been indicted on charges that he stole tens of millions from the winnings he was entrusted to invest.
On Wednesday, Jason Kurland — who marketed himself as representing the interests of dozens of lottery winners totaling $3 billion — was released on $1 million bond.
In all, prosecutors say, $107 million was taken from three lottery winners, including more than $70 million from the woman who in March 2019 cashed in her $1.5 billion Mega Millions ticket bought at a Simpsonville convenience store six months earlier.
The woman, who chose to remain anonymous, took a lump-sum payment of $877.8 million and dedicated portions of it to various South Carolina charities and organizations. It was the largest jackpot payout to a single winner ever.
At the time of the announcement, Kurland released a statement from the woman indicating her desire to use her winnings for good.
“Words can’t describe the feeling of such incredible luck,” she said in the statement. “I do realize that such good fortune carries a tremendous social responsibility, and it gives me a unique opportunity to assist, support and contribute to charities and causes that are close to my heart.”
However, the fraud against her would be the “largest and most egregious,” Acting U.S. Attorney Seth Ducharme wrote in a letter to the court this week pleading for Kurland to be released only with a substantial bond on charges that include wire fraud and money laundering.
The 34-page letter lays out the case against Kurland and three New York-area associates involved in the scheme — Christopher Chierchio, Francis Smookler and Frangesco Russo.
The letter includes allegations that Smookler and Russo threatened to torture and kill the wife and son of a New York jeweler who couldn’t pay back a high-interest loan involving the stolen lottery money.
Chierchio is represented by prosecutors as being in a mob group, the Genovese crime family.
All men pleaded not guilty during their arraignment.
When the Simpsonville lottery winner came forward, Kurland convinced her to invest $20 million in what she was assured were “conservative” investments. He also charged her a $200,000 upfront fee and $50,000 in monthly fees to represent her.
But prosecutors say Kurland’s true enrichment came in the form of kickbacks — $300,000 worth on the first investment, which was then laundered by splurging on purchases at Saks, Gucci and Old Westbury Golf and Country Club.
All the while, Kurland allowed three New York associates to pillage her account.
The following month, Kurland convinced the woman to invest $12.6 million in a diamond broker and wholesaler, which he said would result in a $2 million profit.
The money was used for luxury cars, private jets, yachts, expensive vacations and other extravagant items.
The diamond dealer was involved in a Ponzi scheme, prosecutors allege, and when he couldn’t repay $400,000 on a $200,000 loan, Smookler and Russo threatened to torture his wife and children in front of him.
This past April, Kurland convinced the Simpsonville winner to invest $19.5 million in a deal that would help the state of California buy personal protective equipment related to the coronavirus outbreak.
Prosecutors say the woman agreed on the understanding that all of the profit — represented as $300,000 per month — would go to charity.
Kurland then took an extra $19.5 million from her account without her knowledge to funnel into the PPE deal.
The deal never turned a profit for the woman, but one associate received more than $7 million from the state of California. None of the money was donated to charity. At one point, two of the associates threatened to sue the state.
The investigation into the fraud involved wire-tapped conversations during which the men, sensing pressure by authorities, increasingly discussed giving back some money to make the winners feel as if their investments were being handled wisely.
Follow Eric on Twitter at @cericconnor.
