What to Know
- A New York attorney who branded himself the “Lottery Lawyer” has been charged with swindling millions of dollars from jackpot winners in a conspiracy that federal prosecutors say involved a member of the Genovese crime family.
- An indictment unsealed Tuesday charges the attorney, Jason “Jay” Kurland, with conspiracy, wire fraud and money laundering. Prosecutors say Kurland’s clients lost more than $80 million in the scheme.
- Prosecutors said Kurland encouraged his clients to make large investments in entities run by Christopher Chierchio, described in court papers as a soldier in the Genovese crime family, former securities broker Frank Smookler and a fourth co-conspirator named Frankie Russo.
A New York attorney who branded himself the "Lottery Lawyer" has been charged with swindling millions of dollars from jackpot winners in a conspiracy that federal prosecutors say involved a member of the Genovese crime family.
An indictment unsealed Tuesday charges the attorney, Jason "Jay" Kurland, with conspiracy, wire fraud and money laundering. Prosecutors say Kurland’s clients lost more than $80 million in the scheme.
Kurland is a self-dubbed "Lottery Lawyer" purporting to represent dozens of lottery winners throughout the country with total winnings of approximately $3 billion. One of the victims won the $1.5 billion Mega Millions lottery, authorities said, while another had hauled in a $245 million Powerball jackpot. Prosecutors said Kurland had been entrusted to safeguard the lottery winnings, charging clients upfront fees between $75,000 and $200,000.
Kurland pleaded not guilty and was released on $1 million bond. His defense attorney declined to comment on the indictment.
Kurland’s law firm, Rivkin Radler, said it had been "taken by complete surprise" by the charges and is cooperating with the federal investigation. The firm issued a statement saying it was "taking immediate steps to remove Mr. Kurland as a partner."
Prosecutors said Kurland encouraged his clients to make large investments in entities run by Christopher Chierchio, described in court papers as a soldier in the Genovese crime family, former securities broker Frank Smookler and a fourth co-conspirator named Frankie Russo.
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The businessmen "repeatedly discussed how to cover their tracks and impede any investigation into their conduct," prosecutors wrote, citing one wiretapped call in which Smookler and Russo discussed destroying hard drives.
"When they subpoena us, they’re going to ask for that," Smookler said, according to court records.
"Well, you would have to replace them because you can’t make it look obvious," Russo replied, according to prosecutors.
Chierchio’s defense attorney, Gerald J. McMahon, said his client was "not guilty of these fraudulent charges." He also disputed Chierchio was involved in organized crime. "If he were not Italian, there would be no accusation of this nature," he told The Associated Press.
Kurland, who also practices real estate law, was paid kickbacks for steering jackpot winners to Chierchio, Smookler and Russo, prosecutors said. Chierchio, Russo and Smookler are accused of siphoning money from the jackpot winners’ investments.
The businessmen "profited handsomely," prosecutors wrote in court filings, "fueling lavish lifestyles that included flying private jets, taking exotic vacations, buying boats, paying country club dues and even 'wrapping' luxury cars."
Each of the defendants pleaded not guilty. Smookler was free on $2.5 million bond and Chierichio was free on $3 million bond. The judge approved a $2 million bond for Russo, but the government is appealing it.
"Lottery winners can't believe their luck when they win millions of dollars, and the men we arrested this morning allegedly used that euphoric feeling to their advantage," said FBI Assistant Director-in-Charge William Sweeney. "The FBI New York discovered how these victims were persuaded to put large chunks of their cash into investments that benefited the defendants. Rather than try their luck at the lottery, these men resorted to defrauding the victims to get rich, but their gamble didn't pay off."
Kurland was previously interviewed by CNBC as a legal expert on lottery matters. NBCUniversal is the parent company of CNBC and NBC 4 New York.
