A very strange new industry, one that runs the risk of bringing about fraud charges, has sprung up on the Internet. People are using popular garage sale websites and auction sites to put up listings to sell off lottery tickets that have proven to be losers. One man from Massachusetts even advertised --complete with a photo for proof -- that he had two entire boxes of these losing tickets. They appear to be scratch off tickets.
Those who buy these tickets can then use them if they want to write off lottery losses. These losses can then be represented as their own, and it can help them if they want to pay less than they should in child support. The buyers are typically lottery winners who want to balance out what they have won with a lot of fake losses so that not as much can be claimed if they owe back child support or debts for other types of things.
A similar industry involves people buying winning tickets right from the winners. This way, the money changes hands without any official record, and it is harder for collectors to see that the real winner ever got it. These people will pay less than the winning ticket is worth and cover the cost of the taxes.
If someone is not being paid what they are owed for child support because their ex-spouse is using fraud to avoid the payments, they may want to investigate their legal options. Everyone has a right to be paid what the court ordered if it is possible for the other parent to feasibly make those payments.
Source: Boston Globe, "Many ready to help lottery winners avoid taxes" Todd Wallack, Aug. 06, 2014