Could lotto be used to launder money?

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Forums › Finance and wealth management › Could lotto be used to launder money?

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Batman

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#2291438 7-Aug-2019 10:13

https://www.tvnz.co.nz/one-news/business/one-client-purchased-100m-worth-of-property-with-cash-kiwi-estates-used-to-house-money-laundering

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jpoc

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#2291963 8-Aug-2019 00:36

kiwiharry:

You also run the risk of somebody else also getting the winning numbers, so your Division 1 winning jackpot would be shared equally with the other winners.

If you are just setting out to buy tickets from actual winners then this is not an issue. You are just paying for the actual prize amount plus a premium.

epr

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#2291971 8-Aug-2019 01:58

If you have enough illegal money launder enough to start a strip club this is literally a license to launder money as they print fake money and sell it to clients so just say you sold an extra many thousands every day and your money is clean. At least I think that is the idea.

Varkk

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#2292086 8-Aug-2019 08:48

From my extensive experience of watching Ozark season 1 (I haven't started on season2 yet). All you need is a cash heavy business. Strip club is an obvious example. Just add the extra cash to be laundered in with the days takings.

Rikkitic

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#2292090 8-Aug-2019 09:02

Tax people have a fairly precise idea of how much a normal cash business should take in. Major deviations from that will attract unwelcome attention.

Plesse igmore amd axxept applogies in adbance fir anu typos

Geektastic

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#2292183 8-Aug-2019 11:05

jpoc:

Even amazon are in on it.

Have you not noticed that there are self published ebooks on there?

Some of them are random text but they sell for hundreds of bucks.

Buy a pressy card for cash, create an account on amazon, buy a copy of your book and, after amazon gets its cut, you keep the rest all nice and legit (minus tax).

There are pressy card equivalents all over the world.

I have seen that kind of thing on Trade Me too. I once saw a broken laptop for sale for $9,999!

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#2292185 8-Aug-2019 11:08

Rikkitic:

Tax people have a fairly precise idea of how much a normal cash business should take in. Major deviations from that will attract unwelcome attention.

Remember that the cash has to go in a bank before the IRD will even know it is there.

I know someone who works in the private injury recuperation area as a provider. They do ACC work as well.

ACC = through the bank.

Private = cheque payment through bank, cash payment in drawer...! Believe me, grocery shopping, fuel etc all paid from a wad of cash.

pctek

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#2292380 8-Aug-2019 15:29

Rikkitic:

could a small group go around buying up large quantities of Lotto tickets for cash and would the likelihood of winning a significant percentage of the money back

haha. That would have to be the stupidest way ever.

I know a guy who used to gamble, he gave $1200 to a mate so he wouldn't spend it. Said hang on to it for a bit.

Friend went out and bought a bunch of lotto tickets, heaps of them. back in the day when they were only a couple of $ each...

Naturally none of them won a thing.

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#2292391 8-Aug-2019 15:40

jpoc

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#2293291 9-Aug-2019 22:25

Rikkitic:

Tax people have a fairly precise idea of how much a normal cash business should take in. Major deviations from that will attract unwelcome attention.

That is not true. In this area, the IRD focus on tradies who do cash jobs off the books and only put traceable jobs through the books.

The IRD will look at input costs such as receipts from 'plumbing supplies inc' and operational costs such as mileage claims. From that, they will get an idea of the level of business expected from a tradie and compare that with the actual reported business. They are not looking at money laundering at all.

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