ENCORE: Long Island Liars

Summary

Scamfluencers: ENCORE – Long Island Liars

Podcast Information:

• Title: Scamfluencers
• Host/Author: Wondery
• Episode: ENCORE: Long Island Liars
• Release Date: September 30, 2024

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Overview

In the ENCORE: Long Island Liars episode of Wondery's Scamfluencers, hosts Scaachi Koul and Sarah Hagi delve deep into the intricate web of deceit spun by Jason Kurland, a once-respected attorney from Long Island. This detailed narrative uncovers how Kurland exploited the dreams of lottery winners, orchestrated fraudulent investment schemes, and ultimately faced the consequences of his actions. The episode serves as a cautionary tale about the dangers of misplaced trust and the seductive allure of quick wealth.

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Introduction: The Fall of a Lottery Lawyer [00:00 – 01:41]

The episode opens with updates on past Scamfluencers, highlighting Jason Kurland's downfall. Kurland, initially a real estate lawyer, ventured into representing lottery winners, defrauding three individuals out of nearly $100 million. His associate, Christopher Churchill, also faced legal repercussions, pleading guilty to money laundering and receiving a five-year sentence.

Notable Quote:

• U.S. Attorney: “Jason violated his solemn duties as a lawyer.” [00:53]

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The Genesis of the Scam [01:41 – 10:57]

The story traces back to November 2011, where Kurland, feeling stifled in his real estate law career, seizes an opportunity to represent lottery winners. His initial engagement with hedge fund managers claiming a $254 million lottery win sets the stage for his pivot to becoming the "lottery lawyer." Despite skepticism from peers, Kurland's reputation grows as he successfully navigates these high-stakes clients, positioning himself as a trusted advisor.

Notable Interaction:

• Jon Crowe: “If I won the lottery, I would take a very long time to claim my prize.” [02:02]

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Building the Scheme: Cheddar Express and Cheddar Capital [10:57 – 19:35]

Kurland partners with Frank Smookler and Frank Russo to establish Cheddar Express and Cheddar Capital, merchant cash advance companies designed to exploit lottery winners. By leveraging his clients' newfound wealth, Kurland convinces them to invest in high-risk ventures, pocketing hefty fees without transparent disclosure. This section highlights the multi-layered deceit, where Kurland not only charges exorbitant fees but also manipulates investments for personal gain.

Notable Quote:

• Kurland's Website Pitch: “Anyone can win the lottery. All right? You don't have to be a man to win the lottery.” [11:30]

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Escalation and the Introduction of Greg Altieri [19:35 – 24:25]

The scam intensifies with the introduction of Greg Altieri, a jewelry wholesaler with murky business practices. Altieri's fraudulent activities provide Kurland and his partners with an avenue to siphon more funds from their clients. As Altieri's Ponzi scheme collapses, the repercussions begin to surface, revealing the vast extent of Kurland's deception.

Notable Quote:

• Smoochler and Russo's Voicemail: “How quickly can we get the deal going?” [26:07]

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The Unraveling: Betrayals and Red Flags [24:25 – 38:36]

As investments falter and defaults mount, Kurland's partners grow suspicious. Attempts to retrieve funds from the elusive Sam Russo lead to dead ends, signaling the imminent collapse of their fraudulent operations. Concurrently, Kurland seeks new avenues to recover losses, including a misguided investment in PPE during the COVID-19 pandemic. These decisions further exacerbate the financial turmoil, distancing them from any possibility of restitution.

Notable Quote:

• Greed Fueled Ambition: “He’s treating his clients like his personal money tree.” [19:35]

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Climactic Confrontation and Legal Consequences [38:36 – 41:45]

The culmination of Kurland's schemes triggers federal investigations. In August 2020, agents arrest Kurland, Smookler, Russo, and Churchill on multiple charges, including wire fraud and money laundering. The trial unveils damning evidence, with victims recounting their losses and distrust. Kurland’s defense falters against the overwhelming testimonies and wiretapped conversations exposing internal contempt among his partners.

Notable Testimony:

• Nandlal Mangal: “If I had known that he was getting paid, yes, it would have made a difference.” [44:24]

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Conclusion: Lessons Learned and Moral Takeaways [41:45 – End]

The episode concludes with reflections on Kurland's misguided justifications and the psychological mechanisms that enabled his prolonged deceit. The hosts emphasize the vulnerability of lottery winners and the importance of due diligence when managing sudden wealth. Kurland's case serves as a stark reminder of how ambition unchecked by ethics can lead to devastating consequences.

Final Thought:

• Sachi Cole: “The moral of the story is if you do win the lottery to continue living as you have been living, because it's the best way to survive the money.” [46:57]

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Key Takeaways

1. Trust and Greed: Jason Kurland's story underscores how trust can be exploited by those driven by greed, especially when combined with the vulnerability of lottery winners.

2. Complex Scams: The episode illustrates the complexity of modern scams, where multiple layers of deceit and compartmentalized operations can obscure fraudulent activities.

3. Consequences of Deceit: Kurland's eventual downfall highlights that no matter how intricate a scam may be, the truth often surfaces, leading to legal repercussions and loss of reputation.

4. Awareness and Vigilance: For individuals who receive sudden wealth, it's crucial to seek reputable financial advice and remain vigilant against potential exploitation.

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Notable Quotes with Timestamps

• U.S. Attorney: “Jason violated his solemn duties as a lawyer.” [00:53]
• Jon Crowe: “If I won the lottery, I would take a very long time to claim my prize.” [02:02]
• Kurland's Website Pitch: “Anyone can win the lottery. All right? You don't have to be a man to win the lottery.” [11:30]
• Nandlal Mangal: “If I had known that he was getting paid, yes, it would have made a difference.” [44:24]
• Sachi Cole: “The moral of the story is if you do win the lottery to continue living as you have been living, because it's the best way to survive the money.” [46:57]

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Final Thoughts

Scamfluencers’ ENCORE: Long Island Liars serves as a compelling exploration of how charisma and strategic positioning can facilitate large-scale frauds. It sheds light on the behavioral aspects of both the perpetrator and the victims, offering listeners a nuanced understanding of the mechanisms behind such sophisticated scams.

For those intrigued by tales of deception and the psychology of fraud, this episode is a must-listen, providing both entertainment and valuable lessons on safeguarding oneself against similar schemes.

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Credits

• Written by: Liz Galalis, Simon Van Zylenwood, Lynn Riddle, and the Scamfluencers team
• Produced by: Jen Swan, John Reed, Charlotte Miller, Lexi Peery, and others
• Executive Producers: Janine Cornelo, Stephanie Jenz, Jenny Lauer Beckman, Marshall Louie

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Connect with Scamfluencers

If you have a tip for a potential Story, please email [e-mail]. Follow Scamfluencers on the Wondery App or wherever you get your podcasts for more episodes like this.

Transcript

[Sachi Cole]

Wondery subscribers can listen to Scamfluencers early and ad free right now. Join Wondery plus in the Wondery app or Apple Podcasts. Sarah, picture this. You're a lottery winner who is going to court in Long island because your lawyer screwed you over. Please describe your outfit.

[Sarah Hagie]

I think I'll try and look as broke as possible for maximum sympathy. Go in wearing like a barrel with suspenders or something, right?

[Aggie]

Like a cartoon.

[Sachi Cole]

Yeah, that's a good answer. I would like to go looking like every season of the Nanny rolled into one, like full on mob Wife. And that would be appropriate for the trial that we're going to talk about today. Do you remember the real estate lawyer turned lottery lawyer, Jason Kurland?

[Aggie]

Yeah.

[Sarah Hagie]

He's the guy who preyed on lottery winners and tried getting them to invest in his buddy's risky business, right?

[Sachi Cole]

That's right. Well, we have an update for our listeners. Jason ran out of luck and was sentenced to 13 years in prison. He defrauded three lottery winners out of nearly nearly $100 million. And one of his pals, Christopher Churchill, who pocketed $25 million in winnings, pled guilty to money laundering. He got sentenced to five years. Of course, everyone's biggest defense here was their Long island accents. In a statement, the U.S. attorney in the trial said that Jason, quote, violated his solemn duties as a lawyer. We have new episodes of scam flinter starting October 7th on onedry plus and October 14th, wherever you get your podcasts. In the meantime, here's our encore of Long is Liars Wonder.

[Jon Crowe]

Aggie, what would you do if you won the lottery?

[Aggie]

That's so funny. I was just talking about this with a friend. If I won the lottery, I would take a very long time to claim my prize. I'd make sure my ducks were all in a row and then I would try and not tell anyone. Depending on how much money I'd win. I'd start off by, like, just buying homes for people.

[Sachi Cole]

Oh, that's nice. Well, I ask because I'm curious if you think that you would make sound financial decisions for yourself or if you'd have to bring someone in to, like, help manage your enormous wealth.

[Aggie]

Oh, my God, absolutely. Someone would have to manage my wealth. I don't know what to do with all that money. Like, I truly barely know what to do with the little money I have.

[Sachi Cole]

Okay, well, it's a good thing that you and I are obviously self made millionaires and not lottery winners because the story I'm about to tell you will make you Think twice about ever wanting to hit the jackpot. In October 2018, a middle aged woman is taking a scenic drive in Simpsonville, South Carolina, when a convenience store sign catches her eye. It's advertising the Mega Millions lottery. The jackpot is up to more than a billion dollars. The woman who now goes by a pseudonym Beth Smith, is married with a couple of grown kids and she works hard as an insurance underwriter. So she decides, ugh, why not? She pulls into the KC Mart and goes inside. I imagine the store is small and cramped. It has 24 packs of beer lining the walls and rows of cigarettes behind the register.

[Jon Crowe]

Beth lets another customer go ahead of.

[Sachi Cole]

Her in line and watches as they buy a ticket. She pays two bucks for her ticket and gets back in her car. That evening, Mega Millions announces the winning numbers. What's up, America? I'm Jon Crowe.

[Christopher Churchill]

It's Tuesday, October 23rd, and tonight's Mega, Mega Millions jackpot. It's a record breaking $1.6 billion.

[Jon Crowe]

Beth checks her ticket the next morning. She stands motionless for what feels like hours.

[Sachi Cole]

And then she starts jumping and screaming for joy.

[Jon Crowe]

She fucking won.

[Sachi Cole]

But Beth sort of doesn't believe it. So she decides to go back to the KC Mart. She figures if there's nothing going on there, she'll know that she made a mistake. But when she drives by, the scene is chaos. The fact that the winning ticket was.

[Jon Crowe]

Sold in Simpsonville is big news.

[Sachi Cole]

The store that sold it gets about $30,000. The parking lot is buzzing with TV crews. Even helicopters circle overhead. Later, Beth says this is when it hits her. Her life is never going to be the same. Overwhelmed with anxiety, she stuffs her ticket in a safe deposit box and starts planning her next move. Beth's husband is a lawyer, but they need someone who knows about the very niche world of lottery winnings. And in news coverage of the record breaking lottery win, they keep seeing this one guy show up again and again. His name is Jason Carland and he's a lawyer from Long Island. He's tall and balding with big brown eyes. And he likes to give advice on what to do if you win the lotto.

[Jon Crowe]

Like in this segment on Inside Edition.

[Frank Smookler]

So let's say you do win that ginormous payout. What's the first thing you should do? First thing you do is stay quiet, all right? Don't tell your friends, don't tell your family.

[Sachi Cole]

Jason calls himself the lottery lawyer. He represents a lot of big time winners. Beth thinks his branding is a little gimmicky, but he does seem to know what he's talking about, so she and her husband decide to reach out. They get a burner phone and call Jason. They set up a meeting a couple months later in Las Vegas, and there Jason tells them that he knows how to work with the lottery commission directly so they can get their winnings without revealing their identities. Beth and her husband decide to hire Jason as their attorney for a $200,000 flat fee. Beth is on the verge of giving Jason access to all of her money, and she has no idea how bad things are about to.

[Jon Crowe]

All right, Audible's.

[Frank Russo]

Best of 2024 picks are here, so discover the year's top audiobooks, podcasts and originals in all your favorite genres.

[Sarah Hagie]

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[Frank Russo]

A stunning new full cast production of George Orwell's 1984. Or heartfelt memoirs like Supreme Court Justice Ketanji Brown Jackson's lovely one.

[Sarah Hagie]

There's also the year's best fiction, like the Women by Kristin Hannah and Percival Everett's brilliantly subversive James. I would love to listen to Sally Rooney's Intermezzo. It just came out this year and I think it was one of my favorite 24 releases.

[Frank Russo]

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[Sarah Hagie]

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[Sachi Cole]

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[Frank Russo]

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[Sarah Hagie]

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[Frank Russo]

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[Sarah Hagie]

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[Frank Russo]

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[Sachi Cole]

From Wondry I'm Sachi Cole. And I'm Sarah Hagie and this is Scamfluencers.

[Dr. Scott Bleyer]

Come and give me your attention. I won't ever learn my lesson. Turn my speakers to 11. I feel like a legend.

[Sachi Cole]

This story has everything I love in a great scam movie. Fast talking finance guys with New York accents, Luxury spending sprees with embezzled cash. Shady characters with ties to the mob and FBI wiretaps. But my favorite part about this scam is that there's not just one. This scam is a scam within a scam within another scam. It is, if you will, a scamception. And it all begins with a Long island lawyer who found some luck of his own, but couldn't resist the siren song of unquenchable greed. This is the Long island liars legend. It's November 2011. Seven years before Beth wins the lottery. Jason Kurland is toiling over a stack of paperwork on his desk. He's in his late 30s and a partner at a real estate law firm on Long Island. Between the muted beige walls and harsh fluorescent lights, he's starting to feel suffocated by his daily grind. It's very Neo's desk job at the beginning of the Matrix, you know? And then Jason gets a call that changes his life. Three hedge fund managers from Connecticut have just won the lottery. $254 million. They want Jason to be their legal counsel. He came highly recommended by a mutual acquaintance of theirs. But it is a little weird because most of Jason's experience is in commercial real estate.

[Aggie]

Interesting. I mean, I wonder why they'd pick him.

[Sachi Cole]

Well, whatever the reason, Jason jumps at the chance to represent these finance bros. And to be clear, Jason has a cozy suburban life. He's a loving husband and father. He married his law school sweetheart, a petite, curly haired blonde named Lauren. But he wants to move up in the world. And maybe he feels like he's not living up to his potential. So a couple of weeks after agreeing to represent these hedge fund lotto winners, Jason travels to Connecticut for a press conference. His clients pose for a photo with their oversized check. And then Jason stands in front of a backdrop of red and black balloons and takes questions from reporters. But the next day, reporters start raising suspicions about these finance bros. On abc, an anchor reports that Jason's clients might not have won the lottery at all.

[Jason Kurland]

Tom Gladstone, a longtime family friend of one of the trio, says this was all an elaborate ruse. The real winner, one of the men's wealthy clients, the bankers. Merely a front so that the true winner could remain anonymous.

[Aggie]

Wow. I guess I understand why someone would want to remain anonymous if they won the lottery. But why can't he just not come forward?

[Sachi Cole]

Well, Connecticut is one of 42 states that doesn't allow lottery winners to stay anonymous. So if the hedge fund guys falsely claim the prize on behalf of the rightful winner, it could be considered fraud. Unfortunately, we never get a clear answer on what actually happened. And we don't know if Jason had any direct involvement in this shady activity. But we do know that it ushers in a whole new avenue for his career. He leans all the way in and.

[Jon Crowe]

Sets his sights on becoming the lottery lawyer. A few months after the press conference, Jason's back in his drab office. Only now he's not flipping through real estate contracts. He's taking calls from lottery winners. The coverage around the hedge fund bros raised Jason's profile, and now other people want his help, too. So he carves out his own niche in the firm. And according to his bio, people around his office start calling him the lottery lawyer. Sarah, take a look at how Jason pitches himself on his website.

[Aggie]

It goes, a new member of the millionaires club needs some leadership and knowledge in this situation. He needs clear guidelines, a clear schedule, and a clear view of a future unfamiliar to him at the moment. Having a responsible attorney and accountant at your side could save you millions of dollars. Okay. Anyone can win the lottery. All right? You don't have to be a man to win the lottery.

[Sachi Cole]

You're right. That's the problem here.

[Aggie]

That's the problem.

[Sachi Cole]

Well, Jason is advertising himself as a reliable partner for lottery winners who become mega millionaires overnight. Louise White is one of them. She's an 81 year old woman from Rhode Island. She bought the winning $336.4 million Powerball ticket while picking rainbow sherbert at the supermarket. Here's what she says as she accepts her jumbo sized check next to her new lawyer, Jason. Well, I want to say that I'm very happy and I'm very proud, and this will make my family very happy. We are truly blessed. Thank you, Louise. And Jason's other clients are not finance experts. They're ordinary folks who really need a professional to guide them through this windfall. And Jason promises to do just that. On his YouTube channel, he pitches himself as an expert who can answer all their questions.

[Frank Smookler]

You want to limit your exposure in the media? What happens at the press conference? Do you have to answer questions from the press? Do you want to create vehicles for your state in the event something should happen to you? Do you need to worry about your safety and the safety of your children?

[Aggie]

Oh, I don't like this one bit.

[Sachi Cole]

Doesn't he sound like an ambulance chaser?

[Aggie]

He sounds like Lionel Hutz from the Simpsons.

[Sachi Cole]

No money, no money Down.

[Aggie]

I'm so horrified by this.

[Sachi Cole]

Well, Jason's services also do not come cheap. His clients have millions of dollars burning a hole in their collective pockets and he sets his prices accordingly. He charges one client a $100,000 retainer and then a monthly fee of 15 grand after that.

[Aggie]

That's so much money. Even if you're rich. Like, I'm sorry, these people aren't in litigation. You know what I mean? Like, this is too much money.

[Sachi Cole]

Well, as life changing as the money is for Jason' money is just as life changing for him. Over the next few years, Jason's shift into the lottery lawyer transforms his personal and professional life. He and Lauren move into a million dollar six bedroom home on an idyllic cul de sac in Long Island. Jason Karland is finally living up to his potential. But there's a danger in his line of work. He's got direct access to a lot of wealthy people and that makes him a mark. A few local entrepreneurs have set their sights on him and they're about to make him an offer that he can't refuse. It's 2015 and the sun is shining down on a backyard barbecue.

[Jon Crowe]

The smell of charred meat wafts through.

[Sachi Cole]

The air above a luxurious swimming pool. The host of the event is a semi retired financial securities advisor. His name is Frank Smookler. He's in his late 30s and he has a dad bod and short brown hair. Actually, he says he's semi retired because the firm he worked for got in trouble with regulators and Frank had to settle hundreds of thousands of dollars in disputes for allegedly mismanaging clients. Money.

[Aggie]

Yeah, that's one way to retire.

[Sachi Cole]

Frank grabs a six pack out of the fridge and pads down to his basement, decked out in sports memorabilia. Jason's there along with another guy who's also named Frank. Frank Russo. He's in his early 30s and lived almost his whole life on Long Island. He looks like he'd fit in just right with the cast of Jersey Shore. He's descended from a line of mob bosses, but he's not in the family business. He's held a bunch of honest jobs since he was 13 and he's known Frank Smoogler for about as long. These two guys are close. They call each other Cuzie. The guys crack open their beers and strike up a conversation about a new business venture they're starting. It's a merchant cash advance company. Sarah, do you know what that is?

[Aggie]

Is that like payday loans? Is it one of those kinds of cash advance. Predatorial things.

[Sachi Cole]

Yes, you're exactly right. It is like a payday loan, but for businesses. So a merchant cash advance, or an MCA offers funding to small businesses when they need it immediately. The way that it works is that an MCA buys a business's future sales and then those future sales go straight to the MCA until they're paid back in full. And of course these companies charge insane amounts of interest. Like it can be as high as 350%.

[Aggie]

I mean it sounds pretty straightforward but also like if you can't pay them back, it's over for you basically.

[Sachi Cole]

Correct. And none of these men have experience in the MCA space, but it does sound lucrative. So they decide to go for it. They form two companies, Cheddar Express and Cheddar Capital. Cheddar Express acts as a brokerage matching businesses with MCAs. But Cheddar Capital also gives the MCAs so it funds the businesses directly. Each of the men, including Jason, take a 20% stake in the business. They start asking their friends and family to invest because if Cheddar Capital wants to provide hefty loans, they're going to need a lot of cash. And luckily Jason knows just where to find it.

[Jon Crowe]

Not long after, Jason goes to visit his brother in law, Dr. Scott Bleyer. Scott is a successful plastic surgeon. He's got curly brown hair and a too smooth shiny forehead that looks like it's the result of Botox. Scott is insta famous and he actually goes by the name Dr. B. Fixen. He's known for creating the best Brazilian butt lifts in town. Sarah, do you want to see an example of a typical Dr. B. Fixen post? And I will warn you, it's pretty graphic.

[Aggie]

I'm sorry, I'm still reeling over Dr. B. Fixon.

[Sachi Cole]

Take your time.

[Aggie]

Oh wow. It's like, I mean the same body side by side. One before her breast lift with implants and mini tummy tuck and the second one very soon after.

[Sachi Cole]

Yeah, well.

[Jon Crowe]

Scott ushers Jason into his kitchen and on the marble counter are fat stacks.

[Sachi Cole]

Of cold hard cash.

[Jon Crowe]

Jason watches as his brother in law counts the money. There's $100,000 in total. Scott puts the cash in a shoebox and gives it to Jason to deposit into Cheddar Capital. And Scott later writes off the investment as an advertising expense. A couple of months later, Jason collects an additional $200,000 from Scott. But Scott's investment is basically pennies compared to what Jason gets from his lottery winning clients. In the fall of 2018, Jason convinces a new client named Nandlal mangal to deposit 5 million dol to Cheddar Capital. Nun Lal is 42 and wears glasses. He's a cheerful Guyanese immigrant and a carpenter from Staten Island. And he won nearly $250 million in the Powerball. He says that he hopes to buy a trip to Hawaii, but Jason tempts Nunlal with high returns on his investment. Except there's a problem. Jason doesn't tell Nunlal that he's a part owner of the business. He also keeps quiet about the fact that he's getting a 1% finder's fee from Cheddar anytime he gets someone to. A $5 million investment would line Jason's pockets with $50,000. He's the only Cheddar partner getting those fees, and he pretty much demanded it because of his unique ability to raise money from lottery winners.

[Aggie]

Okay, I now see the multiple levels of scam here because this guy has an in with rich people who truly don't know any better. And not only just recently rich, but they trust him because he's like, hey, I work with these high rollers. I know how to manage money winnings.

[Sachi Cole]

Right? Jason is treating his clients like his personal money tree. He charges them a monthly legal fee and then he dupes them into funding his side hustle. And then to add insult to injury, he skims 1% off the top of the money they're entrusting him to invest. Jason is making bank, but he's riding high on borrowed luck. Emphasis on borrowed. Because this scammer is about to get scammed.

[Frank Russo]

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[Sarah Hagie]

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[Frank Russo]

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[Sarah Hagie]

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[Frank Russo]

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[Sarah Hagie]

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[Frank Russo]

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[Sarah Hagie]

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[Sachi Cole]

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[Sachi Cole]

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[Dr. Scott Bleyer]

I feel like a.

[Sachi Cole]

It's the fall of 2018 and the atmosphere at Rothman Steakhouse is as classy as ever. The upper crust of Long island dine on Wagyu steak as they sip expensive wine carefully selected from a 40 page menu. This acclaimed restaurant once hosted the likes of Teddy Roosevelt, Jackie O and Liz Taylor, but tonight it's hosting a man named Greg Altieri. For the record, Greg's image has been completely scrubbed from the Internet. I can't find a picture of him anywhere, but let's imagine he looks like an older version of Ray Liotta from Goodfellas. Greg is a jewelry wholesaler. He needs help financing his latest venture, so tonight he's wining and dining Jason's business partners Frank Smookler and Frank Russo. Greg tells them that he buys jewelry lots at clear out prices and then he sells them to businesses like Costco for a 30 to 70% mark though. Okay.

[Aggie]

I mean it's not super easy to get retail space in a store like Costco, even if it's just online. So I am very curious. Did he actually do this?

[Sachi Cole]

I mean, probably not, but it does sound convincing enough. Jason, Smookler and Russo want in and Greg accepts a generous cash advance courtesy of investments from Jason's clients. But Greg is not entirely honest about his business record. About a year earlier he lost millions of dollars to an acquaintance who claimed to be an oil baron. Looking to get whole again, Greg went on the hunt for some investors first, he reached out to friends, neighbors, and colleagues, and many of them were retired cops and firefighters from Long island and the outer boroughs of New York. He pitched them the same way he did. Russo and Smookler buy cheap jewelry and resell at a high markup. He guaranteed the same return on investment, 30 to 70%. Right away. He raised millions of dollars and told his investors the money would go towards buying more jewelry. But he pocketed the initial round of fundraising, and then he created and distributed fraudulent lot sheets with fake information about his quote unquote jewelry purchases and the corresponding return investors could expect. Afterwards, Greg went out looking for more investors, and then he took their money and used it to pay out the earlier ones.

[Aggie]

This is also a Ponzi scheme, correct?

[Sachi Cole]

Yes, this is a classic Ponzi scheme, and it's already well underway by the time Jason, Smookler and Russo agree to lend him a bunch of money. Needless to say, this is going to put them in a. A bad, bad spot. It's March 2019, a few months after Greg's steakhouse dinner, and Jason's in Columbia, South Carolina. He's riding in the backseat of an SUV escorted by a security team. Jason can hardly contain his excitement because he has just landed a whale of a client. Billionaire lottery winner Beth Smith. Sarah. Do you remember her?

[Aggie]

Yes, and I don't want to know how she gets scammed. I already feel so bad.

[Sachi Cole]

I know. Just stay with me here. Jason and Beth are on their way to collect her prize. The group arrives at an underground garage where they're whisked into the lottery commission's office. The windows are covered and the security cameras are disabled to protect Beth's identity. That's her number one concern. Beth turns in her ticket, and Jason gets to work. He deposits her fortune into several bank accounts, which he opens in his name.

[Jon Crowe]

Beth agrees to this?

[Sachi Cole]

All the better to ensure her anonymity. Besides, she figures that Jason's law firm can provide the oversight that she needs.

[Aggie]

This is already destroying me once again, only because it's like, clearly she really trusts him.

[Sachi Cole]

I know. Well, then Jason informs the press of his client's big win, and he texts Russo and Smookler about their latest windfall. Sarah, let's you and I read their text to each other. You be Jason. I will be Smoogler. Okay.

[Aggie]

Okay. Check the news.

[Sachi Cole]

You're a celebrity. Legit.

[Aggie]

It's nuts. How's Greg?

[Sachi Cole]

Everything is perfect, Guys.

[Aggie]

How quickly can we get the deal going? I may have access to funds as early as tomorrow.

[Sachi Cole]

Ready when you are, Jason.

[Jon Crowe]

Smookler and Russo aren't aware that Greg's diamond business is a total crock of shit. And sure, there have been a couple of red flags. For example, Greg tells the men that the money they lent him is going to a fulfillment center, except he does not have the paperwork to prove it. But Greg has been a reliable client so far. He's paid back his debts and that's what really matters, right? According to his later testimony, Jason collects investments from Beth like he does with all his lottery winners, and he gets her to invest $30 million. He later says that he tells Beth that she should put a small percent of her winnings towards a higher risk investment, one that comes with higher earnings, like a merchant cash advance company. He doesn't tell Beth that he has a stake in the very same companies he's funneling her money into. And as if that wasn't bad enough, Russo and Smookler also take a portion of Beth's $30 million for themselves. Jason later testifies that they consider it an advance. In the meantime, Jason, Smookler and Russo treat themselves. Russo buys a $1.5 million house in Rosslyn harbor, and one of the men goes on a shopping spree at Dick's Sporting Goods, as men tend to do. They also buy Jason a Lincoln truck, except he doesn't like the color, so he makes them pay to have it repainted. You gotta keep the lottery lawyer happy.

[Aggie]

Oh my God, the gall.

[Jon Crowe]

That's what friends do, Sarah. Well, at some point, Jason testifies that Smookler and Russo tell him the truth about how they're affording all these giant purchases. And initially Jason. Jason is concerned, but according to him, Russo says that they'll write everything down as an operational expense, which makes sense to Jason. He thinks Greg's position to make them a lot of money, so what's the.

[Sachi Cole]

Harm in taking a little advance?

[Jon Crowe]

But then Greg starts missing payments, and by September 2019, he owes tens of millions of dollars. And with that, the walls of Jason, Smookler and Russo's greedy empire start caving in. It's the end of 2019 and Frank Russo's pacing back and forth in his office as he yells at Greg over the phone. Russo demands to know the name and address of one of his supposed customers. He later testifies that he's been in a months long battle trying to get this simple piece of information out of Greg. It's another one of the many red flags that have been popping up on top of the missed payments. No one knows Who Greg's been selling his jewelry to. He can't provide any tangible evidence that his business is legitimate. All he provides are excuses. Once Greg even lied about a non existent Jewish holiday to explain a late payment.

[Aggie]

I'm going to start doing that with Muslim holidays. Oh, it's second Ramadan. Yeah.

[Jon Crowe]

No, I mean who would fact check you?

[Aggie]

No one would. They'd be like, I respect you and I see you.

[Jon Crowe]

Well, Russo's at his wit's end. Finally, he gets a name and address out of Greg. Supposedly he's been working with a receiver in Manhattan's diamond district. Some guy named Sam Russo makes a mad dash into the city. He weaves and bobs through pedestrians as he ignores aggressive sellers outside their shiny window displays. Finally, he arrives at a building on 47th Street.

[Sachi Cole]

It's locked.

[Jon Crowe]

The diamond district's got tight security. But Russo is motivated. He punches the intercom over and over until he's let in. Except inside he's met with more locked doors and intercoms. He basically brute forces his way into every room in the building, frantically looking for this Sam guy. But he comes up empty handed. This dude is nowhere to be found. He might not even exist. Exist.

[Aggie]

So this is the uncut gems part of the story.

[Sachi Cole]

Isn't it nice? It's so cinematic.

[Aggie]

Yeah. And the ending of that movie was great.

[Sachi Cole]

Yeah. Well, this is where everything starts to unravel. Around this time, Jason returns $300,000 of Scott's cash. The money was supposed to be funneled into Greg's jewelry business. But Jason tells his brother in law it's not a good time to invest. And then Nand Lal informs Jason that the FBI showed up at his house. A few months later, Nandlal receives a scary letter from the sec. All this is happening while Greg continues to default on his loans. Which means Jason's clients investments are bust. Finally, Jason, Smookler and Russo realize that they have fallen victim to Greg's Ponzi scheme. Wracked with guilt over losing his client's money, Jason doesn't sleep or do much of anything. But Smoochler and Russo take matters into their own hands. In an effort to get their money back, they take legal action against Greg and they harass him over the phone. Smookler tells him he's going to get tortured. Russo tells Greg he's going to, quote, make him watch as they rip his son's teeth out of his mouth and pop his head off in front of his kid.

[Aggie]

So is that after the kid's teeth are out? Then they pop him.

[Jon Crowe]

Yeah, you know, I do have some procedural questions, for sure.

[Aggie]

I mean, if my teeth had just been pulled out, I don't know if I'd be able to focus on anything else.

[Sachi Cole]

Well, unfortunately, this mob tactic backfires. Smookler and Russo don't know it yet, but the FBI has been recording their calls. Someone tipped them off about their shady activity, and we don't know exactly who, But, Sarah, my money's on Greg. Jason, Smookler and Russo are screwed. They're being trailed by the feds. And Jason's mishandled tens of millions of his clients. Money clients he had a duty to protect. But he's not ready to come clean. Instead, he goes searching for a miracle. It's March 2020, and a man named Christopher Churchillo is hunched over his computer at his home in Brooklyn. He's 52 years old and built like a bulldog, I imagine. He takes a sip of coffee as he publishes the latest entry on his blog. It's called How Millennials Are Helping to Change Philanthropy. Christopher contains multitudes. To quote his medium.com bio, he's a proud member and servant of the Brooklyn, New York community, a strong supporter of the American Cancer Society, and a firm believer in a strong family who enjoys spending time with his wife of more than 21 years. Christopher's also the owner of a plumbing business, and in his free time, he writes posts about philanthropy and things to do in New York. Seems like a nice guy, right?

[Aggie]

Yeah. I mean, he seems like the nicest guy who's been introduced into the story so far.

[Sachi Cole]

He's pretty low bar.

[Aggie]

Yeah. I'm like, okay, he's just. He's merely a simple blogger.

[Sachi Cole]

Well, there is a catch with Christopher. He's supposedly a member of the Genovese crime family, which is basically mob royalty. So, naturally, Christopher's got a checkered past. In 2004, he was convicted of bribery and spent two years in jail. In 2019, he was accused of bid rigging, but he was acquitted. Through his blog posts, he's been able to rebuild his public image as a charitable volunteer. And it must work, because he's recently been hired by a company that's doing business with the state of California.

[Aggie]

Okay, so basically, all you need to do to right your wrongs of the past is to blog about it.

[Sachi Cole]

Mm. Okay. But also, you have to Remember, this is March 2020, right? It's the beginning of the pandemic, and California wants to get their hands on a bunch of PPE, so they sign an $800 million agreement to buy masks and face shields from a a company called Bear Mountain. Bear Mountain then hires Christopher as one of their many subcontractors. But it is a little strange that a plumber like Christopher somehow talked his way into this deal that has nothing to do with plumbing. Regardless of how he pulled it off, he's now looking for $20 million to fulfill his agreement with Bear Mountain. Sarah, I will give you three guesses as to where he gets this $20 million from.

[Aggie]

Um, I think he gets it from being a really good blogger. Clearly his blog is monetized. I think he worked probably really hard to get that money, and I think he's just a great person who earned millions in a short amount of time, you know? Are any of those correct, Saatchi?

[Sachi Cole]

Uh, no. But I always enjoy your enthusiasm. Luckily, Christopher knows a guy who knows a guy who knows another guy who knows Smoochler. And Smoogler tells Jason about Christopher and this opportunity to invest in ppe. Jason is thrilled with this new deal. He'll be able to make his clients whole again. Jason's trying to do right by them, and he's going to do whatever it takes to keep them and their money around, even if it means committing an act adjacent to grand larceny.

[Sarah Hagie]

Unexpected expenses that pop up, especially during the holidays, are truly the worst. Life doesn't wait for payday.

[Sachi Cole]

You got that right.

[Frank Russo]

But luckily there's Chime, the financial app that's changing the game. With Chime's My Pay feature, you can get up to 500 of your paycheck early. No credit check, no interest, and no mandatory fees.

[Jon Crowe]

Plus you'll get access to over 50,000 fee free ATMs.

[Frank Russo]

That's incredibly convenient, especially if you're traveling.

[Sarah Hagie]

Don't wait for payday to make this holiday season merry and bright. Open your Chime checking account in [e-mail] scampod that's chime.com scampod Chime feels like progress.

[Frank Russo]

Banking services and debit card provided by the Bancorp Bank N A or Stride.

[Sachi Cole]

Bank N A My pay line of.

[Frank Russo]

Credit provided by the Bancorp Bank N A or Stride Bank N A. My pay eligibility requirements apply. Not available in all states. MyPay credit limits range $20 to $500. A $2 fee to get funds instantly. SpotMe eligibility requirements and overdraft limits apply. Fees apply at out of network ATMs and for OTC withdrawals.

[Dr. Scott Bleyer]

I feel like I.

[Sachi Cole]

Jason's back in his office. He takes a deep breath and prepares to make One of the most important calls of his life. He dials Beth Smith, the lottery winner. But he's not about to tell her that he lost a bunch of her money in a Ponzi scheme. Instead, he asks if she wants to help fund the efforts to distribute ppe. She's the perfect investor. One of the first things she did after winning the lottery was donate to causes like the Ronald McDonald House, Hurricane Florence Relief, and the American Red Cross. So Jason figures that Beth will be thrilled to help with the COVID crisis. And he's right. Beth invests $19.5 million. She also makes it clear that she doesn't want to personally profit off of any of it. Whatever money she makes from the deal should go to charity. Jason agrees, and he withdraws the money from her account, which, remember, is in his name. Then he sends it to Christopher. But 10 days later, without getting Beth's consent, Jason withdraws another $19.5 million and he throws it towards the PPE. That's $39 million gone from Beth's lottery winnings, but Jason figures he'll be able to pay her back after all. Christopher's doing business with a company that's been hired by California. The contract is legit. There's no way he's getting swindled again.

[Aggie]

How is he so stupid is my question. Do you know what I mean? It's like you're a scammer. You should know that this will not work out.

[Sachi Cole]

Yeah, you're right. Obviously, things do not work out. A couple of months later, California cancels the contract with Bear Mountain. Christopher's only been paid out $7 million. At least some of it was spent on PPE, but Christopher's pocketed a bunch for himself, and now the rest of Beth's money is gone.

[Aggie]

So $39 million is missing from her 1.5 billion win. Yeah, I mean, she is still filthy rich, but that's still insane. Like, you can't just do that to someone.

[Sachi Cole]

Yeah, well, the loss is, like, pretty catastrophic for Jason. If he can't pay back those millions before anyone realizes it's missing, he's doomed. He's got an FBI sized target on his back, and this latest stunt makes him look so guilty. Jason is desperate, so he reaches out to his associates for a lifeline, only to realize they have hung him out to dry. It's the spring of 2020, and Russo's driving around, possibly in some kind of luxury car he bought with company money. As he speeds down the Long Island Expressway, I imagine he gets a call he begrudgingly accepts. On the line is Jason, and he's having one of his many freakouts. Jason tells him that every single dollar they make needs to go back to paying their debts. He even threatens to report Christopher to the da. Luckily, Russo talks some sense into him and he assures Jason everything is fine. They'll get the money from Christopher, don't worry. But then Russo hangs up and like a scene out of Mean Girls, he dials Smoochler and gossips about Jason behind his back. They make fun of him for thinking he can scare Christopher. They mock him for his constant pleas to make things right. Russo tells Smookler he doesn't give a fuck about hurting a billionaire. He also says he doesn't care about paying Jason back. His whole plan is to not give him back a dollar. Russo even tells others involved in the PPE deal to stop communicating with Jason altogether. He tells them that all questions and updates should go through Smoochler and himself.

[Sarah Hagie]

I'm wondering.

[Aggie]

Okay, so was one of them recording this call? Is that what's happening right now?

[Sachi Cole]

Yes. Somewhere out there in some dingy office, a federal investigator is crouched over their desk transcribing every word of these calls. So now everything is on the record. The lying, the stealing, the threats. The feds know about it all. And finally, there's enough evidence to take Jason and his partners down for good. It's August 2020, a few months after his call with Russo, and Jason's probably playing soccer with his kids in his backyard. They have a big tournament coming up that weekend. Jason's helping them practice when suddenly he hears someone banging at his door. He makes his way to the front of the house and finds a group of federal agents with a warrant for his arrest.

[Jon Crowe]

The jig is up.

[Sachi Cole]

Jason is cuffed and taken into custody. Smookler, Russo, and Christopher are arrested the very same day. All four men are charged with various counts of wire fraud, wire fraud conspiracy, money laundering, and money laundering conspiracy in connection with a scheme to defraud Jason's clients. Jason is also charged with honest services fraud for lying to his clients.

[Jon Crowe]

The indictment alleges that he defrauded them.

[Sachi Cole]

Out of $107 million. It's a mess. At first, all four men claim their innocence. But over the next several months, everyone except for Jason pleads guilty. Jason wants his day in court, so he gets a lawyer and is released on bond signed by his brother in law, Scott. And a side note, Scott is still kicking it around as Dr. B. Fixin. He even self published A book called the bbl how to Get a Butt to Die For Without Dying for it. Meanwhile, on July 13, 2022, almost two years after his arrest, Jason is led into a federal courtroom in Brooklyn. It's time for the trial. Jason's attorney stands in front of the jury and argues that he's actually a victim in this case. Jason was tricked by Mukler and Russo. But the prosecuting attorney says that Jason intentionally lied.

[Aggie]

It seems like he did. I mean, it's weird because throughout this story, there's like, a level of guilt Jason feels. And it's kind of like, I think in his mind, he probably thinks like, okay, maybe I didn't tell them everything, but my intention was to get their money back.

[Sachi Cole]

Yeah. Well. Over the next two weeks, Jason and a jury of his peers watch as a parade of victims take the stand. Their testimony is damning. On the first day of trial, Nand Lal tells the courtroom that Jason didn't disclose his interest in Cheddar Capital and he didn't know about the 1% kickback fee. He says, quote, if I had known that he was getting paid, yes, it would have made a difference. And if he was getting paid, it wasn't because of my best interests. Then Beth talks about her experience with Jason and why she initially trusted him. Him, based on all of the press, he seemed like an expert. Also, the process of turning in the ticket went smoothly, and Jason's advice was always in line with what she wanted. He worked for a large, reputable firm and there was oversight, or so she thought. But Beth goes on to testify that she wasn't given access to her own bank accounts. She never even saw her statements. And when things started going south, she had to jump through hoops to prove that the money was actually hers. Beth and her husband also tell the jury that they felt blindsided by the perks that Jason gave them. They say he was able to get them tickets to the Masters golf tournament and the Kentucky Derby, and he even got them an autographed photo of Notre Dame football player Rudy Rutlinger. Sarah, I know you're a huge football fan, so I don't have to tell you this, but that's the guy that the classic sports movie Rudy was based on.

[Aggie]

Oh, and you know what? She's like a real do gooder, so it makes sense that she loves Rudy.

[Sachi Cole]

Yeah, well, there's mountains of evidence and testimony that make Jason look super guilty, but his lawyer seems to think that they have one saving grace. The wiretapped audio of Smoochler And Russo mocking Jason behind his back. In various clips, Smookler and Russo call Jason a chicken. They call him stupid, and they refer to him as their prey.

[Aggie]

Uh, that's pretty damn. You know, referring to someone as your prey.

[Sachi Cole]

Well, on July 21st, the defense rests. Five days later, the jury is sent to deliberation, and they reach a verdict. On the very same day, Jason is found guilty of all charges. His sentencing is scheduled for this April. He faces up to 20 years in prison. All right, Sarah, I took you through this lottery scam, this very layered lottery scam. We went to Costco. We figured lots of new things about money that we never needed to know.

[Aggie]

Yeah. This story is pretty wild, especially because you can tell that there was a part of Jason that truly didn't think this was an actual scam. Do you know what I mean? He was like, well, these people don't know any better. They have all this money. If I invest it in this way or do this thing, I will be able to get it back. He, I think, to a certain degree, convinced himself that he wasn't scamming. I think in a lot of ways, he sees himself as the victim here.

[Sachi Cole]

I think most people who start or engage in Ponzi schemes think that they're smarter than the average bear.

[Aggie]

Yeah. I think he really thought, like, I won't screw anyone over in the process because these people will get their money back.

[Sachi Cole]

Yeah. Jason was able to perform this scam in part because winning the lottery is kind of terrifying, and no one really knows what to do. And the money is scary, and managing the money is scary. But above all, having everybody know that you have that money is terrifying.

[Aggie]

Yeah. And also, the lottery itself is a scam. People get addicted to gambling through it, and they see stories like someone winning $1.2 billion, and they think, like, oh, that could happen to me. Like, I do think that there's just a lot that isn't talked about, probably because not many people actually end up winning that much. It's usually, like, split between a bunch of winners. But there's just, you know, there's scam written all over it. People are not set up to win at life. When they win the lottery.

[Sachi Cole]

No, there's a reason they all go broke. I would be amazed if Beth was able to clear through $1.5 billion, however.

[Aggie]

That'S why, you know, you win, and you just pretend you didn't.

[Sachi Cole]

The moral of the story is if you do win the lottery to continue living as you have been living, because it's the best way to survive the money.

[Jon Crowe]

Yeah.

[Aggie]

And then, you know, just randomly be like, hey guys, maybe we should all.

[Sachi Cole]

Go to Bora Bora periodically.

[Jon Crowe]

Rent an island.

[Sachi Cole]

Don't explain why. You can just do it. Yeah, buy some flights, show them a nice time and then go back to your regular life. If you like Scamfluencers, you can listen.

[Jon Crowe]

To every episode early and ad free.

[Sachi Cole]

Right now by joining Wondery plus and the Wondery app or on Apple Podcasts prime members can listen ad free on Amazon Music. Before you go, tell us about yourself by filling out a short [e-mail] survey this is the Long Island Liars. I'm Sachi Cole.

[Sarah Hagie]

And I'm Sarah Hagie. If you have a tip for us on a story that you think we.

[Aggie]

Should cover, please email [e-mail] we use many sources in our research. A few that were particularly helpful where the lottery lawyer won their trust, then lost their mega millions by Simon Van Zylenwood for Bloomberg Business Week and with the Powerball jackpot so high, be careful what you wish for. An SC Winner's Cautionary tale by Lynn.

[Sachi Cole]

Riddle for the State Liz Galalis wrote this episode. Additional writing by us, Saatchi Cole and Sarah Haggie. Our senior producer is Jen Swan. Our producer is John Reed. Our our associate producers are Charlotte Miller and Lexi Peery. Our story editor and producer is Sarah Enney. Allison Weintraub is our story editor. Sound design by James Morgan. Fact checking by Will Tavlin. Additional audio assistance provided by Adrian Tapia. Our music supervisor is Scott Velasquez for Freeze on Sync. Our managing producer is Matt Gantt and our senior managing producer is Tonja Thigpen. Kate Young and Olivia Richard are our series producers. Our senior story editor is Rachel B. Doyle. Our senior producer is Ginny Bloom. Our executive producers are Janine Cornelo, Stephanie Jenz, Jenny Lauer Beckman and Marshall Louie. For Wondry.

[Christopher Churchill]

It'S me, the mean one, the green one, the Grinch. And I'm back for season two of Tis the Grinch Holiday podcast. And this holiday season, we're going big, baby. I'm talking A list, guests, B plus comedy. And together with my crew, that's Max the Doc and Cindy Lou who.

[Dr. Scott Bleyer]

Hello everyone.

[Christopher Churchill]

I'll try to clear my name once again from the latest accusations leveled against me. Turns out somebody stole all the children of Whoville's letters to Santa and for some reason everybody thinks I did it. It's a real Whoville who done it. So join me for season two of Tis the Grinch Holiday podcast when it drops on November 25th. Follow Tis the Grinch Holiday Podcast on the Wondery App or wherever you get your podcasts. Unlock weekly Christmas mystery bonus content and listen to every episode ad free by joining Wondery plus in the Wondery App, Spotify or on Apple Podcasts.