The man who called himself the "Lottery Lawyer" and was hired by the Upstate winner of the $1.5 billion Mega Millions jackpot in 2018 has been charged with trying to swindle lottery winners out of their earnings.The indictment was unsealed Tuesday in federal court in Brooklyn charging attorney Jason Kurland, 46, Christopher Chierchio, 52, Francis Smookler, 45 and a former securities broker, and Frangesco Russo, 38, with wire fraud, wire fraud conspiracy, money laundering and money laundering conspiracy.The charges are in connection with a scheme to defraud Kurland’s clients that resulted in $107 million in losses, according to DOJ attorneys. Kurland was also charged with honest services fraud for his role in the scheme, and Russo and Smookler are charged with extortionate extension and collection of credit for threatening to kill an individual and his family for failure to repay a usurious loan. The defendants were arrested and arraigned Tuesday afternoon via teleconference before United States Magistrate Judge Lois Bloom.The Simpsonville lottery winner is identified in the case only as "Lottery victim 3" from South Carolina, who suffered the worst of the crimes, according to court documents.They described the crimes against the Simpsonville winner this way:"The co-conspirators’ largest and most egregious fraud was perpetrated against Lottery Victim 3, the winner of a $1.5 billion lottery, and the client whom Kurland touted most in marketing his practice. Kurland and his firm charged Lottery Victim 3 an initial $200,000 payment, and $50,000 monthly fees thereafter. As with the other Lottery Victims, however, Lottery Victim 3 did not know that Kurland was siphoning off additional money from his/her winnings. Like Lottery Victim 2, Lottery Victim 3 told Kurland that he/she was only interested in conservative investments, and understood that Kurland’s recommendations were in line with that preference. As with the other Lottery Victims, Kurland persuaded Lottery Victim 3 to invest in seemingly independent entities that were, in reality, connected to the defendants. In total, Kurland persuaded Lottery Victim 3 to invest over $60 million in various entities that are tied to the co-conspirators, and Kurland transferred an additional $19.5 million from an account held by Lottery Victim 3 without his/her knowledge, much less authorization. The co-conspirators have lost more than $70 million of Lottery Victim 3’s money."“Defendant Kurland allegedly violated the law and his oath as a lawyer when he allowed co-conspirators to pillage his clients’ bank accounts for their own enrichment,” Acting United States Attorney Seth DuCharme said in announcing the charges. “In addition, Russo and Smookler allegedly threatened to torture an individual’s wife and children. The defendants callously thought they could line their pockets with lottery winnings without consequence, but today their luck ran out.”“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,” FBI Assistant Director-in-Charge William Sweeney said. “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.”The Scheme to Defraud the Lottery VictimsCourt documents accuse Kurland as purporting to represent dozens of lottery winners throughout the country with total winnings of approximately $3 billion. The case identifies the three winners involved in the case only as "Lottery Victims."One of the winners won the Simpsonville $1.5 billion Mega Millions lottery, another won a $245 million Powerball jackpot, and the third won a $150 million jackpot. The Lottery Victims each paid Kurland and his law firm hundreds of thousands of dollars, in part so that he could advise them on how to safely invest their money. After gaining their trust with primarily traditional investments, Kurland steered his clients to invest in various entities and business deals controlled and directed by Russo, Smookler and Chierchio, and received kickbacks in return – which Kurland failed to disclose to his clients. The defendants then used the money from the Lottery Victims’ investments to keep their scheme going and to enrich themselves, officials said. A portion of these funds was funneled back to the Lottery Victims and falsely presented to them as “interest payments” on their investments, other funds went to Kurland as kickbacks, and millions of dollars were stolen to support the defendants’ lavish lifestyles – private jets, expensive vacations and luxury vehicles including two yachts. The funds that the defendants actually invested in various entities and deals were, in large part, eventually lost, according to court document.In intercepted calls cited in court documents, the defendants can be heard discussing their scheme, attempting to cover their tracks and expressing concern about what might happen to them if they were caught by law enforcement. The Scheme to Extort Jewelry MerchantRusso’s and Smookler invested some of the lottery victims’ money with Gregory Altieri, a jewelry merchant, and then extended him a $250,000 “street loan.” Conversations recorded during the government’s investigation revealed that Russo and Smookler expected to be repaid over $400,000 for the $250,000 loan, and the threats Russo and Smookler made to Altieri in their attempt to collect it. Russo informed Altieri that he had a “few tactical shotguns . . . with lasers,” and Smookler told Altieri that if he did not fully repay the loan, “it’s just going to be unbelievable.” Russo compared himself to the mob-affiliated character in “Uncut Gems,” a movie that ends with the indebted diamond dealer shot dead. On another call, Russo told Altieri, “They’re gonna pop your head off in front of your f------ kids. This guy has no clue what he’s getting into.” Smookler told Altieri, “You watch my man, you f------ me, now watch what I am gonna do to you, I’m coming brother. Full f------ steam ahead.” Officials said Russo and Smookler also threatened to harm Altieri’s family if Altieri did not repay the loan. Smookler told Altieri that, “e are gonna find your wife today. That’s happening.” Russo informed Altieri that the people coming for him are “going to make you watch as they rip your son’s teeth out of his mouth, watch, they’re going to do worse things to your wife.” The government has taken steps to recover funds stolen in connection with the charged scheme to defraud the lottery victims, including executing warrants to seize 13 bank accounts associated with the defendants’ scheme, and placing liens on three properties that Smookler and Russo allegedly purchased and/or renovated with stolen funds. The Simpsonville lottery winner chose from the beginning not to reveal her identity, but WYFF News 4 did learn from previous reporting the winner is a woman.Since winning the lottery, she has made several charitable contributions to South Carolina entities.