Sherman W. Friend Sentenced to Tax Evasion, PA, 2023

Fayette County’s Sherman W. Friend has been sentenced to one year and one day in prison, alongside a $3,000 fine and full restitution of $132,445 for his conviction on tax evasion charges. United States Attorney David J. Hickton announced the sentence from Pittsburgh.

Friend was found guilty of using approximately 40 people, many unemployed and destitute, to cash in lottery tickets worth over half a million dollars, all with the intent of evading taxes. The scheme unraveled after Friend won $520,000 by betting on his lucky number, 1127, which he selected due to a vow made after winning a PT Cruiser convertible in a raffle. He owed the IRS $8,000 from that win but vowed never to pay taxes again.

The court records indicate that Friend’s income for 2009 was $101,818 with tax liabilities of $22,229, while his 2010 income reached $378,779 with a tax bill of $110,216. Despite being informed by Friend that there would be no consequences for participating in the scheme, several individuals were later taxed on their winnings.

Judge Arthur J. Schwab emphasized that Friend’s actions impacted others and that his sentence underscored the importance of citizens paying income taxes. The judge noted that he initially intended to fine Friend $30,000 but reduced it to $3,000 after learning that Friend had already paid $93,981 in restitution.

Assistant United States Attorney Nelson P. Cohen prosecuted the case on behalf of the government, while the Internal Revenue Service, Criminal Investigation division conducted the investigation that led to Friend’s prosecution.