$338M Powerball Winner 'Subject to Potential Arrest' for Unpaid Child Support

[The Straight Story]

Pedro Quezada, the man who came forward Monday as the winner of an enormous $338 million Powerball lottery jackpot, has not paid child support since 2009.

NorthJersey.com reports that state authorities on Tuesday connected Quezada's name to an outstanding warrant for failure to make $29,000 in payments.

Police officers visited his Passaic, N.J., apartment on Wednesday afternoon, but nobody was home.

Quezada, 44, was born in the Dominican Republic and until his recent windfall owned and operated Apple Deli & Grocery in Passaic. The store now has a for sale sign.

http://www.usnews.com/news/newsgram/articles/2013/03/28/powerball-winner-unpaid-child-support-pedro-quezada

[burrowowl]

1. Now he can pay the child support!

[NightWatcher]

2. Let him claim the prize then the mom can file for an adjustment

and get a few million for the kids. Duh!

[backscatter712]

3. Now he's fresh out of excuses.

Now that he's got a few extra zeros in his bank balance, he should be able to solve this problem quickly.

[Go Vols]

4. He should have had a lawyer

get this straight before coming forward.

[NYC_SKP]

5. Loser POS. Had money for gambling but not for his kids? eom

[talkingmime]

6. He can afford it now. Deadbeats like that should get hit hard with a judgement.

I'd say half of his earnings would be appropriate, just for being an asshole to his ex-wife and kid(s). Besides, even if he takes the lump sum, that's still going to be about $200m. I hope he gets a real hardass of a judge.

[A HERETIC I AM]

10. Not even close to $200 million.

He'll end up with somewhere between $116 and $120 mil. after both Federal and State taxes. NJ has a top rate of just under 9%.

He will pay close to 45% of the lump sum of $211 mil. in income taxes.

[talkingmime]

11. I was referring to the lump sum (pre-tax) - she'd have to pay her own taxes.

The judge should order him to split the winnings, unless he already has cashed in, in which case it could be a settlement (post tax to him, no tax to her). Either way, he should have to forfeit half or more. He'll still have more than enough for life, but then so would she.

It wouldn't be fair to let him walk away a multi-millionaire and just have to pay $29K or even a million.

[A HERETIC I AM]

13. Apparently he can not even collect until the $29,000 in back child support is settled.

His little corner bodega/store is for sale.

He needs 29K quickly, so he can settle what he owes before the state will allow the lottery commission to pay out.

[former9thward]

17. He could go to any bank and get th 29k right away.

He is obviously good for it.

[talkingmime]

18. Oh, now THAT is sweet justice on its own!!!

[HappyMe]

7. Well, now he can pay it off.

[n2doc]

8. I predict he will be broke in 10 years

He should have taken the annual payments. Now he is going to be hit with lawsuits asking for a piece from each of his baby mamas (and rightly so). I'll bet he fritters the rest away. It is a familiar pattern for lotto winners.

Why people don't go for the guaranteed 20 year payout is beyond me. Who can spend 150 million wisely, or manage that amount? Isn't 10 mil a year after tax enough money?

[A HERETIC I AM]

9. Five.

If not broke, he'll file for bankruptcy within 5 years. 3 out of 5 big money lottery winners in this country do that very thing.

FWIW, there are plenty of reasons not to go for the annuity (which in the case of the Powerball, is 29 payments, not 20), the least of which is the ability to get a better return than the Powerball annuity gives you.

His biggest problem isn't the child support, not by a long stretch. His biggest problem is that he came forward too quick and everyone knows who he is.

He will be hounded from now on by all manner of people, from total strangers to 3rd and 4th cousins he never knew he had. He needs competent counsel now, if he doesn't already have it.

"Who can spend 150 million wisely, or manage that amount? Isn't 10 mil a year after tax enough money?"

Damned few. That's why when winnings get that high, you hire people to do it for you. The problem with taking the payments is the likelihood of burning through an annual payment and having to file bankruptcy is higher. You get one check a year after the first one. Just one, every 12 months.

[talkingmime]

12. Agreed on the lump sum. Most people with an investment manager will end up with more.

Besides, Corbett's trying to push through a shady deal to privatize the PA lottery with a company in the UK - meaning those "profits" that go to PA seniors will have a hefty chunck taken out of them and if the UK company royally fucks up then I wouldn't count on EVER getting the remainder of the annuity payments.

[oneshooter]

14. Another reason for lump sum is Federal and State death taxes.

If he dies before collecting all of the payments the Death Tax MUST be paid before any more payments are released.

[A HERETIC I AM]

16. Sorry, but "Death Tax" is a made up neologism.....

and made up, BTW by asshole extraordinaire Frank Luntz.


It is an Estate Tax, NOT A DEATH TAX.

[talkingmime]

20. I'd heard that somewhere. Didn't know if it was true. PA doesn't tax lottery winnings.

They deduct 25% for federal taxes, but nothing is owed for state taxes. And the guy was an idiot for coming out as the winner so soon. He should have lined up an investment team, figured out how to deal with the $29,000, and THEN announced he was the winner.

Still, it is rather good punishment that he's stuck with all the riches in the world (as most of us would consider it) and not a dime to spend of it. My wife's had to deal with countless kids who have a deadbeat parent, and most of the time the deadbeat is well off and just doesn't care.

[Dawson Leery]

15. Find a reputable estate attorney and have a blind trust set up to collect the winnings.

[A HERETIC I AM]

19. You don't want a "Blind Trust".

There are plenty of ways to do it, such as setting up an investment trust or an LLC, but have an attorney collect the winnings is very good advice. In those states that require the winner to have his picture taken, go in disguise!

A Blind Trust can hamstring the winner in many ways. There are many types of trusts that can be set up that work better.

[Dawson Leery]

21. Then an LLC is the best way to go.

[A HERETIC I AM]

22. Usually.

Depends on the tax laws of the state.

In some cases, a regular Sub Chapter S Corp can do just fine.

I live in Florida and an LLC is apparently the best way to go.

http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/should-my-company-be-llc-s-corp-or-both

The point is, as you said before, to NOT receive the money in your name.