[colorado tanker]

The article says absolutely nothing about failure to pay tax on the winnings. If you click through to the documents this is a civil lawsuit in bankruptcy court. The perp ran a hedge fund but was convicted of criminal fraud for running a ponzi scheme and sent to prison. The bankruptcy trustee is trying to get the money back that the perp lost on the theory that it was investor money improperly transferred.

The suit is based on the fraudulent conveyance provisions of the Bankruptcy Code and California statutes, which can be pretty technical.

Now, it's entirely possible these guys didn't report it on tax returns, but we have no way of knowing that as they are not publicly available documents.

[Qbert]

Ok, but do you honestly believe that they were reporting income from this?