Jose Luis Betancourt, a Mexican resident of Brownsville, thought he had won $2.7 million from the Texas lottery back in 2002. But Betancourt is now a convicted drug trafficker serving a 24-year sentence in federal prison.

Last week the 5th Circuit Court of Appeals confirmed his sentence and his forfeiture of half of a $5.5 million lottery ticket that he had bought with a neighbor. The jury found that he had paid for his half of the ticket with drug money.

The U.S. Attorney's office for the Southern District of Texas was so happy that they issued a press release—

Two days after the Texas Lottery Commission paid Betancourt approximately $5.5 million, representing the cash out proceeds from the Texas Lottery minus an amount withheld for federal income taxes, he delivered cocaine that led to his arrest and convictions. Betancourt's arrest followed his long involvement in drug trafficking activities in the Brownsville, Texas, area.
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Federal law authorizes the government to seek to forfeit all property and proceeds obtained from drug trafficking and any monies or other property obtained with those proceeds. The Fifth Circuit agreed with the District Court's determination that Betancourt did not have any other source of income aside from selling cocaine; therefore, he acquired his interest in a winning Texas lottery ticket with money he had made selling cocaine. Accordingly, the Court of Appeals concluded that Betancourt's Texas Lottery proceeds of approximately $2.7 million – his interest in the total amount of the winnings – were correctly forfeited to the United States.