Early this year, a New York State Lottery winner in Brooklyn approached Morgan Stanley with a problem: he needed to borrow hundreds of thousands of dollars before he collected his prize money. The man, a Russian immigrant, wanted money to help move his family to a secure location before he redeemed his ticket and possibly became famous, according to people familiar with the matter who spoke on the condition of anonymity. He also wanted advice about what to do with his prize money, which was in the hundreds of thousands of dollars. The bank’s wealth management unit decided to make the loan to win a new customer, a step it is increasingly willing to make as it builds up its brokerage unit…Industry sources said they had never heard of a loan against a lottery ticket, though they cited other examples of atypical collateral that other banks have loaned against, including a client in Texas who borrowed against the future offspring of his prize bulls, and a client who borrowed against future ticket sales of a professional sports team he owned. [Reuters]

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Comments (6)

  1. Posted by Im_a_Dude | August 4, 2014 at 3:41 PM

    Something tells me this will not end well for MS

  2. Posted by Guest | August 4, 2014 at 3:56 PM

    No worries. My guess is they'll securitize the debt and sell it to the retail folks.

  3. Posted by Nigerian Prince | August 4, 2014 at 3:59 PM

    Back in high school we used to get wire transfers so we could claim or inheritance all the time. It was no big deal.

  4. Posted by UBSLottoEnthusiast | August 4, 2014 at 4:21 PM

    "he needed to borrow hundreds of thousands of dollars…his prize money, which was in the hundreds of thousands of dollars."

    Step 1: Win Lotto
    Step 2: Secure high interest loan from MS to move family members to safe location before claiming winnings
    Step 3: Claim winnings, which is barely more than you spent to move said family members and pay interest on loans
    Step 4: ???????
    Step 5: PROFIT!!!!!!!!!!!!!!!!

  5. Posted by Guest | August 4, 2014 at 4:49 PM

    I get the idea that he wants to stay out of the spotlight, but he must owe someone some serious cash if he needs to get virtually all of his winnings paid out prior to getting paid out on the ticket, just to protect his family.

  6. Posted by C Gasparino | August 4, 2014 at 4:53 PM

    you'd never want to be on my bad side.