Ronnie Music Jr, who won the lump sum off a scratchie ticket in February last year has pleaded guilty to federal drug trafficking and gun charges and faces a maximum sentence of life in prison.
Investigators revealed that after his big win, Music, a would-be Walter White, used some of his winnings to purchase a large amount of meth with the intent to supply it for resale, the New York Post reports.
Music's co-conspirators were caught trying to sell about 5kg of meth, which has an estimated street value or more than $US500,000.
Agents seized more that $1m worth of meth, firearms, ammunition, cars and more than $600,000 in cash.
"As a result of his unsound investment strategy, Music now faces decades in a federal prison," US Attorney Ed Tarver said.