I'm pretty sure this was after-the-fact. A lot of people wouldn't say anything to the press if you read the OP. 

I think this financial adviser is telling the story to give future winners a serious heads up.

And think about this from the OP:

"To a modern-day Euripides, the point would be that those whom the gods wish to destroy, they first make suddenly rich."

Man, talk about distrubing! 

Very sad but typical of those who come into sudden wealth.

Yet another example of how money does not change people (though it can change how people treat you).  A person who abuses booze and drugs, who commits crimes, and makes bad choices with their life is likely to continue to do that with lots of money in the bank.  I once heard a jackpot winner say "If you were miserable before the win, you will be miserable after the win."  How true. 

Of course, if he had let the lottery invest the cash amount - BEFORE taxes - he would have received his annual check for $3.7 million this month - no matter what the stock market was doing.

I agree with the remark about the financial advisor, but it's possible that Mr. Edwards insisted on taking out the loan.  I don't trust all financial advisors, but I also know from experience that you can't stop someone from being irresponsible.  When I sold cars or furniture, people who didn't have a pot to pee in would want to finance all sorts of luxuries.  I learned the hard way that trying to help people will make you poor.  Once a couple drove into the dealership with a car that had only 30K miles on it, and they were very upside down. So I told them it would be more prudent to wait another year or 2 and explained how, no matter how good a deal I gave them, they would be paying thousands over sticker price, since a new car depreciates the most during the first 24 months.  They thanked me and left.  A week later they came back, so I thought they changed their mind. They wanted to show me the new car they purchased up the road.  (I have no idea why they came back to me...it was like kicking me in the teeth.)  After that, I decided to be fair & honest, but to let adults make their own stupid choices.

Chuck & I posted at the same time, so I want to add that I agree with him.  I don't think it's typical to hear these stories.  I am 100% positive that if I won even a million dollars, I'd be set for life.

Typical?  There have been over 220 Powerball jackpot winners.  I only know of two that have had problems with their lives (other than the occaional paint chip on the Maybach).

The press loves to tell stories of "lottery winners" who have problems.  Many of these big winners actually won prizes in the hundreds of thousands and do quickly go through it.  You are not likely to see a big story on the thousand of winners who buy a new home, send their kids to college, start a business, take lots of nice trips (yawn). 

That jackpot winners have tragic lives is a myth used to sell some media show or to sell slick finanical services (like the folks who put out their suvey findings that 90% of winners have spent their entire lottery winnings within five year - yeah right! - literally true if you are talking about the $5 winners). 

This is a news story because it is unusual.

I agree.  Bad news sells newspapers and increases ratings.  It also makes juicy gossip, and most people enjoy their gossip.

Even though this article is not representative of most winners, it happens to be one of the better stories I have read that documents the tragic rise and downfall of a top-tier winner.  The only thing missing is quotes from the key players themselves, but other than that I think it is exceptional in its detail.

What a read!

Makes me think that Jack should be coming up for sainthood any day now.

Chuck,

I had meant to say those who were in similar situations (drug addicts, ex-cons) such as the subject being profiled in the article.

I agree with you that many others who came from "better" backgrounds have fared much better with their winnings.

Well, it wasn't exactly a secret.  The guy went on all the tv shows bragging about how much he paid for his watches and rings, I'm sure he's the one who told about the $200k trip to Vegas.

Them judging him for spending $3 mil in 3 months kind of irks me.  When I win the Powerball tonight, I'll probably spend that much within 3 months after I claim it too.  He spent much of it on a house, which is what I'll do.  Of course, I'm smart enough (I hope) that I won't then go buy a couple dozen cars and kilos of drugs and fake antiques and my children's love with the rest of it.  The rest will stay in the investments my advisors put it in and I'll live off the investment income.

Too true. 

This is a great article.  A nice record of how this winner burned out. 

One thing to remember is that this money is not "lost".  It was simply moved to someone else - realtors, car dealers, jewelry dealers, and sadly, sellers of trashy trinkets and drug dealers.  That is likely the saddest part - better funding of drug dealers.