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Lottery winner facing tax fraud trial dies
Lottery winner facing tax fraud trial diesPosted: 4/25/2008 7:11:59 PM  Editor's Note: A less in-depth news story about this lottery winner was posted earlier today: $13 million Florida Lotto winner dies a pauper Former lottery multi-millionaire Alex Toth, who was broke and facing tax fraud charges, has died at the age of 60. Toth was scheduled to go on trial in June, accused of filing fake tax returns with his wife, Rhoda, who has pleaded guilty and is awaiting sentencing. By the time the couple were charged in 2006, authorities said they appeared to have no assets. The $13 million lottery money won 18 years ago was long gone, and the Hudson couple were living in squalid conditions, their only electricity coming through an extension cord rigged to their car engine. The Toths said they lost the money through gambling, gifts and living the high life. The money created rifts in their family, leading to a lawsuit between Rhoda Toth and her son in 1996. Toth's attorney, Bjorn Brunvand, said his client died in early April. Pasco County Health Department spokeswoman Deanna Krautner confirmed Alex Joseph Toth died April 5. The cause of death was not released. Brunvand said the trial would have been "interesting," and that he planned to blame Rhoda Toth, who Brunvand said manipulated her husband into signing paperwork. "I don't think Alex Toth, during the time period in question, was capable of knowingly and willingly participating in the scheme," Brunvand said. "Whatever his wife would tell him to do, he would do." According to Rhoda Toth's plea agreement filed in federal court, the Toths won the lottery to be paid out over 20 years. When the payments were being made, their taxes were withheld. In 1999, they sold the annuity to Singer Asset and Finance for two lump sums, $1.59 million to Alex Toth and $1.49 million to Rhoda Toth. That year, they filed tax returns reporting their income as if they had received the same annuity payment they had received before. They failed to report the lump sum payments from selling the annuity, the plea agreement states. In subsequent years, the agreement states, the Toths falsely reported gambling losses to offset the payments they were no longer receiving. In total, the agreement states, Rhoda Toth owes the government $1.1 million and her husband owed $1.4 million Brunvand said the Toths split up last year when Alex Toth went to a federal medical facility to be treated for mental problems that rendered him incompetent to stand trial. Although Rhoda Toth accompanied her husband to court for a hearing in August about his competency, when he returned from treatment that restored his competence, Rhoda Toth had "moved on to someone else," Brunvand said. Last year, Brunvand filed with the court a letter from physician Gary Levine, who said Alex Toth had been involved in "multiple motor vehicle accidents," the most recent one on June 4. Toth had "chronic pain syndrome," the physician wrote, as well as Type II diabetes; a poorly controlled, penicillin-resistant staph infection; and a history of severe esophagitis, gastritis and degenerative joint and disc disease. "He also has chronic anxiety and panic attacks," Levine wrote, and was taking multiple medications. Source: Tampa Tribune
Kunming China Member #58390 January 23, 2008 987 Posts Offline |
| Posted: April 25, 2008, 11:40 pm - IP Logged |
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Editor's Note: A less in-depth news story about this lottery winner was posted earlier today: $13 million Florida Lotto winner dies a pauper Former lottery multi-millionaire Alex Toth, who was broke and facing tax fraud charges, has died at the age of 60. Toth was scheduled to go on trial in June, accused of filing fake tax returns with his wife, Rhoda, who has pleaded guilty and is awaiting sentencing. By the time the couple were charged in 2006, authorities said they appeared to have no assets. The $13 million lottery money won 18 years ago was long gone, and the Hudson couple were living in squalid conditions, their only electricity coming through an extension cord rigged to their car engine. The Toths said they lost the money through gambling, gifts and living the high life. The money created rifts in their family, leading to a lawsuit between Rhoda Toth and her son in 1996. Toth's attorney, Bjorn Brunvand, said his client died in early April. Pasco County Health Department spokeswoman Deanna Krautner confirmed Alex Joseph Toth died April 5. The cause of death was not released. Brunvand said the trial would have been "interesting," and that he planned to blame Rhoda Toth, who Brunvand said manipulated her husband into signing paperwork. "I don't think Alex Toth, during the time period in question, was capable of knowingly and willingly participating in the scheme," Brunvand said. "Whatever his wife would tell him to do, he would do." According to Rhoda Toth's plea agreement filed in federal court, the Toths won the lottery to be paid out over 20 years. When the payments were being made, their taxes were withheld. In 1999, they sold the annuity to Singer Asset and Finance for two lump sums, $1.59 million to Alex Toth and $1.49 million to Rhoda Toth. That year, they filed tax returns reporting their income as if they had received the same annuity payment they had received before. They failed to report the lump sum payments from selling the annuity, the plea agreement states. In subsequent years, the agreement states, the Toths falsely reported gambling losses to offset the payments they were no longer receiving. In total, the agreement states, Rhoda Toth owes the government $1.1 million and her husband owed $1.4 million Brunvand said the Toths split up last year when Alex Toth went to a federal medical facility to be treated for mental problems that rendered him incompetent to stand trial. Although Rhoda Toth accompanied her husband to court for a hearing in August about his competency, when he returned from treatment that restored his competence, Rhoda Toth had "moved on to someone else," Brunvand said. Last year, Brunvand filed with the court a letter from physician Gary Levine, who said Alex Toth had been involved in "multiple motor vehicle accidents," the most recent one on June 4. Toth had "chronic pain syndrome," the physician wrote, as well as Type II diabetes; a poorly controlled, penicillin-resistant staph infection; and a history of severe esophagitis, gastritis and degenerative joint and disc disease. "He also has chronic anxiety and panic attacks," Levine wrote, and was taking multiple medications. At least they had a chance at the "good life". Winning doesn't guarantee happiness only opportunities. Very few people get a chance to win a Jackpot. "WE WANT NOTHING LESS THAN A JACKPOT"
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Illinois United States Member #30849 January 17, 2006 3402 Posts Offline |
| Posted: April 26, 2008, 9:56 am - IP Logged |
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I sincerely hope those members here who are fond of making "how to beat the tax man" posts see this article.
Also I hope people take note of this from the article:
"In 1999, they sold the annuity to Singer Asset and Finance for two lumpsums, $1.59 million to Alex Toth and $1.49 million to Rhoda Toth." It's Lotto, not horseshoes or artillery!
close doesn't count! I sell everything at a loss but make up for it in volume
- Milo Minderbinder, Catch-22
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Michigan United States Member #55299 August 31, 2007 483 Posts Offline |
| Posted: April 26, 2008, 10:36 am - IP Logged |
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Were they really dumb enough to think that they could do that and the IRS wouldn't know or look into it??? Then again, annuity buyers are a shady bunch.
Oh and just as I expected with the gambling thing. With odds like 1 in 175,711,536 how can I lose?!
You can't predict random.
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Margaritaville United States Member #58035 January 9, 2008 92 Posts Offline |
| Posted: April 26, 2008, 11:08 am - IP Logged |
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Perfect example of why a $13m lottery win is not enough to have an extravagant lifestyle. After the taxes are paid, there is enough to invest for a very comfortable retirement and still have a few extra comforts. Buying luxuries is like buying a horse - it's not the purchase price, but the maintenance cost that is the most costly. People who don't realize the maintenance cost of living a luxurious lifestyle go broke fast. ..........................
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Illinois United States Member #30849 January 17, 2006 3402 Posts Offline |
| Posted: April 26, 2008, 12:33 pm - IP Logged |
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Were they really dumb enough to think that they could do that and the IRS wouldn't know or look into it??? Then again, annuity buyers are a shady bunch.
Oh and just as I expected with the gambling thing. Put it this way, people on this board have recently suggested moving to a tax free state after they've hit a jackpot, to beat the state they moved from out of the taxes.
One size fits all, and all that.
I agree with you 150% about the gambling. It's Lotto, not horseshoes or artillery!
close doesn't count! I sell everything at a loss but make up for it in volume
- Milo Minderbinder, Catch-22
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New Member College Park United States Member #54111 July 14, 2007 24 Posts Offline |
| Posted: April 26, 2008, 7:57 pm - IP Logged |
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This is one sad story. I sure hope that everyone involved learns from this, chalks it up to experience and has good luck in the future.  ONE COLOR, ONE VOICE, MANY CONNECTIONS...........
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Michigan United States Member #55299 August 31, 2007 483 Posts Offline |
| Posted: April 26, 2008, 8:21 pm - IP Logged |
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Put it this way, people on this board have recently suggested moving to a tax free state after they've hit a jackpot, to beat the state they moved from out of the taxes.
One size fits all, and all that.
I agree with you 150% about the gambling. Well, with the taxes I don't think there's anything wrong with moving to a state/county/city without a income tax, but you're not going to trick anyone by doing it by claiming you lived at this place before the numbers were drawn and you'd have to pay anyway. Just move afterwards if you really want to and pay what you owe at tax time and get it over. Then next year you won't have to bother with it again and if you're smart with the money you should be able to make it back (and them some, even after Federal taxes) in no time. With odds like 1 in 175,711,536 how can I lose?!
You can't predict random.
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South Carolina United States Member #6 November 4, 2001 5889 Posts Offline |
| Posted: April 26, 2008, 10:50 pm - IP Logged |
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Do ya think the gov't is trying to get a lot here in taxes
sold the annuity to Singer Asset and Finance for two lump sums, $1.59 million to Alex Toth and $1.49 million to Rhoda Toth.
In total, the agreement states, Rhoda Toth owes the government $1.1 million and her husband owed $1.4 million
You better watch out you better not cry the tax man is coming to town. Exact order chaser 
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United States
Member #59651
March 8, 2008
174 Posts
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| Posted: April 27, 2008, 12:43 am - IP Logged |
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Seem to me this couple never tried to obtain intelligent advise, or ignore it when it was given. They won every little money, especially over annuity payments. That is chicken feed for a lottery winner. They won millions, they want millions. They were too dumb to realize they were never gonna get millions. As with almost every single jackpot winner that doesn't plan beyound day two of the winning, they were doomed. They never stood a chance. They might as well as taken their clothes off, dumped pig blood all over them and ran through the Montanma mountains. They were blinded by the annuity lure and were to dumb to blink So they tried to be slick and sell of the annuity, not realizing they were way out of their leauge. Then didn't pay the taxes that were on the books. This is pure Katz & Jammer stuipidity. Once it makes the books, it never come off the books.
Its hard to feel sorry for some one who scratches his head with a shotgun barrel and winds up blowing his brains off. Dumb is dumb, sand chocolate don't make it anything but dummer. These people been walking sucking on shotgun lollipops since the day they won the money. Descruction was only put on delay so the gods could set up seats and watch how superior humans can be dumber then three day old dirt.
You have to have a plan; multiple plans. A plan for $10M, a plan for $20M, a plan for $50M, etc. Without a plan, you are doomed. You don't need detail plans, but you need a plan. Make a list of what you want from life, if you could afford the item. Make a rationale list of who in your familiy and freiends you would give what to. Make a list of what charities are your favorites; determine how much to give them. Find a place you can go hide and be by yourself. Some place where you can think. Surround youself with four of your most trust friends. Mom, Pop, Sis, and your wife. Spend a week thinking of what could go wrong, and make a list so that you can get professional help in ensuring it doesn't go wrong. Figure, in rough numbers, what you are going to need to survive with for the rest of your life. Trusts for kids. Trust for grand kids. Senior facilities for gramps.
When you are done with the plan, you know how much you can waste and how much you can do with the rest. That is how to live the luxury life and no go broke. Depending on the value, the distrbitution changes.
I have a plan for $40M, $50M, $60m, all the way to $100M. Each one builds on the lower; mostly allocate more and more to specialy people and groups. Under $40M, my plan is limited. Fewer resources, fewer lifestyles. What never changes is the 10% rule. No matter what, I take 10% off the top and I take my firneds and have a reunion party of all reunion parties. Get the dumbness out of me and prepare for the seriousness business of managing money.
You can do it, even with a $10M annuity. You just have realise you don't have $10M and plan accordingly. Stay off drugs. Stay off Alchohal. Stay off women 30-years your senior. You will have a great life@!
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