Welcome Guest
Log In | Register )
The time is now 10:27 pm
You last visited August 1, 2014, 10:26 pm
All times shown are
Eastern Time (GMT-5:00)

Informant reported lottery scam

Indiana LotteryIndiana Lottery: Informant reported lottery scam

Agency criticized for silence in scratch-off case; director says he lacked evidence to notify police

Marion County Prosecutor Carl Brizzi said Tuesday that Hoosier Lottery officials knew for months there were potential problems with a scratch-off game, but failed to notify police about their suspicions of a possible scam.

A day after charging ex-security agent William C. Foreman and two other men with stealing from the lottery, Brizzi said an informant, rather than lottery officials, alerted his office to the scheme.

"There were no efforts by anyone in the lottery to bring this to law enforcement," Brizzi said. "But for the efforts of (investigators) Tom Trathen and Mike Thayer, $50,000 of public money would be paid out (per year) to these thieves over the next 20 years."

The lottery already had paid out the first installment to Foreman's alleged accomplices before Monday's arrest.

Lottery Director Jack Ross defended his agency.

"I had the option of either paying the ticket or leveling a very serious allegation," Ross said. "I did not have the evidence to level that serious allegation."

Foreman, 59, Indianapolis, was arrested Monday and charged with felony counts of disclosing confidential lottery information and theft.

Investigators say Foreman, a lottery security officer who resigned in September, told two men that a winning ticket in the "$2,000,000 Bonus Spectacular" game could be purchased at a store in southeastern Indiana.

The men who cashed in that ticket, Chad R. Adkins and Daniel J. Foltz, were formally charged Tuesday with theft.

According to court records, Adkins and Foltz say Foreman told them where to buy the winning ticket. The men then arranged to purchase the store's entire supply.

The documents do not say how Foreman, a retired Indianapolis police officer, gained that information.

When ordered to take a polygraph test, Foreman resigned his $52,800-a-year job on Sept. 13. Prosecutors say he was a few months short of being able to claim full retirement benefits.

Foreman, who is free on bond, is scheduled to appear in Marion Superior Court today. Adkins, 28, and Foltz, 31, both of Shelbyville, are charged with theft and scheduled to appear for hearings on Nov. 22.

Investigators have released little information on Foreman's connection with Adkins and Foltz.

Tickets carry codes

Lottery tickets are coded with numbers and other discreet marks that verify their authenticity. Only the manufacturer, Scientific Games, knows the numbers of the winning tickets. That information is never supposed to be shared with people at the lottery until a game is closed.

But in this case, Hoosier Lottery investigator Matthew Hollcraft -- looking into a claim from a person who believed he had lost a winning jackpot ticket -- requested and received a list of winning tickets on May 13.

The identifying numbers, along with distribution information available to some within the lottery, can be used to trace the winning tickets.

A day after receiving the list of winning tickets, Hollcraft was forced to resign from the lottery for reasons including the security breach, Ross said.

In an agreement signed Sept. 30 by Hollcraft and Ross, Hollcraft promised not to divulge any lottery information and agreed he would notify lottery officials beforehand if he is called to testify in court about the security breach.

Investigators also revealed Tuesday that lottery officials paid Hollcraft a $7,500 settlement.

Ross said the settlement allowed lottery officials to get a sworn statement from him detailing the security breach.

Hollcraft, who has not been charged in the case, could not be reached for comment.

"We were trying to make sure no criminal activity was taking place," Ross said. "That was our concern. We hadn't ruled that out as a possibility."

The lottery employs 11 security officers -- most of them former police officers -- and was conducting its own investigation into the matter, Ross said.

During the 2004 budget year, lottery proceeds amounted to about $200 million. The money was set aside to pay pensions of teachers, police officers and firefighters; to lower license plate excise taxes; and to cover other state expenditures.

Legislators weigh in

"Hopefully there's not a wide-scale loss of confidence in the lottery," said state Sen. Murray Clark, R-Indianapolis. "Obviously that's my fear. Definitely it should be looked into, but I don't want to second-guess anybody because I'm not privy to all the facts."

Clark and other legislators said what happened is a "management issue" that does not require legislative action.

"It's always troublesome when something like this occurs, but we should keep in mind the system works," said state Sen. Vi Simpson, D-Ellettsville. "The point is they didn't succeed. I think perhaps Prosecutor Brizzi is making a bigger deal out of this than it is."

Simpson said Ross, a former attorney for Senate Democrats, is "as ethical a guy as you'll ever find."

The McDonald's Corp. survived a similar disaster with its monopoly game three years ago in which 35 people, many associated with the marketing company that ran the contest, pleaded guilty to rigging it, said Lisa Howard, a company spokeswoman.

The thefts involved more than $20 million in fraudulently redeemed game pieces. The company fired the marketing company and gave away $25 million in cash and prizes to customers.

The company continues to run the popular promotion.

Following McDonald's lead, Ross said the lottery is looking for ways to make things right for players of the scratch-off game.

"That's clearly something we would like to do," Ross said. "We certainly don't want to profit from this."

Indianapolis Star

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

13 comments. Last comment 10 years ago by Maverick.
Page 1 of 1
LOTTOMIKE's avatar - cash money.jpg
Tennessee
United States
Member #7853
October 15, 2004
11334 Posts
Offline
Posted: November 10, 2004, 1:49 pm - IP Logged

indiana with their computerized drawings that might pay one person out of a million in pick four a day and now this...indiana has got to be by far the most corrupt lottery i've seen......

    DoctorEw220's avatar - alien helmet.jpg
    Yinzer Country, PA
    United States
    Member #4067
    March 18, 2004
    2733 Posts
    Offline
    Posted: November 10, 2004, 2:11 pm - IP Logged

    no. PA and NY are more corrupt. trust me. PA and NY are more corrupt.

    I've redone my website.  Go to www.dr-ew.com.  I kept a lot of the old stuff, and I've added some new stuff.  Look for more new stuff in the coming weeks.

      fja's avatar - gnome1

      United States
      Member #91
      January 19, 2002
      9929 Posts
      Offline
      Posted: November 10, 2004, 2:52 pm - IP Logged

      I hope all the lottery states start keeping a closer eye on this kind of stuff....It will definitley ruin all games if there is wide spread corruption...

      "Everybody has to believe in something...I believe I'll have another beer!"   = W.C.Fields                      


        United States
        Member #379
        June 5, 2002
        11296 Posts
        Offline
        Posted: November 10, 2004, 7:45 pm - IP Logged

        Actually, it's Mass & NY with their annuity-only prizes...did the Hoosier Lottery game have a cash option?

          Avatar
          chicago
          United States
          Member #3676
          February 10, 2004
          396 Posts
          Offline
          Posted: November 10, 2004, 11:40 pm - IP Logged

          This I am sure happens more than we know.

            Avatar
            Columbia City, Indiana
            United States
            Member #2978
            December 9, 2003
            381 Posts
            Offline
            Posted: November 11, 2004, 1:04 pm - IP Logged

            Jack Ross didn't have enough evidence to level his allegations, yet he was concerned enough to pay Hollcraft $7500 to keep his mouth shut, and to give Ross a heads-up if he was questioned about the scandal.

            Last May, the Hoosier Lottery's CPA, Joe Pfister, told LosingJeff and I that their RNG was Foreman's idea. Of course, he also told us that Mr. Foreman was no longer with the lottery.

            This is only the beginning, folks. Sit back and enjoy the show.

            Come, Pinky; we must prepare for tomorrow night...

            Jim

              LosingJeff's avatar - flower
              Greenfield
              United States
              Member #3587
              February 2, 2004
              557 Posts
              Offline
              Posted: November 13, 2004, 3:26 pm - IP Logged

              Thats a very interesting point Jim----and rightfully so! What amazes me is that Ross calls in the State Police after the Lottery is already being investigated. Why would anyone do that! Is he trying to tell Hoosiers that all of a sudden he is interested in putting these CROOKS in jail!

                LosingJeff's avatar - flower
                Greenfield
                United States
                Member #3587
                February 2, 2004
                557 Posts
                Offline
                Posted: November 13, 2004, 3:55 pm - IP Logged

                One other note. Calling in the State Police has yet cost the taxpayers more money. There is absolutely no reason to call anyone in if an investgation is already underway. We already cant find alot of the taxpayers money here. The 175 million dollars sent to Indiana to help unemployed people is still being looked for----I think Indiana used it on technology rather than bailing out the hurting people. Now that the Governors leaving office he gives State Employees a raise----No big deal, Mitch Daniels is the one who will have to figure out how to fund that payraise. The lists go on and people here are miserable. We lead the Nation in bankruptcy and foreclosures!  I should have stayed in the Corps----Indiana is lambasted with problems. My God, I can remember calling the Lt Governors (then Joe Kiernan) office when I had a 115.00 water bill. Their answer "thats not an issue for the Lt Governor."  How do they get elected with attitudes like that. Listen! I will do whatever I can  to make Indiana the place it used to be. Now we have scandals at the BMV! What gives here.  Our roads are God awful. Even the fast food places are terrible. Quality does not exist here.  We didnt have these integrity problems in the Corps. I would leave the state now, but I am at the point of Bankruptcy and have no funds left. As I have often said----You have to drive to Kentucky to get back in the good ole USA! MY God! I can only hope that My Man Mitch can straighten things out here------after all, he worked for my favorite President when I was in the Corps, Ronald Reagan! With the help of Mitch and a few good men we will fix Indiana's woes, and rid this State of Crooks! I want to once again say that things are on track "back home again in Indiana" Semper Fi!


                  United States
                  Member #7931
                  October 18, 2004
                  312 Posts
                  Offline
                  Posted: November 20, 2004, 3:58 am - IP Logged

                  a lottery simply cannot survive without being a scam

                    Maverick's avatar - yinyang
                    USA
                    United States
                    Member #8242
                    October 29, 2004
                    1133 Posts
                    Offline
                    Posted: November 26, 2004, 6:14 pm - IP Logged
                    Quote: Originally posted by DoctorEw220 on November 10, 2004


                    no. PA and NY are more corrupt. trust me. PA and NY are more corrupt.



                    I respect your words Doc. Can you say why NY is corrupt? Thanx.
                      Maverick's avatar - yinyang
                      USA
                      United States
                      Member #8242
                      October 29, 2004
                      1133 Posts
                      Offline
                      Posted: November 26, 2004, 6:15 pm - IP Logged
                      Quote: Originally posted by fja on November 10, 2004


                      I hope all the lottery states start keeping a closer eye on this kind of stuff....It will definitley ruin all games if there is wide spread corruption...



                      Yes, I too have one eyebrow raised. When both my eyebrows are raised I will stop playing altogether LOL.
                        Maverick's avatar - yinyang
                        USA
                        United States
                        Member #8242
                        October 29, 2004
                        1133 Posts
                        Offline
                        Posted: November 26, 2004, 6:17 pm - IP Logged
                        Quote: Originally posted by CASH Only on November 10, 2004


                        Actually, it's Mass & NY with their annuity-only prizes...did the Hoosier Lottery game have a cash option?



                        I am in the process of learning more. Can you explain what it is about NY's annuity prizes? Thanx.
                          Maverick's avatar - yinyang
                          USA
                          United States
                          Member #8242
                          October 29, 2004
                          1133 Posts
                          Offline
                          Posted: November 26, 2004, 6:21 pm - IP Logged
                          Quote: Originally posted by LosingJeff on November 13, 2004



                          One other note. Calling in the State Police has yet cost the taxpayers more money. There is absolutely no reason to call anyone in if an investgation is already underway. We already cant find alot of the taxpayers money here. The 175 million dollars sent to Indiana to help unemployed people is still being looked for----I think Indiana used it on technology rather than bailing out the hurting people. Now that the Governors leaving office he gives State Employees a raise----No big deal, Mitch Daniels is the one who will have to figure out how to fund that payraise. The lists go on and people here are miserable. We lead the Nation in bankruptcy and foreclosures!  I should have stayed in the Corps----Indiana is lambasted with problems. My God, I can remember calling the Lt Governors (then Joe Kiernan) office when I had a 115.00 water bill. Their answer "thats not an issue for the Lt Governor."  How do they get elected with attitudes like that. Listen! I will do whatever I can  to make Indiana the place it used to be. Now we have scandals at the BMV! What gives here.  Our roads are God awful. Even the fast food places are terrible. Quality does not exist here.  We didnt have these integrity problems in the Corps. I would leave the state now, but I am at the point of Bankruptcy and have no funds left. As I have often said----You have to drive to Kentucky to get back in the good ole USA! MY God! I can only hope that My Man Mitch can straighten things out here------after all, he worked for my favorite President when I was in the Corps, Ronald Reagan! With the help of Mitch and a few good men we will fix Indiana's woes, and rid this State of Crooks! I want to once again say that things are on track "back home again in Indiana" Semper Fi!




                          Amen. My heart is with you man.