Police will examine millions of dollars worth of questionable winnings by lottery retailers after an independent investigation revealed gaping holes in how the Atlantic Lottery Corp. protects its customers from dishonest sellers.
In the latest blow to Canada's embattled lottery business, a forensic accounting team found what the Crown-owned agency described as "unethical" and "suspicious" dealings between some retailers and purchasers in Atlantic Canada.
Larry Doherty, a vice-president at the agency, stopped short of suggesting fraud had occurred, but he confirmed the KPMG Forensic Inc. study found retailers had pocketed 85 winning tickets — each worth more than $25,000 — for a total take of $14 million.
The biggest cash prize under scrutiny is a $4.5 million jackpot, picked up by a retailer in Nova Scotia last year. The corporation declined to release further details.