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Representative of Hot Lotto winner named in lawsuit

Hot LottoHot Lotto: Representative of Hot Lotto winner named in lawsuit

The case of the most mysterious jackpot winner in the history of the Iowa Lottery got even more convoluted Thursday.

The attorney who represents a trust attempting to claim a multimillion-dollar Hot Lotto jackpot faces legal troubles in Delaware, court documents show.

Crawford Shaw, who is trying to claim a jackpot worth much as $14.2 million on behalf of his client, Hexam Investments Trust, is being sued over his involvement in a now-bankrupt company called Industrial Enterprises of America Inc.

Shaw was chief executive of the company, which sold aftermarket motor oil, windshield wiper solution and other automobile fluids, until 2005, when he was forced out. He sued Industrial Enterprises after his removal and received a settlement ultimately worth about $2.3 million.

"I sued them and I won," Shaw said in a telephone interview with The Des Moines Register on Thursday. "I don't know anything about this other lawsuit people are talking about."

The settlement made Shaw a consultant, but according to the lawsuit — filed in April in Delaware, where Industrial Enterprises is incorporated — he was not required to do any work or provide any services in exchange for stock shares, which he later sold.

The lawsuit alleges that the settlement terms were illegal, and that Shaw, while not accused of criminal wrongdoing, received stock that was impermissibly issued.

The lawsuit also says company leaders used this type of stock compensation arrangement to defraud investors of more than $110 million and force Industrial Enterprises into bankruptcy.

The company's top officials after Shaw's ouster — James Margulies and John Mazzuto — have both been convicted on securities fraud and other charges in New York, court records show.

Shaw first came to Iowans' attention on Dec. 29. His signature adorned the back of the Hot Lotto ticket that had been held for nearly a year.

Less than two hours before it was to expire, two attorneys from the Davis Brown firm in Des Moines delivered the ticket, signed by Shaw as trustee for Hexam, to lottery officials.

Shaw declined to tell the Register who is behind Hexam or whether the trust consists of an individual or group of people. He didn't reveal the information to lottery officials either, said Mary Neubauer, Iowa Lottery spokesman.

Shaw said he and the lottery "have agreed to keep everything confidential until it is all worked out. We're making progress."

Shaw met with Iowa Lottery officials for about 90 minutes Tuesday, but no resolution was reached on the prize.

The Iowa Lottery has not awarded the jackpot and continues to investigate whether the ticket was legally obtained and possessed, Neubauer said.

The ticket was purchased Dec. 23, 2010, at a QuikTrip in northeast Des Moines.

The Iowa Lottery is one of 15 state lotteries that pool resources to offer jackpots starting at $1 million in Hot Lotto, a numbers game similar to Powerball. Since the ticket was purchased in Iowa, the responsibility of investigating the claim and awarding the prize falls to Iowa Lottery officials.

The ticket played two sets of numbers over the next five drawings. The winning numbers hit on the second drawing, Dec. 29, 2010. The ticket was worth $16.5 million at the time.

Shaw sent the ticket by Federal Express to the Davis Brown firm, whose lawyers drove the ticket to Iowa Lottery headquarters on Grand Avenue in Des Moines 1 hour and 10 minutes before the ticket was to expire.

Since then, lottery officials have investigated how the ticket made it from a Des Moines convenience store into the hands of a 76-year-old lawyer living in Bedford, N.Y.

Lottery officials have said they will not award the prize until the person or persons behind the trust are revealed.

Iowa law requires a winner to give his name and address when claiming a prize. The winner does not have to make a public appearance or a public statement, though most have done so.

Lottery security personnel remain curious about why the jackpot went unclaimed for so long, Neubauer said.

Des Moines Register

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17 comments. Last comment 5 years ago by KY Floyd.
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dr65's avatar - black panther.jpg
Pennsylvania
United States
Member #74096
May 2, 2009
22883 Posts
Offline
Posted: January 20, 2012, 9:06 am - IP Logged

I've reconsidered...now it's STINK, STANK, STUNK.


    United States
    Member #111442
    May 25, 2011
    6323 Posts
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    Posted: January 20, 2012, 9:43 am - IP Logged

    I've reconsidered...now it's STINK, STANK, STUNK.

    It's the grinch who tried stealing the Hot Lotto!   I Agree!   Puke

      Avatar
      New York, NY
      United States
      Member #120649
      December 24, 2011
      67 Posts
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      Posted: January 20, 2012, 10:41 am - IP Logged

      They should turn this into reality TV. Can u imagine the ratings since we ll all know is for real and not some made up fake show.

        rdgrnr's avatar - walt
        Way back up in them dadgum hills, son!
        United States
        Member #73904
        April 28, 2009
        14903 Posts
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        Posted: January 20, 2012, 10:59 am - IP Logged

        This is gettin' curiouser and curiouser.


                                                     
                             
                                                 

         

         

         

         

                                                                                                           

        "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                    --Edmund Burke

         

         

          Cletu$2's avatar - Lottery-050.jpg
          S.E.Iowa
          United States
          Member #120504
          December 21, 2011
          534 Posts
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          Posted: January 20, 2012, 11:12 am - IP Logged

          Something stinks.But is it the Iowa lottery or the lawyers?Time will tell,I suppose.As rdgrnr says,it's getting curiouser and curiouser.

            Avatar
            charlotte, nc
            United States
            Member #108516
            March 26, 2011
            53 Posts
            Offline
            Posted: January 20, 2012, 12:36 pm - IP Logged

            The lottery office is always trying to find a reason not to pay out and i don't see anything wrong the lottery offices are greedy and crooks themeselves their will be alot of people that will claim their winnings in a trust. I know i would because i don't want or need to go public with my winnings i feel like all states should be anonymous.

              Avatar
              Monkey Butt, USA
              United States
              Member #54569
              August 23, 2007
              1124 Posts
              Offline
              Posted: January 20, 2012, 1:12 pm - IP Logged

              If I throw enough distractions in your direction, you will eventually forget about the original focus. Which is representing a person(s) who wished to remain unknown.

              Divide and conquer.

              Success rate almost 100%.

              This story is beginning to look like a card trick or the shell game.

              Am I the only one that sees this?

                Coin Toss's avatar - shape barbed.jpg
                Zeta Reticuli Star System
                United States
                Member #30470
                January 17, 2006
                10348 Posts
                Offline
                Posted: January 20, 2012, 5:40 pm - IP Logged

                A poster here named justxploring once joked that something like this would happen and the winner would have to go to court to prove they have a right to remain anonymous- and win the case but become famous for doing so!

                Green laugh

                Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                Lep

                There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                  Avatar
                  Kentucky
                  United States
                  Member #32652
                  February 14, 2006
                  7302 Posts
                  Offline
                  Posted: January 21, 2012, 11:00 am - IP Logged

                  The lottery office is always trying to find a reason not to pay out and i don't see anything wrong the lottery offices are greedy and crooks themeselves their will be alot of people that will claim their winnings in a trust. I know i would because i don't want or need to go public with my winnings i feel like all states should be anonymous.

                  "The lottery office is always trying to find a reason not to pay out  "

                  I've only been to a lottery office once and they bent over backward answering all my questions. Do you have an actual example when a lottery office refused to pay your legitimate winnings?

                  "i feel like all states should be anonymous."

                  And then you'll probably say there was no winner and the lottery office is keeping all the money. Here's a suggestion, if you don't like the rules don't play.


                    United States
                    Member #111442
                    May 25, 2011
                    6323 Posts
                    Offline
                    Posted: January 21, 2012, 2:00 pm - IP Logged

                    "The lottery office is always trying to find a reason not to pay out  "

                    I've only been to a lottery office once and they bent over backward answering all my questions. Do you have an actual example when a lottery office refused to pay your legitimate winnings?

                    "i feel like all states should be anonymous."

                    And then you'll probably say there was no winner and the lottery office is keeping all the money. Here's a suggestion, if you don't like the rules don't play.

                    Excellent point Stack. When people complain about the option of being anonymous, they are not thinking long term. If all lottery wins were anonymous, there would be considerable doubt about the validity and integrity of any such lottery. In general, people need to put a face & name to all large lotto wins so that they feel they also have a remote chance of winning.    Thumbs Up

                      savagegoose's avatar - ProfilePho
                      adelaide sa
                      Australia
                      Member #37136
                      April 11, 2006
                      3300 Posts
                      Offline
                      Posted: January 21, 2012, 3:14 pm - IP Logged

                      A poster here named justxploring once joked that something like this would happen and the winner would have to go to court to prove they have a right to remain anonymous- and win the case but become famous for doing so!

                      Green laugh

                      lol classic

                      2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                      keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                        larry3100's avatar - larry icon2.jpg
                        Redwood City,California
                        United States
                        Member #70503
                        February 3, 2009
                        200 Posts
                        Offline
                        Posted: January 21, 2012, 5:12 pm - IP Logged

                        If I won a big jackpot in the lottery and wanted to get my win done through a trust,I should have that right.But if it came down to an investigation to whether or not I got that lottery win,I would reveal myself to the Lottery Commission.I would tell them where I bought that winning ticket.No way I would let the Lottery Commission deny me my jackpot!.

                          Avatar
                          East of Columbus, OH
                          United States
                          Member #120843
                          December 28, 2011
                          447 Posts
                          Offline
                          Posted: January 23, 2012, 4:51 pm - IP Logged

                          If I won a big jackpot in the lottery and wanted to get my win done through a trust,I should have that right.But if it came down to an investigation to whether or not I got that lottery win,I would reveal myself to the Lottery Commission.I would tell them where I bought that winning ticket.No way I would let the Lottery Commission deny me my jackpot!.

                          Ditto!  Thumbs Up  I'm not going to let a little thing like anonymity get between me and my new Ferrari.

                          Life's Too Short To Be Unhappy Cool

                            savagegoose's avatar - ProfilePho
                            adelaide sa
                            Australia
                            Member #37136
                            April 11, 2006
                            3300 Posts
                            Offline
                            Posted: January 23, 2012, 10:04 pm - IP Logged

                            maybe it is the bankrupt lawyers ticket? if i was a banrupt and won the loto wahat a bitter pill , actually  paying my debts instead of  spending all that money! 

                            i can understand mainly  how a bankrupt would take 364days and 22 hours to claim a prize, and still want to not tell ANYONE who they are.

                            and seriously,  its not the lotto people knowing who you are its the public, oh and maaybe state solvency agencies, through out the  united states.

                            2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                            keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297