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MUSL employee arrested in Hot Lotto jackpot mystery

Hot LottoHot Lotto: MUSL employee arrested in Hot Lotto jackpot mystery
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DES MOINES, Iowa — The Iowa Division of Criminal Investigation has made an arrest in the four-year-old case involving a winning Hot Lotto ticket worth more than $16 million which the winner mysteriously decided not to claim.

Eddie Raymond Tipton, 51, of Norwalk, was arrested on Thursday. He has been charged with two counts of fraud, which are class D felonies.

Tipton is Director of Information Security for the Multi-State Lottery Association (MUSL), which is a vendor of the Iowa Lottery. His job prohibits him from playing the lottery. Assistant Director of the DCI Dave Jobes says Tipton attempted to claim the prize with the assistance of others.

"The allegations for these charges stem from his statutory prohibition on playing or winning the lottery. That prohibition was due to the nature of his employment with the Multi-State Lottery Association where he currently works as the Director of Information Securities," says Jobes.

The complaint against Tipton says he lied to investigators about buying the ticket and told them he was in Texas at the time. Cell phone records proved that was a false statement. The complaint also details the complicated maneuvering Tipton did in an attempt to claim the prize. He allegedly used friends in Texas, one of which was a lawyer, to contact a Canadian man about claiming the prize because the winner wanted to remain anonymous. The Canadian man, Philip Johnston, contacted the lottery about claiming the prize but the lottery says his account of how the ticket was bought was not consistent with the facts of the case.

Another attorney, Crawford Shaw, contacted the Iowa Lottery the day the ticket was to expire and said he represented Hexam Investments Ltd., the holder of the ticket. Johnston was listed as the Trustor/President of the company.

The lottery continued to question the validity of the claim because it could not determine who purchased the ticket and refused to pay the jackpot.

"We have strong security procedures in place to protect and ensure the integrity of our games and we absolutely believe this case indicates those processes worked to protect lottery players , lottery games and lottery prizes," says Iowa Lottery CEO Terry Rich.

The Hot Lotto ticket was bought at a Des Moines Quick Trip in 2010.  It went unclaimed until just hours before the ticket expired. An attorney who claimed to represent the winner came forward with the ticket. He refused to identify the winner or answer questions about the transaction then withdrew the claim.

"We all know there will always be people who will try and beat the system.  We have and will continue to update our security procedures to identify vulnerabilities to protect against them," says Rich.

The DCI has been investigating ever since, trying to determine what happened. They say despite Tipton's arrest, they are continuing to investigate the case.

Read the complaint in the Related Links section below.

News story photo(Click to display full-size in gallery)

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44 comments. Last comment 2 years ago by RedStang.
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s5thomps's avatar - Lottery-033.jpg
Hard Luck, Ak
United States
Member #23472
October 13, 2005
275 Posts
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Posted: January 15, 2015, 10:54 pm - IP Logged

The Irony of it all. Should of just gave the ticket to a friend and split the profit!

"We make a living by what you get, You make a LIFE by what you give!"

                                                               Sir Winston ChurchillSun Smiley

    ThatScaryChick's avatar - x1MqPuM
    Idaho
    United States
    Member #56506
    November 21, 2007
    6537 Posts
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    Posted: January 15, 2015, 11:10 pm - IP Logged

    Not very smart of Mr. Tipton. He knew he wasn't legally allowed to play in the first place and he still bought tickets anyways and then tried to claim the prize. Roll Eyes

    "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

      Igamble's avatar - spider
      nj
      United States
      Member #145657
      August 10, 2013
      979 Posts
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      Posted: January 15, 2015, 11:24 pm - IP Logged

      The Irony of it all. Should of just gave the ticket to a friend and split the profit!

       He did just that,but you are as they say retarded and need to re read article !

      The ticket was INVALID since it was bought by person WORKING FOR THE LOTTERY and that is ILLEGAL.

      The security guy  for 16million bucks took a chance to try and outsmart the syztem.I may have done the same.

      At least he got lucky with the winning  ticket but could not cash it...that's so crazy

        Igamble's avatar - spider
        nj
        United States
        Member #145657
        August 10, 2013
        979 Posts
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        Posted: January 15, 2015, 11:28 pm - IP Logged

        I bet it was not a quick pick and maybe somehow since was security  chef knew the combos /algorithm at play for that game  ??That raises a lot of questions !!

        what are the chances a person in that position hits that kind of jackpot ?? Very small....

          music*'s avatar - nw bookeep.jpg
          Happy California
          United States
          Member #157856
          August 2, 2014
          1522 Posts
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          Posted: January 15, 2015, 11:29 pm - IP Logged

           Eddie Tipton threw his career away.  "Stupid is as stupid does" Forrest Gump

            p4wanbi's avatar - Lottery-062.jpg
            WA
            United States
            Member #122238
            January 27, 2012
            180 Posts
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            Posted: January 15, 2015, 11:34 pm - IP Logged

            Yep. No cant split with the friend because IRS would know where the windfall come from and etc. there are a lot of "he should" and "shouldnt". The multi-state lottery gets to keep the money that went unclaimed. He actually created bad karma for himself. Had he not  play...someone who can legally play could have won that jackpot. 16mil can change many lives for the better. If you were going to play the game, quit the job to be removed from restrictions and then play.!i believe he regretted not getting the 16mil more than orrying about the charges. Greed can do lots of unimaginable damages...on a large scale!!!

            playing what can be afforded...spend half of what was reclaimed.

              Nikkicute's avatar - nnjx1k
              Wisconsin
              United States
              Member #123290
              February 17, 2012
              3052 Posts
              Online
              Posted: January 15, 2015, 11:37 pm - IP Logged

              So the dude in Iowa called the guy in Texas who got in contact with the man in CanadaCrazy

              What the heck!?!

                Avatar
                Seattle, Washington
                United States
                Member #121153
                January 3, 2012
                120 Posts
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                Posted: January 16, 2015, 12:14 am - IP Logged

                This one always stunk to high heaven; who gives up $16 million?  And that screwball attorney with his idiotic claims & refusal to follow lottery procedure was a huge red flag.  Now it all makes sense.  Too bad @ Mr. Tipton; he not only didn't collect on a millions to one lottery win, but will be fired (if he hasn't been already) from his place of employment.  Sad, sad, sad...

                  mypiemaster's avatar - 2015021003pileofcash
                  JACKPOT HUNTER

                  United States
                  Member #141034
                  April 2, 2013
                  1408 Posts
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                  Posted: January 16, 2015, 12:34 am - IP Logged

                  The really sad thing is that he denied the next legitimate winner the opportunity to collect that extra $16M. You think the greedy boneheads at the lottery will seek out the next legitimate winner and hand them the $16M they lost because of Tipton's illegal participation?  Yep, dream on. Greed and the lure of easy money has been the downfall of many.

                  Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

                  Having Money Solves Problems That Not Having Money Creates Yes Nod ****John Carlton****

                    Avatar
                    Kentucky
                    United States
                    Member #32652
                    February 14, 2006
                    7314 Posts
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                    Posted: January 16, 2015, 12:52 am - IP Logged

                    So the dude in Iowa called the guy in Texas who got in contact with the man in CanadaCrazy

                    What the heck!?!

                    Don't forget the NY lawyer that tried to validate the ticket hours before the deadline for Hexam Investments Ltd. Nobody could make up story like this no matter how hard they tried.

                      FlamingoGirl's avatar - FloridaLotteryLogo2013
                      New Member
                      Florida
                      United States
                      Member #143566
                      June 6, 2013
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                      Posted: January 16, 2015, 2:29 am - IP Logged

                      Oh wow I remember this! I always wanted to know what happened!

                        Avatar

                        United States
                        Member #122324
                        January 29, 2012
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                        Posted: January 16, 2015, 4:12 am - IP Logged

                        There has to be so much more to this story.   There's a much bigger reason than him working for the Lottery that he didn't have a friend or relative claim this prize and go through all this nonsense.

                          Avatar
                          NY
                          United States
                          Member #23835
                          October 16, 2005
                          3474 Posts
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                          Posted: January 16, 2015, 4:24 am - IP Logged

                           He did just that,but you are as they say retarded and need to re read article !

                          The ticket was INVALID since it was bought by person WORKING FOR THE LOTTERY and that is ILLEGAL.

                          The security guy  for 16million bucks took a chance to try and outsmart the syztem.I may have done the same.

                          At least he got lucky with the winning  ticket but could not cash it...that's so crazy

                          Maybe you should reread the article, too. It took most of 4 years for the lottery to determine that the ticket was invalid because the purchaser worked for the lottery. The correct approach is for the lottery to assume there's a problem and use security procedures to establish the ticket's validity, but as far as they actually knew when the Canadian guy contacted them it was valid. If the Canadian guy had been able to give them the right answers it's entirely possible that they would have made the payment, making the real buyers plan to give it to somebody else to make the claim successful. It might have been as simple as accurately describing how the buyer was dressed, assuming he had a similar appearance to the real buyer.

                          I'd guess that the real buyer figured any prize he won would be modest and that he'd be able to just walk into a retailer and claim the modest  cash. He may well have just walked away if it had been just a bit more than the amount that can be claimed from a retailer. OTOH, I expect everybody can understand why he found it too hard to walk away when he had a ticket that would potentially put several million bucks in his pocket.

                          The complaint is interesting (and brief) reading. It's different than typical criminal work, but I'm a bit surprised that a guy who was Director of Information Security  made the same stupid mistakes that so many other criminals do. He had easily established connections with the Texas lawyer, used his own cell phone to call him, and then claimed he was in Texas at the time of purchase despite using that phone in the general vicinity of the store.

                            dr65's avatar - black panther.jpg
                            Pennsylvania
                            United States
                            Member #74096
                            May 2, 2009
                            22944 Posts
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                            Posted: January 16, 2015, 5:22 am - IP Logged

                            Ok states do something more. Director of Information Security, sounds like a big position or is it? He played the lottery

                            and wasn't supposed to play, he must've known taking the job that was one of the no-no's. Anyway the things he did

                            to hide the identity of who actually won and to collect the winnings are worse than playing. Someone said 'insider info'

                            ....quite possible and yes, it does raise flags, doesn't it? What actually do the inside people know? I'd like to know how

                            long he was employed there.

                            Soooo, why not crack down on the little scum? The retailers and clerks who can't wait to watch players playing and swoop

                            in with their own 'insider info' and take the next ticket in a string of 10 losers? I've seen references on the instants forum

                            about many people witnessing clerks/owners playing themselves...read complaints about the clerk/owner buying up the

                            next ticket after a player has played quite a few and lost. I've seen clerks awfully interested in whether you 'won

                            anything or not'. Their insider info is knowing who is playing what, what they cashed, what the person won or lost and

                            which ticket to stay away from...I've seen employees on shift visit the IVM and play during working hours...they also

                            run the terminal and payout the winners AND in some cases, stock the machine.

                            MAKE THIS PRACTICE ILLEGAL WHILE ON SHIFT. IF ANYONE HAS ANYTHING TO DO WITH PAYING, RESTOCKING,

                            CHECKING OR IS IN A POSITION TO KEEP TRACK OF WHAT PEOPLE ARE BUYING DO NOT ALLOW THEM TO PLAY

                            WHILE ON SHIFT.

                            Their job might be counter clerk or cashier or office person BUT IF THEY TOUCH THE TICKETS THEY SHOULD NOT

                            BE ALLOWED TO PLAY THE TICKETS WHILE ON SHIFT. The tickets are there for the uninformed general public who

                            do not have a job in the store where they are purchasing lottery. I've been told by the lottery commission that an

                            employee playing during shift, handling winners and losers and stocking the machine has a right to play too.

                            Where is the justice in that train of thought? When you fill in a claim form there is a box - a couple of them - that

                            specifically ask: ARE YOU A RETAILER OR IS A FAMILY MEMBER A RETAILER?? Or DO YOU OR A FAMILY MEMBER WORK

                            FOR A LOTTERY RETAILER??

                            The answer for anyone behind the counter is YES. So as far as claims go, they shouldn't be allowed to be made by

                            employees and as far as I'm concerned, they shouldn't even be allowed to play or collect while on shift..whether it's

                            $50 or $50k.

                            Let's go states....keep the laws applicable to everyone, not just the bigger claims.

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