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MUSL CHIEF OUSTED OVER JACKPOT-RIGGING SCANDAL

Dec 23, 2015, 2:39 pm

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Key industry official has run Powerball from its inception

Bret Toyne appointed interim executive director

A prominent lottery official who has run the Powerball game since its inception was quietly removed from his 28-year post leading the Multi-State Lottery Association after a jackpot-fixing scandal inside his organization got bigger, according to a document obtained by The Associated Press.

Charles Strutt, executive director of the association since its 1987 founding, was stripped of his duties in October by the group's board, which includes directors of lotteries in 37 states and U.S. territories. The move came days after prosecutors said their investigation of jackpot-fixing by the association's former security director, Eddie Tipton, had expanded nationwide.

The association, which operates multi-state games such as Hot Lotto and Wild Card in addition to Powerball, has kept the leadership change quiet. It didn't announce its decision and its website lists Strutt as executive director. Idaho Lottery director Jeff Anderson, the board's chairman, said Monday he couldn't comment on a "personnel matter."

But in an Oct. 15 email obtained by the AP through an open records request, Anderson told board members that Strutt had been placed on indefinite administrative leave and that his longtime deputy, Bret Toyne, was appointed interim executive director.

"He accepted the decision of the MUSL Board and was helpful in sharing his thoughts on what was necessary for the future," Anderson wrote of Strutt. He said that Toyne "will be an effective leader who can guide the future of the MUSL."

Strutt declined comment, saying Anderson is the group's spokesman during "internal reviews." Investigators have said the evidence so far shows Tipton was the only lottery official involved in the scheme.

The Urbandale, Iowa-based association has been rocked by the case against Tipton, who was convicted in July of fraud for working with associates to attempt to claim a fixed $16.5 million Hot Lotto jackpot. Strutt testified for the prosecution, saying he believed a person shown on video buying the winning ticket in Des Moines was Tipton.

On Oct. 9, investigators announced they had uncovered new evidence showing Tipton worked with associates to fix jackpots and claim prizes worth millions of dollars in Colorado and Wisconsin. Since then, the case has expanded to include jackpots in Oklahoma and Kansas.

Investigators allege Tipton used his access to the association's random number generators to know winning combinations in advance, then he and his associates played those numbers and shared the prizes.

Tipton, who denies the allegations, is scheduled to face a second trial next month. The association fired the 11-year security employee after his January arrest, replaced machines he worked on and strengthened its security measures.

Strutt was its first employee when six states formed the association to offer the nation's first multi-state game, Lotto America. The group launched Powerball in 1992, and the game has since generated some of the world's largest jackpots and billions of dollars in revenue for 44 states that now participate. Strutt also helped establish the association's other games, which collectively surpass $5 billion in annual sales.

Check your state's drawing types

Lottery players in any state can determine the extent to which their state uses computerized drawings at Lottery Post's State Lottery Report Card. The report, which is exclusive to Lottery Post, displays all of the games in each state, color-coded to show whether the game uses real lotto ball drawings or computerized drawings, and grades the state based on the percentage of games that use real lotto ball drawings.

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

AP, Lottery Post Staff

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23 comments. Last comment 5 years ago by JoeCanWin.
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HoLeeKau's avatar - 40827 jpg?1576607320
Idaho
United States
Member #94279
July 17, 2010
2367 Posts
Offline

Good!

    Avatar
    Maryland
    United States
    Member #162427
    January 2, 2015
    2549 Posts
    Offline

    Good!

    Agreed! Good to see heads roll over this. 

      Avatar
      Chasing $ Millions.
      White Shores- California
      United States
      Member #136471
      December 12, 2012
      6622 Posts
      Offline

      "Quietly Removed".. = Mischief was going on.

       * Voice of Reason *   

      * The Truth Hurts *

      People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

        psykomo's avatar - animal shark.jpg

        United States
        Member #4877
        May 30, 2004
        5289 Posts
        Offline

                                                                     Thinking of...ThudThinking of...

            "ANOTHER one BIT the DUST"

                        White BounceWhite BounceWhite Bouncethere goes another SOBeeeeeeeeeeeeeeeeeeeeeeeeeeeeee>>>>>>>>>>>

          eddessaknight's avatar - nw paladin.jpg
          LAS VEGAS
          United States
          Member #47728
          November 22, 2006
          7267 Posts
          Offline

                                                                       Thinking of...ThudThinking of...

              "ANOTHER one BIT the DUST"

                          White BounceWhite BounceWhite Bouncethere goes another SOBeeeeeeeeeeeeeeeeeeeeeeeeeeeeee>>>>>>>>>>>

          There is an ancient venerated saying from the East:

          "When a fish ruts, it ruts from the heard down."

           

          Happy Dayz Wishes w/FORTUNA

          Eddessa_Knight Sun Smiley

            travelintrucker's avatar - morph
            Greenville, SC
            United States
            Member #169863
            November 4, 2015
            387 Posts
            Offline

            They have to keep the lottery honest and transparent.

            May the balls bounce in your favor!


              Germany
              Member #164595
              March 8, 2015
              803 Posts
              Offline

              Bye Felicia.

                KY Floyd's avatar - 3 hour-tour.jpg
                NY
                United States
                Member #23834
                October 16, 2005
                4405 Posts
                Offline

                "Quietly Removed".. = Mischief was going on.

                More likely it means, "Nothing to see here. Just an isolated incident that has nothing to do with how we manage things. We just had one bad employee apple who acted alone and didn't take advantage of a lack of oversight from the people who should have ensured that security procedures were adequate. Just forget it ever even happened."

                I haven't seen anything in the press, but the important story here isn't what Tipton did, it's that the security policies made it possible, even if it had been just the Hot Lotto incident. It's not even about Tipton allegedly installing a root kit. It's about the failure, for at least 5 weeks, to even know the machines were compromised. That makes it clear that one of three failures occurred. Either they weren't checking at all, they weren't checking effectively, or Tipton was the only one checking.

                  BuyLow's avatar - fd725949c52faf3bef0a9e377747408d -iphone-wallpaper-palm-trees.jpg
                  Florida
                  United States
                  Member #61433
                  May 22, 2008
                  1224 Posts
                  Offline

                  Bye Felicia.

                  Wink and LOL

                    LottoMetro's avatar - Lottery-024.jpg
                    Happyland
                    United States
                    Member #146338
                    September 1, 2013
                    1167 Posts
                    Offline

                    I'm pretty sure everyone expected someone up the ladder to take the fall for the biggest scandal since the Pennsylvania lottery rigging

                    If the chances of winning the jackpot are so slim, why play when the jackpot is so small? Your chances never change, but the potential payoff does.
                    If a crystal ball showed you the future of the rest of your life, and in that future you will never win a jackpot, would you still play?

                    P&L % = Total Win($)/Total Wager($) - 1

                      Todd's avatar - Cylon 200.jpg
                      50
                      Chief Bottle Washer
                      New Jersey
                      United States
                      Member #1
                      May 31, 2000
                      26268 Posts
                      Online

                      I'm pretty sure everyone expected someone up the ladder to take the fall for the biggest scandal since the Pennsylvania lottery rigging

                      That Pennsylvania thing years ago was nothing compared to this — or any of these nightmares caused by computerized drawings.

                       

                      Check the State Lottery Report Card
                      What grade did your lottery earn?

                       

                      Sign the Petition for True Lottery Drawings
                      Help eliminate computerized drawings!

                        Avatar
                        Akron, Ohio
                        United States
                        Member #145641
                        August 10, 2013
                        39 Posts
                        Offline

                        I'm glad I knew they were cheating!!

                          Avatar
                          Chasing $ Millions.
                          White Shores- California
                          United States
                          Member #136471
                          December 12, 2012
                          6622 Posts
                          Offline

                          Let's hope that this turns out to be a blessing in disguise-how so you ask? Well If more of these rigged payouts show  up in other State lottery investigations,this could be the straw that breaks the camel's back where the powers that be say " enough is enough, we scraping the rng method altogether in order to be as transparent as possible-we owe this to the players."

                          ** One  can only hope.

                           * Voice of Reason *   

                          * The Truth Hurts *

                          People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

                            Avatar
                            Kentucky
                            United States
                            Member #32651
                            February 14, 2006
                            9179 Posts
                            Online

                            I'm glad I knew they were cheating!!

                            They should have known cheating was possible when they bought their first RNG.