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$1,000-a-month lifetime lottery ticket auctioned for $40,000

Jan 8, 2016, 9:11 am

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Michigan LotteryMichigan Lottery: $1,000-a-month lifetime lottery ticket auctioned for $40,000Rating:

BYRON CENTER, MI — An online auction for a lottery ticket that pays $1,000 a month for the rest of a 73-year-old Kalamazoo man's life went into overtime on Thursday, Jan. 7, ending with a winning bid of more than $40,000.

The auction was held on behalf of the U.S. Bankruptcy Court to pay off the debts of Donald Magett, a former Kalamazoo police officer and owner of a security firm who bought a Michigan Lottery ticket that pays $1,000-a-month in February, 1984.

The winning bidder, whose offer of $40,026 will be certified by the court, will see the purchase turn a profit after 40 months — assuming Magett lives that long. Payments on the ticket will end with his death.

The auction, which began at 8 a.m. on Thursday did not see active bidding above the $30,000 minimum bid until about 20 minutes before the 8:30 p.m. closing. The auction was extended for another 20 minutes as almost 40 bids piled up, finally pushing the total over $40,000.

Duane Mingerink of Repocast.com said the auction was the first of its kind for their firm, which typically auctions off equipment and furniture to satisfy bankruptcy debts. He said the winning bidder and Magett will have to apply with the lottery every year to get the $12,000 annual payment.

After commissions are paid, the $40,000 will be used to pay off the back taxes in Magett's bankruptcy case, which was filed in 2005. Magett owes about $190,000 in back taxes, according to U.S. Bankruptcy Trustee Thomas Richardson, who requested the court's permission to sell the ticket.

Until recently, Magett's lottery winnings were assigned to a bank that was owed money, Richardson said. When that debt was retired, the winnings were used to pay off other debts in the bankruptcy case, he said.

Steven Rayman, Magett's bankruptcy lawyer, declined to comment on the auction.

Magett is the former owner of Magic P.I. & Security Inc., a private investigation and security company that operated in Kalamazoo for almost 20 years, employing more than 100 workers.

In its heyday, Magic P.I. had offices in Kalamazoo, Chicago, Detroit, Indianapolis and Muskegon, providing security guards for a variety of entities, including the Environmental Protection Agency and the Jimmy Carter Presidential Library.

In 2007, Maggett was convicted and imprisoned for embezzling $650,000 from the company's pension fund. He was sentenced to six years in a federal prison and three years of supervised release and ordered to pay $539,873 in restitution. He was released in February, 2012, according to federal prison records.

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15 comments. Last comment 7 years ago by JoshUK.
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mypiemaster's avatar - lol
LOOK WHO IS LAUGHING NOW.
EUPHORIA.
United States
Member #141028
April 2, 2013
1491 Posts
Offline

So Sad!!!.

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

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    Maryland
    United States
    Member #162427
    January 2, 2015
    2801 Posts
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    Ok, so the 'bet' is that this guy will live PAST the 40 months and you get more than your investment - WOW! Not an investment I would make.  Wonder if its someone close to this guy that won it?

      Raven62's avatar - binary
      25
      New Jersey
      United States
      Member #17842
      June 28, 2005
      158987 Posts
      Offline

      Maybe one of the Cash Now Institutions wouldn't Touch It.

      A mind once stretched by a new idea never returns to its original dimensions!

      Catch-22: A dilemma or difficult circumstance from which there is no escape because of mutually conflicting or dependent conditions.

      Corruptissima re publica plurimae leges: When the republic is at its most corrupt the laws are most numerous.

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        ozone park
        United States
        Member #57040
        December 15, 2007
        276 Posts
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        Had I known I think I would have bid on this. I did not even know this was being auctioned would have been fun to bid. 

         

         

        sam

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          casper wyoming
          United States
          Member #136339
          December 9, 2012
          107 Posts
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          Donald Magett, a former Kalamazoo police officer and owner of a security firm who bought a Michigan Lottery ticket that pays $1,000-a-month in February, 1984.

           

           

          How can he cash in a ticket he bought over 30 years ago?

            Avatar
            Jacksonville
            United States
            Member #153799
            March 26, 2014
            782 Posts
            Offline

            Donald Magett, a former Kalamazoo police officer and owner of a security firm who bought a Michigan Lottery ticket that pays $1,000-a-month in February, 1984.

             

             

            How can he cash in a ticket he bought over 30 years ago?

            He cashed in the ticket years ago and was receiving the life annuity since then.  The auction is for the rights to the remainder of the annuity during Magett's life.  Hopefully the Bankruptcy Court put a contempt order in effect for the benefit of the auction winner.  Most life annuity payments require you to prove you are still alive to get the payments like Michigan.  Magett may have no incentive to help the auction winner get the annual $12,000 payment once the Bankruptcy case is over. 

            It may be a good deal, but it depends upon the cooperation of a bankrupt crook.

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              New Member
              KCMO
              United States
              Member #163673
              February 7, 2015
              56 Posts
              Offline

              He cashed in the ticket years ago and was receiving the life annuity since then.  The auction is for the rights to the remainder of the annuity during Magett's life.  Hopefully the Bankruptcy Court put a contempt order in effect for the benefit of the auction winner.  Most life annuity payments require you to prove you are still alive to get the payments like Michigan.  Magett may have no incentive to help the auction winner get the annual $12,000 payment once the Bankruptcy case is over. 

              It may be a good deal, but it depends upon the cooperation of a bankrupt crook.

              Wait so this means it'll only pay out as long as that dude is alive? I thought it could transfer to the winner of the auction...I was gonna say this seems like a great deal but maybe not so much...

                Avatar
                Jacksonville
                United States
                Member #153799
                March 26, 2014
                782 Posts
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                Wait so this means it'll only pay out as long as that dude is alive? I thought it could transfer to the winner of the auction...I was gonna say this seems like a great deal but maybe not so much...

                Article says:

                "The winning bidder, whose offer of $40,026 will be certified by the court, will see the purchase turn a profit after 40 months — assuming Magett lives that long. Payments on the ticket will end with his death."


                  United States
                  Member #122685
                  February 6, 2012
                  368 Posts
                  Offline

                  This is seriously creepy. 


                    Germany
                    Member #164595
                    March 8, 2015
                    803 Posts
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                    This is seriously creepy. 

                    I agree, also somewhat morbid because you have to hope the original winner doesn't croak. AND you have to come back each year. Not worth the hassle and risk methinks.

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                      New Member
                      Marion,VA
                      United States
                      Member #150870
                      January 2, 2014
                      7 Posts
                      Offline

                      This is seriously creepy. 

                      Yes It is

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                        casper wyoming
                        United States
                        Member #136339
                        December 9, 2012
                        107 Posts
                        Offline

                        He cashed in the ticket years ago and was receiving the life annuity since then.  The auction is for the rights to the remainder of the annuity during Magett's life.  Hopefully the Bankruptcy Court put a contempt order in effect for the benefit of the auction winner.  Most life annuity payments require you to prove you are still alive to get the payments like Michigan.  Magett may have no incentive to help the auction winner get the annual $12,000 payment once the Bankruptcy case is over. 

                        It may be a good deal, but it depends upon the cooperation of a bankrupt crook.

                        Thank you I did not realize that. I thought he had a 30 year old ticket.

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                          Portland, OR
                          United States
                          Member #145967
                          August 20, 2013
                          263 Posts
                          Offline

                          If I were the winner of that auction I'd be sending this guy multivitamins every month and reminding him of his doctor's appointments all the time. lol.

                          People are more complicated than the masks they wear in society...

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                            Maryland
                            United States
                            Member #162427
                            January 2, 2015
                            2801 Posts
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                            If I were the winner of that auction I'd be sending this guy multivitamins every month and reminding him of his doctor's appointments all the time. lol.

                            See this is why I am saying its a family member (maybe close friend of family) who won the auction, they would be the only ones who really know his health and know if he is gonna be around that long.