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

Michigan LotteryMichigan Lottery: $1,000-a-month lifetime lottery ticket auctioned for $40,000
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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 1 year ago by JoshUK.
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mypiemaster's avatar - 2015021003pileofcash
JACKPOT HUNTER

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Posted: January 8, 2016, 9:26 am - IP Logged

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
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    Posted: January 8, 2016, 9:30 am - IP Logged

    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
      New Jersey
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      Posted: January 8, 2016, 10:15 am - IP Logged

      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!

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        ozone park
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        Posted: January 8, 2016, 12:52 pm - IP Logged

        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
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          Posted: January 8, 2016, 8:13 pm - IP Logged

          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?

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            Jacksonville
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            Posted: January 8, 2016, 10:54 pm - IP Logged

            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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              KCMO
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              February 7, 2015
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              Posted: January 8, 2016, 10:57 pm - IP Logged

              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...

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                Jacksonville
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                Posted: January 8, 2016, 11:42 pm - IP Logged

                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."

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                  Posted: January 9, 2016, 1:01 am - IP Logged

                  This is seriously creepy. 

                    MaximumMillions's avatar - Lottery-013.jpg

                    Germany
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                    Posted: January 9, 2016, 11:03 am - IP Logged

                    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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                      Marion,VA
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                      Posted: January 9, 2016, 4:00 pm - IP Logged

                      This is seriously creepy. 

                      Yes It is

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                        casper wyoming
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                        Posted: January 9, 2016, 9:06 pm - IP Logged

                        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
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                          Posted: January 10, 2016, 9:37 am - IP Logged

                          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.

                          "Understand... people are more complicated than the masks they wear in society... everyone is playing to win, and some people will use moral justifications to advance their side"

                                                                                                                                                                                    Robert Greene

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                            Maryland
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                            Posted: January 10, 2016, 2:13 pm - IP Logged

                            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.