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Lottery scam investigation comes to Tennessee

Tennessee LotteryTennessee Lottery: Lottery scam investigation comes to Tennessee
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Includes video report

NASHVILLE, Tenn. — The Tennessee Education Lottery is cooperating with investigators as they look into one of the most elaborate lottery scams in U.S. history.

The scam was the work of Eddie Tipton, a former security director with the Multi-State Lottery Association.

Tipton has been convicted of fraud and sentenced to ten years in prison.

But his brother and his old college roommate were recently arrested as the jackpot fixing investigation expanded.

Prosecutors in Iowa say surveillance video from an Iowa convenience store shows Eddie Tipton buying a winning ticket worth $14 million back in 2010.

The Assistant Director of Iowa's Division of Criminal Investigation (DCI) said the scam sounds like something you would see in a movie.

"This new to me in my career. I have not seen anything like this," David Jobes said.

Investigators say Tipton used his security clearance to install software on lottery computers.

The software enabled him to manipulate winning lottery numbers in at least six states.

"We continue to work on this case. The agents keep looking at jackpots in different locations," Jobe said.

That includes Tennessee.

The President and CEO of the Tennessee Education Lottery, Rebecca Hargrove, confirmed they provided the names of those who won certain lottery games to investigators.

They are reviewing those names to see if winners have ties to Tipton.

"We feel as confident as we possibly can that Tennessee was not impacted," Hargrove said.

But Tennessee lottery officials confirmed to Newschannel 5 Investigates that Tipton visited the offices of the Tennessee Lottery back in 2004 while he worked for the Multi-State Lottery Association.

"He had no access what-so-ever to our facilities since we started using random number generated drawings," Hargrove said.

Investigators are not focused on games like Mega-millions or Powerball because they use ball drops to pick winning numbers.

They are focused on games like Hot Lotto which use computers — called random number generators — to pick winners.

Tipton's brother actually won jackpots in Oklahoma and Colorado. An investigator was asked could anyone be that lucky?

David Jobe responded, "I wouldn't think so. I know I'm not."

Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

She doubts Tennessee will be impacted by the lottery scam.

"We didn't use any random number generators from the gentleman who provided them," Hargrove said. "Our random number generators have never come from that source."

VIDEO: Watch the report

fe88VK54rO8Lottery scam investigation comes to TennesseeThe Tennessee Education Lottery is cooperating with investigators as they look into one of the most elaborate lottery scams in U.S. history.T03M10Shttps://img.youtube.com/vi/fe88VK54rO8/2.jpghttps://youtu.be/fe88VK54rO82016-05-11T07:46:00-05:00

Timeline of the biggest crime in US lottery history

The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

NewsChannel5, Lottery Post Staff

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39 comments. Last comment 6 months ago by RL-RANDOMLOGIC.
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mypiemaster's avatar - 2015021003pileofcash
JACKPOT HUNTER

United States
Member #141034
April 2, 2013
1408 Posts
Offline
Posted: May 11, 2016, 8:12 am - IP Logged

Boy, this stuff is turning into a virus and the Dragon Lady thinks she is immune.

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
    South Carolina
    United States
    Member #18322
    July 9, 2005
    1704 Posts
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    Posted: May 11, 2016, 9:13 am - IP Logged

    The GOOD THING about this Nationwide RNG Investigation, is that it EXPOSES the Obvious Security Vulnerabilities and FRAUD that can happen in the game of Lottery using RNG drawings rather than Mechanical Ball Drawings.

    FRAUD is EASIER for Hackers with Computer Generated RNG lottery games.

      haymaker's avatar - Lottery-012.jpg
      Egg Harbor twp.south Jersey shore
      United States
      Member #112968
      June 29, 2011
      3854 Posts
      Offline
      Posted: May 11, 2016, 9:47 am - IP Logged

      So it seems we are just scratching the surface, hopefully this is the beginning of the end for RNG !

      Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
        United States
        Member #1
        May 31, 2000
        23262 Posts
        Online
        Posted: May 11, 2016, 10:39 am - IP Logged

        So it seems we are just scratching the surface, hopefully this is the beginning of the end for RNG !

        I'm with you: I wish this was the beginning of the end for RNG.  Unfortunately it doesn't appear that the states are getting it. 

        Did you watch the video and notice Ms. Hargrove laughingly dismiss the possibility that the Tennessee Lottery's RNG was affected?  Rather than taking a serious tone and assuring people that the lottery is carefully investigating everything, she nearly does an eyeroll as she blows off the reporter's question.

        For the life of me I can't understand the lotteries' need to cling to computerized drawings as if they are the lifeblood of the games, when in fact the opposite is true.  I can see how people could conclude that vendors of these drawing machines are "somehow" persuading lotteries to stick with them.

        The Texas Lottery demonstrates on a daily basis what I consider to be some of the best, most transparent, lottery drawings, and they are done with modern robotic camera technology that minimizes the costs involved.  I can tell you that if I ran a lottery, I would absolutely adopt their approach.  Too bad the computerized states refuse.

         

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

         

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

          music*'s avatar - nw bookeep.jpg
          Happy California
          United States
          Member #157856
          August 2, 2014
          1513 Posts
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          Posted: May 11, 2016, 10:55 am - IP Logged

          I Agree! with Todd.  People need to vote with their dollars and their voices. Stop playing RNG games and let your legislature know why.

           I've been rich and I've been poor. Believe me, rich is better. 

           Attributed to Joe E. Lewis and others

            noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
            Bay Area - California
            United States
            Member #136477
            December 12, 2012
            4107 Posts
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            Posted: May 11, 2016, 11:03 am - IP Logged

            You got to love Priscilla's answer: "We did not get our rng from that guy."

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

              Todd's avatar - Cylon 2.gif
              Chief Bottle Washer
              New Jersey
              United States
              Member #1
              May 31, 2000
              23262 Posts
              Online
              Posted: May 11, 2016, 11:04 am - IP Logged

              You got to love Priscilla's answer: "We did not get our rng from that guy."

              Yeah, as if that is the only computerized drawing system on Earth that could have been hacked.

               

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

               

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

                noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
                Bay Area - California
                United States
                Member #136477
                December 12, 2012
                4107 Posts
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                Posted: May 11, 2016, 11:11 am - IP Logged

                Yeah, as if that is the only computerized drawing system on Earth that could have been hacked.

                My thought exactly Todd.

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

                  Avatar
                  Wyomissing, PA
                  United States
                  Member #161050
                  November 15, 2014
                  301 Posts
                  Offline
                  Posted: May 11, 2016, 12:05 pm - IP Logged

                  I'm with you: I wish this was the beginning of the end for RNG.  Unfortunately it doesn't appear that the states are getting it. 

                  Did you watch the video and notice Ms. Hargrove laughingly dismiss the possibility that the Tennessee Lottery's RNG was affected?  Rather than taking a serious tone and assuring people that the lottery is carefully investigating everything, she nearly does an eyeroll as she blows off the reporter's question.

                  For the life of me I can't understand the lotteries' need to cling to computerized drawings as if they are the lifeblood of the games, when in fact the opposite is true.  I can see how people could conclude that vendors of these drawing machines are "somehow" persuading lotteries to stick with them.

                  The Texas Lottery demonstrates on a daily basis what I consider to be some of the best, most transparent, lottery drawings, and they are done with modern robotic camera technology that minimizes the costs involved.  I can tell you that if I ran a lottery, I would absolutely adopt their approach.  Too bad the computerized states refuse.

                  It's mystifying, especially given the national news coverage the Hot Lotto RNG hacking scandal has received. And yet Hot Lotto is still associated with MUSL, still uses computer RNG, and many are still buying! Crazy.

                  Personally, I'd never buy any MUSL associated RNG game, such as 2x2, Hot Lotto, etc. Heck, I'm leery of even buying a Powerball or Mega Millions ticket these days, despite being ball drawn, unless the jackpot is record breaking high.

                  Unless numbers sales drop sharply, it's likely many lotteries, such as Tennessee Lottery, will downplay the hacking issues, and continue / expand the use of RNG.

                  I couldn't find past sales data on the Hot Lotto page. Be interested in knowing whether Hot Lotto ticket sales dropped much / overall sales history ... that data would likely shed much light on the lack of concern regarding RNG / hacking by most lotteries. If Hot Lotto sales, long-term, weren't affected much, that could explain it.

                    Avatar
                    Kentucky
                    United States
                    Member #32652
                    February 14, 2006
                    7309 Posts
                    Offline
                    Posted: May 11, 2016, 12:58 pm - IP Logged

                    Includes video report

                    The Tennessee Education Lottery is cooperating with investigators as they look into one of the most elaborate lottery scams in U.S. history.

                    The scam was the work of Eddie Tipton, a former security director with the Multi-State Lottery Association.

                    Tipton has been convicted of fraud and sentenced to ten years in prison.

                    But his brother and his old college roommate were recently arrested as the jackpot fixing investigation expanded.

                    Prosecutors in Iowa say surveillance video from an Iowa convenience store shows Eddie Tipton buying a winning ticket worth $14 million back in 2010.

                    The Assistant Director of Iowa's Division of Criminal Investigation (DCI) said the scam sounds like something you would see in a movie.

                    "This new to me in my career. I have not seen anything like this," David Jobes said.

                    Investigators say Tipton used his security clearance to install software on lottery computers.

                    The software enabled him to manipulate winning lottery numbers in at least six states.

                    "We continue to work on this case. The agents keep looking at jackpots in different locations," Jobe said.

                    That includes Tennessee.

                    The President and CEO of the Tennessee Education Lottery, Rebecca Hargrove, confirmed they provided the names of those who won certain lottery games to investigators.

                    They are reviewing those names to see if winners have ties to Tipton.

                    "We feel as confident as we possibly can that Tennessee was not impacted," Hargrove said.

                    But Tennessee lottery officials confirmed to Newschannel 5 Investigates that Tipton visited the offices of the Tennessee Lottery back in 2004 while he worked for the Multi-State Lottery Association.

                    "He had no access what-so-ever to our facilities since we started using random number generated drawings," Hargrove said.

                    Investigators are not focused on games like Mega-millions or Powerball because they use ball drops to pick winning numbers.

                    They are focused on games like Hot Lotto which use computers — called random number generators — to pick winners.

                    Tipton's brother actually won jackpots in Oklahoma and Colorado. An investigator was asked could anyone be that lucky?

                    David Jobe responded, "I wouldn't think so. I know I'm not."

                    Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

                    She doubts Tennessee will be impacted by the lottery scam.

                    "We didn't use any random number generators from the gentleman who provided them," Hargrove said. "Our random number generators have never come from that source."

                    VIDEO: Watch the report

                    fe88VK54rO8Lottery scam investigation comes to TennesseeThe Tennessee Education Lottery is cooperating with investigators as they look into one of the most elaborate lottery scams in U.S. history.T03M10Shttps://img.youtube.com/vi/fe88VK54rO8/2.jpghttps://youtu.be/fe88VK54rO82016-05-11T07:46:00-05:00

                    Timeline of the biggest crime in US lottery history

                    The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.

                    We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.

                    Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

                    Then why is MUSL wasting time investigating Tennessee Hot Lotto winners?

                    Tipton's brother actually won jackpots in Oklahoma and Colorado.

                    But can they prove Eddie Tipton rigged those drawings?

                      RJOh's avatar - chipmunk
                      mid-Ohio
                      United States
                      Member #9
                      March 24, 2001
                      19825 Posts
                      Offline
                      Posted: May 11, 2016, 1:07 pm - IP Logged

                      Hargrove said the timing is critical — the state didn't start offering Hot Lotto until 2013 — after Tipton had been caught buying that ticket in Iowa and his scheme began to unravel.

                      Then why is MUSL wasting time investigating Tennessee Hot Lotto winners?

                      Tipton's brother actually won jackpots in Oklahoma and Colorado.

                      But can they prove Eddie Tipton rigged those drawings?

                      Sounds like anyone who wins a jackpot of a MUSL game is a suspect because they have accomplished the impossible.

                       * you don't need to buy more tickets, just buy a winning ticket * 
                         
                                   Evil Looking       

                        bobby623's avatar - abstract
                        San Angelo, Texas
                        United States
                        Member #1097
                        January 31, 2003
                        1394 Posts
                        Offline
                        Posted: May 11, 2016, 1:07 pm - IP Logged
                        IMHO, I doubt that any lottery official who went to great lengths to convince the politicians that they would have more money to spend if they dumped the ball machines is going to admit to being wrong.
                        Lottery directors are seen as financial wizards who don't make mistakes.
                        Switching back to ball machines would require funds that the political class is not about to give up without a fight. 
                        A recommendation that players stop buying tickets is ludicrous. There is no way on earth or Hell that such an effort be seriously organized and put into effect.
                        Like it or not, the RNG computers that are now in place are here to stay.
                          Avatar
                          New Member
                          Bellingham, WA
                          United States
                          Member #86469
                          February 4, 2010
                          8 Posts
                          Offline
                          Posted: May 11, 2016, 1:11 pm - IP Logged

                          No NoAll said and done, but why isn't the third person's face, The Collage Room Mate, posted for all to see!!! Sounds fishy to me...

                            Technics's avatar - me 20prista%202a.jpg
                            Baltimore
                            United States
                            Member #80332
                            September 24, 2009
                            44022 Posts
                            Offline
                            Posted: May 11, 2016, 1:37 pm - IP Logged

                            I just wish people were sharp enough to fall back from playing in cases where these scams come out. You can get the results you want simply by NOT funding it by playing. Don't play and they will make changes. People's greed and addictions to the hope of winning have a grip on their logical thinking. Confused