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Investigators find another friend of Tipton who cashed rigged lottery prize

Insider BuzzInsider Buzz: Investigators find another friend of Tipton who cashed rigged lottery prize
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Scandal goes beyond jackpots to smaller prizes too

A friend of the former security director of the Multi-State Lottery Association who is implicated in a jackpot-fixing scandal was given a winning Kansas Lottery ticket worth $15,000 in 2011 as an engagement gift, she said Wednesday.

Iowa prosecutors had Amy DeMoney testify Wednesday in a hearing for Eddie Tipton, who faces trial in July for ongoing criminal conduct and money laundering charges for games he allegedly fixed in Colorado, Kansas, Oklahoma and Wisconsin. Separately, Tipton is appealing last year's fraud conviction related to a 2010 Iowa Hot Lotto ticket.

Iowa Assistant Attorney General Rob Sand alleges that Tipton installed software known as a root kit that enabled him to manipulate numbers in computers that were supposed to randomly generate number combinations for several lottery games. The program would then self-destruct leaving no trace. Tipton denies that allegation.

What tripped Tipton up, investigators say, was his decision to buy some of the winning tickets himself. Workers at the lottery association, which serves 37 states and U.S. territories, are prohibited from trying their luck.

In the case of the Kansas ticket, the state's lottery officials have previously said they believe Tipton bought two winning tickets for the "2by2" game at separate locations while driving through Kansas in December 2010. The Kansas Lottery said investigators believe the tickets were passed on to other individuals Tipton knew to be cashed.

DeMoney, a Waukee, Iowa, resident, said Wednesday that Tipton approached her in the spring of 2011 and told her he won some money in the lottery and he didn't want to turn in the ticket, worth about $15,000, because he could lose his job.

"He asked me if I would be willing to cash it in," she said. "He told me to consider it an engagement gift."

There was a catch, however. She had to drive to Kansas to cash in, and Tipton wanted $6,000 back in cash.

She said she cashed in the ticket sometime in May 2011 and contacted Tipton, who suggested they meet in the parking lot of a grocery store to hand off his share of the cash.

Court documents indicate that Sand plans on seeking restitution of nearly $2 million from Tipton if he's convicted at the upcoming trial scheduled for July 18. That's the accumulated estimate of jackpots paid out in the games Sand alleges were rigged.

Tipton faces 10 years for last year's fraud conviction, and his appeal is set for arguments before the Iowa Court of Appeals on June 16.

Tipton's attorney, Dean Stowers, says the state's evidence was insufficient to support the jury verdict, the judge should have dismissed the case because the statute of limitations had expired and the judge made several errors at trial regarding evidence and jury instructions.

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.

AP, Lottery Post Staff

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15 comments. Last comment 7 months ago by OneTrickpony.
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Simpsonville
United States
Member #163189
January 22, 2015
677 Posts
Online
Posted: May 11, 2016, 7:23 pm - IP Logged

the prisoner had another definition of RNG:  Really nice guard!

    sully16's avatar - sharan
    Ringleader
    Michigan
    United States
    Member #81740
    October 28, 2009
    40513 Posts
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    Posted: May 11, 2016, 7:50 pm - IP Logged

    Seems like there are going to be more people who knew, who will be the first to cut a deal?

    Did you exchange a walk on part in the war ?

    For a lead role in a cage?

     

                                                From Pink Floyd's " Wish you were here"

      music*'s avatar - nw bookeep.jpg
      Happy California
      United States
      Member #157856
      August 2, 2014
      1522 Posts
      Online
      Posted: May 11, 2016, 9:36 pm - IP Logged

      Thank You, Todd, for keeping us updated on Lottery Post.

       You can expect any secret to get out when you tell one other person. This applies to lottery winners as well.

      Group Hug

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

       Attributed to Joe E. Lewis and others

        Avatar
        Maryland
        United States
        Member #162434
        January 2, 2015
        889 Posts
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        Posted: May 11, 2016, 10:24 pm - IP Logged

        Thank You, Todd, for keeping us updated on Lottery Post.

         You can expect any secret to get out when you tell one other person. This applies to lottery winners as well.

        Group Hug

        I am sure there will be more 'friends' like this  that come forward. 

        ANY state that thinks RNG is good has got to be NUTS after this! 

          RJOh's avatar - chipmunk
          mid-Ohio
          United States
          Member #9
          March 24, 2001
          19829 Posts
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          Posted: May 11, 2016, 10:25 pm - IP Logged

          I wonder if she really thought it was an engagement gift when a friend who works for the lottery gives her a winning lottery ticket to cash that he can't because of his job and offer to split the after tax amount equally. I wonder how many such gifts Tipton offered other friends.

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

            maximumfun's avatar - Lottery-030.jpg
            Lavender Rocket

            United States
            Member #124616
            March 16, 2012
            2642 Posts
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            Posted: May 12, 2016, 12:49 am - IP Logged

            I guess what surprises me is that this stayed a "secret" for so long.

              Tialuvslotto's avatar - Jailin
              Texas
              United States
              Member #150797
              December 31, 2013
              815 Posts
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              Posted: May 12, 2016, 6:26 am - IP Logged

              The investigators have a rule:  Follow DeMoney.  So they did!

              "There is no such thing as luck; only adequate or inadequate preparation to cope with a statistical universe."

              ~Robert A. Heinlein

                Avatar
                Westfield, MA
                United States
                Member #132920
                September 15, 2012
                51 Posts
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                Posted: May 12, 2016, 6:34 am - IP Logged

                The investigators have a rule:  Follow DeMoney.  So they did!

                I get the impression that Miss DeMoney came forward willingly. If she did, she will probably get off. We shall soon see. Poor Eddie, doesn't he know yet that there is no such thing as the perfect crime? You can outsmart people and computer stuff, but you can never outsmart karma.

                  sully16's avatar - sharan
                  Ringleader
                  Michigan
                  United States
                  Member #81740
                  October 28, 2009
                  40513 Posts
                  Offline
                  Posted: May 12, 2016, 7:29 am - IP Logged

                  I wonder if she really thought it was an engagement gift when a friend who works for the lottery gives her a winning lottery ticket to cash that he can't because of his job and offer to split the after tax amount equally. I wonder how many such gifts Tipton offered other friends.

                  Exactly.

                  Did you exchange a walk on part in the war ?

                  For a lead role in a cage?

                   

                                                              From Pink Floyd's " Wish you were here"

                    luckyshoes's avatar - butterfly neg.jpg
                    Pennsylvania
                    United States
                    Member #79502
                    September 2, 2009
                    6395 Posts
                    Offline
                    Posted: May 12, 2016, 8:50 am - IP Logged

                    Who better to take the money than DeMoney Crazy........the lure of easy money has a very strong appeal.

                      Groppo's avatar - cat anm.gif

                      United States
                      Member #162631
                      January 7, 2015
                      505 Posts
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                      Posted: May 12, 2016, 7:39 pm - IP Logged

                      To Everyone:

                      I sure am glad I've never ever got myself involved in any sort of crime. And now, this white collar type of crime,
                      where I'd be lost. I wouldn't even know the "how" or "what" associated with such crimes.

                      Why can't these people, like in the RNG thing just STOP AND THINK, before going any further?
                      Before it becomes too late, and the next thing they know, they're doing 10 years?

                      What the heck people?

                      So, if you find yourself involved in some kind of complicated situation, please just stop.
                      If you find yourself going for personal gains, legally, but at the risk of others losing their possible gains, also legally, then there's something with that. 

                      Seek help first. Call your local Police, and ask if you are about the engage in something that may be illegal.
                      Call a friend and get their opinion. Call a priest.  Call Batman. . . . (call Batman?)

                       

                      Mr. Groppo

                      • Don't chase the numbers you play.
                      • Play only numbers you've already played, plus however many random picks.
                      • But, ALWAYS the regular numbers you play.  This will make you a winner, not a chaser.
                                (so far, though, I've yet to win any significant lotto prize)
                        haymaker's avatar - Lottery-012.jpg
                        Egg Harbor twp.south Jersey shore
                        United States
                        Member #112968
                        June 29, 2011
                        3856 Posts
                        Offline
                        Posted: May 12, 2016, 8:51 pm - IP Logged

                        The investigators have a rule:  Follow DeMoney.  So they did!

                        Good one. LOL !

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

                          RJOh's avatar - chipmunk
                          mid-Ohio
                          United States
                          Member #9
                          March 24, 2001
                          19829 Posts
                          Offline
                          Posted: May 12, 2016, 9:17 pm - IP Logged

                          To Everyone:

                          I sure am glad I've never ever got myself involved in any sort of crime. And now, this white collar type of crime,
                          where I'd be lost. I wouldn't even know the "how" or "what" associated with such crimes.

                          Why can't these people, like in the RNG thing just STOP AND THINK, before going any further?
                          Before it becomes too late, and the next thing they know, they're doing 10 years?

                          What the heck people?

                          So, if you find yourself involved in some kind of complicated situation, please just stop.
                          If you find yourself going for personal gains, legally, but at the risk of others losing their possible gains, also legally, then there's something with that. 

                          Seek help first. Call your local Police, and ask if you are about the engage in something that may be illegal.
                          Call a friend and get their opinion. Call a priest.  Call Batman. . . . (call Batman?)

                           

                          Mr. Groppo

                          Eddie Tipton got away with this for six years with the help of friends and relatives and smaller winning amounts.  Being in security, he should have known a jackpot of $15M would be investigated more closely.  He got greedy and went for the big one which he planned to keep it all for just himself.

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

                            Groppo's avatar - cat anm.gif

                            United States
                            Member #162631
                            January 7, 2015
                            505 Posts
                            Offline
                            Posted: May 13, 2016, 12:04 am - IP Logged

                            Eddie Tipton got away with this for six years with the help of friends and relatives and smaller winning amounts.  Being in security, he should have known a jackpot of $15M would be investigated more closely.  He got greedy and went for the big one which he planned to keep it all for just himself.

                            Mr. RJoh,

                            Amazing how greed will feed on itself.

                            I thank Jehovah God that He's not allowed me to stray into such murky waters.
                            I do other things I shouldn't, like play lotto in the first place. Sometimes, online, I play poker, but I rarely feel lucky.

                            But, I don't want to be the guy sitting in jail right now, with 10 years to go, thinking
                            "Why did I do it? Why? WHY?. . . . "

                            And then the cell mate from the next cell   "Hey FOOL,  Keep it down . . . . . . ".

                            Jail/Prison has to be the most depressing thing there is.


                            Mr Groppo

                            • Don't chase the numbers you play.
                            • Play only numbers you've already played, plus however many random picks.
                            • But, ALWAYS the regular numbers you play.  This will make you a winner, not a chaser.
                                      (so far, though, I've yet to win any significant lotto prize)