DES MOINES, Iowa — An Iowa appeals court on Wednesday upheld a former lottery employee's conviction for rigging the computer system to generate the winning ticket in a $16 million jackpot, but reversed a conviction for attempting to cash in on the ticket.
The conviction stems from Eddie Tipton's work for the Iowa-based Multi-State Lottery Association, or MSLA, which produces computers that generate random numbers for lotteries in multiple states. As an employee of the association, Tipton was barred from playing the lottery.
But in December of 2010, the winning ticket for a $16 million dollar Hot Lotto jackpot was drawn in Iowa, according to an overview of the case written by Iowa Court of Appeals Judge Anuradha Vaitheswaran. A Canadian man and, later an attorney for an anonymous client, both attempted to redeem the ticket, but they were turned away because they did not look like the man caught in a surveillance video of the purchase.
Four years later, the state released the video to the public in hopes of identifying the purchaser. Another MSLA employee recognized Tipton.
The state charged Tipton with two felonies: passing or attempting to redeem a lottery ticket with the specific intent to defraud, and tampering with lottery equipment with the intent to influence winnings.
A jury convicted Tipton on both charges in early 2015.
Tipton appealed, arguing that the state's charges were barred by the three-year statute of limitations. Tipton purchased the ticket in 2010, but did not face charges for it until five years later.
The state claimed that the statute of limitations did not apply to the charge of attempting to redeem the lottery ticket because the crime was "ongoing," but the appeals court didn't buy it.
"[T]he purchase [of the winning ticket] itself was not a crime," Vaitheswaran wrote for a three-judge panel in her 16-page opinion. "Certainly, the inference could be drawn that the ticket was passed to someone, because at least two people attempted to redeem it. But the minutes do not disclose when, if at all, Tipton acted after the ticket was purchased."
The judge added that the latest date he could have acted was Dec. 29, 2011, the last date to redeem the ticket. After that, the state took custody of it.
However, the tampering charge qualified for an extension of the statute of limitations because the state did not suspect the crime until the video of Tipton purchasing the winning ticket was released in 2014.
Whereas the state suspected some kind of fraud as soon as someone tried to redeem the ticket, "the State could not have known the fraud included tampering with lottery equipment until Tipton was identified as the purchaser," Vaitheswaran said.
The appeals court also found sufficient evidence to support the tampering conviction. While Tipton worked for the MSLA from 2003 up until his arrest in 2015, he was in charge of information technology, had a hand in writing the number-generating software and participated in drafting the computer's security policies.
Surveillance footage showed Tipton entering the "draw room," which housed the two number-generating computers, one month before the winning numbers were drawn, allegedly to update the dates on the computers. The next month, both computers were wiped, according to court records.
"The jury reasonably could have inferred from Tipton's position in the organization and his knowledge of security protocols that he was aware of this upcoming event when he entered the draw room in November 2010," Vaitheswaran wrote.
In addition, the ticket's first attempted claimant chose to fill in the winning numbers himself rather than accept random, computer-generated numbers. He also submitted two sets of numbers, since the winning string could come from either of the computers.
"Based on this circumstantial evidence, the jury reasonably could have found that Tipton tampered with the random number generator computers with the intent to influence the lottery winnings," Vaitheswaran concluded.
The case will now go back to the district court for sentencing on the remaining charge. The court initially sentenced Tipton to 10 years in prison, but he has been free while his appeal was pending, according to an Associated Press report.
Neither the Iowa Attorney General's Office, which prosecuted the case, nor Tipton's attorney Dean Stowers responded to voicemail messages requesting comment Wednesday.
However, according to the AP, both Stowers and the Iowa Attorney General's Office are considering appealing to the Iowa Supreme Court.
In February, Tipton will face a second trial in Iowa on charges related to his alleged manipulation of lottery computers for Colorado, Kansas, Oklahoma and Wisconsin jackpots.
Iowa's $16 million jackpot was never redeemed because lottery officials were unable to verify the authenticity of the winning tickets.
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.
2011
- Deadline for claiming $16.5M Hot Lotto jackpot nears, Sep. 21, 2011
- Unclaimed Iowa lottery jackpot to expire Dec. 29, Dec. 1, 2011
- Iowa $16.5M Hot Lotto winner claims prize with two hours to spare, Dec. 29, 2011
2012
- Iowa Lottery security chief bent on determining identity of jackpot winner, Jan. 10, 2012
- NY lawyer in lottery mystery travels to Iowa this week, Jan. 17, 2012
- Iowa Lottery security chief to grill NY lawyer over Hot Lotto ticket, Jan. 17, 2012
- Representative of Hot Lotto winner named in lawsuit, Jan. 20, 2012
- Hot Lotto trust representative won't name winner, Jan. 20, 2012
- Iowa Lottery threatens to deny jackpot payout if winner stays anonymous, Jan. 23, 2012
- Lawyer gives up $14 million Iowa lottery ticket claim, Jan. 26, 2012
- $14.3 million Hot Lotto prize claim withdrawn, Jan. 27, 2012
- Iowa Legislators satisfied with Lottery's handling of mystery jackpot winner, Feb. 1, 2012
- Iowa Lottery to give away millions from jackpot mystery, Feb. 26, 2012
- Iowa Lottery director: 50-50 that Hot Lotto mystery will be solved, Aug. 9, 2012
- Iowa officials trying to solve lotto mystery, may release surveillance video, Aug. 19, 2012
2013
- 1 year later, Iowa Lottery still hunting for suspicious no-show winner, Jan. 30, 2013
- Inquiry in Iowa Lottery mystery touches Canada, Jul. 26, 2013
- Lottery jackpot probe heats up after immunity deal, Oct. 8, 2013
2014
- Iowa Lottery still hunting mystery Hot Lotto winner [video], Oct. 10, 2014
2015
- MUSL employee arrested in Hot Lotto jackpot mystery, Jan. 15, 2015
- BOMBSHELL: MUSL employee might have rigged Hot Lotto computerized drawing, Apr. 13, 2015
- Texas man charged in Iowa lottery case contests extradition, Apr. 20, 2015
- Extradition trial begins this week in $16.5M Hot Lotto fraud case, Jun. 7, 2015
- Inside the biggest lottery scam ever, Jul. 7, 2015
- Trial underway in world's biggest lottery fraud case, Jul. 14, 2015
- Lottery security chief: Rigging computerized game "sadly" possible, Jul. 15, 2015
- Prosecution rests in Hot Lotto trial, Jul. 16, 2015
- Defense quickly wraps up in Hot Lotto trial, Jul. 16, 2015
- Hot Lotto case moves to jury for deliberations, Jul. 17, 2015
- Former lottery security employee guilty of rigging $14.3M drawing, Jul. 20, 2015
- MUSL security worker who rigged drawing gets 10 years, Sep. 9, 2015
- HOT LOTTO DRAWING CHEAT CHARGED WITH RIGGING MORE JACKPOTS, Oct. 9, 2015
- Texas authorities had previously investigated brother of lottery cheat, Oct. 14, 2015
- Another $1.2M Hot Lotto jackpot rigged by Tipton, officials say, Nov. 21, 2015
- Jackpot-fixing investigation expands to more state lotteries, Dec. 18, 2015
- Prosecutors say Tipton rigged two jackpots he purchased tickets for in Kansas, Dec. 21, 2015
- Maine gives names of Hot Lotto winners to Iowa team looking into rigging scheme, Dec. 23, 2015
- S.C. Lottery assures public no computerized drawings used in state, Dec. 23, 2015
- Kansas lottery players questioning game's integrity, Dec. 23, 2015
- MUSL CHIEF OUSTED OVER JACKPOT-RIGGING SCANDAL, Dec. 23, 2015
- Lottery scandal unlikely to affect New Mexico, official says, Dec. 26, 2015
- Tipton granted delay in next trial until July, Dec. 29, 2015
2016
- Iowa Lottery CEO Terry Rich to answer lottery player questions live Monday evening, Jan. 11, 2016
- First lawsuit in state lottery-fixing scandal seeks millions, Feb. 4, 2016
- MUSL seeks to dismiss lawsuit over rigged jackpot, Apr. 1, 2016
- Lottery scammer's brother facing criminal charges, Apr. 6, 2016
- Investigators find Tipton's software code to rig computerized lottery drawings, Apr. 7, 2016
- Lottery rigging scandal prompts security audit in South Dakota, Apr. 13, 2016
- Preliminary hearing rescheduled for Tommy Tipton in lottery rigging case, Apr. 22, 2016
- Third suspect surrenders in national lottery rigging scandal, Apr. 28, 2016
- Lottery scam investigation comes to Tennessee, May 11, 2016
- Investigators find another friend of Tipton who cashed rigged lottery prize, May 11, 2016
- Convicted computerized drawing fraudster argues Iowa court appeal, Jun. 16, 2016
- US Senate panel demands info in lottery scandal, Jun. 22, 2016
- Lottery rigging trial to be moved out of Des Moines, Jun. 27, 2016
- Eddie Tipton's new trial delayed until 2017, Jul. 1, 2016
Thanks to ckrakowski for the tip.
Ok, 9 years and 9 months for tampering with the machine/computer !
With today's judicial system, sometimes the punishment doesn't fit the crime.
He has ruined his own life. He has to fight more court battles. Eddie Tipton.
I checked most of the links but i don't see his annual salary from his position anywhere. Does anyone know what it is? I know it doesn't make much of a difference but it does put things in perspective if he was making say $50,000 at such a high job or make it even more ridiculous if he was paid say $700,000. I made both of these up at the top of my head if anyone asks where I'm getting them from.
Found a daily beast article that states he received a six figure salary as director of security.
http://www.thedailybeast.com/articles/2015/07/07/inside-the-biggest-lottery-scam-ever.html
6 figures makes it even more ridiculous what he did. Even the lowest 6 figure amount (100,000) is enough to be well off in a low cost of living place like Iowa.Plus what could he really do with the money if he was able to get away with it? I'm sure such a high position would get audited and scrutinized a lot and he can't exactly put it down on his tax returns as gambling income.The more you look into the nitty gritty and less into the movie style big picture, the more ridiculous and bird-brained his actions become.
Mr Tipton said that he was going to do it. He did. So what now? Where is the won money? How exactly did he cheat? Too many questions! At least, nobody was killed or injured?
Whistle?
? What about a whistle?
You don't know whistling!
I may take heat for this post but (in a small way) you have to admire what Tipton did. He scammed the scammer's. Do away with pre-tests and I may change my opinion. Pre-tests serve only one purpose...To hide trends from people who follow them.