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Internal investigation concludes Tipton acted alone to rig lottery drawings

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An internal investigation into a national jackpot-fixing scandal has concluded that a single former lottery employee was responsible for any drawings that were manipulated, but it failed to uncover proof of his guilt.

The report for the Multi-State Lottery Association (MUSL) found that the group's former security director, Eddie Tipton, worked independently to commit any fraud without help from current or former employees. But investigators also said they failed to determine how he pulled it off and found no smoking gun of criminal activity, such as the manipulation of computers used to pick numbers or ticket-buying by insiders who are prohibited from playing.

"The team's extensive review did not locate 'proof' of 'fraud or any other wrongdoing' such as 'manipulation' or 'prohibited play,'" according to the four-page report dated April 29 and obtained Wednesday by The Associated Press.

Tipton was found guilty last year of tampering with a 2010 Hot Lotto drawing for a $16.5 million jackpot, after he was caught on surveillance video buying the winning numbers at a Des Moines gas station. The ticket was passed to Tipton associates who unsuccessfully tried to collect the jackpot.

Tipton, his brother and a friend are awaiting separate trials on allegations that they conspired to buy winning tickets and collect jackpots worth more than $2 million cash in Colorado,Wisconsin, Oklahoma and Kansas.

At last year's trial, prosecutors theorized that Tipton secretly installed a root kit that allowed him to control a random number generator that conducts drawings at the association's suburban Des Moines office before it disappeared without a trace. But they now say those machines had an algorithm that allowed Tipton to predict winning numbers on specific days of the year — Nov. 23 and Dec. 29. All six jackpots linked to the alleged fraud were drawn on those dates between 2005 and 2011.

Tipton is appealing his conviction, and an appeals court recently threw out one of two fraud charges against him.

The association — which includes 37 state and territorial lotteries and runs the Powerball game — hired the Des Moines office of the Dorsey & Whitney law firm to conduct a confidential investigation into the fraud allegations and report findings to its board. Lawyers worked with experts from lotteries to conduct the review, interviewing current and former employees and analyzing documents and testimony.

The group recently submitted the report to a U.S. Senate committee, which had requested information about MUSL's response to the scandal. The Senate committee provided a copy of the report to AP.

The available information "did not prove to all team members beyond a reasonable doubt that Tipton committed the crimes with which he was charged in his first case," the report said. But assuming jurors were correct in returning guilty verdicts, "Tipton appears to have acted alone within MUSL with criminal intent" and no one specific security lapse was to blame, it said.

"Like any organization, MUSL must remain cognizant of this type of threat and constantly act to avoid or neutralize the threat," attorney William Miller wrote.

Investigators had limited information about allegations in the second case against Tipton but were unable to substantiate any of them, the report said.

The report said the ongoing scandal had damaged the association's reputation and forced it to incur legal fees and costs but "those damages are not complete or fully quantifiable at this time." The case has prompted the association to improve its procedures, but those changes were not described for security reasons.

Tipton's attorney, Dean Stowers, said Wednesday that the report shows his client was "wrongfully convicted" based on a now-discredited theory.

"It is now obvious to everyone familiar with this case that Tipton did not install a mythical self-destructing root kit on the RNG computer on Nov. 20, 2010, as alleged," he said. "Mr. Tipton remains confident he will eventually be exonerated."

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

2012

2013

2014

2015

2016

AP, Lottery Post Staff

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25 comments. Last comment 4 months ago by Bleudog101.
Page 1 of 2
TheMeatman2005's avatar - lightening
Brooklyn, NY
United States
Member #169723
October 29, 2015
878 Posts
Offline
Posted: August 10, 2016, 10:15 pm - IP Logged

The truth will prevail and the guilty will be punished.

The Meatman

“The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

    spartan1707's avatar - Lottery-050.jpg
    Tucson
    United States
    Member #119762
    December 2, 2011
    81 Posts
    Offline
    Posted: August 10, 2016, 11:49 pm - IP Logged

    Proves my point. They refuse to show what actually happen for it will reveal how they manipulate the numbers for pick3\4\5..Hot lotto,Cash5 ect...ect They are the ones who push for privacy laws to protect those who when aka  win and don't wish to be known. Ringers in the system. He won and they got mad for he used their very system against them. Now for him to be set free, but they paid for a conviction soooooo.

      LottoBux's avatar - 2elh5if
      Ontario
      Canada
      Member #109243
      April 9, 2011
      31437 Posts
      Offline
      Posted: August 11, 2016, 12:22 am - IP Logged

      An internal investigation into a national jackpot-fixing scandal has concluded that a single former lottery employee was responsible for any drawings that were manipulated, but it failed to uncover proof of his guilt.

      The report for the Multi-State Lottery Association (MUSL) found that the group's former security director, Eddie Tipton, worked independently to commit any fraud without help from current or former employees. But investigators also said they failed to determine how he pulled it off and found no smoking gun of criminal activity, such as the manipulation of computers used to pick numbers or ticket-buying by insiders who are prohibited from playing.

      "The team's extensive review did not locate 'proof' of 'fraud or any other wrongdoing' such as 'manipulation' or 'prohibited play,'" according to the four-page report dated April 29 and obtained Wednesday by The Associated Press.

      Tipton was found guilty last year of tampering with a 2010 Hot Lotto drawing for a $16.5 million jackpot, after he was caught on surveillance video buying the winning numbers at a Des Moines gas station. The ticket was passed to Tipton associates who unsuccessfully tried to collect the jackpot.

      Tipton, his brother and a friend are awaiting separate trials on allegations that they conspired to buy winning tickets and collect jackpots worth more than $2 million cash in Colorado,Wisconsin, Oklahoma and Kansas.

      At last year's trial, prosecutors theorized that Tipton secretly installed a root kit that allowed him to control a random number generator that conducts drawings at the association's suburban Des Moines office before it disappeared without a trace. But they now say those machines had an algorithm that allowed Tipton to predict winning numbers on specific days of the year — Nov. 23 and Dec. 29. All six jackpots linked to the alleged fraud were drawn on those dates between 2005 and 2011.

      Tipton is appealing his conviction, and an appeals court recently threw out one of two fraud charges against him.

      The association — which includes 37 state and territorial lotteries and runs the Powerball game — hired the Des Moines office of the Dorsey & Whitney law firm to conduct a confidential investigation into the fraud allegations and report findings to its board. Lawyers worked with experts from lotteries to conduct the review, interviewing current and former employees and analyzing documents and testimony.

      The group recently submitted the report to a U.S. Senate committee, which had requested information about MUSL's response to the scandal. The Senate committee provided a copy of the report to AP.

      The available information "did not prove to all team members beyond a reasonable doubt that Tipton committed the crimes with which he was charged in his first case," the report said. But assuming jurors were correct in returning guilty verdicts, "Tipton appears to have acted alone within MUSL with criminal intent" and no one specific security lapse was to blame, it said.

      "Like any organization, MUSL must remain cognizant of this type of threat and constantly act to avoid or neutralize the threat," attorney William Miller wrote.

      Investigators had limited information about allegations in the second case against Tipton but were unable to substantiate any of them, the report said.

      The report said the ongoing scandal had damaged the association's reputation and forced it to incur legal fees and costs but "those damages are not complete or fully quantifiable at this time." The case has prompted the association to improve its procedures, but those changes were not described for security reasons.

      Tipton's attorney, Dean Stowers, said Wednesday that the report shows his client was "wrongfully convicted" based on a now-discredited theory.

      "It is now obvious to everyone familiar with this case that Tipton did not install a mythical self-destructing root kit on the RNG computer on Nov. 20, 2010, as alleged," he said. "Mr. Tipton remains confident he will eventually be exonerated."

      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

      2012

      2013

      2014

      2015

      2016

      So What Time Will Tipton Actually Serve If Any?

                             

        Avatar

        United States
        Member #149394
        November 30, 2013
        36 Posts
        Offline
        Posted: August 11, 2016, 1:01 am - IP Logged

        I've read a few stories about this and maybe somewhat cursory.  However I've yet to see any mention of how MUSL intends to compensate those who may have been stiffed as a result of the fraud.  They should at least refund the monies received for the tainted draws, assuming you can prove you bought a ticket.  Has this been addressed in any way?

          CARBOB's avatar - FL LOTTERY_LOGO.png
          ORLANDO, FLORIDA
          United States
          Member #4924
          June 3, 2004
          5899 Posts
          Online
          Posted: August 11, 2016, 5:21 am - IP Logged

          I think MUSL may want to do some rethinking, if he was wrongly convicted. Put him in charge of MUSL or send him to Florida. He can't be no crooked than the ones we have. They are stealing the Florida players blind.

            TheMeatman2005's avatar - lightening
            Brooklyn, NY
            United States
            Member #169723
            October 29, 2015
            878 Posts
            Offline
            Posted: August 11, 2016, 6:57 am - IP Logged

            I've read a few stories about this and maybe somewhat cursory.  However I've yet to see any mention of how MUSL intends to compensate those who may have been stiffed as a result of the fraud.  They should at least refund the monies received for the tainted draws, assuming you can prove you bought a ticket.  Has this been addressed in any way?

            This news article was in Lottery Post on Feb 4, 2016 First lawsuit in state lottery-fixing scandal seeks millions

            A Des Moines law firm filed a lawsuit Wednesday on Dawson's behalf seeking to declare that his Hot Lotto jackpot in May 2011 should have been nearly three times as big, had the previous one not been fixed.

            He sued claiming that had Tipton not won the previous jackpot by fraud, he would have won an additional $10 mil cash when he won his jackpot.

            The Meatman

            “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

            Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

              LiveInGreenBay's avatar - driver
              Green Bay
              United States
              Member #169391
              October 15, 2015
              1245 Posts
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              Posted: August 11, 2016, 8:37 am - IP Logged

              So the only proof they have is that he bought six winning tickets in different states.  Maybe he's just very lucky.  LOL

              Never give up.  Banana

                RJOh's avatar - chipmunk
                mid-Ohio
                United States
                Member #9
                March 24, 2001
                19828 Posts
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                Posted: August 11, 2016, 3:04 pm - IP Logged

                So the only proof they have is that he bought six winning tickets in different states.  Maybe he's just very lucky.  LOL

                "Tipton's attorney, Dean Stowers, said Wednesday that the report shows his client was "wrongfully convicted" based on a now-discredited theory."

                Sounds like any winner that picks his own numbers has to be suspected of cheating.  Obviously there is a flaw in their system or Tipton would rot have been able to pick so many winners.  They just weren't smart enough to find it.

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

                  LiveInGreenBay's avatar - driver
                  Green Bay
                  United States
                  Member #169391
                  October 15, 2015
                  1245 Posts
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                  Posted: August 11, 2016, 3:34 pm - IP Logged

                  "Tipton's attorney, Dean Stowers, said Wednesday that the report shows his client was "wrongfully convicted" based on a now-discredited theory."

                  Sounds like any winner that picks his own numbers has to be suspected of cheating.  Obviously there is a flaw in their system or Tipton would rot have been able to pick so many winners.  They just weren't smart enough to find it.

                  About two months ago I emailed the Wisconsin lottery.  My question was... Are the RNG computers separate from the lottery mainframe?  They told me the RNG computers were indeed separate.  There is no internet connection.  The RNG computers (three of them) are locked in a secure cabinet, in a locked room on a secure floor. 

                  My assumption is... Those computers are surrounded by video cameras and no single person is allowed in that room.  That being the case, how did Tipton do this?  If he in fact did?  Wisconsin lottery was part of this "supposed scam"? 

                  My opinion is... If he did indeed scam the scammers... More power to him.  I hope he gets away with it.  IMO RNG programs aren't independent from the mainframe.  The computers know what the most picked numbers are for any given draw and avoid them.  I've been following the numbers for a long time.  Just my opinion of course. 

                  They don't like it...Go back to mechanical.

                  Never give up.  Banana

                    Kingofearth's avatar - Kinnak
                    Upstate NY
                    United States
                    Member #174656
                    May 5, 2016
                    757 Posts
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                    Posted: August 11, 2016, 3:55 pm - IP Logged

                    About two months ago I emailed the Wisconsin lottery.  My question was... Are the RNG computers separate from the lottery mainframe?  They told me the RNG computers were indeed separate.  There is no internet connection.  The RNG computers (three of them) are locked in a secure cabinet, in a locked room on a secure floor. 

                    My assumption is... Those computers are surrounded by video cameras and no single person is allowed in that room.  That being the case, how did Tipton do this?  If he in fact did?  Wisconsin lottery was part of this "supposed scam"? 

                    My opinion is... If he did indeed scam the scammers... More power to him.  I hope he gets away with it.  IMO RNG programs aren't independent from the mainframe.  The computers know what the most picked numbers are for any given draw and avoid them.  I've been following the numbers for a long time.  Just my opinion of course. 

                    They don't like it...Go back to mechanical.

                    "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."

                    https://www.lotterypost.com/news/305412

                      LiveInGreenBay's avatar - driver
                      Green Bay
                      United States
                      Member #169391
                      October 15, 2015
                      1245 Posts
                      Offline
                      Posted: August 11, 2016, 4:14 pm - IP Logged

                      "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."

                      https://www.lotterypost.com/news/305412

                      Again... If he entered that room with a pocket full of ping pong balls no one would have noticed?  LOL!  I rest my case.  If he scammed the scamers, more power to him.

                      Never give up.  Banana

                        helpmewin's avatar - dandy
                        u$a
                        United States
                        Member #106665
                        February 22, 2011
                        19843 Posts
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                        Posted: August 11, 2016, 6:10 pm - IP Logged

                        I think MUSL may want to do some rethinking, if he was wrongly convicted. Put him in charge of MUSL or send him to Florida. He can't be no crooked than the ones we have. They are stealing the Florida players blind.

                        Green laugh

                        Let it Snow Snowman

                          Avatar

                          United States
                          Member #132100
                          August 26, 2012
                          1076 Posts
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                          Posted: August 11, 2016, 9:19 pm - IP Logged

                          I would think that if there is no body of proof that then there is no guilt either.

                          https://en.wikipedia.org/wiki/Corpus_delicti

                          How can they say that he is guilty if there is no proof of crime?

                          Don't they say that "innocent until proven guilty"?

                          And there is no proof of wrong doing, there is no body of proof.

                          He could not have done by the use of telekinesis as there is no such thing, ergo he is not guilty.

                          Suppositions are just suppositions and nothing else.

                            Avatar

                            United States
                            Member #132100
                            August 26, 2012
                            1076 Posts
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                            Posted: August 11, 2016, 9:26 pm - IP Logged

                            "Tipton's attorney, Dean Stowers, said Wednesday that the report shows his client was "wrongfully convicted" based on a now-discredited theory."

                            Sounds like any winner that picks his own numbers has to be suspected of cheating.  Obviously there is a flaw in their system or Tipton would rot have been able to pick so many winners.  They just weren't smart enough to find it.

                            If mathematicians and the state lotteries say that you can't predict lottery numbers, because random events can't be predicted and you do predict lottery numbers, What then, Did you cheat and they don't have to pay you because you did what can't be done?

                            Or are they wrong and they have to pay you? What if you win often, How can mathematicians be wrong?