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Accused lottery rigger Eddie Tipton facing new Wisconsin charges

Insider BuzzInsider Buzz: Accused lottery rigger Eddie Tipton facing new Wisconsin charges
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A former Iowa lottery security official accused of rigging drawings to win prize money in several states is facing new felony charges in Wisconsin.

A prosecutor in the Wisconsin Department of Justice filed a total of six charges against Eddie Tipton on Thursday, including one count of racketeering, a theft by fraud charge and four computers crimes charges. The charges stem from a suspect December 2007 Megabucks drawing in Wisconsin that allegedly won Tipton and a business associate a prize worth $783,257, according to a criminal complaint.

The fresh charges are the newest development in the ongoing legal saga involving Tipton, a former information security director for an Urbandale nonprofit group that distributes lottery games nationwide. Tipton, 53, was convicted of two fraud counts in Iowa last year after a prosecutor argued that he tampered with random number generators in 2010 to win a $14.3 million Hot Lotto prize. (See full legal document outlining charges in Related Links below).

After the conviction, Iowa investigators linked Tipton, his brother and a longtime friend, Robert Rhodes, to suspect jackpots in Colorado, Oklahoma, Wisconsin and Kansas and was charged with additional counts of ongoing criminal conduct and money laundering. That case is still pending.

Defense attorney Dean Stowers has maintained Tipton's innocence since he was first arrested, and said Thursday he will voluntarily appear to answer the charges. Tipton's first case is being appealed to the Iowa Supreme Court after a lower appeals court in July tossed out one of the fraud convictions, ruling that it was filed it too late.

"What the States have claimed in these cases, as best we can understand, is not a crime under the various statutes they rely upon," Stowers said. "The States basically have claimed that Mr. Tipton shared information about the way the computer programs that were tested and certified by third parties worked, and that does not appear to be a crime under the law of Iowa or Wisconsin."

A 13-page criminal complaint filed in Dane County Circuit Court offers some of the most detailed allegations to date made public to date in the case about the role of Rhodes, a Texas businessman and friend who had known Tipton since the early 1990s. Rhodes is also facing charges in Iowa for allegedly helping Tipton in an ill-fated attempt to redeem the 2010 Hot Lotto ticket worth millions.

Rhodes offered his version of events in a meeting with Wisconsin and Iowa investigators in December 2015. According to the complaint, Rhodes claimed that Tipton first approached him about the possibility of rigging a lottery in October 2007.

"Tipton told Rhodes that there was a way that Tipton could give Rhodes winning lottery numbers and asked if they should take advantage of that," the complaint reads.

In December 2007, Rhodes met with Tipton in Iowa, and the lottery security manager gave him several index cards filled with series of numbers, according to the complaint. Rhodes told investigators that Tipton instructed him to buy tickets for all of the numbers, ensuring him that one would work. Rhodes traveled to Wisconsin in a rental car, bought the tickets and learned when he got home that he had won a jackpot, according to the complaint.

Rhodes set up a limited liability corporation to receive the earnings and split half with Tipton, according to the complaint. Tipton told his friend that the scheme was possible because he had programmed random number generators used by the Wisconsin lottery to come up with a predictable number if certain conditions were met. Tipton asked Rhodes again in 2010 if he wanted to try and win another Wisconsin prize, but the Texan felt the two were "tempting fate," and he did not purchase a winning ticket.

The criminal complaint also claims that Rhodes was shown the winning 2010 Iowa ticket in January or February of the next year while Tipton was visiting him in Houston. Rhodes was initially "upset" when Tipton asked him to claim the prize money, fearing that too many people were involved, according to the complaint. But they agreed to split the proceeds again.

The criminal complaint also charges Rhodes with racketeering and theft by fraud.

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

Thanks to JustJim for the tip.

Des Moines Register, Lottery Post Staff

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13 comments. Last comment 3 days ago by dallascowboyfan.
Page 1 of 1
sully16's avatar - sharan
Ringleader
Michigan
United States
Member #81740
October 28, 2009
42075 Posts
Offline
Posted: December 22, 2016, 10:01 pm - IP Logged

I have a feeling there will be even more charges.

 HyperBe Happy.

    Kingofearth's avatar - Kinnak
    Upstate NY
    United States
    Member #174656
    May 5, 2016
    837 Posts
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    Posted: December 22, 2016, 10:10 pm - IP Logged

    Don't do the crime if you don't want to do to the time. For a 700 HUNDRED THOUSAND dollar jackpot they were willing to risk it?

      MillionsWanted's avatar - 24Qa6LT

      Norway
      Member #9517
      December 10, 2004
      1279 Posts
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      Posted: December 23, 2016, 1:22 am - IP Logged

      Pretty sure a TV movie will be made about Eddie Tipton and his lottery rigging.

        Sunglasses's avatar - nicebear
        Zaperlopopotam
        Belgium
        Member #173932
        March 26, 2016
        1154 Posts
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        Posted: December 23, 2016, 12:47 pm - IP Logged

        I have a feeling there will be even more charges.

        I have a feeling that others could be doing the same right now.


        Aime les nifles!
        .
          Sunglasses's avatar - nicebear
          Zaperlopopotam
          Belgium
          Member #173932
          March 26, 2016
          1154 Posts
          Offline
          Posted: December 23, 2016, 12:48 pm - IP Logged

          Pretty sure a TV movie will be made about Eddie Tipton and his lottery rigging.

          Stuff for a Hollywood movie. 8 Oscars!


          Aime les nifles!
          .
            music*'s avatar - nw bookeep.jpg
            Happy California
            United States
            Member #157856
            August 2, 2014
            1550 Posts
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            Posted: December 23, 2016, 1:09 pm - IP Logged

            "If men were Angels than we would not need government." 

             Criminals continue to mess up the lives of law abiding citizens.Unhappy

             Chi ha danari, trova cugini. (He who has money finds many cousins.) Italian proverb

              Avatar
              New Member
              san jose, Ca.
              United States
              Member #7838
              October 14, 2004
              4 Posts
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              Posted: December 23, 2016, 1:38 pm - IP Logged

              if we had no government there would be no need for angels or lottery. abolish money, abolish government, abolish religion

                music*'s avatar - nw bookeep.jpg
                Happy California
                United States
                Member #157856
                August 2, 2014
                1550 Posts
                Offline
                Posted: December 23, 2016, 2:03 pm - IP Logged

                if we had no government there would be no need for angels or lottery. abolish money, abolish government, abolish religion

                michael 777, People tend to find their own gods. It is in our DNA.

                 Chi ha danari, trova cugini. (He who has money finds many cousins.) Italian proverb

                  JustJim's avatar - driver
                  SunPrairie Wisconsin
                  United States
                  Member #162093
                  December 21, 2014
                  133 Posts
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                  Posted: December 23, 2016, 9:33 pm - IP Logged

                  Hmmm.....is it any wonder Wisconsin has a grade of "D" on the State Lottery Report Card section?  Fishy dll's and RNG's, guess there's something to be said for the good old fashioned numbered ping pong balls.  Wink

                  Here's wishing everyone the good fortune they're looking for.  Remember, if you happen to win more than a couple bucks, try and donate a little to one of your favorite charities - keep that positive mojo working!

                    Avatar
                    Maryland
                    United States
                    Member #162434
                    January 2, 2015
                    940 Posts
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                    Posted: December 24, 2016, 10:03 am - IP Logged

                    "Rhodes was initially "upset" when Tipton asked him to claim the prize money, fearing that too many people were involved, according to the complaint. But they agreed to split the proceeds again."

                    Rhodes was right! Lets hope this brings a end to Tipton.

                      Avatar
                      New York, NY
                      United States
                      Member #140634
                      March 23, 2013
                      3209 Posts
                      Offline
                      Posted: December 24, 2016, 7:28 pm - IP Logged

                      Hmmm.....is it any wonder Wisconsin has a grade of "D" on the State Lottery Report Card section?  Fishy dll's and RNG's, guess there's something to be said for the good old fashioned numbered ping pong balls.  Wink

                      I Agree!

                      It's the best and only way it should be done. Truly.

                        LottoAce's avatar - WWI Flying_Ace.gif
                        N.C.
                        United States
                        Member #56005
                        October 28, 2007
                        877 Posts
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                        Posted: December 25, 2016, 1:49 pm - IP Logged

                        its going to be interesting to see who else is involved.

                        "know your limitations, but excede your expectations"

                          dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                          Oklahoma
                          United States
                          Member #82391
                          November 12, 2009
                          6305 Posts
                          Offline
                          Posted: January 18, 2017, 5:21 am - IP Logged

                          Waiting for the LTMN Lurking

                          I Love Pink & Green 1908