The Iowa Supreme Court heard arguments Monday on whether purely circumstantial evidence was enough to convict a former lottery employee of rigging Iowa's Hot Lotto game to win a $16.5 million jackpot.
Eddie Tipton was convicted of tampering with Iowa's Hot Lotto game and attempting to cash a ticket in early 2015, but an appeals court reversed his conviction on the charge of attempting to redeem the lottery ticket, finding it was barred by the three-year statute of limitations.
The Iowa Supreme Court heard arguments in the state's appeal of that ruling in a rare evening session Monday night.
Tipton's attorney Dean Stowers sought both to overturn the conviction based on the sufficiency of the evidence, and on statute of limitations grounds, but he faced a skeptical bench.
"The coincidences add up beyond belief," Justice Brent Appel said. "What are the odds someone walks into the QuikTrip and comes out with $16.5 million?"
Stowers said the odds were not in the record.
Tipton worked for the Multi-State Lottery Association as the information security director responsible for the software that generates random numbers for lottery games.
According to a multiple criminal complaints filed against him, he planted a modified software code in the random number generator that produced a predictable set of winning numbers when certain conditions were met.
He allegedly used his insider knowledge to win a $569,000 Colorado jackpot, a ticket cashed by his brother, and a $783,257.72 jackpot in Wisconsin, a ticket cashed by his friend Robert Rhodes.
But winning twice — and getting away with it — wasn't enough for Tipton, according to the state of Iowa.
On Dec. 29, 2010, Tipton himself allegedly purchased a winning ticket for Iowa's Hot Lotto jackpot worth $16.5 million. Four years later, the state released the video of the purchase to the public in hopes of identifying the purchaser. Another lottery association employee recognized Tipton as the buyer.
However, Tipton never cashed the ticket, and it is unclear how it wound up in the hands of a New York attorney who tried to claim the ticket on behalf of a shell company in Belize hours before it would expire.
Stowers told the Iowa Supreme Court on Monday there was "zero evidence" that Tipton tampered with the lottery computers. He mocked the idea that his client could have stuck a thumb drive into the computer, with other people in the room, altered the computer without a trace, then "snuck out of the room — with his 300-pound self."
He compared Tipton's conviction to a man charged with arson because he bought a gas can a month prior and knew how to use a match.
"Circumstantial evidence is not sufficient," Stowers said. He also cast doubt on the witness identifications of Tipton as the man in the QuikTrip video buying the winning ticket.
During the state's argument, the judges grilled Assistant Attorney General Louis Sloven on the statute of limitations issue, pointing out that the state knew almost immediately there was "something fishy" about the fact that no one came forward to claim the jackpot.
"Don't you have to use reasonable diligence to find the perpetrator?" Justice David Wiggins asked. "[And yet] you waited three years to put the tape out."
Sloven said the state wanted to avoid wasting time on fraudulent claims, and had no way of knowing releasing the video would yield an almost immediate identification of a suspect.
"It's really unfair to call it unreasonable in hindsight," the state's attorney said.
Sloven forcefully argued that tampering is a form of fraud in this context, and the statute of limitations should be tolled because the state was not aware of the tampering until 2014.
Surveillance footage presented at trial 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. However, there is no direct evidence showing any change in the computer's approved software.
The Iowa Supreme Court is expected to issue its decision in 90 days.
Tipton also faces pending criminal charges for his Wisconsin lottery win.
An Iowa trial 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.
The state also faces a class action filed by Iowa lottery players demanding a refund for the money they spend playing games rigged by Tipton.
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
- Iowa court reverses part of Tipton's lottery fraud conviction, Jul. 28, 2016
- Internal investigation concludes Tipton acted alone to rig lottery drawings, Aug. 10, 2016
- Prosecutors say 2 more men may be linked to lottery riggings, Aug. 24, 2016
- Judge: winner's lawsuit in lottery-fixing case can continue, Oct. 13, 2016
- Alleged lottery scandal conspirator to enter new plea, Nov. 14, 2016
- Accused lottery rigger Eddie Tipton facing new Wisconsin charges, Dec. 22, 2016
2017
- Man files lawsuit over rigged lottery jackpots, Jan. 4, 2017
- Trials for Tipton brothers charged in lottery scandal delayed, Jan. 8, 2017
- Former MUSL official received severance amid lottery jackpot scandal, Jan. 10, 2017
- Texas man pleads guilty to fraud in lottery scandal case, Jan. 11, 2017
Oh brother!!!.
The wheels of justice grind slowly on.
So sick of hearing about this guy.
Lock him up and throw away key.
He messed with my state.
Who's to say how many times and got away with it with all the states.
What a waste of taxpayers money.
.
Boy, I sure hope by this time, 'they' know who's programming what, in the lotto computers, and have a fool proof way to track any such edits made. But this is why I don't play anything but PB and MM.
"What are the odds someone walks into the QuikTrip and comes out with $16.5 million?"
How does somebody that stupid make it to a position as a supreme court judge? He must know that Tipton isn't the only guy who ever bought a winning ticket.
I also thought that was an odd comment.