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Lottery rigging mastermind sentenced to 25 years in prison

Aug 22, 2017, 4:49 pm

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Insider BuzzInsider Buzz: Lottery rigging mastermind sentenced to 25 years in prisonRating:

A former lottery security chief was sentenced to 25 years in prison on Tuesday for rigging the computerized lottery drawings in several states so he could collect the jackpots.

Eddie Tipton, former security director of the Multi-State Lottery Association (MUSL), received the maximum sentence from an Iowa judge, who mentioned Tipton's "greed" in his sentencing.

"I certainly regret my actions," Tipton told the court. "It's difficult even saying that with all the people that I know behind me that I hurt."

Tipton pleaded guilty in June to a charge of ongoing criminal conduct for a scheme involving seven lottery tickets in five states, according to court documents. He admitted to rigging computer programming code to produce winning numbers — netting Tipton and his accomplices millions of dollars.

Tipton has agreed to pay about $2.2 million in restitution, including $1.1 million to the Colorado lottery, $644,000 to the Oklahoma lottery, $391,000 to the Wisconsin lottery and $30,000 to the Kansas lottery.

When Judge Brad McCall asked him on Tuesday how he intended to repay the money, Tipton said, "Initially, I really don't know."

Prior to his sentencing, Tipton's lawyer said his client was ready to accept his punishment.

"He looks forward to putting this entire matter behind him and moving on with his life after he serves his sentence," lawyer Dean Stowers said in an email. He had asked the judge for a suspended sentence.

Tipton was formerly a programmer with the Multi-State Lottery Association, the agency that administers some state lottery drawings. He designed and maintained software "for computerized random number generators used to select winning lottery numbers in many states across the country," according to the office of Iowa Attorney General Tom Miller.

Tipton, who lives in Texas, is accused of buying lottery tickets in various states, including Iowa, and selecting numbers that he knew would win, since he designed the program that generated the winning numbers. Tipton then gave these tickets to third parties who agreed to cash them and split the money with him.

He launched construction on a 4,800-square-foot home outside of Des Moines that contained a movie theater, a gym, overlooked a pond and sat on 22 acres after his first illegal win in 2005, court documents show. The scam went on to claim at least six more games across five states that netted more than $2 million, investigators alleged.

The scam began to unravel following unsuccessful attempts to anonymously collect a $16.5 million Hot Lotto ticket that was purchased at a Des Moines convenience store in 2010.

One his accomplices was his brother, Tommy Tipton, authorities said. The investigation against the Tipton brothers began in 2010, with a suspicious claim for a $14.3 million Hot Lotto jackpot in Iowa that lottery officials refused to pay. The Iowa Division of Criminal Investigation traced Tipton's scheme to other states as well.

Eddie Tipton made a deal with prosecutors in June, in which he pleaded guilty to the Iowa charge of ongoing criminal conduct. Prosecutors dropped a charge of money laundering. He will be allowed to serve the Iowa sentence concurrently with a sentence of up to five-and-a-half years in Wisconsin, where he pleaded guilty to theft by fraud and computer crime.

His brother Tommy Tipton, a former judge in Texas, is currently serving a 75-day sentence in Texas for a misdemeanor theft charge and deferred judgment on a felony charge of conspiracy to commit theft.

The Tiptons' friend Robert Rhodes, who also lives in Texas, was the one who attempted to redeem the $14.3 million jackpot. He has pleaded guilty to fraud and will be sentenced on Friday.

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

2017

Lottery Post Staff

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31 comments. Last comment 3 years ago by sailmumm.
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Avatar
Chasing $ Millions.
White Shores- California
United States
Member #136473
December 12, 2012
6279 Posts
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Posted: August 22, 2017, 5:03 pm - IP Logged

They lowered the boom on Eddie.

 * Voice of Reason *   

 

People who say it cannot be done should not interrupt those who are doing it- George Bernard Shaw.

    lejardin's avatar - Lottery-014.jpg

    United States
    Member #118605
    November 4, 2011
    1423 Posts
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    Posted: August 22, 2017, 5:28 pm - IP Logged

    It appears he thought he was going to get away with this since he started building a beautiful custom residence.  Too bad he isnt ever going to call it home.  What a waste.

      Avatar
      New Member

      United States
      Member #183980
      August 22, 2017
      3 Posts
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      Posted: August 22, 2017, 5:47 pm - IP Logged

      What gets me is why don't these criminals who steal millions flee to a non-extradition country? Everyone gets caught eventually. Just run as soon as you have enough to retire on. Plenty of very nice non-extradition countries offer economic citizenship.

        picktowin's avatar - Lottery-022.jpg
        wisconsin
        United States
        Member #49377
        January 28, 2007
        3680 Posts
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        Posted: August 22, 2017, 5:54 pm - IP Logged

        He's sorrylol

        What a joke !!

        It sure didn't bother him while he was colleting all the money.

        He should and the rest of them should ROT in Prison

          music*'s avatar - DiscoBallGlowing
          Fresno, California
          United States
          Member #157851
          August 2, 2014
          3931 Posts
          Offline
          Posted: August 22, 2017, 6:06 pm - IP Logged

           Greed. Pure Greed.Crying

           "We are all in this together!" 

            lejardin's avatar - Lottery-014.jpg

            United States
            Member #118605
            November 4, 2011
            1423 Posts
            Offline
            Posted: August 22, 2017, 6:17 pm - IP Logged

            What gets me is why don't these criminals who steal millions flee to a non-extradition country? Everyone gets caught eventually. Just run as soon as you have enough to retire on. Plenty of very nice non-extradition countries offer economic citizenship.

            Dont give any of them any ideas lol.

            I remember years ago there was one store clerk who stole a winning million dollar ticket. He told the owner of the ticket it was worth a thousand dollars.  The clerk claimed the money and immediately headed off to Nepal. If I recall correctly it was the lottery that found the ticket owner was ripped off.  The U.S. froze the thief's account in Nepal. 

            This was a show on The Lottery Changed My Life so you know it was years ago and at that point there was still a couple hundred thousand outstanding and the owner was trying to get back. 

              GuesssWork's avatar - NWSqnM
              I-95
              United States
              Member #178805
              December 17, 2016
              1830 Posts
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              Posted: August 22, 2017, 6:26 pm - IP Logged

              They lowered the boom on Eddie.

              LIKE KABOOM Chairtake a nice long nap in Bed you going to  need it where your going no more Sun Smileyy  days for YOU..     lol...Chair ...Ed don't drop the soapCryingGreen laugh

              Pick-3:A Game Of Chance and Guesserie

                      a fool and his money are soon parted, as

                          well as 99.46% of all, lottery players lose.

                              99.46% Luck .54% Skill?Green laugh

               

                                                                                       

                LottoL's avatar - techno eye.jpg
                Texas
                United States
                Member #33718
                February 24, 2006
                754 Posts
                Offline
                Posted: August 22, 2017, 7:12 pm - IP Logged

                8/22/2017

                . . . Tipton was formerly a programmer with the Multi-State Lottery Association,
                the agency that administers some state lottery drawings.

                He designed and maintained software
                "for computerized random number generators
                used to select winning lottery numbers. . ." 

                ==================================================

                 

                Oh Boy!!  And THEY said it couldn't be rigged!

                Doesn't surprise me one bit!  His sentence was to light IMHO!

                So, by definition, were these random drawings??

                  Avatar
                  Maryland
                  United States
                  Member #162429
                  January 2, 2015
                  2213 Posts
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                  Posted: August 22, 2017, 8:17 pm - IP Logged

                  When asked how how he would repay the money, he responded with 'I have no idea' 

                  How about we start with you SELLING the giant house you built with the money.  Plus any and ALL assets (cars, boats, planes ect).

                    grwurston's avatar - Lottery-012.jpg
                    Win Today.
                    bel air maryland
                    United States
                    Member #90247
                    April 24, 2010
                    9243 Posts
                    Offline
                    Posted: August 22, 2017, 9:01 pm - IP Logged

                    I wonder if this will someday be an episode of American Greed.

                    "You can observe a lot just by watching." Yogi Berra, Hall of Fame baseball player.

                    The numbers will tell you what numbers to play. Pay attention to the numbers.

                      Avatar
                      Kentucky
                      United States
                      Member #32651
                      February 14, 2006
                      8935 Posts
                      Offline
                      Posted: August 22, 2017, 9:38 pm - IP Logged

                      "He looks forward to putting this entire matter behind him and moving on with his life after he serves his sentence," lawyer Dean Stowers said in an email. He had asked the judge for a suspended sentence.

                      If 25 years was part of a plea bargaining arrangement, what would the sentence be if he was found guilty?

                        sully16's avatar - sharan
                        25
                        Ringleader
                        Michigan
                        United States
                        Member #81738
                        October 28, 2009
                        75596 Posts
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                        Posted: August 22, 2017, 9:40 pm - IP Logged

                        I wonder if this will someday be an episode of American Greed.

                        Up next, Tipton gets caught rigging dice games in prison laundry room scandal.

                        Hi LP family, won't be posting for a couple days, Hurt my right arm.

                          grwurston's avatar - Lottery-012.jpg
                          Win Today.
                          bel air maryland
                          United States
                          Member #90247
                          April 24, 2010
                          9243 Posts
                          Offline
                          Posted: August 22, 2017, 9:52 pm - IP Logged

                          "He looks forward to putting this entire matter behind him and moving on with his life after he serves his sentence," lawyer Dean Stowers said in an email. He had asked the judge for a suspended sentence.

                          If 25 years was part of a plea bargaining arrangement, what would the sentence be if he was found guilty?

                          They obviously weren't expecting to get the max. You don't get the max in a plea bargain, unless it's life instead of death

                          "You can observe a lot just by watching." Yogi Berra, Hall of Fame baseball player.

                          The numbers will tell you what numbers to play. Pay attention to the numbers.

                            Cassie8620's avatar - oGH0ok
                            0806 4766 1359 2432 6231
                            California
                            United States
                            Member #180566
                            March 13, 2017
                            4062 Posts
                            Offline
                            Posted: August 22, 2017, 10:02 pm - IP Logged

                            What gets me is why don't these criminals who steal millions flee to a non-extradition country? Everyone gets caught eventually. Just run as soon as you have enough to retire on. Plenty of very nice non-extradition countries offer economic citizenship.

                            Im not at any time going to condone what he has done. However, a co-worker of mine was sounding like  HopesDreams tonight lol so i had to say i hear ya.But i guess he didn't want to live in the lap of luxury on a beach front in a lovely beach house/condominium where there are zero extradition.

                             

                            Heck,even murderers and or worse in many cases child molest azzhat's do not get this long.The hammer was really dropped on him."

                            13G's!( Spring 2020 ) + total (2019) 22,000! Time 2 break the bank, baby! $ $ $ Banana

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