![Colorado Lottery](/images/newsicons/newsicon_colottery.jpg)
Even though Amir Massihzadeh of Boulder, Colorado, was the only legitimate winner of a Colorado Lotto jackpot worth $4.8 million in 2005, he's not eligible to claim the full winnings, the Colorado Court of Appeals ruled in a decision released Thursday.
Massihzadeh, one of three ticket holders to win that jackpot, accepted his prize of $568,990, after taxes. But 10 years later, a criminal investigation exposed a scheme to rig lotteries across state lines, and officials determined the other two winning tickets that shared the same numbers as Massihzadeh's were fraudulent.
Although at least two of the men involved in the scheme were convicted and ordered to repay their prizes, the Colorado Lottery refused to award the full jackpot to Massihzadeh, saying he was locked into a contract when he signed the original ticket to claim his third of the jackpot.
Tommy Tipton, one of the other ticket holders, transferred his winning ticket to another person, and the third winning ticket went to Cuestion de Suerte LLC. Eddie Tipton, Tommy Tipton's brother, was a security director for the lottery in Iowa and had manipulated the computer program so that he would be able to predict winning numbers. They were caught in Iowa, found to have rigged lotteries in multiple states and ordered to pay restitution in Colorado, Oklahoma, Wisconsin and Kansas.
That left Massihzadeh as the only legitimate winner in the Nov. 23, 2005, Colorado Lotto jackpot, which his attorneys said makes him the winner of the full prize. The state disagreed.
Massihzadeh sued in September 2017, but a Denver District Court judge agreed with the state and dismissed his claim in 2018 for "failure to state a claim for relief." So Massihzadeh and his attorneys appealed the decision to the Colorado Court of Appeals.
In April Massihzadeh appealed, but on Thursday, the Court of Appeals affirmed the district court decision. In its published opinion, the court said a state statute makes it clear: The Colorado State Lottery Division is protected against any liability after the payment of any winnings.
"Based on the statute's plain language, the division concludes that the trial court properly dismissed the complaint because the payment of one-third of the jackpot and the defendant's acceptance thereof constituted "any prize," sufficient to discharge the Division of liability," Judge Daniel Taubman wrote in the unanimous opinion.
Massihzadeh accepted his winnings, but he didn't know about the fraudulent tickets at the time, and his attorneys argue that he was not paid out the correct prize, thereby negating the state's claim of no liability.
The Colorado Court of Appeals, however, said the statute refers to the payment of "any prize," and Massihzadeh received one.
"We're disappointed in the ruling and we're exploring our options," said attorney Trey Rogers, who represents Massihzadeh.
Robert Duncan, another one of Massihzadeh's attorneys, said he was disappointed in the decision and that he and his colleagues will have to decide whether it makes sense for their client to petition the Colorado Supreme Court to hear the case.
"Our job will be to ascertain how would this matter fit into the grand scheme of things in the Colorado Supreme Court and whether to ask or not (for a hearing)," he said.
Colorado Lottery Division representatives and officials from the Colorado Attorney General's Office declined to comment on the case.
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
- Iowa Supreme Court hears lottery rigging case, Feb. 14, 2017
- Kansas files lawsuit against accused lottery rigger, Mar. 16, 2017
- Best friend to testify against Tipton at July lottery rigging trial, Mar. 31, 2017
- Mastermind of lottery fraud will explain how he rigged jackpots, Jun. 12, 2017
- FBI missed rigged jackpot in 2006 before lottery scheme grew, Jun. 19, 2017
- The 5 lottery jackpots Tipton and his friends stole, Jun. 20, 2017
- Lottery jackpot rigger's Iowa convictions dismissed, Jun. 23, 2017
- IT'S OFFICIAL: Tipton pleads guilty to rigging computerized lottery drawings, Jun. 29, 2017
- Lottery rigging accomplice used Wisconsin payout for offshore tax scam, Jul. 6, 2017
- Hot Lotto multi-state lottery game to end in October, Aug. 9, 2017
- Lottery rigging mastermind sentenced to 25 years in prison, Aug. 22, 2017
- Winner sues Colorado Lottery 12 years after rigged drawing, Oct. 5, 2017
2018
- Lottery scammer rigged more drawings than first thought, records show, Feb. 19, 2018
- How a gaming geek with a checkered past pulled off the biggest lottery scam in U.S. history, Mar. 16, 2018
- Infamous lottery scammer says US computerized lottery drawings remain fatally flawed, Mar. 19, 2018
- Iowa Lottery wins International Gaming-Compliance award for work in lottery rigging investigation, Apr. 19, 2018
- The man who cracked the lottery, May 3, 2018
- Memo: Iowa Lottery kept selling games after security warning, Aug. 1, 2018
- Investigation finds lottery scamming Tipton brothers have repaid virtually nothing, Dec. 27, 2018
2019
- Lawyers seek to depose lottery fraud mastermind in prison, Jan. 21, 2019
- Iowa lottery lawsuit granted class action, affecting 7.2 million tickets in 19 states, Jan. 28, 2019
- Colorado man who unwittingly split a $4.8M jackpot with scammer is fighting the Colorado Lottery, Apr. 15, 2019
- Lottery-scamming brothers avoid asset seizures by transferring property to their mother, Apr. 29, 2019
- Lottery winner can seek bigger prize at trial, judge rules, May 17, 2019
This is absurd. I hope the winner some way, some how prevails.
Iowa's Lucky Larry Dawson's case may suffer the same fate. Both were cut checks, and both claimed they were jipped out of millions. We shall see...
They should appeal and file charges against the lottery for perpetuating the original fraud.
Anyone who's not a moron should understand that the only reason this guy won anything was because his numbers were fraudulently selected as the winning numbers.
That means that the court reached the reasonable decision, but they got there the wrong way. The lottery and Massihzadeh both entered into the contract believing that the drawing, and therefore the winning and distribution of the prize, was fair. As we now know that belief was a mutual mistake, unless one of the parties knew at the time that the drawing hadn't been fair. It's a well-settled matter of contract law that mutual mistakes about a material issue make a contract voidable, and the belief that the drawing and subsequent awarding of the jackpot was fair is very clearly a material issue.
"Iowa's Lucky Larry Dawson's case may suffer the same fate."
Dawson's circumstances are different (Dawson won legitimately), but his case will be heard by a different court and he's presumably not using the same lawyers as Massihzadeh. Like Massihzadeh, he and the lottery both entered into the prize contract in the mistaken belief that the previous win had been legitimate and that Dawson was receiving the correct prize amount.
If the Colorado drawing could have been fraudulent in the first case, due to the fraud perpetrated by Tipton, then Massihzadeh was not necessarily entitled to win anything in the first place [b/c the winning numbers would not have been chosen but for fraud], and he should be thankful for the prize that he was allowed to claim.
Well, that's total BS.
Pay the man.
I'm a fan of claiming anonymously and/or creating a trust, but had Clifford Shaw been allowed to collect the jackpot prize on behalf of the Hexam Investments Trust, Massihzadeh, Dawson, nor Steve Bogle would know the drawings were rigged.
Was looking at the "report card" in several states the only true lottery drawing they offer are multi jurisdiction games like MM and PB. The Dakotas get a "B" (80% true lottery) because they only have one state RNG drawn game. And there are 17 other lotteries getting a "C" or "D" with no state true lottery drawings.
It's easy to understand why games like 5 Card Cash are RNGs drawings, probably 4 minute Keno and possibly All-or-Nothing too but after proving that RNG drawings can be rigged why are that many lotteries still using RNGs drawings?
"Dawson's circumstances are different"
Indeed and more so because Dawson claimed and collected his prize before Tipton's ticket expired. Should make for an interesting discussion next year.
Just a thought, but maybe Tipton hoped there would be multiple winning tickets on the drawing he rigged making collecting the winnings easier for Shaw and the trust. The fact they waited until the last minute using Shaw to collect for the trust makes one wonder how many other plans on how to collect or to let it go they discussed.
I'm not a moron and I disagree with your premise that the only reason he won is because Tipton rigged the drawing. What we do know is the drawing was rigged; what we don't know is what the winning numbers would have been if it was not rigged- despite overwhelming odds against it, there is still a possibility that Massihzadeh's numbers would have been drawn on that drawing and he would have been the sole winner given the other tickets were fraudulent.
This whole thing makes me think of Rhett Butler in the end of 'Gone with the Wind'. My sentiments exactly.
Amir had better weigh his options, the longer he had these attorneys, the deeper they going to dig into his finances. The guy is 0-2, going to the State Supreme Court may not be “ 3rd time is a charm.” Dawson and Amir’s cases are different, but l still think Dawson has a semi uphill battle in getting paid out in millions more. Has anyone ever successfully sued a State lottery & won? Just asking.
noise-gate, correct me if I'm wrong. Didn't your state lottery pay out millions to someone who could not produce the winning ticket? That still irks me somewhat to this day. Not sure if it was a lawsuit or not.
I agree 110%. When he signed the claim forms, he did not have full knowledge. You cannot waive what you didn't know at the time nor was it forseeable.
l read about that situation here on LP BD, only after those CA lottery security guys were let go. Those guys had said that against their better judgment, the CA lottery paid a substantial amount to a player who did not produce a ticket. l have no idea how much that payout was for & did not research the thing. What l do know is that they refused to pay a guy who could not produce the winning ticket, although they agreed that it was him purchasing the ticket after reviewing surveillance footage. Double standards if you ask me.
The only way that happens, is probably if the governor is your Uncle or you have footage of a senior member of the lottery commission caught with a hooker behind a dumpster after midnight.