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Website now accepting claims in $4.3 million lottery scam settlement

Sep 9, 2019, 9:39 pm

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Insider BuzzInsider Buzz: Website now accepting claims in $4.3 million lottery scam settlementRating:

A website that was set up for people with losing tickets to seek refunds under a $4.3 million lottery scam settlement is now functioning.

Since 2011, Lottery Post has been reporting on the multi-state lottery jackpot and subsequent investigation and prosecution of the rigged computerized drawing scandal. Those who wish to submit a claim can do so online at www.lotterygamesettlement.com or call 877-872-3816 for more information.

A class-action lawsuit linked to the largest lottery scam in U.S. history has been settled for $4.3 million, benefiting potentially millions of people with losing tickets, according to a statement from an attorney in the case.

The settlement will refund the cost of tickets purchased for nine specific drawing dates for games sold in 33 states, the Virgin Islands, Puerto Rico and Washington, D.C., between Nov. 23, 2005, and May 23, 2013. 

The lotterygamesettlement.com website has been set up to assist people who seek refunds under the settlement.

Proof of purchase — primarily, copies of losing tickets — is not required to submit a claim for up to 10 non-winning tickets, but settlement administrators have the right to request verification to prevent fraud.

Refunds will vary based on the value of the ticket, whether the claimant has proof of purchase, and the number of valid claims submitted, the Register was told by attorneys in the case. Online court documents had not been filed as of Monday at noon.

The settlement concludes the decade-long saga springing from a computer-assisted scam that Eddie Tipton, former IT director for the Multi-State Lottery Association in Urbandale, ran on the national lottery. Tipton added a secret code to "random" number-generating computer software in 2005 that allowed him to narrow the drawing-winning odds in multiple games from as great as 5 million-to-1 down to 200-to-1. 

Tipton's scam went undetected for years, and the code was replicated in lottery computer software across the nation. He hijacked at least five winning drawings totaling more than $24 million in prizes in Colorado, Wisconsin, Iowa, Kansas and Oklahoma, court records show.

In 2017, he was sentenced to up to 25 years in prison.

The lottery association — commonly referenced as MUSL — is an umbrella organization that is owned and operated by 36-member lotteries, including the Iowa Lottery. Its executives previously have said they no longer use the computer programs Tipton designed.

MUSL has denied and continues to deny any gaming wrongdoing, according to the settlement statement sent to the Register by Blake Hanson, an attorney for Burlington resident Dale Culler, who is one of at least three people who have filed lawsuits naming MUSL in connection with the rigged games.

The association chose to settle based on expected litigation expenses and uncertain risks should the lawsuit go to trial, according to information shared with the Register.

Court documents show Culler spent $63 to purchase tickets in two games he believes were affected by Tipton's scam. MUSL has agreed not to oppose paying 30% of the settlement — $1.29 million — for Culler's legal fees as well as a $20,000 "incentive award" for spearheading the lawsuit. Those payments will be deducted from the $4.3 million available for refunds.

The class-action lawsuit was initially linked to at least 7.2 million lottery tickets, but some of the games were removed from the list because they did not use Tipton's software.  The settlement agreements do not indicate how many losing tickets remain eligible for refunds.

The statement issued by Hanson on Monday offered no further comment beyond stating: "MUSL remains committed to the integrity and fairness of the multi-jurisdictional and state lottery games that its members offer."

Both parties declined further comment.

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

2018

2019

Des Moines Register, Lottery Post Staff

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5 comments. Last comment 3 years ago by cottoneyedjoe.
Page 1 of 1
Cassie8620's avatar - oGH0ok
1859.5948.7664.9749.
California
United States
Member #180563
March 13, 2017
5579 Posts
Offline

Oh, that's great,

for those who have been done wrong...

$22,000 Won! Let's Go NC! Time 2 break the bank, baby! 

0599  4586 5948 1859 0599 0832 1117  0806 1035 1038 1449 2274 2777 2727

1859 1895 5819 6185 3062 5127 1117  1933  6023 4213 6023 6230

1995 8486 4886 8078 8489 8870 1853 1994 9581 8591 7664  8591

    Avatar
    * In hot pursuit of $ *
    White Shores- California
    United States
    Member #136471
    December 12, 2012
    6816 Posts
    Offline

    Oh, that's great,

    for those who have been done wrong...

    I don't know about Great, Cassie8620 but the ones who seem to be making off like bandits in this settlement are the attorneys.

    Court documents show Culler spent $63 to purchase tickets in two games he believes were affected by Tipton's scam. MUSL has agreed not to oppose paying 30% of the settlement — $1.29 million — for Culler's legal fees as well as a $20,000 "incentive award" for spearheading the lawsuit.  Those payments will be deducted from the $4.3 million available for refunds.

    l know l am on my 2nd glass of Cabernet Sauvignon, but if Culler spent $ 63.00 and ends up with the lions share of the $4.3 mil settlement- what of those players who can prove they spend say, $300.00 on the game? Do they end up with " just their $300.00" while Cullen and his posse clean house? 

    • The other thing l find puzzling is : What's with the " incentive award for spearheading the lawsuit- isn't that like saying " We paying you $20,000 for coming forward and suing us?"

     * Voice of Reason *   

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

      Avatar
      New Member
      New York
      United States
      Member #192415
      September 22, 2018
      1 Posts
      Offline

      Good morning are these numbers good for tuesday drawing ? Thanks

        cbr$'s avatar - maren
        Cordova,Al.
        United States
        Member #104478
        January 15, 2011
        11420 Posts
        Offline

        Finally the players are going to be paid. Great. A heavy player like Culler spending $63. on the games he       believe was affected by Tipton's scam is a small thing. Now when anyone can come up with proof that        spend $100. or more twice a week on these game. I wonder if there will be a lot of raised eyebrows. 

          cottoneyedjoe's avatar - cuonvFT

          United States
          Member #197030
          March 28, 2019
          1072 Posts
          Offline

          Something interesting from the FAQ on the claims website:

          You may claim NO MORE THAN TEN (10) non-winning lottery tickets without accompanying Proofs of Purchase.

          Who would still have old losing lottery tickets from that long ago? LOL. Maybe a hoarder, but they'll never be able to find them. What would be real justice for players would be states collecting on all the money that Tommy and Eddie still owe. Tommy is still living large with multiple properties purchased with fraudulent lottery winnings. Crime does pay after all.