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Few filing claims in $4.3 million lottery scam settlement; deadline Jan. 7

Jan 2, 2020, 12:09 pm

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Insider BuzzInsider Buzz: Few filing claims in $4.3 million lottery scam settlement; deadline Jan. 7Rating:

Victims of the largest lottery scam in U.S. history are expected to pocket only a small fraction of a $4.3 million settlement because of a lack of applicants laying claim to the money, court records show.

But it's not too late.

Claims can be made online through Jan. 7 and those for $10 or less require no proof of purchase.

Larger ones require receipts dating back as far as 14 years.

"If you're claiming more" than $10 "they sure made it difficult," said Craig Johnson, a Manson resident who saved and submitted his losing tickets for a refund. "I don't know how many people will respond."

The settlement is a result of a 2017 lawsuit filed by Burlington resident Dale Culler, who asserted that thousands of lottery players, cheated by an insider's long-running scheme to rig jackpots, should be reimbursed for losing tickets.

The scheme began in 2005 when Eddie Tipton, then information technology director for the Multi-State Lottery Association in Urbandale, rigged random-number-generating computer software so he could predict the winning numbers. Tipton's scheme, replicated in games across multiple states served by the association, commonly known as MUSL, went undetected for years.

Tipton ultimately pleaded guilty to the scheme and in 2017 was sentenced to up to 25 years in prison. He is currently at the Clarinda Correctional Facility.

The settlement in Culler's class-action lawsuit was made in July by MUSL. The agreement provides refunds of the cost of tickets purchased for nine drawing dates for games in 33 states, the Virgin Islands, Puerto Rico and Washington, D.C., between Nov. 23, 2005, and May 23, 2013.

The lack of refund claims came to light in recent court filings. MUSL is objecting to a $1.4 million payment from the settlement to class-action attorneys, arguing the amount is not reasonable compared to the results that were achieved.

The settlement's administrator, Rust Consulting, had anticipated 100,000 claims but in November adjusted the estimate to 20,500. As of Nov. 2 — about two months after the launch of a settlement website — 8,749 people had applied, court records show.

MUSL had earlier agreed that 30% of the settlement would be paid to the plaintiff's attorneys. The association's recent motion is in connection with a squabble over $129,000 in legal fees it says the class-action attorneys shouldn't receive.

A judge will determine the amount of payment the attorneys will receive. No hearing has been scheduled, according to online court records.

Culler will be paid $20,000 out of the settlement fund as an "incentive award" for spearheading the lawsuit, court documents show.

Lottery scam settlement

Claim forms must be submitted on or before Jan. 7 and can be accessed online at www.lotterygamesettlement.com.

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

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9 comments. Last comment 9 months ago by Stack47.
Page 1 of 1
TheMeatman2005's avatar - lightening
Brooklyn, NY
United States
Member #169719
October 29, 2015
1494 Posts
Offline

It's good that justice will prevail, but who keeps their losing tickets that long?

The Meatman 🥩🍗🍔🍖🍤🌭

“The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

Winning happens in a flash, Like A Bolt Of Lightning!  Patriot

    music*'s avatar - DiscoBallGlowing
    USN United States Navy
    Fresno, California
    United States
    Member #157851
    August 2, 2014
    3959 Posts
    Offline

    It's good that justice will prevail, but who keeps their losing tickets that long?

    I Agree!  The up to $10.00 limit and the weather will discourage most players.

     I kept my losing tickets in a safe inside a book. A book safe. Someone walked away with it and got an unpleasant surprise.

     I sign all my tickets soon after purchase so the thief got zip.

    Green laugh

     "We are all in this together!" 

      Groppo's avatar - cat anm.gif

      United States
      Member #162626
      January 7, 2015
      780 Posts
      Offline

      It's good that justice will prevail, but who keeps their losing tickets that long?

      .

      TheMeatman2005,

      What period of time do you consider long?.

      Mr. Groppo

      • Don't chase the numbers you play.
      • Play only numbers you've already played, plus however many random picks.
      • But, ALWAYS the regular numbers you play.  This will make you a winner, not a chaser.
                 (so far, though, I've yet to win any significant lotto prize)
      • Oh, but always know where your tickets are, as well as your ticket's deadline.
        ekem6078's avatar - winter
        TN
        United States
        Member #88773
        March 23, 2010
        2347 Posts
        Offline

        Just goes to show, the Lottery isn't random.  The computer calculates how many winning tickets are inserted in it.   If to many people are winners before the numbers are drawn, those number wont come out. Think about it. "If 200,000 people are playing the same numbers for the powerball example.  Those numbers wont be drawn.  If they did, and the jackpot is say 400 mil.  The Lottery would go broke, cause they wouldn't be able to payout all the loot.    That's why your  ticket is inserted into the computer.   I stand to be corrected, it's   jmo.

          Avatar
          Chasing $ Millions.
          White Shores- California
          United States
          Member #136473
          December 12, 2012
          6333 Posts
          Offline

          Just goes to show, the Lottery isn't random.  The computer calculates how many winning tickets are inserted in it.   If to many people are winners before the numbers are drawn, those number wont come out. Think about it. "If 200,000 people are playing the same numbers for the powerball example.  Those numbers wont be drawn.  If they did, and the jackpot is say 400 mil.  The Lottery would go broke, cause they wouldn't be able to payout all the loot.    That's why your  ticket is inserted into the computer.   I stand to be corrected, it's   jmo.

          " If to many people are winners before the numbers are drawn, those numbers won't come out."

          Isn't  that like saying a Klingon Warbird was seen in Starwars-" The Rise of Skywalker?"

           * Voice of Reason *   

           

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

            cottoneyedjoe's avatar - cuonvFT

            United States
            Member #197033
            March 28, 2019
            548 Posts
            Offline

            Ekem6078, the lottery divides the jackpot equally among all the winners. If 200,000 people matched 5 + 1 in Powerball when the cash value of the jackpot was $400 million, each winner would get $2,000. They would not each get $400 million. This is a pretty standard regulation for big jackpot games in all jurisdictions, from Brazil to Belarus. So, it doesn't matter to the lottery how many jackpot winners there are.

            ... Sooper dooper top seekrit winning numbers: 5 16 17 24 33 52 ...

              Drenick1's avatar - villiarna
              USA
              United States
              Member #152794
              February 25, 2014
              1103 Posts
              Offline

              It's good that justice will prevail, but who keeps their losing tickets that long?

              Definitely not me. I rarely play and on the occasions that I do purchase tickets, I may go several weeks without checking them especially when the jackpot wasn't won. I have saved my losing tickets in the past which usually only amounts to 15-20 plays for a calendar year.

                Avatar
                Chasing $ Millions.
                White Shores- California
                United States
                Member #136473
                December 12, 2012
                6333 Posts
                Offline

                Never thought l would say this, but this settlement is Rigged.If as Craig says " claiming more than $10 is difficult  it's a F..^%$$%÷# joke. Why not just simply say " We don't want to pay out.

                * Wanna know what's another joke: Our Fantasy 5 game for tonight sits at $935,000. Should you win, Our Uncle takes a whopping  $ 345,950.  How about them rotten apples!

                 * Voice of Reason *   

                 

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

                  Avatar
                  Kentucky
                  United States
                  Member #32651
                  February 14, 2006
                  8995 Posts
                  Offline

                  Just goes to show, the Lottery isn't random.  The computer calculates how many winning tickets are inserted in it.   If to many people are winners before the numbers are drawn, those number wont come out. Think about it. "If 200,000 people are playing the same numbers for the powerball example.  Those numbers wont be drawn.  If they did, and the jackpot is say 400 mil.  The Lottery would go broke, cause they wouldn't be able to payout all the loot.    That's why your  ticket is inserted into the computer.   I stand to be corrected, it's   jmo.

                  There is only one PB jackpot for each jackpot and if it was $400 million and is evenly divided if there is multiple winners. Each of the state lotteries are responsible for the secondary prize payouts and all of them have payout limits. If 200,000 tickets matched five numbers without the bonus number and the lottery's limit was $10 million, each ticket gets $50 "tax free".

                  Every state lottery knows exactly how much is wagered on PB before the drawing, but because they hold live ball drawings, rigging would be almost impossible and if they did, why would rigged a drawing to benefit players in one state? 

                  "Just goes to show, the Lottery isn't random."

                  You're correct if you're saying "RNG drawn games were not random when Eddie Tipton was guarding the hen house". And that's why there was a class-action lawsuit.

                  I'd suggest not playing any RNG drawn games, but if you live in TN, you don't have many options.

                  Mister we could use a man like Herbert Hoover again