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Iowa man accused of lottery fraud for cashing ticket on friend's behalf

35 replies. Last post 10 hours ago by HoLeeKau.

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Simpsonville
United States
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January 22, 2015
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If you just wanted to gift your friend the lottery ticket with no strings attached, then that's fine.  But that's not what happened here.

This guy gave it to the friend to redeem so that they could avoid paying back taxes, child support, etc., and then the friend gave most of the winnings back to the original winner.  That's illegal.  It's like declaring bankruptcy while secretly hiding assets from the court.  That puts you in jail.

Very well said, Todd.

 

Just re-read your article.   So this character skating under the radar for various issues and tried to get over and got outed.  Wheels of justice turn slowly and perhaps his wages will get garnished which they should---if he works that is.

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    MARYLAND
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    1. Why Hanson went with Hay to pick up the prize at the lottery headquarter?  If Hanson knew he would be in trouble, he should have sent Hay by himself to pick up the money. 

     

    PRIVACY QUESTION. 

    Suppose I won $25000, and I go with my brother, friend, co-worker to pick up the winning prize at the same lottery headquarter,

     

    So THEY ARE GOING TO CHECK the BACKGROUND No NoFOR ALL THE PEOPLE THAT SHOWS UP WITH ME. 

    THEN, IF my co-worker owes child-support to the States, then we all are in trouble. What?.. Since I have a clean background, they will suspect me of helping someone in the group.

    "I've always won, and I'm going to continue to win. And that's the way it is." -Donald J. Trump

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      Simpsonville
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      January 22, 2015
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      1. Why Hanson went with Hay to pick up the prize at the lottery headquarter?  If Hanson knew he would be in trouble, he should have sent Hay by himself to pick up the money. 

       

      PRIVACY QUESTION. 

      Suppose I won $25000, and I go with my brother, friend, co-worker to pick up the winning prize at the same lottery headquarter,

       

      So THEY ARE GOING TO CHECK the BACKGROUND No NoFOR ALL THE PEOPLE THAT SHOWS UP WITH ME. 

      THEN, IF my co-worker owes child-support to the States, then we all are in trouble. What?.. Since I have a clean background, they will suspect me of helping someone in the group.

      Can't speak for all state lotteries, but many require an appointment.   With the pandemic I seriously doubt they'd even let those characters to go in with you.   A moot point.

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        Chasing $ Millions.
        White Shores- California
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        December 12, 2012
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        " Hays successfully claimed Hanson's winnings.

        Plan A was a success, it's Nicholas's action that followed that got him in hot water. My guess is word got out that he was flush with cash, but he was not following through on paying back child support as he should have. Had he initially done the right thing, we would not be reading this.

        Moral of the story: Don't mess with Motherhood.

         * Voice of Reason *   

         

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

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          Kentucky
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          " Hays successfully claimed Hanson's winnings.

          Plan A was a success, it's Nicholas's action that followed that got him in hot water. My guess is word got out that he was flush with cash, but he was not following through on paying back child support as he should have. Had he initially done the right thing, we would not be reading this.

          Moral of the story: Don't mess with Motherhood.

          "Hays successfully claimed Hanson's winnings."

          If the winnings belonged to Hanson, why was Hays' name on the check and why didn't Hanson say his ticket was stolen or lost? 

          It's probably obvious to anyone reading this article Hanson was looking for someone to cash the ticket to avoid paying back taxes and child support. So let's call that a given if it can be proved in a court of law. But it's Hays not Hanson that is accused of falsely cashing in a $50,000 winning scratch-off ticket. Without witnesses to whatever deal between Hays and Hanson or proof Hays knew of Hanson's tax and child support problems, even Jack McCoy couldn't prove Hanson falsely cashed the ticket.

          There is one witness that could testify against Hays, but I seriously doubt Hanson is going to incriminate himself. Like I said before, it's going to be interesting.

          It's not my fault! I voted for Amy.

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            Chasing $ Millions.
            White Shores- California
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            "Hays successfully claimed Hanson's winnings."

            If the winnings belonged to Hanson, why was Hays' name on the check and why didn't Hanson say his ticket was stolen or lost? 

            It's probably obvious to anyone reading this article Hanson was looking for someone to cash the ticket to avoid paying back taxes and child support. So let's call that a given if it can be proved in a court of law. But it's Hays not Hanson that is accused of falsely cashing in a $50,000 winning scratch-off ticket. Without witnesses to whatever deal between Hays and Hanson or proof Hays knew of Hanson's tax and child support problems, even Jack McCoy couldn't prove Hanson falsely cashed the ticket.

            There is one witness that could testify against Hays, but I seriously doubt Hanson is going to incriminate himself. Like I said before, it's going to be interesting.

            l see your point, but the article does not say how much time has expired between Hays cashing the ticket & him being apprehended. Sufficient time had passed for Nicholas to buy the TV, the vacation to Vegas etc etc. as l mentioned, word had to have gotten to the female or females of this story who l " think" got law enforcement involved to end up  nailing Hays & subsequently- Hanson. The bridge in this story goes through the female or females- IMO.Perhaps, in a fit of anger with the mother of his child or children, Hanson ran off at the mouth about him getting the money through Hay's involvement. 

             * Voice of Reason *   

             

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

              GiveFive's avatar - Lottery-026.jpg
              Florida - West Coast
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              If you just wanted to gift your friend the lottery ticket with no strings attached, then that's fine.  But that's not what happened here.

              This guy gave it to the friend to redeem so that they could avoid paying back taxes, child support, etc., and then the friend gave most of the winnings back to the original winner.  That's illegal.  It's like declaring bankruptcy while secretly hiding assets from the court.  That puts you in jail.

              "That's illegal".  Right.  The crime he committed is called fraud. G5

              Players who've won large lottery jackpots have something in common. Many of them say "I've played the lottery for years, but I never won anything but small prizes."   That's normal or typical, but it's also why you should not get discouraged and stop playing.  Who knows?  Maybe someday you'll say "I've played the lottery for years...."

                reddog's avatar - reddog 20avatar.jpg
                Durham, North Carolina
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                This is nothing new at all. Illegals do it all the time in N.C. I was at the Raleigh claim office and have seen it for my own eyes because the guy didn't have a social security card and he was calling different ones on his cell phone who had one to come to Raleigh and claim it for him.

                Taking it one drawing at a time.

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                  Kentucky
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                  "That's illegal".  Right.  The crime he committed is called fraud. G5

                  Found this when I googled "is it illegal to cash a lottery ticket you didn't buy":

                  It is not illegal to sell a winning lottery ticket, even for more than it's worth. But a host of problems surround the transaction. Any cash transaction of more than $10,000 needs to be reported to the IRS, and attempts to circumvent that retirement are a crime. You would also need to report the money as income.

                  Probably why Hanson wasn't charged. The ticket was cashed and paid over two years ago, but apparently the Iowa Lottery decided to investigate the circumstances. And why players can't claim anonymously in Iowa, 

                  The Iowa Lottery Authority rules and regulations 99G.36

                  It's not my fault! I voted for Amy.

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                    Kentucky
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                    l see your point, but the article does not say how much time has expired between Hays cashing the ticket & him being apprehended. Sufficient time had passed for Nicholas to buy the TV, the vacation to Vegas etc etc. as l mentioned, word had to have gotten to the female or females of this story who l " think" got law enforcement involved to end up  nailing Hays & subsequently- Hanson. The bridge in this story goes through the female or females- IMO.Perhaps, in a fit of anger with the mother of his child or children, Hanson ran off at the mouth about him getting the money through Hay's involvement. 

                    Skyler Sturgis Hay, 29, allegedly committed the offense in 2018 when he visited Iowa Lottery headquarters in Clive with friend Nicholas Martin Hanson, 41, to claim a prize for a winning scratch-off ticket worth $50,000. However, the ticket belonged to Hanson, who owed Child Support Recovery, taxes to the state of Iowa, college student loans, and various other debts to "numerous entities."

                    Won't comment on whether or not the Iowa Lottery can prove that Hays knew why Hanson gave or sold the ticket to him.

                    It's not my fault! I voted for Amy.

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                      Louisiana
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                       It belongs to the person purchasing the ticket unless you use the additional Claim Form 5754, to claim it together.

                      All number sets are contenders until the drawing occurs.

                        KY Floyd's avatar - lysol avatar.jpg
                        NY
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                        "But that's not what happened here."

                        Based on the claims related in the story that certainly sounds plausible, and maybe ev en likely, but can you prove it beyond a reasonable doubt? Even in Hays wrote  check to Hanson for most of the prize value, how do you prove the reason for doing it? Maybe when he found out that the ticket his very good friend with all of the financial woes gave him so generously he felt that it wouldn't be fair to keep the money. That's another thing that's plausible (I won't argue if you insist that possible is a better word).

                        Were either of the two stars of the story dumb enough to admit that it was a scheme to avoid  paying the debts? Did Hanson really ask other credible people to claim the prize for him and give him most of the money? Maybe we'll find out somewhere down the road.

                        "It belongs to the person purchasing the ticket unless you use the additional Claim Form 5754"

                        Who the owner or owners are is a completely separate matter than what form is required for a single claimant or for multiple claimants who are joint owners.

                        "It is not illegal to sell a winning lottery ticket"

                        If you sell a ticket after the drawing or after it has been scratched you're selling a financial instrument with a presumed value (until the lottery examines it there's always a chance it might turn not to be worth whatever prize you think it won) and I'd definitely expect that to be legal under most circumstances. Selling a winning ticket as part of a scheme to avoid having debts withheld might not be considered a lawful transfer of ownership, though it may well give you a better chance  in a criminal trial than  simply making a gift of the ticket.  Not that I see much  reason for it to happen, but if you sell a lottery ticket before the drawing or before scratching it then you're selling a chance, and there's a possibility of running afoul of laws against gambling.

                        Since it will almost certainly never benefit me I'll share an idle speculation about selling a winning ticket instead of claiming the prize myself. I sometimes buy tickets when I happen to be in a different state where the income tax rate is lower, and on those occasions I'll buy a ticket for multiple drawings. That means that if the state allows a full year to claim a prize any prize I win, except perhaps for the first drawing, can be claimed more than a year after I bought the ticket. Suppose I were to win a significant prize and waited for 366 days before selling the ticket for 95% of the value of the prize? Let's say the prize is $100 million. Whoever buys the ticket has a cost basis of $95 million and a profit of $5 million on which they'll pay income taxes. I'll have a profit of $95 million (ignoring the $2 purchase price).

                        Do I pay regular income tax on that $95 million or do I pay the lower long term capital gains tax rate? The law is very well-established law that if a winner sells the remaining value of an annuitized prize the income from the sale will be treated as regular income, and none of the attempts to claim that income as capital gains has been successful. Unlike those people I wouldn't be selling a (remaining) lottery prize. I'd be selling a financial instrument, in the form of an unclaimed lottery ticket. The purchaser of that instrument would presumably claim the prize and be declared the winner, while I would be a guy who never received income in the form of a lottery prize but had a lot of income from the sale of the financial instrument I'd held for more than a year.

                          GiveFive's avatar - Lottery-026.jpg
                          Florida - West Coast
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                          "Hays successfully claimed Hanson's winnings."

                          If the winnings belonged to Hanson, why was Hays' name on the check and why didn't Hanson say his ticket was stolen or lost? 

                          It's probably obvious to anyone reading this article Hanson was looking for someone to cash the ticket to avoid paying back taxes and child support. So let's call that a given if it can be proved in a court of law. But it's Hays not Hanson that is accused of falsely cashing in a $50,000 winning scratch-off ticket. Without witnesses to whatever deal between Hays and Hanson or proof Hays knew of Hanson's tax and child support problems, even Jack McCoy couldn't prove Hanson falsely cashed the ticket.

                          There is one witness that could testify against Hays, but I seriously doubt Hanson is going to incriminate himself. Like I said before, it's going to be interesting.

                          It definitely would be interesting provided a criminal trial held in open court comes to fruition.  My guess is a plea deal will be offered to both of them and that they'll accept it and a jury trial wont ever happen. 

                          But who knows!  Both defendants are gamblers, maybe they've got the nerve to go to trial.  The prosecutor has to be able to prove their original intent/motivation was to avoid paying child support and back taxes.  Based upon the knowledge he/she has, the prosecutor must think they can do that or they wouldn't have charged those guys in the first place.  G5

                          Players who've won large lottery jackpots have something in common. Many of them say "I've played the lottery for years, but I never won anything but small prizes."   That's normal or typical, but it's also why you should not get discouraged and stop playing.  Who knows?  Maybe someday you'll say "I've played the lottery for years...."

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                            Kentucky
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                            It definitely would be interesting provided a criminal trial held in open court comes to fruition.  My guess is a plea deal will be offered to both of them and that they'll accept it and a jury trial wont ever happen. 

                            But who knows!  Both defendants are gamblers, maybe they've got the nerve to go to trial.  The prosecutor has to be able to prove their original intent/motivation was to avoid paying child support and back taxes.  Based upon the knowledge he/she has, the prosecutor must think they can do that or they wouldn't have charged those guys in the first place.  G5

                            The article doesn't say if Hanson was charged with anything and the allegations against Hays are he cashed the ticket so Hanson could avoid paying back taxes and child support. Hays will probably say he cashed the ticket because Hanson offered him a few thousand to do it.

                            Most state lotteries suggest and promote buying scratch-offs as stocking stuffers at Christmas time and people give money as presents too. Couldn't find any Iowa law making it illegal to resell or gift lottery tickets. Because Hanson accompanied Hays, there is no question of the ticket being stolen or of ownership.

                            The Iowa Lottery withholds 5% for state taxes and 24% for federal taxes on winnings over $5000 off the top so taxes were paid on the winnings. Because 29% was deducted from the $50,000 winnings, Hays probably didn't have to pay more and maybe got a refund.

                            Even though I'm positive Hanson is dirty, I don't see how they can prove Hays knowingly cashed the ticket so Hanson could avoid paying back taxes and child support.

                            It's not my fault! I voted for Amy.

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                              Kentucky
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                              1. Why Hanson went with Hay to pick up the prize at the lottery headquarter?  If Hanson knew he would be in trouble, he should have sent Hay by himself to pick up the money. 

                               

                              PRIVACY QUESTION. 

                              Suppose I won $25000, and I go with my brother, friend, co-worker to pick up the winning prize at the same lottery headquarter,

                               

                              So THEY ARE GOING TO CHECK the BACKGROUND No NoFOR ALL THE PEOPLE THAT SHOWS UP WITH ME. 

                              THEN, IF my co-worker owes child-support to the States, then we all are in trouble. What?.. Since I have a clean background, they will suspect me of helping someone in the group.

                              I Agree! it's a pretty weird situation, but we're talking about Iowa where a New York lawyer tried to redeem a $16 million Hot Lotto ticket bought in Iowa just hours before the ticket expired. Maybe they do background checks on all the people accompanying the winner.

                              This ticket was cashed in 2018 so pandemic was not an issue.

                              It's not my fault! I voted for Amy.