Lottery winner goes from rags to riches to rags

Comment #62

Perfect Timing — Sun, 26 Aug 2007 19:18:37 GMT

Wow,

This is by far one of the BEST post on this site.

Another way to prepare is to read Susan Bradley's book Sudden Money.

It does not take the place of sitting down with a financial advisor (which I strongly believe should be done BEFORE the fact and not after)

....but it will give you insight on what you would want to discuss once you do meet with one.

Comment #61

Jokers High — Sat, 25 Aug 2007 11:34:45 GMT

I remember this guy! He was featured on A E a while back with 4 other jackpot winners

Comment #60

KyMystikal — Fri, 24 Aug 2007 16:07:38 GMT

I see they have two story trailers.

Comment #59

Coin Toss — Fri, 24 Aug 2007 05:21:17 GMT

The truly rich wear common clothes and carry their treasure in their hearts

Tao Te Ching

Comment #58

vinster — Thu, 23 Aug 2007 19:50:46 GMT

I hope when I win big on the lottery someday I just don't be sucked into temptations into making bad judgements bad decisions like him. I know if not smart with your money you are going to fall by the wayside just like him his wife.

Comment #57

csfb — Thu, 23 Aug 2007 18:46:30 GMT

Oh my. Old habits die hard indeed. A self-destructive personality. He couldn't handle being a winner, and was more comfortable a loser.

Comment #56

fastball 9 — Thu, 23 Aug 2007 18:28:39 GMT

I was thinking along those lines also.

Gosh, to imagine having all of that cash, then, because of just being, for lack of a better word, Stupid/Pig Headed your broke and, at last report, very ill in a charity hospital.

It's clear, if you've been around such folks, that they lacked the insight and self discipline to act as you noted above. Given that, it was a safe bet to assume he'd blow the dough. I know many out there are blaming it on drugs, etc. I don't agree, this was just a classi... [ More ]

Comment #55

Coin Toss — Thu, 23 Aug 2007 17:58:42 GMT

I guee one observation we can make is a rich druggie is still a druggie.

Sad.

Comment #54

quoquiqua — Thu, 23 Aug 2007 17:39:11 GMT

Lately I read it over and over like 5 times... I still find it very hard to believe

Comment #53

jim695 — Thu, 23 Aug 2007 17:18:20 GMT

Edwards was profiled on a show called, The Lottery Changed My Life. I remember thinking, even as I watched, that this man was on a mission to destroy himself.

Edwards told a story of how he went to pay for his gas one day, and he tipped the cashier $1,000. She blurted, Sir, you gave me way too much money! Edwards replied, Oh, no, honey; that's your tip, but here's another thousand for being honest. This is the man who drank twelve-dollar bourbon from an $18,000 eighteenth-century be... [ More ]

Comment #52

UmBrook — Thu, 23 Aug 2007 15:47:42 GMT

Did I say $350/month?!

Damn, I think I would be an ass too!

I meant $350/week.

Comment #51

UmBrook — Thu, 23 Aug 2007 15:27:34 GMT

Wow! What a Cautionary tale.

Money just makes us more of what we already are.

If you are an ass while working a 9 to 5 making $350.00/month. A 27 million dollar windfall is not going to induce you to become born again .

Sadly, David Lee Edwards has cemented himself alongside Jack Whittaker as the poster twins for frivolity and imbecility.

When money is seen as a solution for every problem, money itself becomes the problem.

Richard Needham

Comment #50

Coin Toss — Thu, 23 Aug 2007 14:46:49 GMT

Wealth: No one should be rich except those who understand it.

Johann Wolfgang Von Goethe

Comment #49

computerhead723 — Thu, 23 Aug 2007 13:50:14 GMT

Comment #48

computerhead723 — Thu, 23 Aug 2007 12:32:08 GMT

you make a good point ......just yesterday I thought about what I wuld do if I won the jackpot and how much I would give to my son and daughter :

it came to $10,000 .00 ea. because I knew my son would blow it in 90 days or less;

but in one day I could blow a $100.000 just giving ten thou to 10- family members and no one would be happy with such a small amount ;

There are concerns

Comment #47

computerhead723 — Thu, 23 Aug 2007 12:16:30 GMT

I like the advisor ; he was just not able to over-ride his boss a junkie and a real bum

because , money don't make you smart or better . The bigger you are the harder you fall ;

He made this bed for himself, says his ex-wife, Gail Blanton. She says she hopes he recovers, and that she wishes he had set aside some of the money for Tiffani, now 17.

If he followed my advice, says James Gibbs, his former financial adviser, he'd be pulling in... [ More ]

Comment #46

sirbrad — Thu, 23 Aug 2007 11:10:57 GMT

Umm no one wants to hear that. The media and the public in general want to hear about failure, hardship, and controversy among other things. They want to hear the most extreme negatives in isolated situations like this one, as it affirms their own unhappiness; being misery loves company. I followed David's storyline form the beginning, and I knew he was destined for ultimate failure. I wouldn't even spend $3 million my whole life let alone in months.

This is just another example of someone be... [ More ]

Comment #45

s5thomps — Thu, 23 Aug 2007 07:21:57 GMT

Coin Toss you made stated some valid points here! Until you actually win the lottery or come into a large amount of money no one really knows what they would do. Oh we would all do the obvious (pay bills, buy a new home, new cars, invest etc, etc.....) But what about the rest of your life. How would you deal with the constant harrasment from strangers asking for money. That is why you should definetly remain anoymous if at all possible. To me winning the lottery could be a blessing or a curse! I... [ More ]

Comment #44

mylollipop — Thu, 23 Aug 2007 07:17:25 GMT

Amen! Say it again and again

Comment #43

LOTTOMIKE — Thu, 23 Aug 2007 06:46:09 GMT

how about some stories on those who are doing good with their winnings?

i want to hear stories about people who are gaining 100,000 dollars of interest a month and they drive nice cars and go to bed early and eat their vitamins and say their prayers.someone who gives back to the copmmunity,that don't do drugs or beat strange women at 3am........

Comment #42

fwlawrence — Thu, 23 Aug 2007 06:07:48 GMT

Good one Floyd

Comment #41

KY Floyd — Thu, 23 Aug 2007 05:33:39 GMT

He hasn't posted for perhaps a year or so. My guess is that a lottery winner decided to take the annuity and he had a stroke.

Comment #40

justxploring — Thu, 23 Aug 2007 05:33:31 GMT

Everyone is writing that this is a sad story. Maybe a better word is tragic, but I don't have any pity for someone who had a chance to turn his life around and chose a dark path to travel. The only victims here are the children. Many people who had a rough start in life would have looked at his incredible twist of fate as a miracle, a gift from a higher power to get a second chance. He made very bad choices and, even when he still had a chance to pick up and start all over again, he continue... [ More ]

Comment #39

KY Floyd — Thu, 23 Aug 2007 05:31:08 GMT

This story is worse than most because he and his girlfriend/wife were both serious druggies, but plenty of other people have followed a similar path. I don't think he spent it on drugs, but one of NY's first lotto winners had no choice but the annuity and easily squandered it as fast or faster than is rolled in. You can read about it here:http://weeklywire.com/ww/08-23-99/nash_cover.html

Comment #38

ArtVandalay — Thu, 23 Aug 2007 05:29:16 GMT

I am reminded of a quote from the movie, Wallstreet , where Gordon Gekko says, A fool and his money are lucky enough to get together in the first place.

But this story is living proof that a fool and his money are soon seperated

Comment #37

starchild_45 — Thu, 23 Aug 2007 05:17:21 GMT

sad so incredibly sad.

Comment #36

Coin Toss — Thu, 23 Aug 2007 03:38:14 GMT

You definitley have a point. I don't think there's been any horror stories of this intensity about annuity winners.

I say of this intensity because I'm sure some annuity winners have wound up selling their annuities for much less to collect a lump sum from one of those companies that do that.

Comment #35

Ladyluck2005 — Thu, 23 Aug 2007 02:39:56 GMT

Such a sad story. He had the potential to really help people to provide for his future the future of his child.

Comment #34

justxploring — Thu, 23 Aug 2007 02:12:18 GMT

Sorry - I just meant that he seems to have dropped out of here (or was thrown out) That's all. I think of him/her when I post anything about annual payments.

Truly a sad story! But after Big Jack's story I saw this coming! I hope to win soon so I can set Kentucky's rep straight! This little ol'e trailer trash is gonna buy a double wide!

I hear ya! I was thinking about that too .... on several acres overlooking the mountains of course. I lived in a singlewide for many years,... [ More ]

Comment #33

Raven62 — Thu, 23 Aug 2007 02:11:05 GMT

Winning the lottery is no guarantee that you won't have financial problems later in life.

Comment #32

BaristaExpress — Thu, 23 Aug 2007 01:44:07 GMT

If he followed my advice, says James Gibbs, his former financial adviser, he'd be pulling in about $85,000 a month for the rest of his life.

I could darn well live very very nicely on that kind of monthly income! Yes, at first I would spend some serious cash on a few things, but for the most part, I'd be trying to grow my cash holdings to something more substantial (without to much risk).

Comment #31

nitabug — Thu, 23 Aug 2007 00:08:11 GMT

Truly a sad story! But after Big Jack's story I saw this coming! I hope to win soon so I can set Kentucky's rep straight! This little ol'e trailer trash is gonna buy a double wide

Comment #30

nobie23 — Wed, 22 Aug 2007 23:56:34 GMT

did something happen to Cash Only

Comment #29

justxploring — Wed, 22 Aug 2007 23:07:02 GMT

In memory of Cash Only...

If I win the $40 million Florida Lotto jackpot tonight, I'll probably take the annuity. I used to think it was better to take the money run, and still wonder about it. However, knowing every year that, no matter how badly you screw up your life, you'll still be getting a big check soon must be a very comforting feeling.

Comment #28

chuck32 — Wed, 22 Aug 2007 22:54:43 GMT

Remaining anonymous is a great idea, but probably not realistic - even if the state's law allows it. You could do it if you want to continue with your current lifestyle (and working) and watch the interest grow unspent. Some folks might enjoy that, but not many.

If you have a tough time saying no , a better option is to appoint a person to handle all money requests. That way, you don't ever have to say 'no'. Just say that All financial requests are being handled by Mr. X and hand over... [ More ]

Comment #27

Coin Toss — Wed, 22 Aug 2007 22:41:06 GMT

I'm still thinking about the $200,000 and the trip to Vegas.

OK, he wins the Powerball, the OP said his share was $27,000,000. So in that respect at the time the $200,000 loan is chump change. He's going to retire the loan as soon as he gets his lottery check and not keep paying interest.

But as the story goes on he gets sued by the homeowners association for several thousand.

So at first that $200,000 was peanuts but how bad do you think he's like to have that $200,000 now?

Just... [ More ]

Comment #26

hjones — Wed, 22 Aug 2007 22:35:25 GMT

Great post. I had watched his 'little' story on the Discovery Channel(?) about new lottery millionaires

and wondered if this fellow would stay clean. Apparently not.

I also wonder is people like this fellow know what a 'budget' is. Is that even in their vocabulary

Comment #25

jeffrey — Wed, 22 Aug 2007 20:55:26 GMT

Unfortunately, I agree. People like that usually have a bad end.

RJOh, congrats on your past win in the Ohio Lottery.

Comment #24

AuntiePat — Wed, 22 Aug 2007 20:37:47 GMT

LOL

Or merely caused it to happen more rapidly.

Sudden changes (for good OR bad) basically intensify behavior characteristics that are already there.

A recent article on handling sudden wealth on MSN Money pages pointed out that the first thing to those who find themselves in these circumstances is do to take a breather, then see a planner and put a plan in place that you can live with, then tie the rest of your money up so that even if you WANT to respond to those who will put the

Comment #23

HiYoSilver — Wed, 22 Aug 2007 20:21:43 GMT

When this guy was on 60 Minutes in 2004 or 5, he was one of 4 winners that looked like they would be successful with their winning. To my knowledge the others are still doing well.

The thing I remember most was when he talked of buying a suit of armor, So what if it cost $50,000, I make that much a month in interest . Also, if my memory is correct, his wife was never mentioned.

It's a sad story and one I hope to learn from when I hit the Mega Millions on Friday.

Comment #22

RJOh — Wed, 22 Aug 2007 19:31:59 GMT

Sounds like he ended up where he was headed before he won the lottery. Winning the lottery caused a slight detour.

Comment #21

whitmansm2 — Wed, 22 Aug 2007 19:26:01 GMT

There are plenty of stories where people have blown their newly found money.

I agree with Jeffery with what he said about people who starve for a long period, they tend to horde food. I was just thinking the same thing. I don't have a lot of money but I know that winning will just be over whelming! (IN A GOOD WAY...but there will be pressure) That's why I already planned my first couple of weeks. I'm going to be taking DEEP BREATHES. Really deep, calming breaths. When the mone... [ More ]

Comment #20

jeffrey — Wed, 22 Aug 2007 19:03:59 GMT

We all benefit from the lessons of the unwise few. You just don't need everything you see. That is a slave mentality. These people were obviously slaves to their appetites. I truly feel for them in a way. If you starve for a long period, you develop a food hording tendency. The same goes for cash and a fear of poverty. People like these need to take payments. It is unfortunate that some people live in the moment with no thought of tomorrow. Drug addicts commit slow suicide due to self hatred, ma... [ More ]

Comment #19

chuck32 — Wed, 22 Aug 2007 17:39:09 GMT

Too true.

This is a great article. A nice record of how this winner burned out.

One thing to remember is that this money is not lost . It was simply moved to someone else - realtors, car dealers, jewelry dealers, and sadly, sellers of trashy trinkets and drug dealers. That is likely the saddest part - better funding of drug dealers.

Comment #18

LuckyLilly — Wed, 22 Aug 2007 17:37:12 GMT

Well, it wasn't exactly a secret. The guy went on all the tv shows bragging about how much he paid for his watches and rings, I'm sure he's the one who told about the $200k trip to Vegas.

Them judging him for spending $3 mil in 3 months kind of irks me. When I win the Powerball tonight, I'll probably spend that much within 3 months after I claim it too. He spent much of it on a house, which is what I'll do. Of course, I'm smart enough (I hope) that I won't then go buy a couple dozen cars... [ More ]

Comment #17

Jill34786 — Wed, 22 Aug 2007 17:23:09 GMT

Chuck,

I had meant to say those who were in similar situations (drug addicts, ex-cons) such as the subject being profiled in the article.

I agree with you that many others who came from better backgrounds have fared much better with their winnings.

Comment #16

JAG331 — Wed, 22 Aug 2007 17:22:40 GMT

What a read!

Makes me think that Jack should be coming up for sainthood any day now.

Comment #15

Todd — Wed, 22 Aug 2007 17:06:09 GMT

I agree. Bad news sells newspapers and increases ratings. It also makes juicy gossip, and most people enjoy their gossip.

Even though this article is not representative of most winners, it happens to be one of the better stories I have read that documents the tragic rise and downfall of a top-tier winner. The only thing missing is quotes from the key players themselves, but other than that I think it is exceptional in its detail.

Comment #14

chuck32 — Wed, 22 Aug 2007 16:45:35 GMT

Typical? There have been over 220 Powerball jackpot winners. I only know of two that have had problems with their lives (other than the occaional paint chip on the Maybach).

The press loves to tell stories of lottery winners who have problems. Many of these big winners actually won prizes in the hundreds of thousands and do quickly go through it. You are not likely to see a big story on the thousand of winners who buy a new home, send their kids to college, start a business, take lots

Comment #13

justxploring — Wed, 22 Aug 2007 16:45:01 GMT

I agree with the remark about the financial advisor, but it's possible that Mr. Edwards insisted on taking out the loan. I don't trust all financial advisors, but I also know from experience that you can't stop someone from being irresponsible. When I sold cars or furniture, people who didn't have a pot to pee in would want to finance all sorts of luxuries. I learned the hard way that trying to help people will make you poor. Once a couple drove into the dealership with a car that had only 3... [ More ]

Comment #12

chuck32 — Wed, 22 Aug 2007 16:37:05 GMT

Yet another example of how money does not change people (though it can change how people treat you). A person who abuses booze and drugs, who commits crimes, and makes bad choices with their life is likely to continue to do that with lots of money in the bank. I once heard a jackpot winner say If you were miserable before the win, you will be miserable after the win. How true.

Of course, if he had let the lottery invest the cash amount - BEFORE taxes - he would have received his annual... [ More ]

Comment #11

Jill34786 — Wed, 22 Aug 2007 16:26:55 GMT

Very sad but typical of those who come into sudden wealth.

Comment #10

Coin Toss — Wed, 22 Aug 2007 16:12:33 GMT

I'm pretty sure this was after-the-fact. A lot of people wouldn't say anything to the press if you read the OP.

I think this financial adviser is telling the story to give future winners a serious heads up.

And think about this from the OP:

To a modern-day Euripides, the point would be that those whom the gods wish to destroy, they first make suddenly rich.

Man, talk about distrubing

Comment #9

time*treat — Wed, 22 Aug 2007 15:46:46 GMT

...James Gibbs, a 31-year-old Morgan Stanley broker, as his financial adviser. The first thing Gibbs did was arrange a $200,000 loan so David could celebrate in Las Vegas while awaiting the Powerball payment...

I wonder how many people would want this guy as their financial advisor if they knew how freely he was willing to discuss his clients' dealings.

Comment #8

MichiganHopeful — Wed, 22 Aug 2007 15:26:31 GMT

This is a horrible story. I remember seeing this guy on TV a few months ago. He was doomed from the start! How do you spend $3 million dollars in 3 months??? That is just absurd! Every story that I read that has this type of ending shows the power of money in the hands of a moron. I hope that if I ever win the jackpot, I will be able to maintin enough humility and sense to control the urges to overspend. The items that this guy purchased just made no sense at all. Mr. Gibbs, his first financial

Comment #7

tnlotto1 — Wed, 22 Aug 2007 15:03:26 GMT

thanks for posting this story i wondered what happened to him because the lottery story on tv talked about them losing the home and i wondered where he ended up.

Comment #6

Coin Toss — Wed, 22 Aug 2007 14:37:46 GMT

It solunds like bad moves from the very get-go:

From the article:

The Edwards rocket was accelerating. David sought advice from lawyers in Ashland and hired James Gibbs, a 31-year-old Morgan Stanley broker, as his financial adviser. The first thing Gibbs did was arrange a $200,000 loan so David could celebrate in Las Vegas while awaiting the Powerball payment.

So you're unemployed, hit Powerball, and make a $200,000 loan to go to Vegas? I'll bet the wise guys in Vegas were betting amon... [ More ]

Comment #5

Bradly_60 — Wed, 22 Aug 2007 14:25:04 GMT

wow what a story. You have the stories of how nice people make off with their money and then you have stories like these and good old Jack's.

I actually remember this drawing and seeing this guy on tv. Sad, sad story.

If he followed my advice, says James Gibbs, his former financial adviser, he'd be pulling in about $85,000 a month for the rest of his life. I just can't see how you could throw away $27,000,000. I didn't really think it was possible but now I am proven wrong. It s... [ More ]

Comment #4

MissNYC — Wed, 22 Aug 2007 14:23:50 GMT

Wow what a sad story. What a waste

Comment #3

justxploring — Wed, 22 Aug 2007 14:20:40 GMT

I agree, Forrest.

Comment #2

BevsPicks2 — Wed, 22 Aug 2007 14:20:30 GMT

Wow.

Comment #1

DoubleDown — Wed, 22 Aug 2007 14:17:21 GMT

Sad story, but stupid is as stupid does...

Lottery winner goes from rags to riches to rags

Lottery Post — Wed, 22 Aug 2007 13:57:56 GMT

For David Lee Edwards, winning the lottery was a wild rocket ride

In the fall of 2006, David Lee Edwards and his wife, Shawna, decorated their front door for Halloween. But if trick-or-treaters made it to the couple's home, a storage unit in Riviera Beach, no plastic ghost was as scary as what they'd have found inside: two pale, withered junkies from Kentucky living amid dirty clothes, rotting food, and their own filth.

And these were lottery winners.

Today, with David on what could be... [ More ]