Network of dummy online stores used to hide internet gambling payments
A network of dummy online stores offering household goods has been used as a front for internet gambling payments, according to a recent investigation.
The seven sites, operated out of Europe, purport to sell items including fabric, DVD cases, maps, gift wrap, mechanical tape, pin badges and flags. In fact, they are fake outlets, part of a multinational system to disguise payments for the $40 billion global online gambling industry, which is illegal in many countries and some U.S. states.
Yesterday, 6:55 am - Lottery News forum
Iowa Lottery investigation highlights difficult balance between security and profits
For more than a year while he worked at the Brick Street Market in Bondurant, Iowa, Matthew Hinrichs quietly stole lottery tickets, cashing in at least $28,000 in illegitimate prize money, prosecutors say.
When he was finally caught in 2016, Hinrichs pleaded guilty to two felony counts of fraud and was ordered to pay back those winnings, plus nearly $5,000 more.
Lottery officials say their layers of security allowed them to track Hinrichs' activity, providing data that was invaluable to pr ...
Jun 6, 2017, 2:48 pm - Lottery News forum
CT Lottery ignored warnings that game was vulnerable to fraud, investigation finds
Connecticut Lottery officials knew in January of 2015 that there was a way for retailers to illegally access the numbers of the 5 Card Cash game on their computer screens and manipulate tickets but waited 10 months to notify the Department of Consumer Protection that fraud was occurring.
At a legislative hearing Tuesday morning Connecticut Lottery Corp.'s chairman and acting president, Frank Farricker, acknowledged that lottery officials put revenues over security issues concerning the game, ...
May 2, 2017, 4:38 pm - Lottery News forum
Lawsuit accuses Illinois Lottery manager of fraud in instant games
Three lottery players and a downstate bar have accused the Illinois Lottery's private manager of defrauding scratch-off players and retailers after an investigation found the lottery did not award many of the biggest prizes in its biggest instant games.
In a lawsuit filed Monday in St. Clair County, the plaintiffs cited a December article in the Tribune that examined the lottery's practices in the years after the state handed over its management to a private firm, Northstar Lottery Group.
Feb 8, 2017, 9:43 am - Lottery News forum
Illinois lawmakers call for investigation into lottery
State lawmakers from both political parties are calling for an investigation of how the Illinois Lottery managed scratch-off games in response to a report showing the lottery didn't award many of the biggest prizes in the biggest games.
I just don't think we should promise people things we don't deliver, said state Rep. Lou Lang, D-Skokie. And if we say we have a game that's going to pay X and it doesn't pay X, then we've lied to the people who bought the tickets.
Lang was joined by stat ...
Dec 13, 2016, 8:24 am - Lottery News forum
Investigation: Illinois Lottery didn't award 40% of scratch-off grand prizes
It was called The Good Life and offered the biggest grand prize of any instant game the Illinois Lottery had ever produced.
Two lucky winners could scratch their way to $46 million each, paid in periodic installments. At $30, tickets weren't cheap, but millions were sold. Then the game ended before the lottery sold most of the tickets that were printed, with neither top prize awarded.
The same thing happened with another instant game, called Birthday Surprise. Two large grand prizes offere ...
Dec 9, 2016, 1:50 pm - Lottery News forum
Alleged lottery scandal conspirator to enter new plea
A Texas businessman charged in Iowa's lottery rigging investigation is scheduled to enter a new plea often a signal that a plea agreement has been reached with prosecutors.
Robert Clark Rhodes pleaded not guilty in May to a felony charge of ongoing criminal conduct stemming from his alleged participation in a 2011 scheme to cash in on a Hot Lotto ticket worth more than $14 million. Rhodes, 48, reportedly is a close friend to Eddie Tipton, a former security official at the Urbandale-based Mult ...
Nov 14, 2016, 8:35 pm - Lottery News forum
Lottery supplier defends role in CT Lottery scandal
Scientific Games, the international gambling-games giant, is defending what appears to be a year-long cascade of glitches and failed oversight that led to an insider hacking scandal and the shutdown of the Connecticut Lottery's popular 5 Card Cash game.
Mollie Cole, director of communications for the Las Vegas-based Scientific Games, says that equipment for the game performed to the Connecticut Lottery Corporation's (CLC) standards.
The hardware and software provided to CLC for the 5 Card ...
Nov 1, 2016, 12:32 pm - Lottery News forum
Report finds no conspiracy in CT Lottery scandal
New details of how vendors outsmarted their lottery terminals and printed themselves hundreds of thousands of dollars in instant, winning 5 Card Cash tickets, are revealed in the Connecticut Lottery Corp.'s final assessment of the scandal.
Frank Farricker, chairman of the board overseeing the lottery, sent the eight-page assessment of the fraud to the state Department of Consumer Protection on Friday. The department regulates the lottery and investigates the wrongdoing.
In a Sunday intervi ...
Nov 1, 2016, 12:13 pm - Lottery News forum
Investigators claim Calif. Lottery paying out jackpots it shouldn't to avoid bad press
Includes video report
Two California Lottery insiders claim the lottery sometimes chooses image over integrity.
CBS2's David Goldstein previously reported on a man who collected a nearly $2 million Powerball check, even though he said he lost the ticket.
And the chief Lottery investigator said in her report he couldn't provide substantial proof that he was the winner, which is required by law.
Insiders say it's not the first time that people have been paid when investigators say they ...
Oct 30, 2016, 9:03 am - Lottery News forum