Florida lottery winners indicted on tax charge

Apr 14, 2006, 7:48 am (22 comments)

Florida Lottery

Alex and Rhoda Toth were down to their last $24 in May 1990 when they won $13 million in the Florida Lotto.

The Toths said then that they hoped the money would buy them a simple, quiet life.

They ended up with anything but. Their wealth led to family squabbles and bankruptcy court.

On Tuesday, it led to a federal grand jury indictment.

The Hudson couple are charged with filing fraudulent income tax returns in 2000, 2001 and 2002. If convicted, both face up to 24 years in federal prison.

The Internal Revenue Service also is seeking $554,667 in back taxes.

"This was willful," IRS spokesman Norm Meadows said. "It wasn't just an error. This was criminal."

Meadows said Alex Toth, 58, and his wife, 49, were arrested by U.S. marshals after the grand jury indictment. He wouldn't say where or when they were booked or if they were released. The couple could not be reached for comment.

At first, it seemed winning the Lotto might save the couple. In May 1990, they gassed up their old car at a convenience store. They bought a Lotto ticket — 5-7-30-38-40-43 — and left the store with $24.76 between them to last the rest of the week.

They won, splitting a $40 million jackpot with a Tampa family that had two tickets. The Toths opted to receive their $13 million share in annual payments of $666,666 until 2010. They were excited, but worried.

Alex Toth"It is a lot of money, and it creates a lot of pressure on you," Alex Toth told the St. Petersburg Times in May 1990. "We'll try to work it out."

Six years later, Rhoda Toth appeared before a judge seeking an injunction against her 19-year-old son and his girlfriend. In court records, Toth said she had been threatened and suggested the pair may have killed the family dog and burned her husband's 1986 Chevrolet Corvette.

She got a domestic violence injunction.

They also ended up in a legal tussle with another minor local celebrity, Bertie Higgins, who wrote the hit song Key Largo. In February 1996, Higgins crashed his Chrysler New Yorker into the back of an Isuzu Impulse driven by Rhoda Toth's daughter from a prior marriage.

The crash generated headlines that brought more attention to the family. In fall 1996, they appeared on Oprah.

In fall 1996, they appeared on The Oprah Winfrey Show.

The money "has torn us apart," Rhoda Toth the Times in 1997. "It caused us to lose a lot of friends, some family members.

"Sometimes I wish we could give it back."

The Toths started a bar on New York Avenue near US 19 after their lotto money ran out.

The Toths say they gave away too much, to too many people.

Rhoda Toth said, "With family, the more you five the more they wanted. If you bought a house they wanted a bigger house. If you bought them a small car, they wanted a bigger car."

The Toths hope to keep their bar business going while they fight the Internal Revenue Service in federal court.

If convicted the Toths could face 24 years in prison.

Federal court records show the Rhoda Toth filed for Chapter 13 bankruptcy protection in 2001 and 2002. Alex Toth filed for similar protection in 2001. Chapter 13 allows qualified debtors to set up a plan to repay their creditors and keep their property.

Pasco County property records show the Toths own a half-acre lot and mobile home on Brenda Street in the northern Pasco County community of Hudson.

According to an indictment released this week, the IRS first noted problems with Alex Toth's 2000 tax return. He claimed his total income as $1,498,526.00. The indictment said "he then and there well knew and believed said statements about his total income were false."

Mrs. Toth's 2000 statement claimed $1,612,413 in total income, also "false according to the indictment." IRS agents noted additional problems in 2001 and 2002 returns.

The grand jury also charged the Toths filed false refund claims. Alex Toth asked for $112,000 refunds in 2000, 2001 and 2002. Rhoda Toth filed similar requests for $72,000.

Meadows, the IRS spokesman, declined to say how investigators unraveled the Toth's taxes.

Lottery Post Staff

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SassyOhio's avatarSassyOhio

It's Called SMARTS AND PLANNING PEOPLE!!!!  I just dont understand this NONE OF IT!!! Bang Head  You could have been set for LIFE!!!!  You have to be smart about this stuff Ya'll!! PLAN PLAN PLAN PLAN PLAN  and ya know what if people are there waiting on a hand out OH WELL Tell them NO if they get mad SO WHAT!!!!  Do ya really think they are going to be there when your BROKE  NO!!!!!!!  So take it run and BE HAPPY!  Sorry this kinda crap KILLS ME!!!  BET when I win you all wont be reading about me in the paper like this!No No  Good Luck Tonight on the MM and Sats PB Everyone! Hyper

DoubleDown

"Stupid is as stupid does"

Nice mugshot...

DD

tntea's avatartntea

If you fail to plan, then plan to fail....

BuzzsawAnn's avatarBuzzsawAnn


   With all that money she didn't get a makeover- what was she thinking????


   "If you insist on taking something God did not give you He will take back something He did give you " M. Murdoch

CASH Only

Once again the media gets it wrong. They did not CHOOSE annuity. Florida Lotto's cash option did not start until 1998.

Uncle Jim

Damn!  They think the kid killed the family dog because mommy wouldn't give him any more money?  I'd say the these people had trouble  LOOOOOOOOOOOOOOOOOOOOOOONG before they won the lottery.

Jim 

jeffrey's avatarjeffrey

Damn!  They think the kid killed the family dog because mommy wouldn't give him any more money?  I'd say the these people had trouble  LOOOOOOOOOOOOOOOOOOOOOOONG before they won the lottery.

Jim 

I Agree! Gosh, say no; it won't kill them.

 

In 2000, I prayed to win the lottery so I could take my brother to Israel for an experimental operation in order to save his life. I spent my money on my mother's operations before he got sick so I had almost nothing left. I still play the lottery but I have to say I don't have sympathy for these people who blow it. They will just have to live like the rest of the world. They were given a gift and did as they pleased. I hope others will learn from this.

Tell no one if possible and don't spend the nest egg. You will have your whole life to be free from the worry of money.

TheGameGrl's avatarTheGameGrl

"The Toths opted to receive their $13 million share in annual payments of $666,666 until 2010. They were excited, but worried."

Correct me here, but I am sure that 2010 hasnt transpired yet. That being the case they still have an opportunity to settle with the IRS on the TRUE debt owed (if any).  As a natural skeptic when reading any media I would like to believe there is more to this story then is being told. Best to live and learn from anothers mishap then to stand in judgement .

CASH Only

"The Toths opted to receive their $13 million share in annual payments of $666,666 until 2010. They were excited, but worried."

Correct me here, but I am sure that 2010 hasnt transpired yet. That being the case they still have an opportunity to settle with the IRS on the TRUE debt owed (if any).  As a natural skeptic when reading any media I would like to believe there is more to this story then is being told. Best to live and learn from anothers mishap then to stand in judgement .

GameGrl:

I said they did not CHOOSE annuity. The choice was not available when they "won".

petergrfn

These people did practically every thing wrong after winning the lottery.  They didn't try and invest the money.  Didn't have a plan to reduce the tax bit on there jackpot after the win. And they according to another article I read sold the rest of their annuity payments to a company for a lump sum payment. SO they have likely lost most of their winnings my guess if they still have enough to pay off the govenment for their taxes and their lawyers they will be flat BROKE.  I say if you win a smaller prize and think you can't handle big sums of money then still take the lump sum and buy you're own annuities save some money from seeling to one of those companies for a huge loss.

tamutaylor

It seems like the states should start a program that gets these people in touch with a financial advisor when they win. It would be cheaper than paying for their welfare after they go broke in a few years.

SassyOhio's avatarSassyOhio

It seems like the states should start a program that gets these people in touch with a financial advisor when they win. It would be cheaper than paying for their welfare after they go broke in a few years.

I agree with ya there on that one and also I think that all states should allow winners to remain unknown!!!  Its hard when you got  sick people and charities and churches and all this and that in your face I am sure  so a combination of management programs and investment programs and privacy would surely give them a better chance at decisions

LckyLary

They reported their income as 1.6 million, 1.4 million.. their payments were $666,666.... doesn't that meant they overstated it??? How did they earn MORE THAN 1.6 million in one year?????? What exactly did they fail to claim??????

justxploring's avatarjustxploring

"The Toths opted to receive their $13 million share in annual payments of $666,666 until 2010. They were excited, but worried."

Correct me here, but I am sure that 2010 hasnt transpired yet. That being the case they still have an opportunity to settle with the IRS on the TRUE debt owed (if any).  As a natural skeptic when reading any media I would like to believe there is more to this story then is being told. Best to live and learn from anothers mishap then to stand in judgement .

 

I Agree!

I also read the article the same way.  It's confusing.  If the income reported for 2000 is over $1.6M it's much more than the annuity payment, so how could they be flat broke? The IRS is accusing them of filing false returns which indicates they must have made even more income during those years, correct?  Something is definitely wrong.

LOTTOMIKE's avatarLOTTOMIKE

666,666 says it all.if those numbers aren't cursed i don't know what is....

 

 

Argue.....Evil Smile......Mad......Hit With Stick

TheGameGrl's avatarTheGameGrl

"The Toths opted to receive their $13 million share in annual payments of $666,666 until 2010. They were excited, but worried."

Correct me here, but I am sure that 2010 hasnt transpired yet. That being the case they still have an opportunity to settle with the IRS on the TRUE debt owed (if any).  As a natural skeptic when reading any media I would like to believe there is more to this story then is being told. Best to live and learn from anothers mishap then to stand in judgement .

GameGrl:

I said they did not CHOOSE annuity. The choice was not available when they "won".

I was quoting the article CashONly, not your commentary.

The article clearly stated the above mentioned. thus why there were quotations from the ORIGINAL Article.

And thank you for reading my opinion! :)

HiYoSilver

"The Toths opted to receive their $13 million share in annual payments of $666,666 until 2010. They were excited, but worried."

Correct me here, but I am sure that 2010 hasnt transpired yet. That being the case they still have an opportunity to settle with the IRS on the TRUE debt owed (if any).  As a natural skeptic when reading any media I would like to believe there is more to this story then is being told. Best to live and learn from anothers mishap then to stand in judgement .

 

I Agree!

I also read the article the same way.  It's confusing.  If the income reported for 2000 is over $1.6M it's much more than the annuity payment, so how could they be flat broke? The IRS is accusing them of filing false returns which indicates they must have made even more income during those years, correct?  Something is definitely wrong.

It looks to me like they sold some of the annuities in different years. The annuity companies will buy X years of payments for cash. They probably sold off the last years of the annuity to get the cash and didn't claim all the income on their taxes.

These stories make good press, but I don't think they represent the majority of the winners. Most go on to live quietly and enjoy the freedom the money gives them. 

 

csfb's avatarcsfb

666,666 says it all.if those numbers aren't cursed i don't know what is....

 

 

Argue.....Evil Smile......Mad......Hit With Stick

Ha, ha, ha... that is funny!

CASH Only

It would seem that people who receive annuity payments, whether or not there was a cash option, are more likely to face problems than those who collected in lump sum.

bellyache's avatarbellyache

It would seem that people who receive annuity payments, whether or not there was a cash option, are more likely to face problems than those who collected in lump sum.

You know this how? Has there been research done that shows people who take annuity over cash are somehow more likely to lose their money. I would like to see proof of this.

CASH Only

It would seem that people who receive annuity payments, whether or not there was a cash option, are more likely to face problems than those who collected in lump sum.

You know this how? Has there been research done that shows people who take annuity over cash are somehow more likely to lose their money. I would like to see proof of this.

People who win annuities are cursed. If they won all over again, I'm sure they would prefer cash.

TNPATL

Sorry but I don't feel sorry for these folks.  I have a cousin who said this to me one day "If I win the lottery, I will be telling the rest of my family members to keep their jobs." I would do the same thing.  Folks want a bigger car?  TOUGH!!!  I'm good at say NO, NO, NO, NO, NO, NO If all else fails.F OFF!!!  Evil

 

I know for a fact I would have family members I NEVER hear from coming out of the wood work and I would tell them to crawl back under the rock they came out of.  

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