They go to great lengths to make sure that their lotteries aren’t rigged.
However, no matter how much you prepare for something, there will be an unpredictable variable that could cause things to go awry.
As a child living in Massachusetts, the lottery used to be played by drawing three sets of 3 random number combinations from a specially marked set of tickets. Each combination has 3 boxes, one for each color (white, blue, and yellow). The winning combination would be the one where all three boxes contained the same number.
If you matched all three sets of numbers to what had been randomly selected, you would win $50,000 (in today’s dollars, that would be about $310,000)
However, that was not all. If you matched one of the boxes containing a number between 1 and 9, you would be entered into a drawing where you had a 50% shot at winning $50,000 on a lottery game show called Big Money.
The game and show continued to be popular throughout the early 1980s until the Massachusetts Lottery switched from printed ticket sales to computerized ticket sales.
Instead of a weekly lottery, we now have three bi-weekly lotterries in most states. Occasionally, there may be two bi-weekly lotterys on the same date in the same state.
With so many gaming titles to keep track of and so much money at stake, you can understand why it would be an attractive target for fraudsters.
1 – Jerry and Marge Selbee
Some scams aren’t necessarily illegal or immoral. For instance, take the cases of Jerry and Marge Selebe.
As a retired couple who was featured on an episode of 60 Minutes in early 2019 has become the talk of the lottery industry after beating two lotteries.
The octogenarian couple who owned a local convenience store in Evansville, Indiana for 15 years decided to sell their business and retire.
One day in 2003, Jerry went to his old store and found that a new lottery ticket had come out for Michigan. It was named WinFall.
Jerry was not just the retired owner of a small town gas station. He had a degree from a prestigious university in math.
Jerry quickly realized that the new game was flawed and favored the player who could figure out the best strategy.
With WinFall, when the jackpot reaches $5 million without any winners, players who matched at least five out of six numbers could claim their share of the prize.
While most people wouldn’t immediately notice it, Jerry saw through it and realized that it was actually pretty simple math. He thought that everyone else would realize it too, but he turned out to be wrong.
As soon as Jerry saw the first roll-up for the jackpot, he bought $3,600 worth of lottery ticket. He ended up winning $6,300.
Next time, Jerry bought $8,000 worth of tickets and won nearly $17,000.
Jerry didn’t tell his wife at first but eventually told her the truth.
Soon Jerry and Midge were gambling with their entire life savings and winning big prizes.
The two were so successful that they decided to form their own investment firm called GS Investment Strategies. They invited their families and friends to invest in the new venture.
Michigan discontinued WinFall because sales were low.
They were able to get their hands on some free legal advice from a friend who lived in Massachusetts.
He called his friend Jerry and explained to him about a new lottery game called Cash WinFall.
Jerry visited the Massachusetts Lottery website to learn about the rules and how the lottery works and within ten minutes he realized that it was basically the same thing.
Since 2005, Jerry and Marge have been monitoring the lottery jackpots in Michigan. When the jackpot rolls down, they make the 14 hour drive from their house to Massachusetts to purchase their ticket.
They bought two convenience stores and rented a room at a Red Rooster Inn to sort through the insane amounts of tickets they’d buy.
A journalist from the Boston Globe did a story on the lottery, and found out that some stores were selling an enormous amount of Cash WinFall tickets for sale.
After investigating, the report found that two groups, a group of MIT graduate student card counters and a group called the Selbee.
The state lottery commission has decided to launch an investigation into the allegations made by the attorney general. After all, this is usually something you’d expect to see from an organized criminal syndicate.
It was found after an exhaustive investigation that there was no illegal action.
Unlike Michigan, Massachusetts actually saw some profit from the game, but due to a glitch in the game, they ended the game early.
During the years from 2003 to 2011, the company earned almost $26 million and had an 1$ deposit casino annual pre-tax profit of nearly $8 million.
Asked what he did with the thousands of losing lottery ticket stubs he had collected, Jerry said he kept them because he was afraid they might be used by tax auditors if he were ever audited. He said he stored them in barrels under his house in case any government officials came looking for them.
He spent the money wisely. After renovating his home, he established college accounts for his six children, fourteen grandchildren, and ten great-grandchildren.
More money cryptocurrency will be coming into Jerry and Marge’s pockets soon as they’ve sold the rights for a book and a movie will be produced about their adventures.
2 – Dan Tim Poulin
A woman from Illinois contacted the Maine lottery after receiving a Facebook notification stating that she’d won $40,000.
She was told that she could claim the reward by paying a processing charge for an immediate wire deposit of $40,000 into her bank account.
The email was sent by Dan Tim Poulain.
It’s easy to tell that this was a scam in 2019 because most of us would never fall for something so simple. But back then, social media was relatively new and we didn’t know any better.
At the time, the fake news story originated from an old internet hoax called “The Great Pumpkin Scandal,” which dates back to 1920. However, it wasn’t a common occurrence on social media platforms until recently.
It led to the woman who called the Maine Lottery
She explained the email and let them know that the link in the email takes them to a very realistic looking lottery site that includes the real logos and has a complete listing of past lottery wins on it.
The kicker was the name. Dan Tim Poullin.
At the head of the state lottery when he took office was Tim Poulin, his predecessor had died eight months earlier.
After consulting with some lottery officials, the woman was told that it was indeed a scam
At the point when Poulin expressed his astonishment, he was flabbergasted by the fact that somebody had gone through so much effort to use his name, together with that of our previous executive, Dan Gwadowsky, for their own benefit.
He further went on talking about the action of the Maine Lottery regarding winners and cash: “We will never require any kind of payment. We will never request any personal information in our initial contact with you. Should you receive an email from somebody claiming to be from the Maine Lottery, your best bet would be to call the lottery office where the person claims to work.”
3 – The Store Clerk
At roughly the same point when the Dan Tim Poullin happened, the Maine Lotteries found out there was another scam going on.
Lottery commissions have warned people against buying tickets for the Mega Millions and Powerball jackpots since 2012.
A common type of fraud involves employees who steal from stores by stealing cash from their registers. Usually, these thefts occur when there aren’t any other people around to notice them.
A user brings in an issue and asks the support team to look into it. The support team looks into the issue and finds out that the issue has already been fixed. They tell the user that the issue has already be resolved and hold onto the issue for future reference. In reality, the issue hasn’t been resolved yet.
To help prevent this from happening again, the Maine lottery offers some helpful tips for players.
- Signing the tickets makes them tamper proof. If a winner signs their name on a winning lottery number, they cannot change their mind later and claim the prize.
- Most vending machine doors are locked until they detect a coin inserted into them. If you insert a coin and then press the button, you win! Don’t let anyone else take your prize away from you.
- Ask for an electronic copy of your winnings. Lottery wins can be claimed electronically. You may receive a paper copy if you request one, however. Some games require you to provide proof of purchase before claiming your prize.
- If you’re going to use an ATM, make sure you know where there are working security camera systems. Most ATMs these days have them, but some mom and pops in rural areas and some old buildings don’t have them. Having the transaction on tape can help the lottery commission and the store owner root out any shenanigans.
- You can use a self-check scanner. Most states have these types of scanners.
- If you notice anything suspicious, report it to the lottery commission. They want to keep things fair so they can maximize their profits. So if something seems off, let them know.
4 -The hot lotto fraud case
Eddie Tipton worked at the Multi-State Lotteries Association (MUSL), where he was responsible for creating RNGs used by lotteries throughout the Midwest.
Eddie knew the ins-and-outs of the random number generators (RNGs) and could pretty accurately guess the winners of lotteries.
As an employee of Musl, Eddie was prohibited by both federal and state laws and by his contract with Musl from participating in any lotteries that Musl worked with.
But he had an Idea. He KNew he was Banned from Lottery, but Friends and Famil were not.
In 2005, Tippet enlisted his brother Tomy, a Texas justice of the peace, to see if they can get away with wining a priz. Eddie had constructed the RNG for the colorado lotterie and Eddie giv Tomy the wining numbers before they were drawed. Tomy wined and enlist a frend to claim the ticket in his name to aviod implicate Eddie. Tomy offer the frend 10% of the winings. The prize total was 568,990.
Seeing how successful https://bonuscatch.com/slots/ he had been in Colorado, Eddie struck once again in 2007. This second attempt proved much more lucrative than the first. In fact, Eddie managed to acquire a total of $1,000,000 worth of tickets. He then sold these tickets to an anonymous buyer for $100,000 each. The buyer used the cash to establish a new LLC called “The Lucky One” and deposited the remainder into one of Eddie’s personal bank accounts. When investigators looked into the finances of the company, they discovered that the company had transferred the entire amount back to Eddie.
On December 30th, 2010, a Canadian man won a lottery jackpot worth $16.5 million dollars. He claimed that he wasn’t able to come to Iowa to collect his winnings because he was so sick. So instead, he asked for an alternative method of payment.
After the lottery officials questioned him on the validity of the ticket, he could not prove that he owned the winning ticket.
On December 6th, Johnson called again saying that he wasn’t actually the winner, but he was representing someone else who wanted to keep his identity secret. The anonymous man was represented by a trust from Belize named Hexham Investments. They were denied entry into Iowa because they didn’t want to reveal their name.
With just hours left until the deadline for submitting tickets, attorneys representing Hexham and a lawyer from NYC submitted the winning lottery number. However, the numbers were rejected because the word “Hexam” was spelled incorrectly.
Two weeks later, Shaw tried to claim the $1 million lottery jackpot but was rejected because he wouldn’t tell where he got the ticket from. After two weeks, Shaw gave up his claim to the winnings and they were sent back into the state lotto pool.
In 2011, Eddie decided to take his chances again. He knew that if he won the lottery, he would be able to pay off his debts and start a new life. So he called his friend Kyle Conn who had just moved to Oklahoma. “I’ve got good news and bad news,” said Eddie. “The good news is I won the lottery. And the bad news is I can only give you half my winnings because I promised my wife I wouldn’t spend any money until we
When Johnson was interviewed by Iowa state officials, he admitted that Robert Rhodes and Robert Sonefield from Sugar Land, Texas had approached him to claim the $1 million prize for them. He claimed that they were not his real name but rather an alias used to avoid detection.
As the investigation continued, investigators found evidence that indicated that the suspect purchased the ticket. It was Eddie Tipton who bought the ticket.
After being accused of using illegal methods to win the Iowa State Lottery jackpot, both men were tried separately. They were convicted and sentenced to prison terms.
On July 15, 2015, Tipton pleaded guilty to two charges of fraud. He was later given a sentence of 10 years in prison.
They found out that he had been doing similar things before.
Eddie confessed to rigging the RGN in 2005/2006. He claimed he used software to rig the game. He told authorities he made predictions for people in Colorado, Wisconsin, Oklahoma, and Kansas as well as Iowa. He received another 25 year sentence for doing so and has been ordered to pay $3 million in restitution to the state of Iowa.