A former Iowa lottery security official accused of rigging drawings to win prize money in several states is facing new felony charges in Wisconsin.
A prosecutor in the Wisconsin Department of Justice filed a total of six charges against Eddie Tipton on Thursday, including one count of racketeering, a theft by fraud charge and four computers crimes charges. The charges stem from a suspect December 2007 Megabucks drawing in Wisconsin that allegedly won Tipton and a business associate a prize worth $783,257, according to a criminal complaint.
The fresh charges are the newest development in the ongoing legal saga involving Tipton, a former information security director for an Urbandale nonprofit group that distributes lottery games nationwide. Tipton, 53, was convicted of two fraud counts in Iowa last year after a prosecutor argued that he tampered with random number generators in 2010 to win a $14.3 million Hot Lotto prize. (See full legal document outlining charges in Related Links below).
After the conviction, Iowa investigators linked Tipton, his brother and a longtime friend, Robert Rhodes, to suspect jackpots in Colorado, Oklahoma, Wisconsin and Kansas and was charged with additional counts of ongoing criminal conduct and money laundering. That case is still pending.
Defense attorney Dean Stowers has maintained Tipton's innocence since he was first arrested, and said Thursday he will voluntarily appear to answer the charges. Tipton's first case is being appealed to the Iowa Supreme Court after a lower appeals court in July tossed out one of the fraud convictions, ruling that it was filed it too late.
"What the States have claimed in these cases, as best we can understand, is not a crime under the various statutes they rely upon," Stowers said. "The States basically have claimed that Mr. Tipton shared information about the way the computer programs that were tested and certified by third parties worked, and that does not appear to be a crime under the law of Iowa or Wisconsin."
A 13-page criminal complaint filed in Dane County Circuit Court offers some of the most detailed allegations to date made public to date in the case about the role of Rhodes, a Texas businessman and friend who had known Tipton since the early 1990s. Rhodes is also facing charges in Iowa for allegedly helping Tipton in an ill-fated attempt to redeem the 2010 Hot Lotto ticket worth millions.
Rhodes offered his version of events in a meeting with Wisconsin and Iowa investigators in December 2015. According to the complaint, Rhodes claimed that Tipton first approached him about the possibility of rigging a lottery in October 2007.
"Tipton told Rhodes that there was a way that Tipton could give Rhodes winning lottery numbers and asked if they should take advantage of that," the complaint reads.
In December 2007, Rhodes met with Tipton in Iowa, and the lottery security manager gave him several index cards filled with series of numbers, according to the complaint. Rhodes told investigators that Tipton instructed him to buy tickets for all of the numbers, ensuring him that one would work. Rhodes traveled to Wisconsin in a rental car, bought the tickets and learned when he got home that he had won a jackpot, according to the complaint.
Rhodes set up a limited liability corporation to receive the earnings and split half with Tipton, according to the complaint. Tipton told his friend that the scheme was possible because he had programmed random number generators used by the Wisconsin lottery to come up with a predictable number if certain conditions were met. Tipton asked Rhodes again in 2010 if he wanted to try and win another Wisconsin prize, but the Texan felt the two were "tempting fate," and he did not purchase a winning ticket.
The criminal complaint also claims that Rhodes was shown the winning 2010 Iowa ticket in January or February of the next year while Tipton was visiting him in Houston. Rhodes was initially "upset" when Tipton asked him to claim the prize money, fearing that too many people were involved, according to the complaint. But they agreed to split the proceeds again.
The criminal complaint also charges Rhodes with racketeering and theft by fraud.
Timeline of the biggest crime in US lottery history
The following is a compilation of Lottery Post news coverage chronicling the Hot Lotto mystery and subsequently discovered crime.
We start the timeline with a news story indicating that only 3 months remained for the $16 million Hot Lotto jackpot to be claimed.
2011
- Deadline for claiming $16.5M Hot Lotto jackpot nears, Sep. 21, 2011
- Unclaimed Iowa lottery jackpot to expire Dec. 29, Dec. 1, 2011
- Iowa $16.5M Hot Lotto winner claims prize with two hours to spare, Dec. 29, 2011
2012
- Iowa Lottery security chief bent on determining identity of jackpot winner, Jan. 10, 2012
- NY lawyer in lottery mystery travels to Iowa this week, Jan. 17, 2012
- Iowa Lottery security chief to grill NY lawyer over Hot Lotto ticket, Jan. 17, 2012
- Representative of Hot Lotto winner named in lawsuit, Jan. 20, 2012
- Hot Lotto trust representative won't name winner, Jan. 20, 2012
- Iowa Lottery threatens to deny jackpot payout if winner stays anonymous, Jan. 23, 2012
- Lawyer gives up $14 million Iowa lottery ticket claim, Jan. 26, 2012
- $14.3 million Hot Lotto prize claim withdrawn, Jan. 27, 2012
- Iowa Legislators satisfied with Lottery's handling of mystery jackpot winner, Feb. 1, 2012
- Iowa Lottery to give away millions from jackpot mystery, Feb. 26, 2012
- Iowa Lottery director: 50-50 that Hot Lotto mystery will be solved, Aug. 9, 2012
- Iowa officials trying to solve lotto mystery, may release surveillance video, Aug. 19, 2012
2013
- 1 year later, Iowa Lottery still hunting for suspicious no-show winner, Jan. 30, 2013
- Inquiry in Iowa Lottery mystery touches Canada, Jul. 26, 2013
- Lottery jackpot probe heats up after immunity deal, Oct. 8, 2013
2014
- Iowa Lottery still hunting mystery Hot Lotto winner [video], Oct. 10, 2014
2015
- MUSL employee arrested in Hot Lotto jackpot mystery, Jan. 15, 2015
- BOMBSHELL: MUSL employee might have rigged Hot Lotto computerized drawing, Apr. 13, 2015
- Texas man charged in Iowa lottery case contests extradition, Apr. 20, 2015
- Extradition trial begins this week in $16.5M Hot Lotto fraud case, Jun. 7, 2015
- Inside the biggest lottery scam ever, Jul. 7, 2015
- Trial underway in world's biggest lottery fraud case, Jul. 14, 2015
- Lottery security chief: Rigging computerized game "sadly" possible, Jul. 15, 2015
- Prosecution rests in Hot Lotto trial, Jul. 16, 2015
- Defense quickly wraps up in Hot Lotto trial, Jul. 16, 2015
- Hot Lotto case moves to jury for deliberations, Jul. 17, 2015
- Former lottery security employee guilty of rigging $14.3M drawing, Jul. 20, 2015
- MUSL security worker who rigged drawing gets 10 years, Sep. 9, 2015
- HOT LOTTO DRAWING CHEAT CHARGED WITH RIGGING MORE JACKPOTS, Oct. 9, 2015
- Texas authorities had previously investigated brother of lottery cheat, Oct. 14, 2015
- Another $1.2M Hot Lotto jackpot rigged by Tipton, officials say, Nov. 21, 2015
- Jackpot-fixing investigation expands to more state lotteries, Dec. 18, 2015
- Prosecutors say Tipton rigged two jackpots he purchased tickets for in Kansas, Dec. 21, 2015
- Maine gives names of Hot Lotto winners to Iowa team looking into rigging scheme, Dec. 23, 2015
- S.C. Lottery assures public no computerized drawings used in state, Dec. 23, 2015
- Kansas lottery players questioning game's integrity, Dec. 23, 2015
- MUSL CHIEF OUSTED OVER JACKPOT-RIGGING SCANDAL, Dec. 23, 2015
- Lottery scandal unlikely to affect New Mexico, official says, Dec. 26, 2015
- Tipton granted delay in next trial until July, Dec. 29, 2015
2016
- Iowa Lottery CEO Terry Rich to answer lottery player questions live Monday evening, Jan. 11, 2016
- First lawsuit in state lottery-fixing scandal seeks millions, Feb. 4, 2016
- MUSL seeks to dismiss lawsuit over rigged jackpot, Apr. 1, 2016
- Lottery scammer's brother facing criminal charges, Apr. 6, 2016
- Investigators find Tipton's software code to rig computerized lottery drawings, Apr. 7, 2016
- Lottery rigging scandal prompts security audit in South Dakota, Apr. 13, 2016
- Preliminary hearing rescheduled for Tommy Tipton in lottery rigging case, Apr. 22, 2016
- Third suspect surrenders in national lottery rigging scandal, Apr. 28, 2016
- Lottery scam investigation comes to Tennessee, May 11, 2016
- Investigators find another friend of Tipton who cashed rigged lottery prize, May 11, 2016
- Convicted computerized drawing fraudster argues Iowa court appeal, Jun. 16, 2016
- US Senate panel demands info in lottery scandal, Jun. 22, 2016
- Lottery rigging trial to be moved out of Des Moines, Jun. 27, 2016
- Eddie Tipton's new trial delayed until 2017, Jul. 1, 2016
- Iowa court reverses part of Tipton's lottery fraud conviction, Jul. 28, 2016
- Internal investigation concludes Tipton acted alone to rig lottery drawings, Aug. 10, 2016
- Prosecutors say 2 more men may be linked to lottery riggings, Aug. 24, 2016
- Judge: winner's lawsuit in lottery-fixing case can continue, Oct. 13, 2016
- Alleged lottery scandal conspirator to enter new plea, Nov. 14, 2016
Thanks to JustJim for the tip.
I have a feeling there will be even more charges.
Don't do the crime if you don't want to do to the time. For a 700 HUNDRED THOUSAND dollar jackpot they were willing to risk it?
Pretty sure a TV movie will be made about Eddie Tipton and his lottery rigging.
I have a feeling that others could be doing the same right now.
Stuff for a Hollywood movie. 8 Oscars!
"If men were Angels than we would not need government."
Criminals continue to mess up the lives of law abiding citizens.
if we had no government there would be no need for angels or lottery. abolish money, abolish government, abolish religion
michael 777, People tend to find their own gods. It is in our DNA.
Hmmm.....is it any wonder Wisconsin has a grade of "D" on the State Lottery Report Card section? Fishy dll's and RNG's, guess there's something to be said for the good old fashioned numbered ping pong balls.
"Rhodes was initially "upset" when Tipton asked him to claim the prize money, fearing that too many people were involved, according to the complaint. But they agreed to split the proceeds again."
Rhodes was right! Lets hope this brings a end to Tipton.
It's the best and only way it should be done. Truly.
its going to be interesting to see who else is involved.
Waiting for the LTMN