$1,000-a-month lifetime lottery ticket auctioned for $40,000

Jan 8, 2016, 9:11 am (15 comments)

Michigan Lottery

BYRON CENTER, MI — An online auction for a lottery ticket that pays $1,000 a month for the rest of a 73-year-old Kalamazoo man's life went into overtime on Thursday, Jan. 7, ending with a winning bid of more than $40,000.

The auction was held on behalf of the U.S. Bankruptcy Court to pay off the debts of Donald Magett, a former Kalamazoo police officer and owner of a security firm who bought a Michigan Lottery ticket that pays $1,000-a-month in February, 1984.

The winning bidder, whose offer of $40,026 will be certified by the court, will see the purchase turn a profit after 40 months — assuming Magett lives that long. Payments on the ticket will end with his death.

The auction, which began at 8 a.m. on Thursday did not see active bidding above the $30,000 minimum bid until about 20 minutes before the 8:30 p.m. closing. The auction was extended for another 20 minutes as almost 40 bids piled up, finally pushing the total over $40,000.

Duane Mingerink of Repocast.com said the auction was the first of its kind for their firm, which typically auctions off equipment and furniture to satisfy bankruptcy debts. He said the winning bidder and Magett will have to apply with the lottery every year to get the $12,000 annual payment.

After commissions are paid, the $40,000 will be used to pay off the back taxes in Magett's bankruptcy case, which was filed in 2005. Magett owes about $190,000 in back taxes, according to U.S. Bankruptcy Trustee Thomas Richardson, who requested the court's permission to sell the ticket.

Until recently, Magett's lottery winnings were assigned to a bank that was owed money, Richardson said. When that debt was retired, the winnings were used to pay off other debts in the bankruptcy case, he said.

Steven Rayman, Magett's bankruptcy lawyer, declined to comment on the auction.

Magett is the former owner of Magic P.I. & Security Inc., a private investigation and security company that operated in Kalamazoo for almost 20 years, employing more than 100 workers.

In its heyday, Magic P.I. had offices in Kalamazoo, Chicago, Detroit, Indianapolis and Muskegon, providing security guards for a variety of entities, including the Environmental Protection Agency and the Jimmy Carter Presidential Library.

In 2007, Maggett was convicted and imprisoned for embezzling $650,000 from the company's pension fund. He was sentenced to six years in a federal prison and three years of supervised release and ordered to pay $539,873 in restitution. He was released in February, 2012, according to federal prison records.

MLive

Comments

mypiemaster's avatarmypiemaster

So Sad!!!.

DELotteryPlyr's avatarDELotteryPlyr

Ok, so the 'bet' is that this guy will live PAST the 40 months and you get more than your investment - WOW! Not an investment I would make.  Wonder if its someone close to this guy that won it?

Raven62's avatarRaven62

Maybe one of the Cash Now Institutions wouldn't Touch It.

rgse90

Had I known I think I would have bid on this. I did not even know this was being auctioned would have been fun to bid. 

 

 

sam

ckrakowski

Donald Magett, a former Kalamazoo police officer and owner of a security firm who bought a Michigan Lottery ticket that pays $1,000-a-month in February, 1984.

 

 

How can he cash in a ticket he bought over 30 years ago?

gatorsrok

Quote: Originally posted by ckrakowski on Jan 8, 2016

Donald Magett, a former Kalamazoo police officer and owner of a security firm who bought a Michigan Lottery ticket that pays $1,000-a-month in February, 1984.

 

 

How can he cash in a ticket he bought over 30 years ago?

He cashed in the ticket years ago and was receiving the life annuity since then.  The auction is for the rights to the remainder of the annuity during Magett's life.  Hopefully the Bankruptcy Court put a contempt order in effect for the benefit of the auction winner.  Most life annuity payments require you to prove you are still alive to get the payments like Michigan.  Magett may have no incentive to help the auction winner get the annual $12,000 payment once the Bankruptcy case is over. 

It may be a good deal, but it depends upon the cooperation of a bankrupt crook.

nist7seven

Quote: Originally posted by gatorsrok on Jan 8, 2016

He cashed in the ticket years ago and was receiving the life annuity since then.  The auction is for the rights to the remainder of the annuity during Magett's life.  Hopefully the Bankruptcy Court put a contempt order in effect for the benefit of the auction winner.  Most life annuity payments require you to prove you are still alive to get the payments like Michigan.  Magett may have no incentive to help the auction winner get the annual $12,000 payment once the Bankruptcy case is over. 

It may be a good deal, but it depends upon the cooperation of a bankrupt crook.

Wait so this means it'll only pay out as long as that dude is alive? I thought it could transfer to the winner of the auction...I was gonna say this seems like a great deal but maybe not so much...

gatorsrok

Quote: Originally posted by nist7seven on Jan 8, 2016

Wait so this means it'll only pay out as long as that dude is alive? I thought it could transfer to the winner of the auction...I was gonna say this seems like a great deal but maybe not so much...

Article says:

"The winning bidder, whose offer of $40,026 will be certified by the court, will see the purchase turn a profit after 40 months — assuming Magett lives that long. Payments on the ticket will end with his death."

VenomV12

This is seriously creepy. 

MaximumMillions

Quote: Originally posted by VenomV12 on Jan 9, 2016

This is seriously creepy. 

I agree, also somewhat morbid because you have to hope the original winner doesn't croak. AND you have to come back each year. Not worth the hassle and risk methinks.

WesleyThomas

Quote: Originally posted by VenomV12 on Jan 9, 2016

This is seriously creepy. 

Yes It is

ckrakowski

Quote: Originally posted by gatorsrok on Jan 8, 2016

He cashed in the ticket years ago and was receiving the life annuity since then.  The auction is for the rights to the remainder of the annuity during Magett's life.  Hopefully the Bankruptcy Court put a contempt order in effect for the benefit of the auction winner.  Most life annuity payments require you to prove you are still alive to get the payments like Michigan.  Magett may have no incentive to help the auction winner get the annual $12,000 payment once the Bankruptcy case is over. 

It may be a good deal, but it depends upon the cooperation of a bankrupt crook.

Thank you I did not realize that. I thought he had a 30 year old ticket.

One-Day

If I were the winner of that auction I'd be sending this guy multivitamins every month and reminding him of his doctor's appointments all the time. lol.

DELotteryPlyr's avatarDELotteryPlyr

Quote: Originally posted by One-Day on Jan 10, 2016

If I were the winner of that auction I'd be sending this guy multivitamins every month and reminding him of his doctor's appointments all the time. lol.

See this is why I am saying its a family member (maybe close friend of family) who won the auction, they would be the only ones who really know his health and know if he is gonna be around that long. 

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