Lottery fixing scandal spreads nationwide after former lottery security officer Eddie Tipton convicted of fraud for rigging $16.5 million jackpot
And they secretly enrich themselves for years - until a misstep exposes them.
Eddie Tipton, former security director of the Multi-State Lottery Association, has been convicted of fraud for fixing one jackpot in Des Moines, but prosecutors say his high-tech scheme extended far beyond Iowa.
He's accused of tampering with lottery drawings in four states over six years, and investigators are expanding their inquiry nationwide.
Investigators have asked states to review jackpots produced by the number-generators Tipton had access to, and whose winning numbers were specifically requested by the ticket buyer.
They hope to talk with anyone aware of such payouts being collected by someone other than the person who ends up with the money, said Rob Sand, a state prosecutor in Des Moines who is leading the probe.
The inquiry is sending a chill through state governments that depend on public confidence in contests that generate $20 billion annually in lottery revenue.
"It would be pretty naive to believe they are the only four" jackpots involved, said now-retired Iowa deputy attorney general Thomas H. Miller, who oversaw the investigation for 2 ½ years. "If you find one cockroach, you have to assume there are 100 more you haven't found."
Thirty-seven states and U.S. territories use random-number generators from the Iowa-based association, which administers games and distributes prizes for the lottery consortium. So far, Colorado, Wisconsin, and Oklahoma have confirmed paying jackpots valued at a total of $8 million allegedly linked to Tipton and associates.
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