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Ex-Lottery Worker Convicted of Programming System To Win $14M

An anonymous reader sends news that Eddie Tipton, a man who worked for the Multi-State Lottery Association, has been convicted of rigging a computerized lottery game so he could win the $14 million jackpot. Tipton wrote a computer program that would ensure certain numbers were picked in the lottery game, and ran it on lottery system machines. He then deleted it and bought a ticket from a convenience store. Lottery employees are forbidden to play, so he tried to get acquaintances to cash the winning ticket for him. Unfortunately for him, Iowa law requires the original ticket buyer's name to be divulged before any money can be paid out.

32 of 217 comments (clear)

  1. Correction: by RoverDaddy · · Score: 3, Funny

    " Unfortunately for him, Iowa law requires the original ticket buyer's name to be divulged before any money can be paid out. "
    Unfortunately for him, he had stupid friends - FTFY.

    --
    RETURN without GOSUB in line 1050
    1. Re:Correction: by Anonymous Coward · · Score: 5, Insightful

      No, he was an idiot for buying the ticket himself.

    2. Re:Correction: by bondsbw · · Score: 4, Insightful

      No, anyone is an idiot who puts money on electronic devices that are so easy to game. If not for the fact that he screwed up and bought the ticket under his name, he would be richer and everyone who played would be screwed out of their money.

      Makes you wonder how many of these succeed without being found out.

      --
      All my liberal friends think I'm a conservative, all my conservative friends think I'm a liberal.
    3. Re:Correction: by Virtucon · · Score: 3, Funny

      So the stock market then?

      --
      Harrison's Postulate - "For every action there is an equal and opposite criticism"
    4. Re:Correction: by Jason+Levine · · Score: 3, Informative

      Or any banking or other financial system.

      Your money isn't stored in a big container with your name on it. It's bits in the banks systems. Relatively speaking, it's trivial to move the bits from your account to someone else's account. Practically speaking, there are safeguards in place to ensure this doesn't happen in an unauthorized manner and to track all transactions that happen, but at the core this is a computer system and someone could theoretically hack the system to increase their funds and decrease yours.

      Keeping your money off of all electronic systems would mean stuffing piles of bills into your mattress.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    5. Re:Correction: by TsuruchiBrian · · Score: 3, Insightful

      And even if you went the "piles of bills into your mattress" route, that's just pieces of paper.

      And even if you went the "gold bars" route, that's just atoms of some incidentally rare material on earth. We could find a bunch of gold on some other planet, or simply just not deem it valuable anymore at some point in the future.

      It's all just a big game of monopoly.

  2. Lessons learned from McDonald's Monopoly fraud by xxxJonBoyxxx · · Score: 3, Informative

    >> he tried to get acquaintances to cash the winning ticket for him

    He should have looked into how insiders scammed McDonald's Monopoly contests for about $13M first.
    http://lubbockonline.com/stori...

  3. Re:Lotteries are for cows. by Anonymous Coward · · Score: 3, Informative

    Hi user:sexconker (1179573), we know it's you, you forgot to check the "Post Anonymously" box earlier:

    http://news.slashdot.org/comme...

  4. And this is why... by Majestix · · Score: 2

    ...everyone should learn to program. :)

    --
    --- I was far from home, and the spell of the Eastern sea was upon me. -Lovecraft-
  5. It's not so easy by ciaran2014 · · Score: 5, Insightful

    > he was an idiot for buying the ticket himself.

    I agree, but at the same time, have a think about how many people you know to whom you can say: "I found a way to defraud a company of 14 million and you can have half but I need you to put your name to it."

    Rule out all your acquaintances who aren't smart enough to avoid fucking it up, plus those who you can't trust, and rule out friends with kids or a job who are afraid of jail time, and people who can't keep a secret from their own friends and family who might fuck it up. And remember, for each person who says "no" to your plan, you've just created someone who can testify against you or blackmail you.

    And then your accomplice has to get your half to you. A bank transfer of seven million is a little incriminating, or if they give you a suitcase of cash, you can't just lodge it into your account. "Enjoying" your money isn't so easy when you have to avoid ever creating a record of having the money.

    Finding an accomplice for a big illegal act isn't *that* easy.

    --
    Help build the anti-software-patent wiki
    1. Re:It's not so easy by The-Ixian · · Score: 5, Insightful

      This is exactly what I was thinking.

      You need someone criminal enough to go along with it, loyal enough to never divulge the secret, competent enough to not screw it up and savvy enough to not trip on any of the hundred pitfalls along the way... that's sort of a tall order.

      --
      My eyes reflect the stars and a smile lights up my face.
    2. Re:It's not so easy by hippo · · Score: 2

      Yes it is, just contact the mafia and expect to settle for a 10% cut.

    3. Re:It's not so easy by tobiasly · · Score: 2

      ...plus those who you can't trust

      You do raise some really good points (although I'm pretty sure I can think of at least a few friends who could go along w/ it), but the trust issue could be greatly mitigated by a video recording of the illicit agreement. If your friend tries to make off with all of it, you have evidence of their complicity.

      It is rather baffling that this person didn't execute his plan any better. He should have had his friend buying lottery tickets every day for months beforehand.

    4. Re:It's not so easy by Mishra100 · · Score: 2

      It's much easier...

      You to trusted friend: "Hey want to buy a lottery ticket? I'll go in half but can't pick it up today if you don't mind paying for it." Use these numbers, it's my lucky numbers.

      Done. I have friends that I'm 98% sure they would give me half and not let me worry about being in the public spot light.

    5. Re:It's not so easy by TsuruchiBrian · · Score: 2

      I recommend being a "benevolent" lottery cheater. You can find out what numbers your friends and family members have picked (or always pick), and just rig the game for those numbers to come up.

      They won't know of any cheating, so they won't act nervous or weird.

      If enough of your friends and family win the lottery, maybe they will give you some.

    6. Re:It's not so easy by ceoyoyo · · Score: 2

      And make the winning numbers something meaningful to him so he has a good, natural story for why he picked them. Daughter's birthday or something.

    7. Re:It's not so easy by CreatureComfort · · Score: 2

      Easy enough for a Trust fund to retrieve the payout, deposited into an account in the Cayman's.

      Then all your stooge has to do is, when asked, agree that he was the original purchaser of the ticket. The trust fund manager is the one who will receive the money and manage any payouts from the trust. He's the one you have to rely on not to screw things up, so you should go with a good, experienced trust manager, most of whom would find $14M (payout probably only $6-8M) as small potatoes.

      If you're really paranoid, use a double blind trust, where the manager of the first trust creates the second trust, so the trust manager retrieving the payout doesn't know who the original trust has behind it, and the trust manager of the original trust doesn't know where the money from the second trust came from.

      --
      "Unheard of means only it's undreamed of yet,
      Impossible means not yet done." ~~ Julia Ecklar
  6. Re:When California wanted a lottery... by Fire_Wraith · · Score: 5, Informative

    John Olivier did a wonderful piece explaining this:
    https://www.youtube.com/watch?...

    In short, despite what they tell you, the money is fungible. Not because they actually take the money from the lottery and use it for something else, but because it doesn't stop them from cutting OTHER funding for the schools. So say they previously spent $500 million on the schools each year. The lottery brings in $150 million, so that should mean the schools get $650m, right? Nope, because they just cut the school budget by $300 million, meaning the schools are now only getting $350 million, of which $150 million is from the lottery.

  7. Too geek-smart, too world-stupid by hyades1 · · Score: 4, Insightful

    Once it became obvious he couldn't cash in the ticket without giving his real name, Tipton should have let it go uncollected. Once he figured out a way around the problem, he could have run his program again and cashed in.

    --
    I've calculated my velocity with such exquisite precision that I have no idea where I am.
  8. Moron... by __aaclcg7560 · · Score: 2

    His obvious mistake was going for the jackpot. If he rigged it for smaller payouts under $500 over a long period of time, he might have escaped detection. Big numbers attract attention, smaller numbers seldom do.

  9. Why do you let a computer choose the numbers? by tompaulco · · Score: 2

    Why would they let a computer choose the numbers? That is subject to fraud. Why not have a random drawing like anybody with a shred of common sense would do?

    --
    If you are not allowed to question your government then the government has answered your question.
    1. Re:Why do you let a computer choose the numbers? by subanark · · Score: 2

      A well programmed random number generator is going to be better than kind of "random drawing". The problem was the lack of oversight in having the code be submitted. Any code changes that would hurt the reputation of an organization this badly should require multiple sign offs by code reviewers.

      Now, it is possible that this got past the code reviewers, in which case I either congratulate the fraudster for some real underhanded coding, or I accuse the code reviewers for being inept.

      It is also possible that this came from the IT angle, in which case I congratulate the fraudster on being able to understand the code, the deployment process, and the steps to hide it all.

  10. Re:Need ticket buyer's name? by bobbied · · Score: 2

    Did he buy tickets with credit cards? Or he just couldn't find someone he trusted to not run away with the $14million?

    The latter. You can't buy tickets with credit cards, because people are dumb and must be protected from their own dumb selves.

    How untrue. We don't protect the dumb from theirselves... We DO have the lottery after all... I call it a tax on foolishness myself, but you can call it being dumb or stupid when people play..

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  11. Re:First Clue... by bobbied · · Score: 3, Funny

    First clue something was wrong was the winning number was 1-2-3-4-5-6.

    Due, this was in C/C++... It was 0-1-2-3-4-5.....

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  12. Re:When California wanted a lottery... by __aaclcg7560 · · Score: 4, Insightful

    The schools have no problem building brand new football fields, which is a higher priority than class size and supplies. Your tax dollars at work.

  13. Re:we only hear about the failed attempts by bobbied · · Score: 2

    How many criminals are smart enough to think long term like this? Not many I'm afraid...

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  14. Re:we only hear about the failed attempts by starless · · Score: 2

    How many criminals are smart enough to think long term like this? Not many I'm afraid...

    But the thing is we mainly learn about the stupid criminals.
    Those (however many there are) who are smart enough to make it work we don't
    know about.
    e.g. if someone uses an accomplice, doesn't spend any of the money for some time
    (say a couple of years), then leaves work for a plausible reason and moves
    to a new area, I'd guess we may not hear of these.
    And we get a distorted view of criminals because the ones that succeed are never
    heard about.

    I think this counts as a "known unknown"....

  15. Re:a gross perversion, no doubt. by bobbied · · Score: 2, Insightful

    So you're calling lottery players stupid. You seem nice.

    If he's not, I will.

    Lotteries are a tax on stupidity. I call them a foolishness tax. Because most who play the lottery are stupid fools who are just wasting their money.

    The only valid reason to play, IMHO, is for entertainment value, which is pretty limited. If you want to bet for entertainment, hit the blackjack tables after you learn the rules of how you play. Blackjack is a better deal because the entertainment lasts longer for the same cost, on average.

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  16. Re:When California wanted a lottery... by RobinH · · Score: 3, Insightful

    Depending on what kind of full time job you had to give up, it could have cost upwards of $50,000 or $100,000 per year for you to educate your 2 kids, given the opportunity cost. Don't get me wrong, I can think of lots of *good* reasons to home school your kids, but saving money isn't one of them.

    --
    "I have never let my schooling interfere with my education." - Mark Twain
  17. Re:a gross perversion, no doubt. by rhazz · · Score: 5, Insightful

    Lotteries are a tax on stupidity.

    People paying for fancy cars is a tax on stupidity because I personally can't see the value of it. People paying to see a play is a tax on stupidity because I wouldn't enjoy it myself. Paying any money at all for a coffee is a tax on stupidity because I hate coffee. Everything you do for enjoyment that I wouldn't personally enjoy doing is a tax on stupidity.

    If you don't get any enjoyment from it, don't do it. Other people enjoy it, which is obvious, so why be a prick about it? Very, very few people buy lottery tickets as a financial strategy, so the actual odds are irrelevant as long as it's run honestly and someone shows up in the news with a win occasionally. Personally I spend about $10 per month on lotto tickets. I enjoy it, it's fun for me, so fuck off with your judgmental generalization.

  18. Re:a gross perversion, no doubt. by bobbied · · Score: 4, Informative

    Look, sorry if I offended you but you didn't read my whole post...

    The only valid reason to play, IMHO, is for entertainment value, which is pretty limited. If you want to bet for entertainment, hit the blackjack tables after you learn the rules of how you play. Blackjack is a better deal because the entertainment lasts longer for the same cost, on average.

    IF you get enjoyment out of playing the lottery and have money to spend on such entertainment, have fun, buy your tickets. You know what the odds mean and that you won't win but you enjoy the thrill making sure and finding that if you had matched ONE more number, they would have paid you $5.

    However, you are not the target audience of lotteries. People like you don't buy that many tickets. People who are poor, don't have disposable income, who are inclined to make stupid financial decisions are the same folks who more often buying lottery tickets. It amounts to a tax on foolishness and stupidity.

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  19. Re:When California wanted a lottery... by ceoyoyo · · Score: 2

    That's silly. You just didn't include any of the extra costs: a building for the class, a qualified teacher, heating, air conditioning, etc. Properly accounted, you probably spent many times what a public school spends per student.