Hot Lotto Arrest


We’re going to make a few statements from the DPS and then it’s going to go to the Iowa Lottery to make a few statements and then we’ll be open for some question and answers after that. I’ll introduce those behind me. This side, Dave Jobes, the assistant director with the Iowa DCI.

Terry Rich, president and CEO of the Iowa Lottery and Steve Bogle, here with, the vice president of security for the Iowa Lottery. Thanks. I’ll turn it over to Dave. DAVE: Good afternoon and thank you all for coming. On Oct. 9, the Division of Criminal Investigation held a press conference to release video footage of the Hot Lotto ticket purchased in Dec. 2010. We requested assistance from the public in identifying the ticket purchaser.

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On behalf of the DCI, the Attorney General’s Office and the Iowa Lottery, I want to thank the media and the public for their assistance in this case. Due in part to the information provided by the public, the Iowa Department of Public Safety – Division of Criminal Investigation, along with the Iowa Attorney General’s Office, have filed charges and made an arrest in the Hot Lotto investigation this afternoon. Eddie Raymond Tipton, age 51, of Norwalk, Iowa, has been arrested and charged with two counts of fraud, both Class D felonies. Mr. Tipton was taken into custody without incident at approximately 2:15 p.m. this afternoon.

The allegations for these charges stem from his statutory prohibition on playing and winning the lottery. That prohibition is due to the nature of his employment with the Multi-State Lottery Association where he currently works as the director of information security. Investigators believe Mr. Tipton purchased the winning ticket at the Quik Trip store on NE 14th and later attempted to claim the prize with the assistance of other individuals. I must emphasize this is still an ongoing and active investigation.

We’re disappointed to learn that someone was has worked as a vendor for the Iowa Lottery has been charged in this case. At the same time, we’re gratified that the through procedures and protocols we’ve developed to protect the security and integrity of our games, worked to prevent the payment of a disputed prize. This truly is one of the strangest situations in the history of lotteries. We believe this is the largest lottery jackpot ever to be claimed, only to have that claim withdrawn. The charges in this case focus on possible fraud attempts as the prize was being claimed. Of course many of you know we have strong security procedures in place to protect and ensure the integrity of our games, and we absolutely believe this case indicates that those processes worked to protect lottery players, lottery games and lottery prizes.

It was the right thing for a lottery to refuse to pay this jackpot prize unless or until basic security questions about it could be answered and they never were. We all know there’ll always be people who will try to beat the system. We have and will continue to update our security procedures as we identify vulnerabilities to protect against them. With me is Steve Bogle, the vice president of security. And I’ll let Alex, or I’ll let the DCI come back up to the podium and we’ll all be happy to answer questions.

Mr. Rich, did you know, do you know Mr. Tipton and work with him? I have met Mr. Tipton and he works for the, one of the Iowa Lottery vendors but not close friends over the years, have known him. Your reaction just finding out it was someone kind of in the quote-unquote “lottery” family.

Well I think the reaction is disappointment but yet I think being gratified that all of the hard work that the DCI, our security team and the Attorney General’s Office, have done do, to get to this point, this has been a huge mystery and we all wanted to know. And we want to do everything possible to bring this to a conclusion and we’ve just reached the next step. It’s well known in the industry, I’m guessing, that you guys can’t win the jackpot. Is that, was that, would you say that’s safe to say.I think it’s safe to say that all lottery employees and the vendors who, who have access to confidential materials are prohibited from playing lottery games within their states. He didn’t manipulate the game in any way, did he?

Going about this, he just bought the ticket and happened to win? Good question. This charge is based solely on his purchase and attempt to cash a winning ticket. There are no allegations of any, anything else. Obviously the investigation continues and maybe the DCI, if they’ve got any other comments on that? I think that sums it up.

The allegations are not of the nature like you described. They’re simply that he’s a prohibited player and attempted to claim the prize. I’ve got a question. What’s the director of security? And was he the sole person who did that? And what was his responsibilities?

And they work with lotteries to enhance, obviously, all of the things that we’re talking about, the security protocols and the different layers. They have certain, what I would call ‘keys’, as Steve has certain ‘keys’ or the IT department in our Iowa Lottery has certain ‘keys’ so that everybody doesn’t have all the ‘keys’ to the kingdom. So was he technically involved in the investigation into this investigation at all.