Lawyers seek to depose lottery fraud mastermind in prison

Jan 21, 2019, 8:50 pm (21 comments)

Insider Buzz

DES MOINES, Iowa — Lawyers pursuing a class-action lawsuit on behalf of lottery customers nationwide are seeking to interview the jailed insider who allegedly rigged jackpots for himself and others for years.

The lawyers said in a court filing Friday they want to take the deposition of Eddie Tipton at the prison in Clarinda, Iowa, to gather information for their case against the Multi-State Lottery Association.

Judge Michael Huppert recently granted class-action status to the case, which involves customers who bought losing tickets for roughly 20 drawings between 2005 and 2013 that were allegedly tainted by Tipton's software.

Tipton worked for the Iowa-based lottery association, where he built and installed random number generators that picked winning combinations.

He's serving a prison sentence after admitting to installing code that allowed him to predict winning numbers on certain days of the year and working with his brother and others to buy tickets and win jackpots.

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

2012

2013

2014

2015

2016

2017

2018

AP

Comments

noise-gate

Oh Eddie, look what you started.

music*'s avatarmusic*

 What a tangled web we weave when we first practice to deceive. 

 Was it worth it Eddie?

 Who guards the guard? Who is looking over the shoulder of security?

No No

TheMeatman2005's avatarTheMeatman2005

Quote: Originally posted by music* on Jan 22, 2019

 What a tangled web we weave when we first practice to deceive. 

 Was it worth it Eddie?

 Who guards the guard? Who is looking over the shoulder of security?

No No

I Agree! My thoughts exactly. Well said music*

CARBOB

Quote: Originally posted by TheMeatman2005 on Jan 22, 2019

I Agree! My thoughts exactly. Well said music*

Is this a scheme by the lawyers to learn his method? This info needs to be protected.

Bleudog101

wonder how far this will go or what it'll amount to?

Off subject:  Letter from MA lottery saying their subscription service will now be handled by a third party.  End of the road for me as they also add a $13 surcharge for out of state tickets!

Horsegeek40

$13 surcharge? That's punishing out of state players.

Bleudog101

Quote: Originally posted by Horsegeek40 on Jan 22, 2019

$13 surcharge? That's punishing out of state players.

The kicker is it is $13 per ticket...fuggettaboutit.

oate's avataroate

Quote: Originally posted by CARBOB on Jan 22, 2019

Is this a scheme by the lawyers to learn his method? This info needs to be protected.

I think all the details of his methods should be made public, as well as every line of code he wrote. Let the public every lottery employee learn how computer RNG systems are vulnerable to tampering.

rca1952

So how do I get my name on that list ?

sailmumm

Eddie was a pompous, arrogant pain in the behind.  He acted like Barney Fife and tried to make lotteries fear him.

Bleudog101

Quote: Originally posted by sailmumm on Jan 22, 2019

Eddie was a pompous, arrogant pain in the behind.  He acted like Barney Fife and tried to make lotteries fear him.

That's a good one and welcome to Lottery Post sailmumm.

The restitution is another issue I have with those two, don't think it is going to happen.  Too bad the sentences are already handed down and more cannot be added until all the monies are paid.  Maybe denied parole.

He thought his stuff didn't stink and convinced himself that good old Eddie is going to get away with it.  Typical white collar criminal thinking.

Coin Toss's avatarCoin Toss

Quote: Originally posted by oate on Jan 22, 2019

I think all the details of his methods should be made public, as well as every line of code he wrote. Let the public every lottery employee learn how computer RNG systems are vulnerable to tampering.

Oh the irony, so far Eddie's is allowed to keep his methods anonymous 

Bang Head

Artist77's avatarArtist77

I would kill to be at that deposition. Lol.

sailmumm

Well he did give a lecture on how a root kit program could be used to determine an outcome and how all states should take precautions against them.  The only way to find it is to have the actual computer used and search it.  I believe there were problems determining where said computer was stored (if at all).

Artist77's avatarArtist77

Quote: Originally posted by sailmumm on Jan 22, 2019

Well he did give a lecture on how a root kit program could be used to determine an outcome and how all states should take precautions against them.  The only way to find it is to have the actual computer used and search it.  I believe there were problems determining where said computer was stored (if at all).

Exactly. That should have been asked in discovery. I think we all know he likely did more than he confessed to and a forensics computer expert should search that and any and all computers he used.

grwurston's avatargrwurston

Judge Michael Huppert recently granted class-action status to the case, which involves customers who bought losing tickets for roughly 20 drawings between 2005 and 2013 that were allegedly tainted by Tipton's software.

Unless someone saved all their losing tickets from 2005-2013, how are they going to prove who bought losing tickets for the dates in question and who didn't?

sailmumm

Quote: Originally posted by grwurston on Jan 22, 2019

Judge Michael Huppert recently granted class-action status to the case, which involves customers who bought losing tickets for roughly 20 drawings between 2005 and 2013 that were allegedly tainted by Tipton's software.

Unless someone saved all their losing tickets from 2005-2013, how are they going to prove who bought losing tickets for the dates in question and who didn't?

I've seen players come in with shoe box full of old tickets to check and see if their old tickets met a criteria to get free tickets when there was a problem with a draw game.  Anything is possible with people who save things (hoarders?)

Soledad

This was one heck of a story. I’m surprised a movie is not being made about this guy. Matt Damon maybe?

Oh and great job chronicling this Todd.

KY Floyd's avatarKY Floyd

"I think all the details of his methods should be made public, as well as every line of code he wrote."

The details are already public. The people in charge were idiots and made it easy enough for one single guy to manipulate the process. They let one guy write a program to generate random numbers and then failed to examine what he did. This wasn't even third party software, where the company that produces it can claim it's proprietary and keep the source code secret. Tipton wrote the code as an employee, the lottery had (or should have had) access to the code, and IMHO it was important enough that it should have been independently examined.

That also means that the lottery should already have known every line he wrote, and if they're not incompetent they'd have copies of it. Early on there was a lot of speculation that he secretly installed a root kit that would be separate from the actual RNG program, but it was later established that he simply wrote an RNG program that, on certain days, would restrict the number of possible combinations and let him make reasonable predictions of the results. Basically, he knew the exact parameters that would be used to generate the random numbers. The lottery never looked for exploits in the code until after they found out they had been taken.

I'm sure the lawyers will want to get the exact details straight from Tipton, but I'm not sure they'll learn anything that they can't find elsewhere.

RL-RANDOMLOGIC

It's far easier to do than most think, random number generators can be cracked if one knows

how the seeds are generated.  I would bet that for every rng lottery number generator, there 

is at least one person who knows how it works.  It's all about the seed value and I would also

bet that he waited some time before he took advantage trying not to draw attention.   What

I worry about most is not the drawing rng but the ones used for QP's.   Not all number sets are

equal.  The sales counter rngs would be almost impossible to test as they can be changed as

often as they like using a automated firmware updates.  Why would they do this you may ask,

because they can.  While every set of numbers has the same odds for any draw, over time it's

not the case.  Larger jackpots draw bigger sales.

RL

JosephusMinimus

I have to smile and wonder how many people have posted remarks in the Discussion Forum over the the past 15 years or so alleging this sort of thing was going on, and what an overwhelming host of replies and assurances followed with proclamations to the contrary.

With a river of money passing through the lotteries worldwide there probably isn't a security system that can be devised to thwart someone somewhere from finding a way to beat it.

End of comments
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