Gloria C. Mackenzie became the largest sole lottery winner in U.S. history in mid-2013 when the then 84-year-old took home about $278 million after taxes on a $590 million Powerball ticket she bought at a Zephyrhills Publix supermarket.
Five years later she sued her son Scott Mackenzie, who was her caretaker and the one who had "total control" over millions of dollars in winnings, saying he and his investment manager each lived off the money while poorly investing the proceeds, according to her lawsuit filed by attorney Gregory Anderson.
The 40-page lawsuit, which was revisited in court this week in Jacksonville, demands a judge and jury identify and preserve Gloria Mackenzie's Powerball winnings, saying she suffered damages in excess of $10 million due to negligence, conspiracy to misrepresent and breach of fiduciary duty. It also says her son and his actions were not done in good faith, breaching his legal duties as power of attorney as well as receiving unjust enrichment and exploiting a vulnerable adult.
This deprived his mother of gains she should have earned that would have generated "tens of millions of dollars" after he hired a Jacksonville investment adviser who Anderson said wasn't qualified to handle the account. While those investments "just sat there earning nothing," Anderson said the investor overcharged for his services while the son never checked on any of it.
"You don't have to know anything more than a branch manager at a bank to come back with some significant returns," he said. "At the same time, he [the investment manager] was charging my lady, age 90 and in ill health, $2 million in fees."
It's not clear how much of her winnings she has left.
The initial lawsuit was dismissed Feb. 14, and an amended version was filed March 6. Tuesday in Jacksonville, Judge Virginia Norton heard a 20-page motion to dismiss the amended lawsuit, filed by attorneys Lee Wedekind III and Dell Chappell, representing Scott Mackenzie.
It has not been ruled on yet. But the motion says the lawsuit is solely based on allegations that Scott Mackenzie introduced his mother to an investment adviser who put her in "conservative investment vehicles, in accordance with her chosen investment objectives, and effectively preserved her wealth."
"That Gloria's accounts did not increase in value as much as plaintiffs, in hindsight, would like is not a proper basis for a lawsuit," the motion says. "... Rather than pleading ultimate facts to support their claims, plaintiffs continue to pursue legal theories that are unsupported by the facts they allege."
Wedekind released a statement adding that his client is "deeply disappointed" with his family members' decisions and their motivations in bringing this lawsuit but is equally confident that the truth will prevail.
"Although he strongly disagrees with the allegations that have been made, he will respect his family's privacy by reserving any further comments until the case has been concluded," Wedekind said.
Gloria Mackenzie married Ralph L. Mackenzie in 1951, then they moved to a Zephyrhills trailer park until his 2005 death, living on Social Security, the lawsuit said. On May 18, 2013, things changed when she bought the winning Florida Powerball ticket.
She bought a 6,300-square-foot, five-bedroom home in Glen Kernan Country Club, currently assessed at $1.13 million, according to Duval County property records. The Tampa Bay Times reported the deed to the home was transferred to her daughter and trustee Melinda MacKenzie in June 2013. But Duval County records now show the home listed in her son's name.
Anderson said the mother could have "hired and afforded nannies, nurses and housekeepers," but she wanted family to take care of her. Scott Mackenzie convinced his mother that he had given her half of the $10 she used to buy the ticket and therefore was entitled to half the winnings, the attorney added.
"It is confusing whether he gave her $5 or worked around the house for the $5, or just happened to have it and handed it to her and she handed it to the Lotto ticket dealer," Anderson said. "... Gloria is fairly sharp, but she is 90. She was really concerned about being taken care of and this was an activating factor for her to help her son, because she wanted someone to take care of her."
The mother did give some funds to her other children, Anderson said. But the lawsuit said the son placed half of her winnings in various trusts and entities designed to "foster tax savings and advance Gloria's philanthropic aims," then Anderson said he convinced her that she should "give him half of it." Since he also had power of attorney, which gave him "the authority to conduct investment transactions" on behalf of his mother, he began looking for an investment company.
Scott Mackenzie, an assistant manager at a shoe store at the time, didn't choose a major investment firm. For reasons that "escape virtually everyone who examined this," Anderson said he chose Hank Madden of Madden Advisory Services, who hosts a local call-in Saturday morning financial advice show on the radio.
The lawsuit says Madden had never handled any account the size of the Mackenzie's. It also says some of Madden's prior clients had complained about him, and he had been fired for "commingling funds by an investment firm that employed him."
"Scott failed to perform the proper due diligence to investigate and understand the person being considered to handle his mother's nine-figure portfolio," according to the lawsuit. "... Having had little money to her name and being a widow well into her 80s, Gloria had no knowledge or experience with which to judge the veracity of the representation or the performance of her son Scott or Madden."
Anderson said Scott Mackenzie transferred millions into Madden's control, a man who "failed to invest the funds in an appropriate mix of investments" and did very little trading. Yet Madden also was charging "outrageous amounts and fees totally untied to any actual performance," Anderson said.
"Scott did not protect his mother, failed to properly discharge his duty to her and instead eventually banished her from the house they shared together because she was no longer able to care for herself," the lawsuit says.
That occurred after Gloria Mackenzie fell and hurt herself, yet wasn't moved to a nursing home, Anderson said.
"She... ends up living with another of her children outside of Jacksonville," Anderson said. "The sad thing is Gloria could buy every assisted-living facility in Jacksonville."
In the end, it took Gloria Mackenzie years to understand that her son and Madden had "poorly served her," the lawsuit says.
If the amended lawsuit is not dismissed, it could be heard before a jury this fall or early 2020, Anderson said.
(Click to display full-size in gallery)
I am speechless. Shocked but not surprised.
Be willing to spend money on the professionals that you will need. Doctors, Nurses, Psychiatrists, Certified Financial Planners, CPAs, Lawyers, and Attorneys, Insurance agents, and other Financial advisers that you might need.
Gloria was penny wise but pound foolish.
I hope that she is successful in the Court of Law.
There are other similar cases here on Lottery Post. Children taking advantage of their parent's good fortune. In Texas maybe.
While not caretaker per se, this almost hits me right at home...........
And by the way--
WHY ARE ALL LOTTERY WINS TRAGIC?
This is a very sad, sad story! And with Gloria being 90 years old she may not live long enough for it to be resolved. She should be living on "easy street" not having to deal with lawsuits. I would pull the Power of Attorney away from the son immediately.
Any investor who does not have five years to ride through a downturn in the economy should not invest.
I found the TX story of how children are stealing from their parents. It is, Texas lottery winner battling Alzheimer's as daughter stole $250,000.00 lotterypost.com/news/320759 6/13/2018
I just read in a reply by an LP Member that Arizona is a Senior Citizen friendly State. They have very strong lobbyists.
Gloria should have “ known “ her son, obviously she didn’t. Having your arm held on tv after a massive jackpot win, is not always an indication that your wellbeing is truly their children’s concern. At 90 years of age, this is no time to go into battle formation.The Egyptian Pharaohs thought that they could take their wealth into the afterlife, didn’t happen. Make the most of the time you have left Gloria, the stress & added mental burden could come at a cost. It’s not worth it.
Good point. Very easy to tear up a poa if she made it revocable. If the financial expert lost the money, she may be out of luck unless she can shoe negligence or fraud. It is never too late to try to right a wrong.
Scott Mackenzie introduced his mother to an investment adviser who put her in "conservative investment vehicles, in accordance with her chosen investment objectives, and effectively preserved her wealth."
It looks like the type of investment anyone Gloria's age should make. In retrospect had she invested $18 million in the Dow Jones stocks, it would be worth over $26 million today not including dividends. The same $18 million invested in "wrestling stock" (WWE) would be worth $180 million today. If an any investment does poorly, is a financial adviser liable and/or shoe negligence for not recommending stocks that eventually increased 1000% in the last 6 years?
The problem is once a person invests in "conservative investment vehicles" and years later look at what they "could have" made, it's no different than Mindy saying "had I stopped her from cutting in line, how to invest millions would be my problem". Because we don't know all the details, can't really comment on who is right, but it's still terrible any time a parent has to sue their children or vice versa.
WHY ARE ALL LOTTERY WINS TRAGIC?
Because they're not. There are plenty of stories in L.P about people doing good things with their winnings, but the first unofficial rule of journalism is "If it bleeds, it leads."
If an editor has room for one more short story on the front page (or a producer of a TV newscast) then which story do you think they'll print/air? The one about the cop getting bitten in the groin by a dog or one about another cop rescuing an autistic girl's kitty from a tree? The stories they run are a reflection upon our society, IMO. We'd rather see/hear about some Hollywood celeb getting arrested for drugs than about another that went over to the ME to entertain the troops.
If you've ever watched The Lottery Changed My Life, then you'll see that the "feel good" stories outnumber the tragic ones. My favorite one is about James Gatzke, a simple man who won a lottery with the last couple of bucks to his name, took the annuity and last I heard, was living in a motel...because that's what he wanted to do. We hardly ever see any stories about him and none about how he's doing today, but in the thousands and thousands of "tragic" lottery winner compilations, they always mention David Lee Edwards, an ex-con who spent money hand over fist, got addicted to drugs and died penniless.
Today's journalism is almost "1984-ish" - "Bad news: good; good news: bad"
Unfathomable that you'd do this to your own Mother; this is so sad and shocking.
Not mentioned, but wonder if Scott's boyfriend had his hand in this too? Doesn't matter, a s----y son is what he is and he'll get his.
Here we go again. Lottery winner drama. With all that money just open 4 accounts in different banks and enjoy the interest. Investing is great but have to be done right and honestly. A mother Sue's a son is alarming but I need to hear all sides of this story. Hope she lives to see the outcome of the case.
It's so sad that You can't Trust Your own Family. It's hard to believe that Greed takes over.
I wish her the Best.
The initial lawsuit was dismissed Feb. 14, and an amended version was filed March 6. Tuesday in Jacksonville, Judge Virginia Norton heard a 20-page motion to dismiss the amended lawsuit, filed by attorneys Lee Wedekind III and Dell Chappell, representing Scott Mackenzie.
Did you miss where the Judge hasn't decided whether this amended lawsuit should be dismissed too?
It has not been ruled on yet. But the motion says the lawsuit is solely based on allegations that Scott Mackenzie introduced his mother to an investment adviser who put her in "conservative investment vehicles, in accordance with her chosen investment objectives, and effectively preserved her wealth."
Other than someone convinced Gloria that because her investments aren't doing as well as Scott's there must be something wrong, there is not enough information to form an opinion on whatever happened.
By the way, what exactly did Scott do his mother that is "sad and shocking"?
"the then 84-year-old took home about $278 million after taxes"
And then she paid the rest of her taxes the following April. Her actual after-tax net was likely around $225 million.
"saying she suffered damages in excess of $10 million due to negligence, conspiracy to misrepresent and breach of fiduciary duty."
Oh, the horror. Too bad if it's true, but not quite as bad is it sounds from the headline about her winnings being squandered.
"what exactly did Scott do his mother that is "sad and shocking"?"
Good question. This story has plenty of allegations from an attorney who stands to collect a fat fee himself if he's successful, but not much in the way of things that we know to be true. With as much money as she had she could have handled the risk of investing in things that weren't conservative, but she could also have put the money in a safety deposit box and never come close to spending it all.
Maybe somewhere down the road we'll have a reasonable idea of what happened and who's side is closer to the truth, but right now this is a lot like the Canadian guys claiming they owned shares of their coworker's winning ticket. Nobody here has seen any proof, but but most people are sure they know who did somebody wrong.
l reread this story and got to ask myself, is it just me, or is Gloria's attorney insinuating that Mackenzie weaseled his way into the jackpot sharing deal, that he never won, to begin with? Sure sounds as though her other children are putting her up to this, this going after the son. The other thing is, Gloria, can afford extraordinary care at a first Class care home, free from the influences of these children, why doesn't she get away, what's holding her back? This story is making Gloria out to be one of those rich folk who eats food out of cans while having millions of dollars in mattress money stored away.
Money doesn't change people, it only magnifies who & what they were before becoming wealthy.
He was probably like this to his mother before she won the money.
I agree.
Shoot, my wife and found out the hard way years ago when it comes to family they are the worst kind when lending money too.
The family member is being called to the carpet on their financial fudiciary duties. It's standard to ask the courts to make a ruling to assist on getting this adult removed from legal rights to the funds.
Her age plays a huge factor in this case. She is protected by further senior laws on financial guardians.
The part I'm afraid of...is its Florida where the rulings are often in favor of the
criminal. So the son will be free to exploit...
I recall how she won the pb,when a younger person let her be ahead in line.
Gloria at age 84, supposedly cut in line in front of Mrs Mindy Crandall to purchase her winning ticket according to media reports.
"Mrs Crandall says she believes she is the woman Mrs Mackenzie was talking about when she revealed in her public statement: 'While in line at Publix, another lottery player was kind enough to let me go ahead of them in line to purchase the winning Quick Pick ticket.' Mrs Crandall, who lives in Zephyhills - the same small city where Mrs Mackenzie retired, told ABC News that she still remembers the elderly woman who stepped in front of her while she was waiting in line to buy her Powerball tickets last month. Mrs Crandall says she was tending to her children at the time and didn't notice that someone had cut the line. 'My 10-year-old said, "Mom, There's a lady in front of us." I noticed that the lady was there. Didn't pay a lot of mind to it,' she told ABC. When Mrs Mackenzie made it to the register, the clerk motioned for Mrs Crandall to come forward instead. Mrs Crandall waited. 'Go ahead,' she told the elderly Mrs Mackenzie."
Karma can & does rear it's ugly head sometimes
Funny you should bring that up CD. I recall when Mindy's story hit the headlines, there were some who suggested that the winning ticket was destined to be hers. Other here were saying that it was highly unlikely given that millions of QP combinations are spewed out in nano seconds, and had she turned her head or looked down, that " moment " had passed beyond her reach. Then we had those who felt Gloria should have given Mindy a few millions, just because.Karma, perhaps- more like greed, depending on how you look at it.
I would first contact my lawyer then reward the Crandall family for their kindness.
I enjoy the show American Greed. Greed is behind the son's actions.
It is family and friends who will be JERKS. Jealous, Envious, Resentful, Killjoys.
Really Music? Don’t take this the wrong way, but l have seen some of your posts where you openly state you want One jackpot winner- namely yourself, and splitting the jackpot is out of the question. Yet you will instruct your attorney to do right by Mindy? I think l am going to have a aneurism.
* On a side note: Have you ever left the theater with a more satisfying ending to a movie than “ Shawshank Redemption ?”
Some of the comments on these news stories are really getting weird and makes me wonder if people actually read the story before commenting. The article actually explains the lawsuit is based on Gloria asking for a conservative investment, but apparently someone convinced her because she could have made $10 million more, it was her son's fault. And before putting all the blame on Scott, Gloria won the jackpot 6 years ago and if she hasn't given Mindy something by now, she never will.
If there is any greed, it's from whomever convinced Gloria to sue Scott. You really ought to wait until the judge decides whether or not to let the case proceed before passing judgement.
*People stood up and cheered after the Walking Tall ending.
In response to your last paragraph.I disagree. In order to build a case for further claims the lady has to take one malfeasance at a time. Her lawyer knows more about how to handle this then a lottery poster. I tend to think the son will be removed from his executor position. And rightly so. He took an oath when it was granted. That oath is what this comes down to.
THAT'S what happens when one violates the laws of nature. Nature doesn't care about morals, good, bad, whether you are a pedophile, a murderer, Mother Theresa, elderly, stiupid, smart, or a child to move on you. All she cares about is that you follow her laws. A pedophile can win the lottery (Florida) and a murderer can live a free life not caught, if they follow the laws of nature. People go to great lengths to avoid thinking. Unfortunately this is an old lady we are talking about here and nature won't forgive her. You don't do business with family. She is lucky to have any money left.
noise-gate, I will share my jackpot with family, friends, and charity. I do not like sharing a jackpot with strangers.
My comment was that I would like to see Gloria and her attorney share some with Mindy.
Gloria needs to pay for wise counsel. You usually get what you pay for.👩⚖️
music*
On one of TLCs lottery programs there was a winner from St Louis that said when you win a jackpot family regards you as their own personal ATM.
Caution.
Music said "Greed is behind the son's actions." and I responded to that pointing out what Music failed to read.
"Her lawyer knows more about how to handle this then a lottery poster."
And her lawyer knows "The initial lawsuit was dismissed Feb. 14," Did you read what Scott's lawyer said?
"Itend to think the son will be removed from his executor position. And rightly so. "
First you said "her lawyer knows more than a lottery poster" and now as a lottery poster you're lecturing me by giving a legal opinion?
Did you miss where I said "Because we don't know all the details, can't really comment on who is right," or are you saying you know all the details?
According to Scott's lawyer:
""Scott Mackenzie introduced his mother to an investment adviser who put her in "conservative investment vehicles, in accordance with her chosen investment objectives, and effectively preserved her wealth."
"Maybe somewhere down the road we'll have a reasonable idea of what happened and who's side is closer to the truth,"
All Gloria's lawyer has to do is prove to a jury Scott should have ignored "her chosen investment objectives" and invested her money more aggressively.
"Nobody here has seen any proof, but but most people are sure they know who did somebody wrong."
That seems to be par for the course when discussing lottery stories.
l have the sneaky suspicion that the guy who bought a steak house with a house on a hill overlooking the Valley in So Cal, went through the same thing. Family dipping into his treasure, figured out,enough is enough. The Beatles were wrong with " All you need is love."
They say " Love can bring people together, but money can tear them apart."
STACK, STACK, STACK
Par for the course IS that You THINK you are the Resident EXPERT on ALL things Lottery Same with KY FLOYD!
Both of you continuously COMMENT on Most everything anyone says on here.
As for what BD said about this son getting his, as USUAL YOU MISSED the POINT! He was Talking about When He Faces the after life, wherever this "son" may end up, When he's dead & gone, Buried six feet under or whatever is decided to do with his Body.. Clear ENOUGH For YOU???
You Comment on everything like You KNOW the entire situation! Do YOU???
Thank You Coin Toss for the caution. I live 2 or 3 hours away from family. That should help me with family requests. I will also inform them that I am only allowed to gift any one $15,000.00 gift tax free per year.
As an elderly winner in the Midwest cautioned us, "Family and friends are your worst enemies. They even declared bankruptcy when asked to pay back loans. Charity is the way."
The simple two letter word, NO will come in handy.
A judge will not substitute his/ her decision on whether the money should have been invested more or less aggressively. If the investment is deemed reasonable (even if it is very conservative) and lacking fraud or negligence, Gloria loses.
Uh oh. Just my opinion, but you may very well have bitten off more than you can chew.
Whatever, I'm going to subscribe to this thread in my reader so I don't miss anything.
I'm a big fan of inexpensive and amusing entertainment; political rallies, Pentecostal tent revivals and certain threads here in Lottery Post.
Oh American Indian.
Afterlife, six feet under, where he may end up?
Scott shows up at the Pearly Gates:
St Peter asks " Name?
Scott Mackenzie.
St Peter: Sorry, cant get in here!
Scott: Why not, my Mom is here.
St Peter: Bad investments Scott.
Scott: wait a min, is that Bernie Sanders over there? How come he gets in, that guy cost Hillary the election with all he's socialist nonsense.
St Peter: Yeah we know, but he makes great sandwiches..
noise-gate, Do not deny the Power of God. God Bless.
We have some very good posts here on this thread. Thanks everyone.
What we dealing with here Music, is the absurdity of talking about the " afterlife " This has nothing to do with the Power of God. No one has gone to the so called " other side " and returned to tell what was or is there. Our first Parents returned to the dust of the ground. Lazarus did not report back after being resurrected that he was in heaven for 4 days. I am merely finding the humor in American Indian's post.
Yep, but I think I just cracked a molar on an "old maid". (an un-popped kernel, not referring to anyone specifically in this thread)
Ever had leftover popcorn for breakfast the next day after a marathon movie session the night before? It's pretty good w/ a little milk and sugar.
l take no delight in showing people up, and can weather criticism. What l hate are lies, especially when my Grandparents are thrown into the mix.
Can't say that I have done that breakfast activity before or even heard of it. Old maid..lol, perfect