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Major lottery fraud case hits Wisconsin

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Sometimes it feels like the odds are stacked against you when you purchase a lottery ticket. But for Edward Tipton, the former lottery security director in Iowa, he's accused of rigging the system in his favor. The crime is believed to have stretched across state lines and made its way to Wisconsin and numerous other states.

 

At least four states have paid out jackpots worth a total of 8 million dollars in the last 6 years. Investigators believe one man with ties to the Multi State Lottery Association was behind the fortunes being made. 

 

Eddie Tipton, the former security director with the Multi State Lottery Association knows his way around computers. So much so authorities have accused him of installing software onto them at his office to work in his favor for big lottery pay outs.

 

 That software picks the winning lotto numbers before the general public knows them. Authorities believe that included a Wisconsin Megabucks jackpot for 2 million dollars.

 

"This is now a nationwide investigation that seeks to identify instances where individuals may have taken advantage of personal relationships to perpetuate fraud against a lottery game," says Jim Saunders of the Iowa Department of Public Safety.

 

Investigators believe that once Tipton found out the winning numbers he would entrust friends, even his brother to buy the ticket and claim the prize.

 

"An associate of Mr. Tipton also collected a jackpot in Wisconsin," adds Saunders.

 

He's been charged with ongoing criminal conduct and money laundering for defrauding the Wisconsin Lottery out of the more than 783 thousand dollars.  That's the lump sum payout for a 2 million dollar prize.

 

"It's not fair. I mean it's supposed to be totally random. And if you can figure it out... Well," says Kristin Klsowski who frequently buys lottery tickets.

 

Today investigators believe Tipton’s luck ran out when he guessed the right numbers to a 16.5 million dollar jackpot. But, they'll have to prove that in court.

 

The Wisconsin Lottery has already hired an independent third party to review their number selection process for lottery games. 

 

Tipton has been convicted of fraud and given ten years in prison but he's appealed that decision and is free today. As many as 30 states are looking into whether their lottery system was compromised by the potential hack.