Lottery Fixing Scam Gets 1st Multimillion Dollar Lawsuit

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Five years ago, Larry "Lucky Larry" Dawson stood beaming with his family as he claimed his $9 million Hot Lotto jackpot. On Wednesday, he became the first plaintiff in a lawsuit that could cost state lotteries millions of dollars following an insider jackpot-rigging allegation.

The lawsuit filed by a Des Moines law firm in behalf of Dawson, is saying that the lotto jackpot he won in May 2011 should have been nearly three times bigger had the previous one had not been rigged. The lawsuit claims the 2010 jackpot should have rolled over to create a $25.5 million pool for the jackpot that Dawson won several month later. Instead, the jackpot was reset to the $1 million base before building up to the $9 million prize he won reports ABC News.

Dawson's lawsuit seeks to have a judge award him the additional $16.5 million, which is composed of the $10 million in the lump sum cash option he would take plus interest. Arkansas Online says the Iowa Lottery which was named as a defendant along with the Multi-State Lottery Association already said that Dawson was paid the jackpot he was entitled to and vowed to fight the lawsuit.

Fox News reports that Eddie Tipton, the Multi-State Lottery Association's former security director, was convicted of rigging a $16.5 million jackpot in December 2010. He allegedly tampered the random number generator used in drawing the winning Hot Lotto combination at the association headquarters. He then bought the six-number combination himself. He is awaiting trial on charges of rigging jackpots in Colorado, Oklahoma, Kansas and Wisconsin from 2005 to 2011.

Lawyers on behalf of a trust tried to claim the Iowa Lottery jackpot allegedly fixed by Tipton but refused to identify who purchased the ticket. The prize money was returned as unclaimed prize to the 16 states that participated in the Hot Lotto. Tipton was fired and eventually charged after he was identified by his colleagues as the person seen on the surveillance video buying the winning ticket in Des Moines.

Dawson purchased his winning tickets at a gas station near his home. He revealed to have read a book claiming to have the secrets on how to win lotteries. Dawson and his wife used their financial windfall to expand their family business and support charitable causes although they believe that the prize they got should have been bigger.

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