Consumer News

AG Derek Schmidt: Iowa man ordered to pay damages, penalties for presenting false claims to the Kansas Lottery

Release Date: Oct 31, 2018

TOPEKA – (October 31, 2018) – An Iowa man has been ordered to repay the State of Kansas for his role in submitting false or fraudulent claims for payment to the Kansas Lottery in the form of rigged, winning lottery tickets, Kansas Attorney General Derek Schmidt said today.

Eddie Raymond Tipton, a former computer-security official with the Multi-State Lottery Association, was accused of purchasing two lottery tickets from gas stations in Emporia and Overland Park in 2010, which Tipton had rigged by manipulating the multi-state lottery’s software. Two other individuals, Amy Demoney and Christopher McCoulskey, submitted the tickets for payment to the Kansas Lottery in 2011 and were paid a total of $44,008 for the “winning” tickets. They then gave a portion of the proceeds to Tipton.

Shawnee County District Judge Franklin R. Theis this week ordered Tipton to pay the State of Kansas $125,422.80, which is three times the net damages sustained by the Kansas Lottery. Tipton was also ordered to pay a $22,000 civil penalty as well as the costs of the attorney general’s investigation and lawsuit. Demoney and McCoulskey in June were separately ordered to pay damages totaling $16,805.60.

Tipton was prosecuted criminally in Iowa for criminal conduct involving manipulation of multi-state lottery software in Iowa and Wisconsin. Tipton is currently serving a prison sentence pursuant to that Iowa criminal case.

Copies of the judgments can be found at www.InYourCornerKansas.org/judgments.

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