In records filed last week it was verified that Eddie Tipton, the lottery scam mastermind and former lottery security official behind the rigged computer program, rigged a lot more draws that investigators first discovered.
Eddie Tipton, was a former employee of the Multi-State Lottery Association (MUSL) and he was responsible for writing the code which allowed him to predict the randomly drawn numbers of multimillion-dollar jackpots in as many as 17 states!
Tipton was first convicted in October 2015 of rigging a $14.3 million drawing of MUSL's lottery game Hot Lotto. Eddie Tipton ultimately confessed to rigging lottery drawings in Iowa, Colorado, Wisconsin, Kansas and Oklahoma.
Also involved in the scheme were his brother and former Texas Justice of the Peace Tommy Tipton, and Texas businessman Robert Rhodes.
His code remained undetected for almost a decade before Iowa officials in 2015 discovered Tipton's lottery rigged scheme.
According to reports Tipton went into the lottery’s fortified “Draw Room,” on November 20, 2010, where only he and four other colleagues had access.
The reason he went into the highly secured room was to update the lottery computer system to the passing of Daylight Savings Time.
According to authorities, Tipton tinkered with the room’s video recorder and closed circuit cameras, and according to multiple criminal court documents, the footage from November 20 didn’t properly capture what went on in the room due to the fact that Tipton either on or before that day set the machine to record “roughly one second per minute.” The other 59 seconds were invisible.
With the now roughly disabled, Tipton had enough time to insert a memory stick that loaded a so-called “root-kit” program. Tipton was known as cybersecurity obsessive who preached about root-kits.
By uploading the root kit, he would have had the ability to do anything we wanted on the computer. He could have basically fixed the lottery numbers and had a “self-destruct without a trace” implemented.
According to investigators, Tipton’s rig would defraud the system only on specific days each year. Investigators initially believed these days were November 23 and December 29. But an independent security audit conducted by the Multi-State Lottery revealed that there was at least one more date written into the code which was May 27.
Tipton was already sentenced last year to 25 years in prison for rigging lotteries, but he was not prosecuted for rigging drawings on any May 27 dates.
At the time of his court case, Tipton told investigators that they had identified all the fraudulent wins associated with his rigging and he confirmed that he had not attempt others. However, his brother, Tommy Tipton, told investigators a different story.
Tommy Tipton confessed that he was tied to his brother's $4.5 million rigged jackpot win in Colorado in 2005 and told investigators that Eddie had given him the numbers for at least two other drawings that he tried to use to win jackpots. But he didn't win.
With the inclusion of the additional May 27 now being found on Eddie Tiption’s scheme, means that there are probably more potential fraud cases, according to Evan Teitelman of SeNet International Corp - SeNet was hired by the Multi-State Lottery in 2015 to help perform a security evaluation following Tipton’s arrest.
MUSL is a non-profit, government-benefit association headquartered in Clive that is owned and operated by its 36 member lotteries, including the Iowa Lottery.
But what about other Hot Lotto players? In a separate case, Burlington, Iowa, resident Dale Culler is additionally seeking a class-action lawsuit on behalf of all players cheated out of lottery wins by Tipton's manipulated drawings.
Teitelman made the comments about the newly discovered third rigged date during a July 30 Def Con 25 Hacker conference called “Backdooring the Lottery and Other Security Tales from Gaming.”
His presentation was cited last week by Dawson's lawyers in an effort to compel Multi-State Lottery to release the full evaluation.
“This is just known cases of fraud," Teitelman said. "There are probably more, especially since we found a third date in the code itself."
Teitelman could not be reached for comment Friday, but Gus Fritschie, another executive of SeNet and a co-presenter at the July conference, confirmed the security evaluation uncovered the third rigged date.
Dave Jobes said, “We did our best to identify any of those across the country based on what information that we had."
Eddie Tipton apologizes for his role in an Iowa Lottery scam before being sentenced to 25 years in prison.
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