Iowa: Hot Lotto Fraudster Eddie Tipton Granted Parole

Eddie Tipton, the man who was sentenced to 25 years in prison for rigging the Multi-State Lottery has been paroled after serving four-and-a-half years.

After Serving 4.5 Years in Prison, Eddie Tipton Was Granted Parole

Tipton, who was formerly an information security director of the Multi-State Lottery Association (MUSL), was sentenced back in August 2017. Besides being ordered to pay some $2.2 million in restitution, the court sentenced him to 25 years in prison. At a later point, the restitution cost was decreased to $1.7 million.

Last week, the Iowa Board of Parole approved Tipton’s parole, according to the Iowa Capital Dispatch. The decision comes after the Board of Parole concluded that it is reasonably probable that Tipton doesn’t pose danger to himself or the community.

The former information security director will now need to collaborate with parole officers in Texas, where he’s being paroled. If he breaches any laws or fails to comply with the parole officials, his parole may be revoked. This is in fact a standard procedure for any US state when it comes to parole.

The Elaborate Hot Lotto Scam Involved Rigging the Lottery’s RNGs

The scandal with the rigged jackpots was labeled “Hot Lotto.” By 2017 it was uncovered that Tipton or one of his associates had claimed six Hot Lotto jackpots between 2005 and 2011. The jackpots were claimed in different states such as Iowa, Kansas, Oklahoma, Wisconsin, and Colorado.

The scam itself was completed by rigging the random number generators (RNGs) for the lottery. Just like with any lottery, RNGs help ensure fair games without tampering. But what was uncovered is that Tipton managed to implement a self-destructing code that enabled him to know the outcome for some draws.

The fraud was uncovered back in 2011. It happened after MUSL officials recorded multiple failed attempts to claim a $16.5 million jackpot just before its expiration. The winning ticket was purchased about a year ago from a convenience store located in Des Moines. Upon investigating, MUSL officials were unpleasantly surprised to see that Tipton was the person that purchased the ticket initially.

Consequently, during the investigation, law enforcement uncovered that Tipton operated along with one of his friends, Robert Rhodes. Tipton’s brother Tommy was involved in the elaborate fraud as well. In the end, Tipton pled guilty to fixing the RNGs of the lottery. His two accomplices were also sentenced but received shorter sentences.