The Sunday Read: 'The Man Who Cracked the Lottery'

[0] Okay, for better or worse, I got pandemic hair and I'm in my jogging shirt, so...

[1] My name's Reed Fordgrave.

[2] I'm a writer in Minneapolis, and I wrote a story a couple years ago from New York Times Magazine.

[3] It's a story about a digital caper that somehow becomes a story about concealed identities.

[4] I object, Your Honor.

[5] This trial is a travesty.

[6] It's a travesty of a mockery of a sham.

[7] Shady attorneys, an ethical firework.

[8] salesman, malicious computer code, a mysterious press base in Belize.

[9] And most importantly, it's about...

[10] He was eight or ten feet tall.

[11] Big foot hunters, my friends.

[12] And he weighed seven or eight hundred pounds.

[13] At its core, this is a story about a heist.

[14] It's a scam.

[15] It's the largest lottery scan in American history.

[16] And I do think that this is ultimately a story that's about morality.

[17] It's about greed and hubris and good and...

[18] evil and, you know, the good guy chasing the bad guy.

[19] And the good guy in this story is the dude named Rob Sand.

[20] He's a prosecutor for the state of Iowa.

[21] And Rob is someone with just an incredibly strong moral compass.

[22] It's so strong that, you know, even family and friends have made fun of him over his life for being a little bit too much of a square.

[23] But honestly, when I look at Rob as a character, he's a breath of fresh air.

[24] Just in that we're in this age where Morality seemed so muddled.

[25] We can't even tell the difference between fact and fiction.

[26] And yet, Rob can tell you, this is right and this is wrong.

[27] It gives me a little bit of hope that righteousness really can make a comeback in this crazy world.

[28] So here's my story, the man who cracked the lottery, read by Eric Jason Martin.

[29] The file landed on Rob Sands' desk with something less than a thud.

[30] despite holding the contents of an investigation still open after more than two years, the file was barely half an inch thick.

[31] Happy birthday, his boss said.

[32] It was not Rob Sand's birthday.

[33] His boss, an Iowa deputy attorney general named Thomas H. Miller, was retiring in July 2014 after nearly three decades of prosecuting everything from murder to fraud.

[34] He hired Sand about four years.

[35] earlier, and made him the youngest prosecutor in a nine -attorney team that handled challenging cases all over the state.

[36] Now, Miller was offloading cases to colleagues.

[37] This one, having to do with a suspicious lottery ticket worth $16 .5 million, was full of dead ends.

[38] Investigators didn't even know if a crime had been committed.

[39] The most tantalizing pieces of evidence were on a DVD, two grainy surveillance clips from a gas station.

[40] Sand slid the disc into his laptop and pressed play.

[41] A man walked into a quick -trip convenience store just off Interstate 80 in Des Moines.

[42] It was a weekday afternoon, two days before Christmas.

[43] The hood of the man's black sweatshirt was pulled over his head, obscuring his face from two surveillance cameras overhead.

[44] Under the hoodie, he appeared to be wearing a ball cap.

[45] over the hoodie he wore a black jacket.

[46] The man grabbed a fountain drink and two hot dogs.

[47] Hello, the cashier said brightly.

[48] The man replied in a low -pitched drawl, a voice that struck sand as distinct.

[49] Hello.

[50] Couple hot dogs?

[51] The cashier asked.

[52] Yes, sir, the man replied quietly, his head down.

[53] The man pulled two pieces of paper from his pocket.

[54] They were play slips for hot.

[55] lotto, a powerball -like lottery game available in 14 states and Washington, D .C. A player, or the game's computer, picked five numbers between 1 and 39, and then a 6th number known as the Hotball, between 1 and 19.

[56] The prize for getting the first five numbers right was $10 ,000.

[57] But a much larger prize that varied, according to the number of players who bought tickets, went to anyone who got all six numbers right.

[58] The record hot -lotto jackpot of nearly $20 million had been claimed in 2007.

[59] The jackpot at the time of this video was approaching the record.

[60] The stated odds of winning it were one in 10 ,939 ,383.

[61] The cashier took the man's play slips, which had already been filled out with multiple sets of numbers.

[62] At 3 .24 p .m., the cashier ran the slips through the lottery terminal.

[63] An older man with a cane limped by the refrigerated section.

[64] A bus drove by.

[65] The cashier handed over his change.

[66] Once outside, the man pulled down his hood and removed his cap, got into his SUV, and drove away.

[67] The gas station parking lot gleamed.

[68] There had been snow flurries that afternoon.

[69] Two years into the case that was virtually all the investigators had.

[70] Sand watched the video again and again, trying to pick up every little detail the SUVs make, the man's indistinct appearance, most likely in his 40s and 100 pounds overweight, maybe more, the tenor of his voice.

[71] Sand, a baby -faced Iowan who turned down Harvard Law School for the University of Iowa College of Law, had a background that seemed perfect for the case, a high school job writing computer code and doing tech support, a specialty in white -collar crime.

[72] His recent cases included securities fraud and theft by public officials.

[73] The ticket in the video was purchased on December 23, 2010.

[74] Six days later, the winning hot lotto numbers were selected.

[75] 3 .12, 16, 26, 33, 11.

[76] The next day, the Iowa Lottery announced that a quick trip in Des Moines had sold the winning ticket, but one month after the numbers were drawn, no one had presented the ticket.

[77] The Iowa Lottery held a news conference.

[78] Phone calls poured in.

[79] Dozens of people claimed to be the winner.

[80] Some said they had lost the ticket.

[81] Others said it was stolen from them.

[82] But lottery officials had crucial evidence that wasn't publicly available.

[83] The serial number on the winning ticket and the video of the man buying it.

[84] One by one, they crossed off prospective claimants.

[85] One caller said his friend was a regular hot lotto player who had just died in a car wreck.

[86] Should he go to the junkyard to search through his deceased friend's car?

[87] Three months after the winning ticket was announced, the lottery issued another public reminder.

[88] Another followed at six months and again at nine months, each time warning that winners had one year to claim their money.

[89] I was convinced it would never be claimed, says Mary Newbauer, the Iowa Lottery's Vice President of External Relations.

[90] Since 1999, she had dealt with around 200 people who had won more than $1 million.

[91] She'd never seen a winning million -dollar ticket go unclaimed.

[92] And then comes November 9, 2011.

[93] A man named Philip Johnston, a lawyer.

[94] from Quebec, called the Iowa lottery, and gave Newbauer the correct 15 -digit serial number on the winning hot lotto ticket.

[95] Newbauer asked his age, in his 60s, he said, and what he was wearing when he purchased the ticket.

[96] His description, a sports coat and gray flannel dress pants, did not match the quick -trip video.

[97] Then, in a subsequent call, the man admitted he had fibbed.

[98] He said he was helping a client claim the ticket, so the client, wouldn't be identified.

[99] This was against the Iowa lottery rules, which require the identities of winners to be public.

[100] Johnston floated the possibility of withdrawing his claim.

[101] Newbauer was suspicious.

[102] The winner's anonymity was worth $16 .5 million?

[103] One year to the day, after the winning numbers popped up on the random number generator computers, and less than two hours before the 4 p .m. deadline, line.

[104] Representatives from a prominent Des Moines law firm showed up at the Iowa Lottery's headquarters with the winning ticket.

[105] The firm was claiming the ticket on behalf of a trust.

[106] Later, the Iowa Lottery learned that the trust's beneficiary was a corporation in Belize, whose president was Philip Johnston, the Canadian attorney.

[107] It just absolutely stunk all over the place, says Terry Rich, chief executive of the Iowa Lottery.

[108] The Iowa Attorney General's office and the Iowa Division of Criminal Investigation opened a case.

[109] In an interview in Quebec City, Johnston told investigators that he had been contacted about the ticket by a Houston attorney named Robert Sanfield.

[110] Johnston also pointed investigators toward a Sugarland, Texas businessman named Robert Rhodes.

[111] A trip to Texas by Iowa investigators proved fruitless.

[112] During their several days there, both Sondfield and Rhodes managed to avoid them.

[113] By the time the file ended up on the desk of Rob Sand in 2014, the case had acquired cult -like status in his office.

[114] It was spoken about with Gallo's humor.

[115] We'll find the guy who bought the ticket ended up getting oft, Sand said.

[116] That's what this is going to turn out to be a murder case.

[117] Miller had mentored Sand and saw in him a kindred spirit.

[118] someone for whom practicing law was a calling.

[119] Sometimes Sands' moral compass was so steady that he came off as a square.

[120] His brothers -in -law nicknamed him Baby Jesus.

[121] Sand grew up in Decora, in northeast Iowa, the son of a small -town doctor who still made house calls.

[122] He wanted to get into white -collar criminal prosecution because it focused not on crimes of desperation, but on crimes of greed.

[123] Crimes Against Gratitude, Sand called them.

[124] But all he had was grainy video of a man buying a lottery ticket worth $16 .5 million.

[125] We only had one bullet left in our revolver, Sand says, and that was releasing the video.

[126] On October 9, 2014, nearly 46 months after the man in the hoodie left the quick trip, the Iowa Division of Criminal Investigation, put out a news release that included a link to a 74 -second clip of the surveillance footage.

[127] A few days later, in Maine, an employee of the Maine Lottery opened an email forwarded from his boss.

[128] The employee recognized the distinct voice in the video.

[129] It belonged to a man who had spent a week in the Main Lottery offices a few years earlier, conducting a security audit.

[130] In Des Moines, a web developer at the Iowa Lottery who watched the video, also recognized that voice.

[131] It belonged to a man she had worked alongside for years.

[132] A receptionist in another lottery office handed her earbuds to Noelle Kruger, a draw manager, and told her to listen.

[133] Why am I listening to a video or listening to a tape of Eddie?

[134] Krueger replied.

[135] By Eddie, she meant Eddie Tipton, the information security director for the Multistate Lottery Association.

[136] The organization runs lotteries for 33 different states, plus the District of Columbia, Puerto Rico, and the U .S. Virgin Islands.

[137] It was based in the Des Moines suburbs.

[138] Among the games it ran was the hot lotto.

[139] Eddie Tipton cut a big, friendly figure around the office of the Multistate Lottery Association.

[140] He grew up in rural Texas, but while his siblings were outside, he was always in his room, fiddling with his computer.

[141] He was a paranoid sort who rarely paid with credit cards, who worried about people tracing his identity.

[142] But he always wanted people to like him.

[143] When a co -worker was in a bad mood, one colleague said, Tipton would pat him on the shoulder and say, I just want you to know I'm your friend.

[144] Tipton built a 4 ,800 -square -foot, $540 ,000 house in the cornfields south of Des Moines.

[145] The house had five bedrooms and a huge basement, including a pool table, a shuffleboard table, a stadium -style home theater with couches and a space he considered turning into a basketball court.

[146] Friends wondered why a single man needed such a big house and how he could afford it on a salary just shy of $100 ,000 a year.

[147] In private moments, Tipton told them he was lonely and wanted a family more than anything, so he poured his savings into the house he hoped to fill with a wife and children.

[148] But the right partner never came.

[149] Instead, he hosted office Christmas parties, and he constantly asked friends to visit.

[150] His family, still in Texas, checked on him frequently.

[151] His life revolved around his job.

[152] The Multistate Lottery Association was a small organization, and Tipton felt overextended.

[153] He wrote software and worked on well.

[154] web pages.

[155] He handled network security and firewalls, and he reviewed security for lottery games in nearly three dozen states.

[156] He was putting in 60 -hour weeks and staying at the office until 11 p .m. When Ed Stephan, the chief information officer and chief security officer at the multi -state lottery association, saw the surveillance video, he didn't want to believe it.

[157] This wasn't just some coworker.

[158] This was Eddie Tipton, a man he had known for more than two decades since they were in calculus class at the University of Houston.

[159] Stefan met his future wife while he and Tipton were on a charity bike ride in Texas.

[160] Tipton would later be in their wedding.

[161] Stefan helped Tipton get his job at the association.

[162] They bought some 50 acres of land together and built adjacent houses.

[163] They even applied for a joint patent for computer -based lottery security.

[164] Stefan watched the convenience store video for the first time after a former co -worker sent him the link that had been released by prosecutors.

[165] That just can't be Eddie, he thought.

[166] Then, that's Eddie.

[167] Why is he wearing a hoodie?

[168] I've never seen Eddie in a hoodie.

[169] Stefan got sick to his stomach.

[170] His friend, a man with deep knowledge.

[171] of the computers that ran the lottery, was there on screen, buying a ticket that would be worth $16 .5 million.

[172] Later, Stefan would tell investigators it was like finding out your mother was an axe murderer.

[173] He felt betrayed.

[174] Jason Marr was another friend and colleague who didn't want to believe what he was seeing on the video.

[175] He and Tipton had met at Taki, a Japanese restaurant outside Des Moines that they both frequented.

[176] lifelong computer aficionados and gamers hit it off.

[177] Tipton joined Marr's gaming clan, and they spent hours playing the multiplayer online game World of Tanks.

[178] Tipton suggested Marr apply for a job at the Lottery Association as a network engineer.

[179] Tipton, Marr told me, had a heart of gold.

[180] So when Marr saw the video and heard that familiar, low -pitched voice, he did what a computer whiz does.

[181] That night I sat down.

[182] There's no way Eddie did this, Mara said.

[183] There's got to be something wrong.

[184] He put the file of the surveillance tape into audio software, removed white noise, and isolated the voice.

[185] Then he took footage from security cameras in his house.

[186] Tipton had just visited the night before and compared Tipton's voice in that footage with the convenience store video.

[187] It was a complete and utter match, sound wave and everything, Maris said.

[188] The next day, he went to the quick trip where the ticket was purchased and measured the dimensions of the tiles on the floor, the height of the shelving units, the distance between the door and the cash register.

[189] He used the results to compare the hand size, foot size, and height of the man in the video with the man he had become friends with.

[190] When the FBI guys came in, I wanted to be able to tell them it wasn't Eddie, Maris said.

[191] Once I did this, it was like, well, it's Eddie.

[192] In November 2014, state investigators showed up at Tipton's office.

[193] They asked him whom he knew in Houston.

[194] He told them about his family, mother, sister, and brothers, including Tommy, a former sheriff's deputy turned Justice of the Peace near the Texas Hill country.

[195] He did not mention Robert Rhodes, the men who initially passed the $16 .5 million ticket to an attorney.

[196] By searching Tipton's LinkedIn profile, investigators found that Tipton had been employed at Rhodes's Texas -based software company Systems Evolution for six years as its chief operations officer.

[197] In fact, the two were best friends and vacationed together.

[198] Tipton was arrested in January 2015 and charged with two felony counts of fraud.

[199] Half a year later, on a hot sticky July morning, Rob Sand stood before a jury at the Polk County Courthouse.

[200] This is a classic story about an inside job, he began.

[201] A man who, by virtue of his employment, is not allowed to play the lottery, nor allowed to win, buys a lottery ticket, wins, and passes the ticket along to friends to be claimed by someone unconnected to him.

[202] This story, though, has a 21st century twist.

[203] The prosecution knew Tipton had bought the winning ticket.

[204] The video, specifically the distinct voice that colleagues had recognized, made that clear.

[205] So did cell phone records, which showed Tipton was in town that day, not out of town for the holidays as he claimed, and that he had been on the phone for 71 minutes with Robert Rhodes, the man who briefly had possession of the ticket.

[206] Investigators believe he'd fixed the lottery.

[207] But how?

[208] Jason Marr, Tipton's gaming buddy, told them about Tipton's interest in root kits, malicious software that can be installed via flash drive in order to take control of a computer while masking its existence until it deletes itself later.

[209] Sand theorized that Tipton went into the drawroom six weeks before the big jackpot, and, despite the presence of two colleagues, managed to insert a thumb drive into one of the two computers that selected the winning numbers.

[210] That thumb drive contained the root kit, the root kit allowed Tipton to direct which numbers would win the hot lotto on December 29, 2010.

[211] Tipton's defense attorney, Dean Stowers, called this the Mission Impossible theory.

[212] Stowers characterized the story of a malicious self -destructing root kit, magic software, installed while two colleagues looked on as preposterous.

[213] His closing arguments referenced a quotation attributed to Albert Einstein.

[214] Logic will get you from A to B. Imagination will take you anywhere.

[215] But Sand called Stowers's focus on this, complicated root kit theory, a red herring.

[216] Sand told the jury to focus on the many ways Tipton could have fixed the lottery.

[217] He wrote the code.

[218] He had access to the random number generator machines before they were shipped to other states.

[219] You don't have to understand the exact technology to convict Tipton, Sand argued.

[220] You just have to realize the near impossible coincidence of the lottery security chiefs buying a winning ticket and that tickets being passed to his best friend.

[221] The prosecution had to prove only that Tipton tried to illegally buy lottery tickets as a multi -state lottery association employee and tried to claim the prize through fraudulent means.

[222] The jury found him guilty on July 20, 2015.

[223] He would be sentenced to 10 years in prison, and he would appeal.

[224] The state Supreme Court later dismissed his conviction on one charge, tampering with lottery equipment, and the case was sent back to district court.

[225] Six weeks after the trial concluded, Sand had returned to his desk.

[226] It had been a busy summer.

[227] But in the back of his mind, he was still thinking about Eddie Tipton.

[228] Sand knew white -collar criminals aren't usually caught on their first attempt.

[229] The fact that Tipton's attorney had demanded a 90 -day speedy trial, an unusual maneuver that.

[230] cut short the prosecution's time to investigate, made Sand suspicious.

[231] His gut said other fraudulent lottery tickets were out there.

[232] One morning, San's office phone rang, and an area code he recognized popped up.

[233] 281, from Texas, where Tipton used to live.

[234] Sand picked up.

[235] The caller had a drawl and told Sand he'd seen an article in the LaGrange Texas newspaper about Tipton's conviction.

[236] Did y 'all know, the tipster asked, that Eddie's brother, Tommy Tipton, won the lottery, maybe about ten years back?

[237] Richard Renison's phone rang at the FBI office in Texas City, a port town on the shore of Galveston Bay.

[238] Sand was on the line, inquiring about a case that Renison, a special agent for the bureau, investigated a decade before.

[239] At the time, it turned out to be nothing, but the case still stuck in Renison's mind.

[240] Hey, Renison replied, that's my Bigfoot case.

[241] A man named Tom Bargis had contacted local law enforcement authorities in early 2006 with a suspicious story.

[242] Bargis owned 44 fireworks stands in Texas.

[243] Twice a year, after the 4th of July and after New Year's, he had to handle enormous amounts of cash, more than a half million dollars at once.

[244] A local Justice of the Peace who shot Bargis' horses called him around New Year's.

[245] The Justice of the Peace caught Bargis off guard.

[246] I got half a million in cash that I want to swap with your money.

[247] What's wrong with your money?

[248] Bargis replied.

[249] What's a Justice of the Peace who makes around $35 ,000 a year doing with that much cash?

[250] Bargis thought.

[251] He called the sheriff and the police who called the FBI.

[252] Soon, the Bureau contacted Bargis.

[253] Federal agents outfitted him with a wire.

[254] Bargis met with the man who pulled out a briefcase filled with $450 ,000 in cash still in their Federal Reserve wrappers.

[255] As the FBI listened, Bargis swapped $100 ,000 of worn, circulated bills for $100 ,000 of the man's crisp, unused bills.

[256] To the FBI, this smelled like public corrupt.

[257] and they went to work investigating the serial numbers on the bills.

[258] One day, a couple of months later, Renison got a call from the Fayette County Sheriff in LaGrange, a place best known for the chicken ranch, the brothel that inspired the best little whorehouse in Texas.

[259] The sheriff was laughing so hard he could hardly speak.

[260] He told Renison the Justice of the Peace was holed up in a Houston hospital with two shattered legs.

[261] He had fallen 31 feet out of a tree.

[262] He had been hunting bigfoot.

[263] My grandmother was raised on a farm in Arkansas where this creature would come in and harass all the farm animals, this man later told investigators.

[264] My grandmother would tell me all these stories of this animal that harassed my family.

[265] He went on.

[266] I started hitting the woods.

[267] It was always that doubt in your mind.

[268] And then something happened to me in Louisiana where I actually watched these animals.

[269] for a couple of hours, and I've been hooked ever since.

[270] Renison visited the man in the hospital and then set up an interview once he was discharged.

[271] The man was a member of the Bigfoot Field Researcher's organization.

[272] He told Renison he'd won the lottery in Colorado while on a Bigfoot hunt.

[273] He was on the outs with his wife and was trying to keep the lottery winnings from her.

[274] A Bigfoot hunting friend claimed the prize in exchange for 10 % of the money.

[275] It all checked out.

[276] Case closed.

[277] Right before I leave, we're still sitting down at this nice conference table, and he looks over at his attorneys and says, Can I show him?

[278] Renison recalled.

[279] Hanging off the back of his chair is a plastic grocery bag.

[280] He pulls out a plaster cast of a footprint.

[281] Renison put the footprint next to his own foot.

[282] They were roughly the same size.

[283] That doesn't look like Bigfoot.

[284] the FBI agent said.

[285] It was a juvenile, the man snapped.

[286] The man's name was Tommy Tipton.

[287] Now the hunt was on for more illicitly claimed tickets.

[288] Iowa investigators noticed that the friend who claimed the $568 ,990 Colorado lottery prize for Tommy Tipton, a man named Alexander Hicks, was dead.

[289] We first thought, whoa, this is our first body related to this case, Sand says.

[290] It wasn't.

[291] Hicks had died of cancer.

[292] The investigators collected a decade's worth of winners from lotteries around the country associated with the Multistate Lottery Association.

[293] They loaded data from approximately 45 ,000 winning tickets into Microsoft Excel spreadsheets and searched for any connections to Eddie Tipton.

[294] They reviewed Tipton's Facebook friends, pulled phone records, and looked for matches with the spreadsheet.

[295] In September 2015, they learned that a $783 ,257 .72 .72 payout for Wisconsin's very own megabucks game had been claimed in early 2008 by a Texas man named Robert Rhodes, who wanted to deposit it into the account of a limited liability corporation.

[296] That drawing took place on December 29, 2007, the same day the winning numbers on Tipton's $16 .5 million Iowa ticket were selected three years later.

[297] Rhodes was Eddie Tipton's best friend.

[298] Another hit.

[299] One evening over the holidays, Sand was at his parents' house working on his laptop, sifting through records, using search commands on his computer again and again.

[300] He noticed that a Kyle Khan from Hemphill, Texas, a $644 ,478 jackpot in the Oklahoma lottery some years back.

[301] Tommy Tipton had three Facebook friends named Khan.

[302] Sand got a list of possible phone numbers for a Kyle Khan and cross -referenced them with Tommy Tipton's cell phone records.

[303] Another hit.

[304] Investigators noticed two winning Kansas lottery tickets for $15 ,402 a piece were purchased on December 23, 2010, the same day Tipton had purchased the Iowa ticket and the same day that cell phone records indicated he was driving through Kansas on the way to Texas for the holidays.

[305] One of the winning tickets was claimed by a Texan named Christopher McColsky, the other by an Iowa woman named Amy Warwick.

[306] Each was a friend of Eddie Tipton's.

[307] early one morning sand and an investigator knocked on the woman's door she told them she'd gone on one date with tipton but their relationship became platonic tippton told her he wasn't able to claim a winning lottery ticket because of his job if she could claim it tipton said she could keep a significant portion as a gift for her recent engagement you have these honest dupes sand says all these people are being offered thousands of dollars for doing something that's a little bit sneaky but not illegal.

[308] Investigators in Iowa now had six tickets they figured were part of a bigger scam, but the question remained, how did it work?

[309] Investigators in Wisconsin discovered they still had the random number generator computers used for the 2007 jackpot sitting in storage.

[310] Unlike Iowa's computers, the hard drives had not been wiped clean.

[311] Their software was the same as the day Robert Rhodes won $783 ,257 .72 cents.

[312] Wisconsin enlisted a computer expert named Sean McClendon to conduct an investigation that included forensic analysis and reverse engineering.

[313] On January 7, 2016, Sands Phone rang.

[314] It was David Moss, an assistant attorney general in Wisconsin.

[315] He told Sand to check his email.

[316] Moss had sent him an attachment with 21 lines of pseudocode, a common -language translation of McClendon's forensic analysis that showed part of Tipton's malicious computer code.

[317] The code was small enough that it would not radically change the size of the file, which might create suspicion.

[318] And the code hadn't been hidden, you just needed to know what to look for.

[319] This, Moss says, was finding the smoking gun.

[320] The smoking gun would help lead to a guilty plea from Tipton.

[321] In the plea deal, Sand insisted that Tipton come clean about how he fixed the lottery.

[322] This could help the lottery industry improve its security.

[323] If Tipton lied, or if another fraudulent ticket were found later, the deal would be voided, and Tipton would be subject to further charges.

[324] Tipton's program was called QVRNG.

[325] DLL, Quantum Vision Random Number Generator.

[326] In Tipton's telling, his wasn't an evil plan to get rich.

[327] This was just a computer nerd's attempt to crack the system.

[328] It was never my intent to start a full -out ticket scam, Tipton told investigators.

[329] It occurred to me like, wow, I could do this.

[330] I could be making a living doing this.

[331] He went on.

[332] If this was like some mob -related thing, I'd just give this information to the mob, and they would go out and win the lotteries left and right.

[333] Nobody would know.

[334] But that, I don't have any mob ties.

[335] I don't know anybody.

[336] I gave tickets to friends or family.

[337] More than a decade ago, Tipton told them, he walked past one of the organization's accountants at the Multistate Lottery Association.

[338] Tipton was conservative, the accountant liberal, and they often ribbed each other.

[339] Hey, did you put your secret numbers in there?

[340] The accountant said, teasing Tipton.

[341] What do you mean?

[342] Well, you know, you can set numbers on any given day since you wrote the software.

[343] And that's when the idea first came.

[344] Just like a little seed that was planted, Tipton said in his proffer.

[345] And then during one slow period, I just had a thought that it's possible, and I tried it and I put it in.

[346] The code wasn't a brazen mission -impossible stunt of sneaking into the drawroom with a malicious thumb drive.

[347] It was a simple piece of code, partly copied from an internet source, inserted by the one man responsible for information security at an organization that runs three dozen United States lotteries.

[348] Here's how the Multistate Lottery Association's random number generators were supposed to work.

[349] The computer takes a reading from a Geiger counter that measures radiation in the surrounding air, specifically the radioactive isotope amarycium -241.

[350] The reading is expressed as a long number of code.

[351] That number gives the generator its true randomness.

[352] The random number is called the seed, and the seed is plugged into the algorithm, a pseudo -random number generator called the Mersen twister.

[353] At the end, the computer spits out the winning lottery numbers.

[354] Tipton's extra lines of code first checked to see if the coming lottery drawing fulfilled Tipton's narrow circumstances.

[355] It had to be on a Wednesday or a Saturday evening and one of three dates in a non -leap year.

[356] The 147th day of the year, May 27th, the 327th day, November 23rd, or the 363rd day.

[357] December 29th.

[358] Investigators noticed those dates generally fell around holidays, Memorial Day, Thanksgiving, and Christmas, when Tipton was often on vacation.

[359] If those criteria were satisfied, the random number generator was diverted to a different track.

[360] Instead, the algorithm would use a predetermined seed number that restricted the pool of potential winning numbers to a much smaller, predictable set of numbers.

[361] So, Tipton knew what no one else knew.

[362] For the Iowa Hot Lotto drawing on December 29, 2010, there weren't really 10 ,939 ,383 sets of possible winning numbers.

[363] There were only a few hundred.

[364] Late at night before a draw that fulfilled his criteria, Tipton stayed in his messy computer -filled office.

[365] He set a test computer to the date and time of the coming draw, and he ran the program over and over again.

[366] For the first lottery he rigged, the November 23rd, 2005 drawing in Colorado, Tipton wrote down each potential set of winning numbers on a yellow legal pad.

[367] He handed the pad, each sheet had 35 or so sets of six numbers, to his brother.

[368] It was a cheat sheet.

[369] Instead of playing every possible number combination to ensure one combination won, he had to play only a few hundred.

[370] If you want a chance to win, you need to play all of these, Tipton told his brother.

[371] I don't know if any of them will win, but you're going anyway.

[372] His brother was about to go on a bigfoot hunting trip to Colorado, and these have a good chance of winning based on my analysis.

[373] Play them, he said.

[374] Play them all.

[375] On a clear blue summer day in Des Moines last year, Eddie Tipton, a square -shaped balding man who was then 54, trudged up the stairs of the Polk County Courthouse.

[376] He wore blue jeans and a short -sleeved salmon -colored button -up shirt, untucked and unbuttoned, with a blue t -shirt underneath.

[377] His hands were shoved in his pockets, and his head was down.

[378] He had accepted a plea agreement for masterminding the largest lottery scam in American history, one count of ongoing criminal conduct, part of a package deal that allowed his brother to be sentenced to only 75 days.

[379] Tipton was here for his sentencing.

[380] In statements to prosecutors, Tipton painted himself in the most generous way possible, a kind of coding Robin Hood, stealing from the lottery and helping people in need, his brother who had five daughters, his friend who'd just gotten engaged.

[381] I didn't really need the money, Tipton said.

[382] The judge noted that Tipton seemed to rationalize his actions, that Tipton didn't think it was necessarily illegal, just a taking advantage of a hole in the lottery's system.

[383] It wasn't all that different, Tipton believed, from insider trading, except laws didn't specifically prohibit him from fiddling with the random number generator code.

[384] His attorney equated what he did with counting cards at a casino.

[385] tipton wasn't robbing the casino at gunpoint he was cheating the house the other side disagreed tipton was nothing but a common thief who happened to be handed the keys to the candy store miller sans former boss told me it's not a case of sherlock holmes's arch nemesis moriarty being a criminal genius this is just a regular schlub who is a thief who happens to have knowledge of computer security from tipton's point of view, it was complicated.

[386] He had done something to see if he could do it.

[387] To his surprise, it worked.

[388] He said he inserted that code only once.

[389] After the code was approved by Gaming Laboratories International, machines containing it were shipped all over the country.

[390] He had created a beast and sent it into the world.

[391] You plant that money tree in your backyard, as Moss, the Wisconsin prosecutor put it, and it's hard not to keep picking at it.

[392] in interviews investigators had asked tipton if he was proud of the success of his code it was more like i'm ready for it to be gone tipton said it was never my intent to go out there and start winning all these lotteries it was just like i said step by step it happened at sentencing the judge asked if tipton had anything to say after a long pause tipton cleared his throat family members and former co -workers were in the courtroom.

[393] Well, Tipton said, matter -of -factly, I certainly regret my actions.

[394] It's difficult to say that with all the people behind me that I hurt, and I regret it.

[395] I'm sorry.

[396] As the case was being litigated, Tipton had confessed to friends that he was wrecked with guilt.

[397] At another point during the proceedings, Tipton leaned across a divide and extended his hand to Sand.

[398] Sand took the handshake as a sign of respect, as if Tipton had thought he outsmarted the system, but the system figured him out.

[399] On the day of his sentencing, Tipton told the judge he'd been taking classes to go into ministry.

[400] A deputy placed Tipton in handcuffs and led him away.

[401] Earlier in the summer, Tipton sat in a conference room with Sand and law enforcement and lottery officials to give his full confession, as promised in his plea agreement.

[402] Eventually, he would head to Clorinda Correctional Facility in Southern Iowa, near the Missouri border, where he remains today, offender number 683 -2975.

[403] Through his attorney, he declined interview requests for this article.

[404] Tipton did not respond to nearly a dozen emails through the prison email system.

[405] During a lunch break in Tipton's hours -long confession, Sand and others involved in the prosecution, walked a few blocks to the High Life Lounge.

[406] They ordered bacon -wrapped tater tots to celebrate.

[407] Eddie sees himself as much brighter than the rest of the world, the sharpest tool in the toolbox, Sand says.

[408] It's the kind of thing I see in white -collar case after white -collar case, people who think they're better than everybody else, that people trust them and love them, and that no one will be able to figure this out.

[409] The judge sentenced Tipton to a maximum of 25 years in prison.

[410] His restitution payments to the various state lotteries came to $2 .2 million, even though, according to his attorney, Tipton pocketed only around $350 ,000 from the scam, the rest going to those who claimed the tickets.

[411] Prosecutors did not believe that, pointing to Tipton's massive house, as well as the fact that Tipton and his brother owned 11 pieces of property, either jointly or individually in Fayette County, Texas.

[412] In Iowa, which has indeterminate sentencing, a 25 -year sentence could mean Tipton is released much sooner.

[413] Sand expects Tipton to be released by the Iowa Board of Parole within seven years.

[414] Sand says he felt a deep intellectual satisfaction in solving the puzzle.

[415] The justice system at its best is really about a search for truth, but it couldn't go back in time and correct wrongs.

[416] At the end of this year's long case, he came to a realization.

[417] He had grown weary of dealing with criminals.

[418] In so much darkness, Sand says, I started to lose my light.

[419] A few months after the highest profile case of his career, Sand went up to his boss and quit.

[420] He had decided to run for state auditor in the coming November election so he could make positive changes.

[421] If he wins, he will be investigating government waste, abuse, and fraud.

[422] There's no way I would make a move to get away from the darkness of prosecution without finishing this case first, Sand says.

[423] So, finishing it to me was not merely satisfying.

[424] It was liberating.

[425] This was recorded by Autumn.

[426] Autumn is an app you can download to listen to lots of audio stories from publishers such as the New York Times.