KS AG sues 3 for submitting false claims to Kansas Lottery

KS AG sues 3 for submitting false claims to Kansas Lottery

Posted: Tue 4:44 PM, Mar 14, 2017

TOPEKA, Kan. Kansas Attorney General Derek Schmidt has filed suit against three people accused of submitting false or fraudulent claims for payment to the Kansas Lottery in the form of rigged, winning lottery tickets.


In a lawsuit filed last month, Schmidt asked the Shawnee County District Court to order Eddie Raymond Tipton, Amy Demoney and Christoper McCoulskey to repay about $44,000 they received from redeeming rigged lottery tickets.

In an news release Tuesday, Schmidt says the tickets "won" as the result of Tipton's manipulation of number-generating software through the multi-state lottery.

Tipton, a former computer-security official with the Multi-State Lottery Association, also faces criminal charges in Iowa related to alleged manipulation of the software, Schmidt says. The attorney general says the lawsuit was served to Tipton, Demoney and McCoulskey last week.

In the lawsuit, Tipton is accused in December 2010 of purchaseing tow lottery tickets from gas stations in Overland Park and Emporia, which he then gave to Demoney and McCoulskey to present for payment.

Those tickets, the lawsuit says, were rigged to win by Tipton's software manipulation. In February and June of 2011, Demoney and McCoulskey submitted the tickets to the Kansas lottery and were paide a total of $44,008. They then gave a portion the proceeds to Tipton, the lawsuit says.

In addition to seeking repayment of the money paid for the rigged winning tickets, Schmidt says the lawsuit asks the court to impose civil penalties for violations of the Kansas False Claims Act.


Schmidt says neither Tipton nor the Multi-State Lottery Association had direct access to the Kansas Lottery's internal gaming system. He says investigations revealed no indications that Tipton affected the lottery's internal systems, security of its games or manipulated any internal drawings performed by the Kansas Lottery.