Charged: 2 Texas men accused of defrauding Wisconsin Lottery

MADISON -- Eddie Tipton and Robert Rhodes, both of Texas, have been charged with multiple felonies for their alleged roles in defrauding the Wisconsin Lottery, Attorney General Brad Schimel announced on Friday, December 23rd.

Tipton and Rhodes are both charged with Engaging in Racketeering Activities and Theft by Fraud. Tipton is also charged with four additional counts of Computer Crime.

The complaint alleges that the two defendants conspired to win the December 29, 2007, Wisconsin Megabucks lottery game. Tipton, who was an employee of the Multi-State Lottery Association and responsible for programming the software used in the random number generator (RNG) machines used to pick the winning numbers, allegedly planted a modified code in the RNG software that produced a predictable set of winning numbers when certain conditions were met. Tipton allegedly supplied those numbers to Rhodes, who then purchased a ticket with the winning numbers. Rhodes later submitted the winning ticket for payment, and Rhodes and Tipton allegedly split the proceeds totaling $783,257.72. The complaint further alleges that three other Wisconsin Megabucks lottery drawings were manipulated by Tipton’s modified code.

Tipton will make his initial appearance on February 13, 2017, in Dane County Circuit Court. Rhodes will make his initial appearance on February 16, 2017.

Tipton and Rhodes also are both currently charged in Iowa with Ongoing Criminal Conduct for their part in attempting to defraud the Iowa lottery in December 2010.