TX Lottery Fraud & Missing Money 5 Part Series Investigative Story Coming (Moving On In Spite of Pending AG Opinions) ... Read My Response To Kelly Cripe Cease & Desist Letter - A Must Read - Link Below ...



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Created: March 16, 2000
Revised: April 13, 2013 - 4 PM



Responding to a Cease and Desist Letter (Kelly Cripes)
I uncover questionable employee behavior ... Read their communications.
Amazing yet hurtful discoveries ... Posted 4/21/13 ... Click here.
(4/22/13 - 11 AM - Added vital information that should
have been included in original posting. It's clearly marked)

About That NEW Lotto Texas Rule - The One That Screws Us Players
Clearly this rule is by the state and for the state - no where does the people fit in.
I predict the Commission will adopt this new rule on Friday, Jan 11, 2013. How very sad ...
Click here for details.

Will Texas Honor The Rule and The Face Value of My Scratch Tickets
This letter was submitted to Gary Grief - Director of the Texas Lottery. I'm asking that
my winning tickets be paid - Unbelievable story and only the tip of the iceberg
regarding Texas scratch tickets. After you read the letter, tell me -
do you think it's a winning ticket???? Should they pay me?
Posted 12/10/12. Click here

Meet Kelly Cripe - The New Spokesperson For the Texas Lottery
She's the person who decided I didn't need to receive public
information that I pass along to you every day!
Posted 5/30/12 - Q & A Added 6/5/12
Click here.

Texas Player Buys 7 Quick Picks, Receives 7 Identical Tickets
An Unbelievable Story - Posted March 15, 2012, Click here

Lottery Terminals Err - Here is Absolute Proof
Posted 7/12/07 - Don't let this happen to you -
Check your own tickets! Click here
A Very Interesting Update Coming


Read about the TLC employees ... Click here and read Oct 9th entry.
See and hear what our legislators were told about VLT's, Click Here.


4/13/13 - Update to yesterdays posting regarding reading the disclaimer. FINALLY someone was able to read it and told me what it said. I can only trust they were right! The disclaimer says,

* Pari-mutual prize = total prize allocation divided equally among multiple winners.
^ Prizes may be higher or lower than estimated depending on the number of winners at a prize level.

I did enjoy reading the variety of comments you all sent in. Actually, some were extremely funny and a good laugh is good for the soul - especially mine. So thank you - we all had a little fun with this. Also I haven't been able to reply to all of you and for that I'm sorry. Sometimes I get more than I can handle and right now is one of those times. Please let this posting serve as my THANK YOU for writing. OK???

4-12-13 - This afternoon I received from the Texas Lottery a press release and an email with the below graphic embedded into the email.

I could not read the disclaimer in the email nor could I read the disclaimer in the press release that was sent in Word. So I sent Kelly Cripe an email that said ... "Just received press release regarding LT. I can't read what the disclaimers are for the "*", "^." I would like to know what the disclaimer says. Would one of you please tell me what the disclaimer under the "overall odds ...." says. Thank you."

Ms Cripe responded rather quickly - she said, "It's on our website http://www.txlottery.org/export/sites/lottery/Documents/retailers/lotto_texas_how_to_play.pdf"

So I clicked on the link she provided and found the below graphic was sideways on the page and I still could not read it.

Frustrated, I then sent Ms. Cripe a final message which said, "Still can't read it - not only is it too small but it's sideways on the TLC web site and very, very difficult to read. Don't worry about it - obviously it's too much trouble for you to handle. I'll ask my legislator if he/she can read it for me. Then maybe I'll post on my site and ask if any of my readers can read it. This way I'll know if I am the only one who can't read it. I need to know what it says FOR A VERY SPECIFIC IMPORTANT REASON."

Can any of you help me??? Tell me - what does the disclaimer say?????? You have 3 ways to read it - click here to read the press release, read it below, or go to the TLC website as I was instructed to do ... http://www.txlottery.org/export/sites/lottery/Documents/retailers/lotto_texas_how_to_play.pdf"

Email me if you're successful. Thanks. By the way, my legislator couldn't read it either.

Can you read the disclaimer (lower left below)?

Finally determined this is what the disclaimer says ... hope I'm right!
* Pari-mutual prize = total prize allocation divided equally among multiple winners.
^ Prizes may be higher or lower than estimated depending on the number of winners at a prize level.

April 9, 2013 - Last night's Texas 2 Step jackpot was advertised at $825,000 which was too low. For this game, the amount advertised is a "guaranteed" amount, which makes the amount advertised a big deal. The Texas Lottery has the freedom to advertise whatever amount they want BUT they are suppose to be honest and fair with the amount they advertise. They have become quite lax which is NOT good.

Yesterday, at 3 pm, I asked the TX Lottery what draw sales were so I could compute the amounts but they did not provide me with the information I needed to compute the jackpot. So, at 4 pm, I filed a complaint with the State Auditors Office in hopes that they would get the jackpot amount increased. My first complaint read ...

4/8/13 - 4 pm

To: Fraud, Waste or Abuse - State Auditors Office

I suspect that tonight's Texas 2 Step Jackpot is underestimated though I am not 100% certain. This is because the Texas Lottery refuses to provide me with sales - as sales stand now for the draw - so that I can compute it.

So that you understand the significance of my complaint, in this game if there is a winner, then he receives the amount advertised - NOT the amount allocated from sales to fund.

Roughly an hour ago, I sent a message to Media Relations, Kelly Cripe, (and I copied Gary Grief) with my question/request for sales going towards tonight's drawing.

As I write this, I have no reply from them. Actually I'd be surprised if they did answer me because shortly after Ms. Cripes arrival, they have refused to provide me with sales info.

At any rate, I estimate they will sell $860,000 ($204,508 allocated for a winner) which means they will have at total $862,041 from roll sales to pay a winner. The jackpot is advertised at $825,000 which means they have excess funds in the amount of $37,041 that they will keep.

I feel this is too much to cheat a potential winner. If I am correct in estimating sales, which I most likely am, then the Texas Lottery needs to increase the advertised amount so as to not cheat players out of their rightful winnings.

The rule allows for the Texas Lottery to increase the advertised jackpot amount in the event sales support an increase. $37K is too much to be off. If action is not taken immediately on this complaint, then whoever wins tonight will be taken advantage of.

Thank you.

By draw time last night, the jackpot amount did not increase and there was a winner. I then sent a second - follow up - complaint to the State Auditors Office. It read ...

4-8-13 - 11:30 pm

To: Fraud, Waste or Abuse - State Auditors Office

This afternoon I filed a complaint with regards to the Texas Lottery under-estimating (advertising) the jackpot amount for tonight's Texas 2 Step - $825K. I believe the "under-advertised amounts" are purposely low balled.

As it turns out, there was one winner for Texas 2 Step this evening. The winner will receive the advertised $825K but there is an estimated $868,502 in the jackpot prize pool. This means the winner is technically being shorted by an est <$43,502>.

(Roll sales (6 consecutive draws) were est $3,652,237 - winners share is 0.2378%)

The Texas Lottery assured Commissioner many years ago that they would "honestly" try to be accurate in their estimations when "guaranteeing" jackpots and they would not under-advertise.

They have failed to honor their word.

This jackpot should have been advertised at $850K and they know it. They have purposely cheated this winner - technically out of $25K based on the games rule.

Just so that you know and or understand their reasoning, the plan was/is to advertise an amount that they know they cannot fund (starting jackpot @ $200K) and making up for any losses as the jackpot grows. In otherwords, if they've been hit, then as the next jackpot grows, they will "under-advertise" it in hopes of making up the differences. This plan has not worked for them as they are <$2.8 million> in the red since inception. Another loss to the state.

Something needs to be done.

Thank you for any "consumer protection" you may be able to impose upon the Texas Lottery.

This morning I obtained official sales figures for Texas 2 Step. As it turns out, the amount allocated from sales to pay a jackpot winner was $10 more than I estimated last night - The Texas Lottery had $868,512 to pay a winner but advertised the jackpot at $825,000. The winner will only receive the $825,000.

Folks this is wrong. Executive staff assured the Commissioners many years ago that they would be fair in their "advertising" figures when the jackpots are "guaranteed." This is NOT fair in my opinion.

You all need to speak up - contact your state legislator and tell them that you would appreciate it if the Texas Lottery would quit low balling advertised jackpot amounts. They were overly conservative in the the advertised amount and they knew exactly what they were doing as is shown on their jackpot estimation sheet. In the end, they were "over" by $43,502. The jackpot should have been advertised at $850 and this would have been fairer.



.

April 4, 2013 - Commentary/Opinions by Dawn Nettles ...
This morning I heard Governor Perry announce that his office was adding $100,000 to the reward fund in hopes of catching the bad folks responsible for the senseless killings in Kaufman and Forney. While I was extremely pleased to hear this, I immediately thought and wondered just how far a $3.1 million reward would/could have gone in catching the people responsible for these killings.

You see, $3.1 million is how much the Texas Lottery will be overpaying last nights (04/03/13) Lotto Texas winner.

I just got off the phone with a player who wanted me to explain to her how and why I say the Texas Lottery is short to fund last nights win by $3.1 million. In the end, she suggested that I tell you once again WHY - she thought you should all read or hear this. So here goes ...

Last night, the Texas Lottery advertised the jackpot at $7 million. The figure, "7 Million" represents how much a person would receive IF he was paid over a 25 year period. To get a return of $7 million over 25 years, the lottery has to invest $5,300,800. The $5.3 million is the "cost to fund the jackpot."

Now - there were 4 draws leading up to this win.
The first draw was advertised at $4 million and from sales the Texas Lottery had $571,544 to set aside to pay a winner. No one won so the $571,544 was carried forward to pay a winner.

The second draw was advertised at $5 million and from sales the Texas Lottery had $483,058 to set aside to pay a winner. No one won so the $571,544 + $483,058 was carried forward to pay a winner.

The third draw was advertised at $6 million and from sales the Texas Lottery had $596,620 to set aside to pay a winner. No one won so $571,544 + $483,058 + 596,620 was carried forward to pay a winner.

The forth draw was advertised at $7 million and from sales the Texas Lottery had $512,406 to pay a winner. There was ONE winner so the Texas Lottery had $571,544 + $483,058 + 596,620 + $512,406 = $2,163,629 FROM SALES to pay THE winner.

But wait a minute ... That's not enough to pay the winner because it costs $5,300,800 to get a return of $7 million. So the Texas Lottery has to make up the differences and so they take their profits - state money to the tune of $3,137,171 - to pay this one player. They are honoring what they advertise.

Imagine, if the Texas Lottery simply operated within their budget and advertised an amount they could rightfully fund from sales, the state would have MORE money. Perhaps Governor Perry could have offered MORE money to assist in catching these people before MORE harm comes to more innocent people. Perhaps this could reduce security costs and give people peace of mind by seriously enticing people to come forward.

If by chance you are thinking that lottery money is used only for education, remember, lottery money only reduces the amount the state has to put into the school fund. Lottery money is not in addition to the amount budgeted for the schools - lottery money frees up money that WAS intended for the schools budget.

But NO, the Texas Lottery has an ego and that ego has cost the state $70,949,024 JUST since July 31, 2010. Personally, I'd fire any person who cost me this much money when clearly they didn't have to. Sounds like bad judgement calls to me. Anyway, here is a list of the lucky wins who were needlessly but luckily overpaid ...

07/31/10: Deducted <$1,188,788> from School fund or TLC operating account to fund
08/11/10: Deducted <$2,186,208> from School fund or TLC operating account to fund
(8/11/10 Ticket never claimed. How do we know there was a winning ticket?)
08/28/10: Deducted <$2,279,721> from School fund or TLC operating account to fund
09/15/10: Deducted <$2,308,335> from School fund or TLC operating account to fund
10/30/10: Deducted <$2,325,354> from School fund or TLC operating account to fund
12/01/10: Deducted <$2,314,246> from School fund or TLC operating account to fund
12/04/10: Deducted <$2,002,687> from School fund or TLC operating account to fund
03/09/11: Deducted <$322,607> from School fund or TLC operating account to fund
04/20/11: Deducted <$1,676,809> from School fund or TLC operating account to fund
06/15/11: Deducted <$2,460,040> from School fund or TLC operating account to fund
06/22/11: Deducted <$2,204,182> from School fund or TLC operating account to fund
09/07/11: Deducted <$3,571,596> from School fund or TLC operating account to fund
12/10/11: Deducted <$3,955,105> from School fund or TLC operating account to fund
02/15/12: Deducted <$3,724,195> from School fund or TLC operating account to fund
05/12/12: Deducted <$4,179,729> from School fund or TLC operating account to fund
05/12/12: Deducted <$2,531,093> from School fund or TLC operating account to fund
07/28/12: Deducted <$5,950,396> from School fund or TLC operating account to fund
11/07/12: Deducted <$6,870,746> from School fund or TLC operating account to fund
01/05/13: Deducted <$4,867,123> from School fund or TLC operating account to fund
02/20/13: Deducted <$4,719,735> from School fund or TLC operating account to fund
03/16/13: Deducted <$3,665,411> from School fund or TLC operating account to fund
03/20/13: Deducted <$2,507,847> from School fund or TLC operating account to fund
04/03/13: Deducted <$3,137,171> from School fund or TLC operating account to fund

Imagine ... the state so generously gave or paid 23 people an extra $70,949,024 ... but not equally! If I were one of these people, shoot I might be tempted to sue the state for discrimination! <grin>

And folks, these overpayments have been going on for a long time. This is just the "recent" amount!

Change of subject -
With regards to my "investigative" story regarding the missing money, embezzlement, fraud, theft, carefully worded testimony and reports - I am working on it every day without fail. It is a huge story and I want to present you with every TRUE and DOCUMENTED detail - I've interviewed banking instituions, I'm obtaining court documents, records from various agencies and writing and scanning documents for you to see.

At this point, I am in shock at my findings - I'm shocked that certain individuals still have their jobs - and I firmly believe that when I finish - which I hope will be within the next two weeks - that you will wonder the same thing that I wonder. I believe we need an unbiased outside investigation into the failed actions of some executive staff members and I believe the legislature needs to get answers fast.

In a nutshell, the Texas Lottery has needlessly thrown away $70 million (Lotto Texas), $2.8 million (Texas 2 Step), given "merit raises" and promotions where I seriously question the "merits" given, and needlessly lost hundered of thousands of dollars which I plan to show you.

Please bear with me on this story- it is not an easy one to write and I MUST have every detail documented.

Another change of subject - Lotto Texas multi draw feature ...
So many of you are asking me why you can't buy 10 draws at a time. This is because the new rule for Lotto Texas is going to take effect and the game is changing. You will all need to redo your playslips on April 14th IF you chose to play the game. I find it interesting that lottery tickets are advising you to ask your retailer about the changes - I've asked about 10 so far and none knew!!!!! So I was nice and told them so they could answer your questions! This is in spite of a G-Tech rep who spoke very unkindly about me to personell at a store on Centerville - rather than to tell personell about the Lotto changes, they spent their time telling some untruths about me. (Yes, Ramon, you can calll me as I do have a complaint about this rep.)

OK - enough for today. I will be posting my story in the very near future - so watch for it. You all need to see how they work in Austin.

March 15, 2013 - Comments and opinions by Dawn Nettles ...

TLC proposing to increase Pick3 and Daily 4 to 4 draws per day ...

On Feb 20, 2013, the Texas Lottery commissioners approved to propose a rule change to conduct 4 drawings per day for Pick3 and Daily 4. As it was explained to me ... "Summary of the item for Proposed Amendments to the Pick 3 and Daily 4 rules: Staff recommends publishing in the Texas Register for public comment proposed rule amendments to increase the frequency of drawings from 2 per day to 4 per day, and to increase the number of consecutive drawing plays a player may purchase from 12 to 24. Under the proposal, the Executive Director shall determine the start date for these changes, which would be no later than October 13, 2013. The proposal includes a recommended March 20 public hearing to take comment on the proposed changes. The proposed changes to the Pick 3 rule also include deleting some obsolete language."

The rule appeared in the March 8, 2013 edition of the Texas Register but so far, the TLC has not issued a press release plus they've failed to make this substantive rule change highly visible on their web site. Many years ago Commissioner Tom Clowe ordered staff to make game changes highly visible on the agency's website so the public would know that they have a right to speak up. But Commissioners Clowe and Cox are no longer there so the TLC has returned to keeping secrets. And boy, do they ever have secrets!!!

At any rate, they don't want your input - they just want to increase the number of draws per day in hopes that you will lose more money. What's interesting about this change is that they issued a press release regarding Supporting National Problem Gambling Awareness Week while increasing gaming here in Texas so they can make more money. Talk about hypocritical!

Did you know that we currently have 64 draws per week and IF they increase Pick3 and Daily4 to 4 draws per day, then we will have 88 draws per week?

You need to comment ... tell them what you think. Here's how ...
The Commission requests comments on the proposed amendments from any interested person. Comments on the proposed amendments may be submitted to James Person, Assistant General Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at legal.input@lottery.state.tx.us. (NOTE - If you use the email link to send the TLC an email with your Pick3 or Daily 4 input, I included my email address with theirs. Delete my address if you do not want to share your comments with me.) The Commission will hold a public hearing on this proposal at 10:00 a.m. on March 20, 2013, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal in order to be considered.

Just a little bit about the failure to reconcile the prize payment account - this is an unbelievable story.
I am working on this story and I will have it posted - complete with all the glory details which include discrepancies, embezzlement, fraud, not to mention the fact that it appears to me that the TLC bent over backwards to keep this quiet. At least, it's my opinion - based on the timeline of events - they intended this to be kept secret. You can be the judge when you see why I say what I do.

So that you know just a little bit ...
TLC staff, in a carefully worded presentation, provided details to the Commissioners on Nov 8, 2012. But most of you didn't have access to the testimony because you couldn't open the transcript because it was in a pdf format that older computers couldn't open.

However, after much ADO, the file format was changed so you can read it now. This was also the meeting where the TLC proposed a change for Lotto Texas. If you go read the transcript, please note the commissioners just listen to staff's request to change Lotto Texas and ask very little.

Not only did they not post the transcript in a user friendly format but the TLC also refused to post the investigative Audit Report regarding the failure to reconcile the prize payment bank account.

Again after much ADO, the Audit Report has been posted for all to read. (The "much ADO" means that I had to contact legislators to get results)

At any rate, the failure to reconcile the Prize Payment account resulted in the loss of hundreds of thousands of dollars. It was revealed when the State Auditors office received a complaint in Nov 2010. The complaint read ...

Complaint Received by State Auditors Office on November 4, 2010

I have been told by staff in the Office of the ·Controller at the Lottery that they have lost $600,000 during their change of accounts. They had scheduled to change accounts 09/01/2009. But due to whatever, as they would not explain it to anyone, they did not do it until 09/01/2010 - the amount of fraud being done by outside people to the lottery was such that we needed to change bank accounts - however, the OC [Office of Comptroller within Texas Lottery] took so long in doing so that a great deal of fraud continued.

And I am now being told that they are ·missing $600,000.·These are the people who get merits ·every 8 months, 5% plus once a year get a one-time bonus ·($1500 to $2500) no one but the Directors (Kathy Pyka) direct contacts. Her lower workers do not get merits at all and they lost no money.

No one else in the TLC get merits like ·this and now the merits are being frozen (as of Jan. 1, 2011). You can bet OC Director Kathy Pyka will make sure her direct contacts all get merits in the month of ·December. Yet, they will still not answer the $600,000 or the waste of money due to their not changing accounts in a timely manner.

Also their second in command, Ben ·Navarro, was recently disciplined for lying to his employees, telling them the lottery does not get merits ever (this was before the merit freeze) while meantime ·all the top dogs in the OC were getting them more than ·once a year (including Ben Navarro who was caught in more than just that lie and is in charge of the Lottery funds).

"This worries me in that the people in charge of money for the school fund are not being very fiscal responsible and may be embezzling money asks how do you lose $600,000? Where do you find money to give that many merits and bonus when no one else in the agency has that kind of money?

Do an open records request on any of these things with the lottery OC divisions and you will see.

(I believe the author of this complaint purposely wrote it in the manner it's written in as an attempt to hide his/her identity - also, I've confirmed most of what is written)

Complete details are forthcoming ... so that you know, I'm having difficulty obtaining all documents needed to complete my story. But it's coming very, very soon. Do know though, NO ONE HAS BEEN HELD ACCOUNTABLE for the losses that started in 2006! Stay tuned ....


 

Continued....click here

 

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The Lotto Report
Dawn Nettles
P. O. Box 495033
Garland, Texas 75049-5033
(972) 686-0660
(972) 681-1048 Fax