Texas Lottery
Where Is The Missing Money?
Was this the PERFECT Crime?
Was it embezzlement? Fraud? Theft?
Or Sheer Incompetence?

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brought to you by
The Lotto Report

Originally Posted: August 1, 2013
Revised: April 6, 2014



The Most Incredible & Unbelievable Story ...

A 10 Part Series ... Lotto Report Investigates ...



 

Editorials and opinions by Dawn Nettles
Publisher, The Lotto Report



Links will be active on the date the story is posted.

- Part One -
8/1/13 - Laying the foundation to an incredible story.
Click here

- Part Two -
8/4/13 - BUSTED! - A Complaint exposes the best
kept Texas Lottery secret. Mr. Grief did plenty in
attempts to keep the contents of the Complaint from
being readily accessible to all. Was the Internal Auditor,
Catherine Melvin, bullied and intimidated into lying
by ommission in the cover letter? While Ms.
Melvin takes a harsh bashing from me in Part 2,
in the end, she's the "resigned" HERO.
Click here.

- Part Three -
Gary Grief, Kathy Pyka & Benito (Ben) Navarro
- Guilty, Guilty, Guilty
-
8/7/13 - In Part 3, we will be evaluating the official report
instigated from the Complaint. The Internal Auditors findings
are remarkably TRUE and REVEALING. The final report
exposes dereliction of duty - inexcusable faults and failures
by Texas Lottery executive management yet this same
report is evasive, deceiving, and alluding. Intriguing!
One can't help but wonder IF the Internal Auditor
was really fired for reporting her true findings.
Click here.

- Part Four -
Gary Grief, Kathy Pyka & Benito (Ben) Navarro
- Guilty, Guilty, Guilty -

8/13/13 - A continuation of Part 3 - evaluating the official
report. But we will begin showing how the report
is inconclusive, deceiving, & alluding as well.
There's extensive coverage regarding the validity
of the fraudulent activity that was confirmed as
alleged in the Complaint. Unbelievable behavior!
Was the Internal Auditor, Ms. Catherine Melvin,
bullied and intimidated into non-disclosure?
Click here

8/16/13 - Chairman Mary Ann Williamson resigns

- Part Five -
08/20/13 - In part, it exposes and in some cases, disputes
Executive management's claims and excuses for
failing to perform their jobs. I am re-arranging the order
as I originally told you we would cover the Nov 8, 2012
Commission meeting testimony in Part 5. I feel it is
imperative that you see some other things first.
You should find Part 5 amusing to say the least!
Click here

- A Short Interruption in the
Scheduled Posting Date For Part Six -

8/21/13: I am forced to postpone the scheduled
posting of Part 6 by several days due to a
death in the family, a scheduled surgery and
new developments. But you can rest assured,
it will be posted and it will be worth the wait.
Since I'm posting this message - let me take
this opportunity to thank all of you for your
comments. They mean more to me than
you will ever know.

Sunday, Oct 13, 2013 - Major Press
Coverage on the Missing Money

Austin American Statesman
ran a huge front
page story about the fraudulent activity that the
Texas Lottery failed to catch. It was an awesome
story and one that I feel all of you should read.
Here is a link to the story. Extremely revealing!
Click here to read.

- Part Six -
Oct 22, 2013
In Part 6, we're going to look at the protocol for
handling uncashed prize checks. You will see indisputable
proof that the Texas Lottery knowingly and intentionally
kept "abandoned prize monies." A violation of statutes.
Busted Again! I really can't help but wonder how much
in uncashed checks was used to reduce the shortage. You
should know, "uncashed checks" is "abandoned money"
that is supposed to be turned over to the Comptroller.
Understand debt deductions from your prize winnings
and read an unbelievable Waco winners story.
Click here

March 11, 2014 - Mary Ann Williamson re-appointed
to the Texas Lottery Commission. She resigned from the
Water Commission in Jan 2014.

- Part Seven -
Part 7 - A complaint was received in Nov 2010 ...
An investigation ensued ... The first report was actually
completed in Dec 2011 but the TLC wouldn't/didn't
release that report until they could "edit" or "revise" it.
It took them a whole year to release a FINAL report
which is what we've been covering all this time. But.
in Part 7, we're comparing the two reports. Gee, it's
amazing how facts change over time! <grin>
Click here

- Part Eight -
Part 8 - Posted April 6, 2014
In 2008, Commissioner Krause sued the IRS to get a
refund of interest and penalties he had paid for a disallowed
deduction and income. The disallowed deduction was that
he bought Canadian dollars for $20K but claimed he paid
$2.8 million for them. Then he tried to show a loss of
<$2.7 miilion>. He sold the Canadian dollars for $19.5K.
A 5th Circuit of Appeals quote ... "Krause's Tax
Chicanery
" Needless to say, he lost both lawsuits.
A very interesting and telling story about the man
who Chairs our Lottery. Also of interest, Krause
omitted his lawsuit information when he completed
his 2009 Governor's Appointment Application too.
Click here

- Part Nine -
Tentative date - April 26, 2014
A close look at the testimony during
Texas Lottery Commission meeting.
Very telling in itself.

- Part Ten -
- Date to be announced -
We'll finally cover the allegations that those who were
in charge, specifically - management personnel - kept
their jobs receiving promotions and merit raises
even though they failed to comply with statutes,
policies and procedures. We'll carefully review the
Nov 8, 2012 Commission meeting. This was THE
day the Texas Lottery staff told the Commissioners
what was going on. Evasive and confusing to
say the least.
Click here

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Texas Lottery Commissioners
Chair Winston Krause (Appointed March 2009)
Jodie Baggett (Appointed Sept 2013)
Katie Stavinoha (Appointed Sept 2013)
John W Townes (Appointed Dec 2013)
Mary Ann Williamson (Resigned 8/16/13 Re-appointed 3/11/14)

Commissioner Veronica Edwards (Resigned 2/13/14 - Effective 3/31/14)


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In Dedication To ...
The MANY outstanding, honest and hard working
Texas Lottery employees - both current and former -
who have shown real integrity in light of extreme
adversity. Knowing that you know right from wrong
and what's appropriate and not appropriate
behavior and actions is truly appreciated.
May your workplace enviornment improve
as a direct result of this investigative story.

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Below are links to the documents I will
be referencing throughout this series.

You may want to see and/or print
the official report. If so, here's a pdf.

The Nov 8, 2012 Commission meeting
testimony is posted on a page here
on my website so you can
reference it at any time.

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Email

Texas Lotto Report
(All About the Texas Lottery)

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