Something odd about these lottery winners in Connecticut

[gristy]

After reading the NY Times article, I couldn't figure out why 3 investment bankers are "sharing" the winnings from a $1 investment. The article states that "The three men made — or rather, multiplied — their fortunes with a single $1 ticket purchased at a gas station in neighboring Stamford, a Connecticut Lottery spokeswoman said. Mr. Davidson bought the ticket on Nov. 1, using the “pick six” option..."

What, they pooled their money and sent the one guy off to the gas station to buy a ticket? Ridiculous, I thought to myself...

http://dealbook.nytimes.com/2011/11/28/connecticut-asset-managers-win-254-million-powerball-lottery/?ref=business

So then googling the story, I see this:

Friend claims Greenwich trio is fronting for real Powerball winner
<snip>
Tom Gladstone, a Greenwich resident and family friend of lottery winner Brandon Lacoff, said Tuesday morning that Lacoff -- who claimed credit for the ticket along with colleagues Greg Skidmore and Tim Davidson of Greenwich-based Belpointe LLC -- told him that the trio did not purchase the ticket, but are fronting for the winner in order to keep the press and others off the real winner's back.

"I called him last night and said, `Brandon, I saw you on Friday and you did not tell me that you won the lottery.' He said, `we are just representing the guy,'" said Gladstone, whose account of the events was first reported Tuesday morning by the Daily Mail of London.
<snip>

http://www.stamfordadvocate.com/local/article/Friend-claims-Greenwich-trio-is-fronting-for-real-2301798.php

So there's more to this story. It'll be interesting to see where it goes.

[ProdigalJunkMail]

1. sounds like someone committing fraud to hide where the assets are going

and if i am not mistaken, in MOST states, the actual winner's name and address have to be properly recorded...

sP

[Tom Ripley]

28. +1 (n/t)

[joeybee12]

2. Can't say I blame the real winner...he will be hounded by everyone,

especially long-lost "relatives" when his anme becomes public.

[BlueIris]

10. Yeah, really. People hate lottery winners.

There are some sad stories out there, including people murdered for their prize winnings. Another interesting outcome of "sudden money" recipients is that their jobs often get taken away--employers assume they don't need to work anymore, and give their jobs to people perceived to be more deserving of them.

[Blue_Tires]

3. I asked the same questions in LBN

Yes, there is more to this story, but I don't think we'll ever know what really happened..

[NeedleCast]

4. If That's The Real Story, Its Pretty Smart

If I hit a big lottery jackpot the only people I'd tell is my fiance and probably my parents.

[ProdigalJunkMail]

5. but the thing is, by law in most states, you HAVE to give YOUR name

and YOUR town of residence. it is to prevent fraud...i think you can claim anonymously in Delaware. everywhere else i think you have to give name and town...

sP

[NeedleCast]

7. Haven't Really Followed The Story

Is it possible that the actual winner (assuming story posted in OP is true) did that, and then hired/enlisted help from other people to claim they won instead?

[ProdigalJunkMail]

9. i don't know either

i do know you CAN have someone claim for you (I would rather die than be in that media hubbub) but YOUR info is required somewhere along the line and it seems from what i have heard that these guys were claiming it was theirs...

sP

[jberryhill]

11. A winning lottery ticket is a bearer instrument

In other words, it belongs to whomever is holding it, just like a dollar bill.

I don't see a problem, at all, of contractually engaging an agent for the purpose of cashing it.

At the back end, the ultimate beneficiary is going to be responsible for taxes etc., and that can all be addressed in the contract.

I'd be shocked if someone couldn't have an attorney cash it on their behalf.

Whomever shows up with ticket in hand should be able to cash it, regardless of whether they have private contractual arrangements with someone else.

Maybe I'm wrong, but there is no "owner" of a lottery ticket other than the person whose grubby mitt it is in.

[ProdigalJunkMail]

12. yes, you can have someone appear and collect on your behalf

but YOUR name and town of residence has to be recorded as the ultimate winner. the problem arose in the past when 'lotteries' would be held and friends of the the organizer would 'win' and then have the prize claimed anonymously...

sP

[jberryhill]

16. That seems really hard to enforce

You "win" the lottery.

You set up "Lottery Cashing Inc." as a DE corporation with yourself as sole private shareholder and sell the ticket for one dollar to Lottery Cashing Inc.

Lottery Cashing Inc. then goes and cashes the ticket.

[ProdigalJunkMail]

20. then why does ANYONE ever claim a lottery?

it would be phenomenally stupid to claim a lottery win if you didn't have to. also, in the scenario you give, the person is still 'receiving' the lottery win as the shareholder. as long as there is a person or people attached to the win, you have likely met the requirements.

From the Powerball Website :

CAN I REMAIN ANONYMOUS WHEN I HIT THE JACKPOT?
All but five states (DE, KS, MD, ND, OH) have laws that require the lottery to release the name and city of residence to anyone who asks. Other states may offer to assist you in some way, including such things as the creation of trusts. But generally, you may wish to hire an attorney to review the laws in your state to see what options you might have. Photos and press conferences are up to you for most, but not all states. Check with your state lottery to see if photos or more are required. Most of the time, it is advisable to get it over with the press so that you don't have one or more reporters following you around to get that "exclusive" interview.

sP

[AngryAmish]

23. But if you agree to give it to someone and they agree to hold it then it is a bailment.

They are holding it for you. Moving company has my furniture but they are not allowed to sell it.

[jberryhill]

25. I'm thinking more of a beneficial trust

[JohnnyRingo]

14. I thought about that too.

Maybe since the ticket is like cash, the real winner took an amazing leap of faith by handing it over to the trio to cash in as their own. In this case the winner is the three investment brokers, not Mr X. What the brokers do with the lump sum cash settlement is up to them.

Unless there's a written agreement, which may complicate the matter of who "won", that's an astounding level of trust in a trio of money sharks. Of course their compensation will be incentive to honor the agreement.

I imagine it'll be comforting to the real winner that he won't have to suffer the endless pleas for charity and scams. I think this is probably the only way to remain anonymous (for the time being).

[jberryhill]

17. "that's an astounding level of trust"

There are people whose business it is to be trustworthy.

The most extreme asset protection strategies involve handing over all of your assets to some guy in the Channel Islands whose job it is to hold them as trustee. This is done with a lot more than $200 million, all of the time.

[krispos42]

18. Yeah, but does that information become public?

I understand that I'd have to provide name, address, and SSN for tax purposes. But does the fact that I won mean the public has to know?

[ProdigalJunkMail]

21. per the powerball website

CAN I REMAIN ANONYMOUS WHEN I HIT THE JACKPOT?
All but five states (DE, KS, MD, ND, OH) have laws that require the lottery to release the name and city of residence to anyone who asks. Other states may offer to assist you in some way, including such things as the creation of trusts. But generally, you may wish to hire an attorney to review the laws in your state to see what options you might have. Photos and press conferences are up to you for most, but not all states. Check with your state lottery to see if photos or more are required. Most of the time, it is advisable to get it over with the press so that you don't have one or more reporters following you around to get that "exclusive" interview.

sP

[krispos42]

29. Ah, okay

And since I'm not in the phone book and my name is reasonably common (first and last; thanks, Mom) I'm all set for when I win. :D

[ProdigalJunkMail]

30. I would change my name to Michael Smith...

and then I could blend in anywhere :-)

sP

[BiggJawn]

24. Indiana used to make "Celebrities" out of winners

Press conference with the 4X8 foot cardboard cheque and everything. I don't know if they still do that I don't keep up on gossip.

I always thought "Great, I'd have to move and get an unlisted everything and a LONG driveway with mean dogs..."

[itsrobert]

6. Maybe the winner is in legal trouble or doesn't want to share with spouse?

Maybe the winner is trying to hide his/her new assets to keep it away from a spouse/partner, etc or the person is being sued, etc or owes/or process of bankruptcy etc........etc....etc

[DCKit]

15. Clearly, it's Rep. Joe Walsh - $100K in back child support owed.

Maybe it's some other "Fambily Values" Republic.

[Speck Tater]

8. I knew a real lottery winner. As for being hounded...

she was bothered by unwanted solicitations for a month or two. Then the whole thing blew over and was forgotten. She said another lottery winner she met solved the problem by moving to a nearby city (about 30 miles away) and staying there for six months before moving back home after all the fuss had blown over.

[GreatCaesarsGhost]

13. How do they kick the money back to the real winner?

They could just tell him/her to buzz off.

[Uncle Joe]

19. By contract and probably minus their commission. n/t

[Juneboarder]

22. I've played the lottery before with coworkers

Usually when the jackpot is really high. Those that want to pitch in, pitch in and one person goes to the local convenience store and gets the ticket or tickets depending on money collected. I don't see what's so odd about that?

[frylock]

26. you probably contribute 5 or 10 dollars and buy a block of tickets..

the way this was presented, each of these guys would've ponied up 33.3 cents.

[Juneboarder]

27. Maybe they were short on money??

I don't know; doesn't seem like an issue worth debating really when one considers the plight of our economy and the looting of the 99% by the 1%.