Pennsylvania Auditor General Eugene DePasquale is planning a performance audit of the state lottery, focusing on repeat winners, and on the state’s efforts to prevent fraud by winners and lottery retailers.
The audit is partially a reaction to a series of recent news stories across the country detailing so-called “high-volume lottery winners.” Among the stories was one detailing a Boston-area resident who bought $10.8 million worth of winning tickets at a discount from other players so the winners wouldn’t have to pay taxes. According to the story, the scheme was carried out with the complicity of lottery retailers who sold the tickets.
“When this issue first surfaced several years ago, I warned that I would be monitoring the situation,” DePasquale told PlayPennsylvania.com. “Some lotteries have taken major steps to crack down on suspected fraudulent claims, and I want to ensure that the Pennsylvania Lottery is doing everything possible to prevent and stop any fraud.”
Government officials in Pennsylvania, of course, are particularly sensitive to the subject of lottery fraud, in light of the famous 1980 scandal in which balls were weighted to virtually ensure that “666” would be the winning combination. A lottery official and the host of the lottery drawing, longtime local broadcaster Nick Perry, were subsequently convicted and sent to prison after discovery of the scam.
“My goal is to protect older adults who rely on lottery-funded programs,” DePasquale said. “If players or retailers are committing fraud, the Pennsylvania Lottery has an obligation to catch them and take action to protect the integrity of the Lottery Fund.”
