The Kansas Attorney General’s Office has reached settlement agreements with two people accused of submitting false or fraudulent payment claims to the Kansas Lottery after purchases in 2010, including tickets bought in Emporia.
Attorney General Derek Schmidt had filed suit against Eddie Tipton, Amy Demoney and Christopher McCoulskey, alleging Tipton — at one time a computer security official with the Multi-State Lottery Association — had manipulated the multi-state lottery software system and purchased rigged lottery tickets from gas stations here and in Overland Park. He then gave those tickets to Demoney and McCoulskey. They submitted those tickets in 2011 and were paid over $44,000. They then gave part of their winnings to Tipton.
As part of the settlement, Demoney now has to pay nearly $15,000 in damages, civil penalties, costs and attorney fees. McCoulskey’s repayment amount is nearly $14,000.
Tipton, meanwhile, has agreed to repay funds collected from the Kansas Lottery as part of a plea agreement in a separate case involving software manipulation in Iowa and Wisconsin. Tipton is currently in prison for that case. Schmidt also has a false claims lawsuit underway against Tipton.
