Powerball Winner Now Broke

[MylesKnight]

$113 Mill, gone. Damn.


http://news.yahoo.com/s/ap/20070112/...inner_problems

CHARLESTON, W.Va. - A man beset by problems since winning a record lottery jackpot says he can't pay a settlement to a casino worker because thieves cleaned out his bank accounts.
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Powerball winner Jack Whittaker gave that explanation in a note last fall to a lawyer for Kitti French, who accused him of assaulting her at the Tri-State Racetrack and Gaming Center, a slots-only casino near Charleston, according to a motion French's lawyer filed this week demanding payment of the confidential settlement.

Whittaker won a nearly $315 million on Christmas 2002, then the largest undivided lottery prize in U.S. history. He took his winnings in a lump sum of $113 million after taxes.

Since then, he has faced his granddaughter's death by drug overdose; he has been sued for bouncing checks at Atlantic City, N.J., casinos; he has been ordered to undergo rehab after being arrested on drunken driving charges; his vehicles and business have been burglarized; and he has been sued by the father of an 18-year-old boy, a friend of his granddaughter's, who was found dead in Whittaker's house.

In the latest lawsuit, Whittaker told French's lawyer, John Barrett, that "a team of crooks" cashed checks in September at 12 City National Bank branches and "got all my money," according to the motion Barrett filed Wednesday in state court.

"I intend to pay but can't without any money," Whittaker wrote, according to the motion.

An official with City National Bank said Friday the bank is investigating "small discrepancies" in Whittaker's accounts.

Calls to Whittaker and his lawyers Friday were not immediately returned.

[Lorena]

113 million dollars gone in 4 years? Jeez, what'd I'd give to have just a tiny, minuscule chunk of that to get rid of our debt.

Unbelievable.

[Fidatelo]

Winning the lottery can often be one of the worst things that can happen to someone.

[JPhillips]

Every time I drive past the Pink Pony on the way to my in-laws I think of how that guy carried $100,000 in cash to a strip club in Nitro, WV.

This guy would have ended up in debt regardless. As it was he got to blow 113 million on the way there.

[KevinNU7]

Originally Posted by Fidatelo

Winning the lottery can often be one of the worst things that can happen to someone.

This is a dumb statement that I hear all the time. Winning the lottery is bad for these people because they were morons before they ever even bought the ticket

[EagleFan]

Originally Posted by Fidatelo

Winning the lottery can often be one of the worst things that can happen to someone.

No, it can be the worst thing to happen to someone who has no clue how to handle it. That idiot brought it all on himself (other than the death of the granddaughter). Bounced checks? How the hell do you bounce a check with 113 million in the bank? Other than writing one out for 113,000,001....

Maybe they need to test these idiots that buy the tickets to see if they really have a clue. Setup a trust fund for my daughters, setup and account for their education, some cash gifts to immediate family members (dependant upon the amount won), setup a diversified account to be able to live on the interest and retire.

Other things that would depend on amount would be things like getting a house and a car, setting up a scholarship fund for the school that I went to and then setting up some sort of charity fund. Seems like it's pretty easy, just need to have an idea ahead of time what to expect.

[Subby]

I am pretty sure that kind of money would probably ruin almost everyone on this board.

[NoMyths]

Originally Posted by EagleFan

Maybe they need to test these idiots that buy the tickets to see if they really have a clue. Setup a trust fund for my daughters, setup and account for their education, some cash gifts to immediate family members (dependant upon the amount won), setup a versified account to be able to live on the interest and retire.

How much poetry should one generate for their versified accounts, and is this a job market I should be exploring?

Alternately: perhaps one should be more certain of the specifics of one's financial planning before hauling out the "test these idiots" flamethrower.

[stevew]

If this guy had just listened to WrongWay, and taken the installment payments, he would still have money.

[Lorena]

The guy has a page on wikipedia, one of the quotes: Whittaker told a TV station after he was charged with drunken driving, "It doesn't bother me because I can tell everyone to kiss off."

Sounds like he had it coming, class act there Whittaker.

Wikipedia page: http://en.wikipedia.org/wiki/Jack_Wh...lottery_winner)

[Draft Dodger]

Originally Posted by Subby

I am pretty sure that kind of money would probably ruin almost everyone on this board.

you are correct

[JimmyWint]

Why would you continue to gamble after you win that much money! There is no way you could ever win a jackpot close to that amount. I would hire a few personal assistants and live off the interest.

[JonInMiddleGA]

Originally Posted by Subby

I am pretty sure that kind of money would probably ruin almost everyone on this board.

And yet I bet I'm not anywhere near alone in saying that I would willingly, nay, even gleefully, take that risk.

[MylesKnight]

Check out this paragraph (from Wikipedia)...


On August 5, 2003, thieves broke into his car while it was parked at the Pink Pony, a strip club in Cross Lanes, West Virginia. The thieves went away with $545,000 in cash [1][2]. Two employees at the same club were later arrested and charged with a plot to put drugs in Whittaker's drinks and then rob him. On January 25, 2004, thieves once again broke into his car, this time making off with an estimated $100,000 in cash.

[Klinglerware]

I think a big problem is the publicity--the nature of collecting on a big prize like that is very public. Everyone knows you now have money, and that makes you a target. Average joe schmo is probably less able to adjust to that then your typical wealthy celeb (who probably have people in place to help keep the great unwashed masses at arms length)...

[st.cronin]

Originally Posted by Klinglerware

I think a big problem is the publicity--the nature of collecting on a big prize like that is very public.

I agree. I think I read somewhere that it's virtually impossible to collect one of these prizes anonymously. I don't know how you would go about protecting yourself from predators.

[BrianD]

This guy sounds pretty dumb if he was carrying around that much cash. With all of the stories about lottery winners losing all of their money, you would think people would throw all of the money in an account they couldn't touch and just live off of the interest for a while. Having that much money is a major adjustment and people should work into that slowly.

[bulletsponge]

Originally Posted by Subby

I am pretty sure that kind of money would probably ruin almost everyone on this board.

it wouldnt ruin me, probaby because im a simple man who hates shoping for anything. id just put it somewhere safe (not my freaking car!) invest part of it and pay off bills.


BTW Subby in your sig, its the Invisable man, not invincable

[jeff061]

Some of these winners get a lawyer, an accountant and a plan before even acknowledging they won. That's what I'd do, take my irresponsible self out of the equation.

[cartman]

Originally Posted by Subby

I am pretty sure that kind of money would probably ruin almost everyone on this board.

Actually, I'm working on my second $113 million. I gave up on the first $113 million.

[cartman]

Originally Posted by st.cronin

I agree. I think I read somewhere that it's virtually impossible to collect one of these prizes anonymously. I don't know how you would go about protecting yourself from predators.

It's not impossible to do if you take a little time before cashing the ticket in. You can set up a corporation that "owns' the ticket and then go from there to obscure who actually has the money. If you set it up correctly, the taxes for the corporation might actually be cheaper than the personal taxes.

[JonInMiddleGA]

Originally Posted by jeff061

Some of these winners get a lawyer, an accountant and a plan before even acknowledging they won. That's what I'd do, take my irresponsible self out of the equation.

All of that, and then some, has been included in my contingency planning for years.

Call #1 -- to my financial adviser/planner
Call #2 -- to a friend in the personal security business
Call #3 -- to my attorneys
Call #4 -- to a travel agent

[st.cronin]

Originally Posted by cartman

It's not impossible to do if you take a little time before cashing the ticket in. You can set up a corporation that "owns' the ticket and then go from there to obscure who actually has the money. If you set it up correctly, the taxes for the corporation might actually be cheaper than the personal taxes.

Yeah, there was a winner in New Mexico who tried to do that, but his name was still in the paper. I'm not sure why.

[molson]

This happens surprisingly often. If you spend like you have unlimited money, I imagine it's pretty easy to burn through $113 million.

[JPhillips]

This guy wasn't at all trying to stay anonymous. By all accounts he relished the high roller lifestyle. He quite willingly and knowingly threw away millions. I guarantee there were nights of debauchery the likes of which were never before seen in Nitro.

I wish this guy were smarter and I really wish he hadn't been robbed, but the biggest problem he had was that he just wasn't very bright. If you're stupid before you win the lottery chances are you'll be stupid afterward.

[molson]

I knew someone who inherited some money, and then hid about $100k in cash in a backyard after being sued in some kind of wrongful death lawsuit. I wonder if this guy is being completely truthful.

[Subby]

Originally Posted by bulletsponge

BTW Subby in your sig, its the Invisable man, not invincable

Hey, thanks.

[Raiders Army]

Originally Posted by st.cronin

Yeah, there was a winner in New Mexico who tried to do that, but his name was still in the paper. I'm not sure why.

I believe it's a trend now to do this. As it was said above, there are certain tax advantages to this:


On behalf of the Kenneth Donnell Trust, Graham’s Kenneth Donnell claimed the top prize – $5,000 per week for 20 years – in the Set For Life scratch-off game on October 30, 2006.

[stevew]

Originally Posted by JonInMiddleGA

All of that, and then some, has been included in my contingency planning for years.

Call #1 -- to my financial adviser/planner
Call #2 -- to a friend in the personal security business
Call #3 -- to my attorneys
Call #4 -- to a travel agent

I'm not quite that detailed, but I'm at least on step #1, which would be contacting an accountant whom I trust. I figure the worst sort of initial calls would be to friends/extended family members and tell them the good news. Which invariably would lead to some problems quickly. I would probably set up the shell corporation as anonymity would be key.

[cartman]

I've already got a couple of names picked out for the entity that will claim the lottery winnings on my behalf. It'll either be G.F.Y. or S.T.F.U. & G.B.T.W.

[Young Drachma]

I'm sure Wyoming will cite this again in the current legislative session as more ammunition against allowing a lottery here or refusing to let people play Powerball in Wyoming, saying that "if they want to cross the border, let 'em". Of course, there is no open container law and conceal carry is perfectly okay too with a permit.

Aah, yes. Priorities.

[Young Drachma]

Originally Posted by JonInMiddleGA

And yet I bet I'm not anywhere near alone in saying that I would willingly, nay, even gleefully, take that risk.

Word.

[QuikSand]

Originally Posted by bulletsponge

BTW Subby in your sig, its the Invisable man, not invincable

Originally Posted by Subby

Hey, thanks.

I am pretty much doubling over at this exchange.

[duckman]

Originally Posted by Raiders Army

I believe it's a trend now to do this. As it was said above, there are certain tax advantages to this:


On behalf of the Kenneth Donnell Trust, Graham’s Kenneth Donnell claimed the top prize – $5,000 per week for 20 years – in the Set For Life scratch-off game on October 30, 2006.

This is exactly what a person did in Oklahoma when he/she won $119 million prize. It didn't mentioned the name of the person only the name of the trust.

[JHandley]

I've been wondering about something. The people who have detailed plans about what they'd do after winning $100M in the lottery, how many tickets do you buy annually?

The reason I'm asking is, I've always assumed that people who know tax law, how to set up a corporation, how to set up a trust, have an accountant, have a lawyer, etc, were too smart to put too much money into lotteries because they knew their chances of winning. Therefore, the next assumption was that people who actually did win have very little idea of how to handle finances and money to begin with. Just because you have more money, doesn't mean you handle it any better. It just means you're allowed to write bigger checks.

I think this is why you see a high percentage of lottery winners still end up with financial problems.

[panerd]

Originally Posted by EagleFan

Maybe they need to test these idiots that buy the tickets to see if they really have a clue.

Who is it that you think actually plays the lottery? Sure all of us dabble a dollar or two here and there but who do you think the lottery preys on? I will give you a hint... they probably have never passed a statistics class (probably not even Algebra I)

[cartman]

Originally Posted by JHandley

I've been wondering about something. The people who have detailed plans about what they'd do after winning $100M in the lottery, how many tickets do you buy annually?

The reason I'm asking is, I've always assumed that people who know tax law, how to set up a corporation, how to set up a trust, have an accountant, have a lawyer, etc, were too smart to put too much money into lotteries because they knew their chances of winning. Therefore, the next assumption was that people who actually did win have very little idea of how to handle finances and money to begin with. Just because you have more money, doesn't mean you handle it any better. It just means you're allowed to write bigger checks.

I think this is why you see a high percentage of lottery winners still end up with financial problems.

I buy $5 worth each time the amount goes above $30 million. I consider it as another investment, and put it in the "ultra high risk" investment pool.

[Icy]

Originally Posted by cartman

I've already got a couple of names picked out for the entity that will claim the lottery winnings on my behalf. It'll either be G.F.Y. or S.T.F.U. & G.B.T.W.

Sorry but GFY is already taken, gfy.com is the biggest adult webmasters board

[molson]

Originally Posted by JHandley

I've been wondering about something. The people who have detailed plans about what they'd do after winning $100M in the lottery, how many tickets do you buy annually?

The reason I'm asking is, I've always assumed that people who know tax law, how to set up a corporation, how to set up a trust, have an accountant, have a lawyer, etc, were too smart to put too much money into lotteries because they knew their chances of winning. Therefore, the next assumption was that people who actually did win have very little idea of how to handle finances and money to begin with. Just because you have more money, doesn't mean you handle it any better. It just means you're allowed to write bigger checks.

I think this is why you see a high percentage of lottery winners still end up with financial problems.

Fair enough, but I think responsible people look at the lottery like a casino or sports gambling. They aren't investments, they're an amusing diversion that, even if one doesn't win, have a monetary entertainment value in their own right.

[EagleFan]

I put very little into lotteries, I could probably count the number of times I play in any given year on one hand. But I still have a contingency plan just in case, and yes call number one is to a financial planner. As tempting as it would be, I would not even collect until all my ducks were in line. Hell, I wouldn't even leave my job until everything was ready (actully, I would have fun with that ).

[KevinNU7]

Seriously folks, it is impossible to lose this kind of money of you have any level of intelligence

Prize	%		Per Day	Per Week	Per Month	Yearly Interest
113,000,000	1%		3,096	21,731	94,167	1,130,000
113,000,000	2%		6,192	43,462	188,333	2,260,000
113,000,000	3%		9,288	65,192	282,500	3,390,000
113,000,000	4%		12,384	86,923	376,667	4,520,000
113,000,000	5%		15,479	108,654	470,833	5,650,000
113,000,000	6%		18,575	130,385	565,000	6,780,000
113,000,000	7%		21,671	152,115	659,167	7,910,000
113,000,000	8%		24,767	173,846	753,333	9,040,000
113,000,000	9%		27,863	195,577	847,500	10,170,000
113,000,000	10%		30,959	217,308	941,667	11,300,000

At 5% Interest (Which is pretty conservative) you are getting $470,000 per month in interest! Wait a month or two to do anything with your money and suddenly you are making major purchases without even touching the $113M you started with.

[KevinNU7]

And if anyone is curious here is the chart at "only" $5M and $2M where you still earn $250,000 and $100,000 at 5%.

I think $250,000 per year is where my wife and I would say SEE YA to work.

Prize	%		Per Day	Per Week	Per Month	Yearly Interest
5,000,000	1%		137	962	4,167	50,000
5,000,000	2%		274	1,923	8,333	100,000
5,000,000	3%		411	2,885	12,500	150,000
5,000,000	4%		548	3,846	16,667	200,000
5,000,000	5%		685	4,808	20,833	250,000
5,000,000	6%		822	5,769	25,000	300,000
5,000,000	7%		959	6,731	29,167	350,000
5,000,000	8%		1,096	7,692	33,333	400,000
5,000,000	9%		1,233	8,654	37,500	450,000
5,000,000	10%		1,370	9,615	41,667	500,000

Prize	%		Per Day	Per Week	Per Month	Yearly Interest
2,000,000	1%		55	385	1,667	20,000
2,000,000	2%		110	769	3,333	40,000
2,000,000	3%		164	1,154	5,000	60,000
2,000,000	4%		219	1,538	6,667	80,000
2,000,000	5%		274	1,923	8,333	100,000
2,000,000	6%		329	2,308	10,000	120,000
2,000,000	7%		384	2,692	11,667	140,000
2,000,000	8%		438	3,077	13,333	160,000
2,000,000	9%		493	3,462	15,000	180,000
2,000,000	10%		548	3,846	16,667	200,000

[st.cronin]

Originally Posted by KevinNU7

Seriously folks, it is impossible to lose this kind of money of you have any level of intelligence



At 5% Interest (Which is pretty conservative) you are getting $470,000 per month in interest! Wait a month or two to do anything with your money and suddenly you are making major purchases without even touching the $113M you started with.

There is no way I could spend 470,000 a month. Maybe when I was in my early 20s, I could have spent 1/10 of that, but not now.

[Fidatelo]

Originally Posted by cartman

I buy $5 worth each time the amount goes above $30 million. I consider it as another investment, and put it in the "ultra high risk" investment pool.

I've never understood this logic (of buying tickets only when it goes above x-million dollars). Is 28mil not enough? The more it goes up, the lower your odds of winning, or especially getting a 'clean win' (no tiesies).

Maybe someone can show some math on this, but I'd guess that if you took that 5 bucks and used it at a lower point in the lotto trajectory (like shortly after it has reset to whatever it's low-value is), your projected ROI would probably be higher.

[Fighter of Foo]

Feeling philosophical today...

"Only the man who does not need it, is fit to inherit wealth— the man who would make his own fortune no matter where he started. If an heir is equal to his money, it serves him; if not, it destroys him. But you look on and you cry that money corrupted him. Did it? Or did he corrupt his money? Do not envy a worthless heir; his wealth is not yours and you would have done no better with it. Do not think that it should have been distributed among you; loading the world with fifty parasites instead of one, would not bring back the dead virtue which was the fortune. Money is a living power that dies without its root. Money will not serve that mind that cannot match it."

Ayn Rand - Atlas Shrugged

[wade moore]

Originally Posted by Fidatelo

I've never understood this logic (of buying tickets only when it goes above x-million dollars). Is 28mil not enough? The more it goes up, the lower your odds of winning, or especially getting a 'clean win' (no tiesies).

Maybe someone can show some math on this, but I'd guess that if you took that 5 bucks and used it at a lower point in the lotto trajectory (like shortly after it has reset to whatever it's low-value is), your projected ROI would probably be higher.

When I took a stats course we went through this. There is a definite cost/benefit barrier where the risk of buying tickets is more worth it. And I mean, statistically speaking - not just because it sounds cool.

[JPhillips]

The more it goes up, the lower your odds of winning, or especially getting a 'clean win' (no testies).

Let me go on record saying I don't want a 'clean win'.

[Celeval]

Actually, my #1 call/trip is to the bank to rent a safety deposit box (after a photocopy and signing).

[molson]

Originally Posted by st.cronin

There is no way I could spend 470,000 a month. Maybe when I was in my early 20s, I could have spent 1/10 of that, but not now.

I couldn't either, but I see how it could be done.

Imagine a month traveling around the world, buying last minute, first class airfares every few days. Staying in 5 star hotels, living off room service, drinking only expensive wine. Maybe you want to bring some friends - so you rent out the 10 most expensive suites everywhere you go. And you're not driving - hired drivers and limos everywhere you go. And you stop at a casino or two and play in the VIP high rollers room (and lose). It'd be way easy to blow a couple million a month.

[cartman]

Originally Posted by Fidatelo

I've never understood this logic (of buying tickets only when it goes above x-million dollars). Is 28mil not enough? The more it goes up, the lower your odds of winning, or especially getting a 'clean win' (no tiesies).

Maybe someone can show some math on this, but I'd guess that if you took that 5 bucks and used it at a lower point in the lotto trajectory (like shortly after it has reset to whatever it's low-value is), your projected ROI would probably be higher.

Originally Posted by wade moore

When I took a stats course we went through this. There is a definite cost/benefit barrier where the risk of buying tickets is more worth it. And I mean, statistically speaking - not just because it sounds cool.

Yep, it's a statistical thing. The Mega Millions odds of winning the jackpot are about 175,000,000:1. So at $30 mil, buying 5 numbers gives you about 35,000,000 to 1 odds. Maybe I need to wait until the jackpot grows another $5 mil before buying.