Lottery Losers

9/11 widow loses millions

Kathy Trant has had a double tragedy.

First, she tragically lost her husband on 9/11.  Her husband Dan was killed in the World Trade Center attack.

As compensation, she received a large settlement and chose to receive it in all cash: $5 million in a one-time payment.  Sadly, she did not seek advice or use judgment with the money.

She spent about $2 million on her home on Long Island, traveled the world, spent as much as $500,000 on shoes, and bought cosmetic surgery for her friends, or even for strangers. 

Lottery Losers

Definition of injustice: repeat RAPIST wins lottery

If there is anyone in the world that is not deserving of lottery winnings, it is Iorworth Hoare.

Hoare has spent roughly 30 years in prison since 1973, after being convicted of one rape, three attempted rapes, and two indecent assaults.  Now he is out of prison, and he won the lottery.  How much did he win?  In excess of US$14 million.

Now, because of his criminal record, he is restricted to only receiving about US$17,000 per month from his winnings. 

Lottery Losers

From millions to bankruptcy in 5 years

The lottery was the best thing, and the worst thing, to happen to Ken Proxmire.

Proxmire was a machinist in Michigan when he won $1 million in the lottery.  The next few years were sort of a whirlwind – he moved to California, and went into business.  He and his brothers started an automobile business.  Things didn’t go so well, and 5 years later Proxmire was filing for bankruptcy.

How can things go so bad so quickly?  Well, usually people that are suddenly wealthy don’t really know how to manage that money. 

Lottery Losers

From $16 million to food stamps

This is the classic story of how a lottery jackpot can ruin someone’s life, if they don’t know how to handle it.

William Post won $16.2 million in the Pennsylvania lottery.  This is what happened since then:

– his brother hired a hit man to kill Post, with the hopes of inheriting some of the money (the brother was arrested)

– a former girlfriend sued him and got a portion of the winnings

– another brother finally persuaded Post to invest some money into a couple of businesses in Florida, both of which failed

– Post got so angry at a bill collector that he fired his handgun over the bill collector’s head (no one injured, but Post did serve time in jail for that one)

Post eventually had to declare bankruptcy, and now lives on $450 per month from Social Security, and his food stamps. 

Lottery Losers

First a big lottery winner, now a big loser

Suzanne Mullins does not have fond memories of her lottery experience.

Mullins won $4.2 million in the Virginia lottery a few years ago.  She did not plan well.

In the initial arrangement, she was to get yearly checks from the Virginia lottery until her total payout was reached.  Based on that arrangement, she borrowed $197,746 and planned on paying back that loan with the yearly checks.  So far so good.

But then the Virginia lottery rules changed, and Mullins was allowed to collect the rest of her winnings in a single lump sum.