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U.S. NEWS Thursday 6 July 2017

Lottery rigging accomplice used payout for offshore tax scam

By RYAN J. FOLEY ly pleaded guilty to rigging
Associated Press the Dec. 29, 2007, Mega-
IOWA CITY, Iowa (AP) — Af- bucks drawing advertised
ter Robert Rhodes collect- at $2 million. They agreed
ed a Wisconsin Lottery jack- to refund Wisconsin the
pot that had been rigged $783,000 payout and an
by his friend, he used the additional $18,100 apiece
windfall for an investment to cover the state tax re-
scheme that produced an- fund. Investigators say
other wave of undeserved Tipton installed computer
government money, court code that allowed him to
records show. predict winning numbers
Rhodes, an accomplice in on three days of the year,
a scandal that has shaken and that he worked with
state lotteries, recently ex- Rhodes, his brother Tommy
plained under oath how and other associates to
he used the $783,000 pay- buy winning tickets and
out to receive an addi- claim prizes worth millions in
tional $180,000 in bogus multiple states. Tipton and
tax refunds. The Texas busi- his brother pleaded guilty
nessman sent his lottery last week in Iowa, where
winnings offshore to buy the lottery association is
a phony insurance policy based. Rhodes, a 49-year-
for a personal corporation old father, pleaded guilty
that never did any business Texas businessman Robert Rhodes, right, faces a judge with his attorney Joseph Cahill in Polk and cooperated with in-
County District Court in Des Moines, Iowa. After Rhodes collected a Wisconsin Lottery jackpot that
— except receive the lot- had been rigged by his friend, he used the windfall for an investment scheme that produced an- vestigators in exchange
tery prize. He then claimed other wave of undeserved government money, court records show. for probation. He disclosed
the policy as a tax-deduct- (Rodney White/The Des Moines Register via AP) the offshore scheme in a
ible “business expense.” deposition under question-
The upshot: Rhodes re- sin in tax refunds on the lot- his cash would later be the loot. Rhodes and Ed- ing from Tipton’s lawyer,
ceived roughly $150,000 tery payout. But in an ironic accused of duping inves- die Tipton, former security Dean Stowers, who called
from the U.S. government twist, the St. Lucia-based tors and, in Rhodes’ words, director for the Multi-State it money laundering and
and $36,200 from Wiscon- insurer where Rhodes sent “abscond” with a chunk of Lottery Association, recent- tax fraud.q

New campaign manager for Iowa governor ‘sorry’ after arrest

By RYAN J. FOLEY ing outside the West Glen intoxicated, the complaint Branstad’s 2014 re-election ter Branstad left to become
Associated Press Town Center in West Des says. Valenziano consent- campaign, is among the U.S. ambassador to China,
IOWA CITY, Iowa (AP) — Moines, a criminal com- ed to a preliminary breath leading political organizers has been public about her
The campaign manager plaint shows. The shopping test but “would not provide in Iowa. struggle with alcohol ad-
for Iowa Gov. Kim Reynolds center houses several bars an adequate sample of Valenziano was booked at diction and says she has
apologized Wednesday for and nightclubs. breath,” Jacobsen wrote. the Polk County Jail and been sober since her sec-
behavior that prompted his Valenziano, 32, attempted The arrest came eight days pleaded guilty to the sim- ond arrest for drunken driv-
arrest for public intoxica- to walk away when officer after Reynolds and acting ple misdemeanor the next ing in 2000.
tion, saying he let down his Cody Jacobsen confront- Lt. Gov. Adam Gregg an- morning. Court records The campaign didn’t pub-
boss but would continue ed him but became co- nounced that Valenziano show he received a de- licly acknowledge Valen-
running her political opera- operative after Jacobsen would manage their cam- ferred judgment and was ziano’s arrest until after re-
tion. grabbed him, according to paign for the 2018 elec- ordered to pay a $65 fine. ceiving an inquiry Wednes-
Phil Valenziano, considered the complaint. Valenziano tion. Republicans say Va- He also agreed to pay a day from The Associated
a top operative in Iowa Re- had “very slurred speech, lenziano, who previously $300 supervision fee and Press. Reynolds’ office
publican politics, was ar- very poor balance, smelled worked as a senior adviser be on probation for one referred questions to Va-
rested late June 23 after an heavily of ingested alco- to Reynolds and helped year. Reynolds, who be- lenziano, calling it a “cam-
officer observed him urinat- hol” and admitted to being organize former Gov. Terry came governor in May af- paign matter.”q