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Morning News

Big Game Jackpot: Michigan Ticket Seller Angry Over Commission Cap; Illinois Store to Receive $1.8M Bonus; Attorney Discusses Legal Problems

Aired May 10, 2000 - 10:05 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: We want to talk about the millions of dollars that are out there as part of the Big Game lottery jackpot. We understand there's about $366 million -- is how big the jackpot was -- and that there are two winning tickets: one in Illinois and one in Michigan.

And our Ed Garsten is standing by in Michigan and he has the latest -- Ed.

ED GARSTEN, CNN CORRESPONDENT: Hi, good morning, Daryn.

Well, somebody's thinking more of this morning than about what they're going to bring to lunch at work today because they are -- they have at least half of the big jackpot from the Big Game.

They bought their ticket here at Mr. K's party store in Shelby Township, which is about 20 miles outside of Detroit. We still don't know the winner's name, but we are learning more about the winner. We're told that the winner was a regular customer here, a first-time lottery player that plunked down 100 bucks to take a chance, let the computer pick the numbers and, voila, all of a sudden they were winners. How do we know that? A friend -- someone who says that they're a friend of the winner called here within the last hour or so and spoke to the owner's son, and here's what he had to say.

(BEGIN VIDEO CLIP)

MARK KASSAB, CO-OWNER, MR. K'S: I talked to somebody that supposedly is the winner, you know.

GARSTEN: And can you tell us who they are, where they're from?

KASSAB: I can't say a word. I can't say. He said he's going to wait a few days before he goes to claim it and he doesn't want anyone to know. And, you know, everyone will find out sooner or later. There's no reason to say it right now.

(END VIDEO CLIP)

GARSTEN: Might make sense to lay low for a couple of days and get their act together, maybe meet with a lawyer or a financial analyst, but we're hoping that that person will reveal himself sometime today or in the next couple of days.

But all is not frivolity here at Mr. K's. The owner, George Kassab, says he's very angry that the state cap on the commission he can get for selling the winning ticket is only $2,000. He said he thinks he deserves a lot more.

Ed Garsten, CNN, reporting live from Shelby Township, Michigan.

KAGAN: Everybody wants a piece of the action. Ed Garsten, thank you very much.

Let's put the numbers -- the winning numbers up on the screen so you folks at home can check and see if you are lucky winners. Those numbers: 1, 2, 12, 33, 37; Big Money ball was 4.

So that was from Michigan where you only get a couple thousand dollars if you're the winner -- if you're the winner -- winning store where you sold the ticket. But it's a different story in Illinois where I think you get 1 percent of the winnings, which will end up being over $1 million.

Let's go to our Jeff Flock who's standing by in Lake Zurich, Illinois.

Jeff, I imagine a rather festive atmosphere where you are.

JEFF FLOCK, CNN CORRESPONDENT: Oh, yes, they're pretty happy here, and they're pretty happy that this is not Michigan where the cap is much lower in terms of what they can get for a reward.

This is the Citgo station that, perhaps, you've heard us talk about. It's called Sweeney Oil (ph). It is a convenience station as well as a gas station here in the town of Lake Zurich to the north and west of Chicago. We've already had our first auto wreck down the street there. Perhaps you can see it. It's quite a zoo situation out here.

And they are pretty happy at the station as well as somewhere, perhaps either in town or nearby, they think, because it is $1.86 million that is their take of this, which, of course, is vastly different from the $2,000 they will get there with Ed Garsten in Michigan.

As we said, the ticket was purchased here, and perhaps off in the background you can see the assistant manager.

I don't know, Clint, if you're able to get back through there and see that, that's the assistant manager of Sweeney Oil, who revealed to the media this morning that they had been the ones had sold the winning ticket. The Illinois Lottery did not have their act together at that time to find out -- or to have the information exactly who sold the ticket. They knew that it was somewhere here in Lake Zurich, but these folks came forward and said, in fact, we have sold it. So we are going on that authority at this point, although no one here as yet has seen the winning ticket. We'll keep watch. One other thing that will happen here within the next couple hours, we believe, is that the Illinois Lottery director will be here with an entourage to present at least the symbolic check, the $1.86 million check. At this point, the folks here not sure on what they'll do with that, whether one person will keep it, whether they'll split it in some fashion among the employees of this station.

But the good news is that it's almost like winning the lottery here as well. Someone may be making $188 million somewhere nearby, but here $1.8 million is not bad either.

I'm Jeff Flock, CNN, reporting live from Lake Zurich, Illinois.

KAGAN: Jeff, if nothing else, that's a lot of gasoline even at today's prices. So we know about where the winning ticket came from, but have they had a call or anything about who might have bought that ticket?

FLOCK: At this point, no one has come forward to claim it. And the Illinois Lottery director told us this morning that they -- she really expected that if things follow according to plan, that sometimes it takes a day or two before someone actually comes forward because they're trying to get their ducks in a row and get with their attorneys, perhaps financial planners. They want to make sure that they are already before they come forward and have the media spotlight on them. So who knows.

KAGAN: Catch their breath -- a good problem to have.

Jeff Flock in Lake Zurich, Illinois, thanks.

FLOCK: That's right, Daryn.

KAGAN: Bill.

BILL HEMMER, CNN ANCHOR: Want to continue with this story now and look back two years ago.

On the phone with us now from Columbus, Ohio is Larry Sturtz. Larry Sturtz is the attorney for the 13 Powerball winners who won the nearly $296 million jackpot back in 1998.

Mr. Sturtz, good morning to you.

LARRY STURTZ, ATTORNEY FOR POWERBALL WINNERS: Good morning.

HEMMER: I just want to update our viewers now quickly. Correct my facts if I'm wrong: 13 construction workers, Westerville, Ohio, just outside of Columbus, they bought their ticket in Richmond, Indiana, I believe, if my memory is correct; they took a lump-sum payment, $161 million. My math tells me about $12 million per person. Is that right?

STURTZ: Or about $6 million, $6 1/2 million after taxes.

HEMMER: OK, OK, thanks for the clarification there. What type of problems did you encounter when the winner came in two years ago?

STURTZ: Well, the first thing we had to do is get control of the ticket. Interestingly, when I went up to the factory, to the plant, I was told that the ticket was on its way to Indiana on the freeway, and no one realized it was a bare instrument. That's like carrying $286 million worth of gold bullion.

HEMMER: That it is. That is no small stuff.

STURTZ: We were able to find that car and get it off the road and get the ticket copied and into a safe deposit box. That was the first problem. That was the fun problem.

HEMMER: Did -- and besides that, did you encounter legal problems at that point? We've heard from different lottery winners thus far today. You yourself, any personal experience with that, reflecting on the other winners?

STURTZ: Well, the legal problems were that the lottery commission did not want to permit us -- permit me to present the ticket and to keep the real owners private. They wanted the publicity. And as you're well aware, the 13 winners did not want the publicity. And so we came up with a trust document and I took the ticket in and said, I'm the bearer. Look at it: Here's the ticket, I've got it, you've got to pay me. And we worked that one out.

HEMMER: What's happened since then with the 13 winners? They still working, or how have their lives changed?

STURTZ: One of them is at the same place. Six of them were 55 or older so they've retired and they've moved on in life. The other six were younger and have changed jobs. One has gone back to school. I know there are a number of new homes, but nothing extravagant. There is some new rings being sported, there are some new cars being driven, but they took my advice to heart. They put their principal away, they've been living off the interest and off the income.

HEMMER: Very well taken.

We're seeing some videotape while we're talking to you here. I remember one construction worker, one of the winners came out of his home there in Ohio and did meet with reporters. But to my knowledge and my recollection, that's the only person from that winning ticket that ever did any interviews. Is that still the condition today?

STURTZ: That's the condition, and that person...

HEMMER: Why is that?

STURTZ: Well, no one wants the publicity. These folks -- you keep using the term construction: They're factory workers.

HEMMER: I apologize. Well-corrected, thank you.

STURTZ: That's all right.

But these -- they did not want the publicity. As one man put it, I've got three grandchildren. I don't want to worry about someone kidnapping my grandchildren. Now -- holding them for ransom. People didn't want the headache. You have to remember, also, this was just after the Princess Di paparazzi incident and no one wanted the press coming around.

HEMMER: This was September of '98, then, right?

STURTZ: That's right. This is August '98.

HEMMER: Quickly, in the five seconds we have left, advice you would give for the folks who are about to become multi- multimillionaires.

STURTZ: Get an attorney and decide want you want to be. Do you want to be quiet or do you want to be on Oprah's show? You've got your choice.

HEMMER: Well stated.

Larry Sturtz, thanks.

STURTZ: You're welcome.

HEMMER: Out of Columbus, Ohio by telephone with us.

KAGAN: Forget Oprah, come on with us.

HEMMER: Interesting point he makes about the kids with grandchildren, you know, not wanting any publicity or something like that.

KAGAN: Yes, it's too bad it has to be like that. It really is.

HEMMER: Interesting.

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