8 lottery winners who lost their millions

[FUZO]

Tweet8 lottery winners who lost their millions
Having piles of cash only compounds problems for some people. Here are sad tales of foolishness, hit men, greedy relatives and dreams dashed.





For a lot of people, winning the lottery is the American dream. But for many lottery winners, the reality is more like a nightmare.

"Winning the lottery isn't always what it's cracked up to be," says Evelyn Adams, who won the New Jersey lottery not just once, but twice (1985, 1986), to the tune of $5.4 million. Today the money is all gone and Adams lives in a trailer.

"I won the American dream but I lost it, too. It was a very hard fall. It's called rock bottom," says Adams.

"Everybody wanted my money. Everybody had their hand out. I never learned one simple word in the English language -- 'No.' I wish I had the chance to do it all over again. I'd be much smarter about it now," says Adams, who also lost money at the slot machines in Atlantic City.

"I was a big-time gambler," admits Adams. "I didn't drop a million dollars, but it was a lot of money. I made mistakes, some I regret, some I don't. I'm human. I can't go back now so I just go forward, one step at a time."

Living on food stamps
William "Bud" Post won $16.2 million in the Pennsylvania lottery in 1988 but now lives on his Social Security.

"I wish it never happened. It was totally a nightmare," says Post.

A former girlfriend successfully sued him for a share of his winnings. It wasn't his only lawsuit. A brother was arrested for hiring a hit man to kill him, hoping to inherit a share of the winnings. Other siblings pestered him until he agreed to invest in a car business and a restaurant in Sarasota, Fla., -- two ventures that brought no money back and further strained his relationship with his siblings.

Post even spent time in jail for firing a gun over the head of a bill collector. Within a year, he was $1 million in debt.

Post admitted he was both careless and foolish, trying to please his family. He eventually declared bankruptcy.

Now he lives quietly on $450 a month and food stamps.

"I'm tired, I'm over 65 years old, and I just had a serious operation for a heart aneurysm. Lotteries don't mean (anything) to me," says Post.

Deeper in debt
Suzanne Mullins won $4.2 million in the Virginia lottery in 1993. Now she's deeply in debt to a company that lent her money using the winnings as collateral.

She borrowed $197,746.15, which she agreed to pay back with her yearly checks from the Virginia lottery through 2006. When the rules changed allowing her to collect her winnings in a lump sum, she cashed in the remaining amount. But she stopped making payments on the loan.

She blamed the debt on the lengthy illness of her uninsured son-in-law, who needed $1 million for medical bills.



Mark Kidd, the Roanoke, Va., lawyer who represented the Singer Asset Finance Company who sued Mullins, confirms her plight. He won a judgment for the company against Mullins for $154,147 last May, but they have yet to collect a nickel.

"My understanding is she has no assets," says Kidd.

Back to the basics
Ken Proxmire was a machinist when he won $1 million in the Michigan lottery. He moved to California and went into the car business with his brothers. Within five years, he had filed for bankruptcy.

"He was just a poor boy who got lucky and wanted to take care of everybody," explains Ken's son Rick.

"It was a hell of a good ride for three or four years, but now he lives more simply. There's no more talk of owning a helicopter or riding in limos. We're just everyday folk. Dad's now back to work as a machinist," says his son.

Willie Hurt of Lansing, Mich., won $3.1 million in 1989. Two years later he was broke and charged with murder. His lawyer says Hurt spent his fortune on a divorce and crack cocaine.

Charles Riddle of Belleville, Mich., won $1 million in 1975. Afterward, he got divorced, faced several lawsuits and was indicted for selling cocaine.

Missourian Janite Lee won $18 million in 1993. Lee was generous to a variety of causes, giving to politics, education and the community. But according to published reports, eight years after winning, Lee had filed for bankruptcy with only $700 left in two bank accounts and no cash on hand.

One Southeastern family won $4.2 million in the early '90s. They bought a huge house and succumbed to repeated family requests for help in paying off debts.
The house, cars and relatives ate the whole pot. Eleven years later, the couple is divorcing, the house is sold and they have to split what is left of the lottery proceeds. The wife got a very small house. The husband has moved in with the kids. Even the life insurance they bought ended up getting cashed in.

"It was not the pot of gold at the end of the rainbow," says their financial advisor.

Luck is fleeting
These sad-but-true tales are not uncommon, say the experts.

"For many people, sudden money can cause disaster," says Susan Bradley, a certified financial planner in Palm Beach, Fla., and founder of the Sudden Money Institute, a resource center for new money recipients and their advisors.

"In our culture, there is a widely held belief that money solves problems. People think if they had more money, their troubles would be over. When a family receives sudden money, they frequently learn that money can cause as many problems as it solves," she says.

Craig Wallace, a senior funding officer for a company that buys lottery annuity payments in exchange for lump sums, agrees.

"Going broke is a common malady, particularly with the smaller winners. Say you've won $1 million. What you've really won is a promise to be paid $50,000 a year. People win and they think they're millionaires. They go out and buy houses and cars and before they know it, they're in way over their heads," he says.

Are you really a 'millionaire'?
Part of the problem is that the winners buy into the hype.

"These people believe they are millionaires. They buy into the hype, but most of these people will go to their graves without ever becoming a millionaire," says Wallace, who has been in the business for almost a decade.

"In New Jersey, they manipulate the reality of the situation to sell more tickets. Each winner takes a picture with a check that becomes a 3-foot by 5-foot stand-up card. The winner is photographed standing next to a beautiful woman and the caption reads: 'New Jersey's newest millionaire.'"

Winning plays a game with your head
Bradley, who authored "Sudden Money: Managing a Financial Windfall," says winners get into trouble because they fail to address the emotional connection to the windfall.

"There are two sides to money. The interior side is the psychology of money and the family relationship to money. The exterior side is the tax codes, the money allocation, etc."

"The goal is to integrate the two. People who can't integrate their interior relationship with money appropriately are more likely to crash and burn," says Bradley.

"Often they can keep the money and lose family and friends -- or lose the money and keep the family and friends -- or even lose the money and lose the family and friends."

Bill Pomeroy, a certified financial planner in Baton Rouge, La., has dealt with a number of lottery winners who went broke.

"Because the winners have a large sum of money, they make the mistake of thinking they know what they're doing. They are willing to plunk down large sums on investments they know nothing about or go in with a partner who may not know how to run a business."

What if you get so (un)lucky?
To offset some bad early decision-making and the inevitable requests of friends, relatives and strangers, Bradley recommends lottery winners start by setting up a DFZ or decision-free zone.

"Take time out from making any financial decisions," she says. "Do this right away. For some people, it's smart to do it before you even get your hands on the money.

"People who are not used to having money are fragile and vulnerable, and there are plenty of people out there who are willing to prey on that vulnerability -- even friends and family," she cautions.

"It's not a time to decide what stocks to buy or jump into a new house purchase or new business venture.

"It's a time to think things through, sort things out and seek an advisory team to help make those important financial choices."

As an example, Bradley says that people who come into a windfall will typically put buying a house as No. 1 in list of 12 choices, while investing is No. 11.

"You really don't want to buy a new house before taking the time to think about what the consequences are.

"A lot of people who don't have money don't realize how much it costs to live in a big house -- decorators, furniture, taxes, insurance, even utility costs are greater. People need a reality check before they sign the contract," she says.

Evelyn Adams, the N.J. lottery double-winner, learned these lessons the hard way.

"There are a lot of people out there like me who don't know how to deal with money," laments Adams. "Hey, some people went broke in six months. At least I held on for a few years."

[crombie09]

TweetGood post.

[DJDIGGLER]

TweetMy old best friend's parents won 19 million in the NY state lottery. They were living in a trailer park when they won.

[a-bomb83]

Tweetwow, people are so dumb now a days when it comes to money. if i were to win, i'd pay off every single bit of debt, put a fat chunk in the checking account, and the majority would be in sound investments. sure, i'd take some time off work/quit work (dependent on how much it was...only a million, i'd still work, 20, 30+million, i wouldn't work). i've learned alot about money in the past 5-6 years, i know i wouldn't be one of those people.

[T-Man007]

Tweet

My old best friend's parents won 19 million in the NY state lottery. They were living in a trailer park when they won.

I noticed you said 'old' best friend. Did the money change that?

It's sad that these people never thought to sit down with a financial advisor. They could all have beenfilthy rich today if they had. Just think about the lady who won twice in the 80's, she could have rode that Microsoft train for a decade and probably have hundred's of millions today.

I know this, if my butt ever won I would be have an immediate meeting with my finanical planner before I even deposited the check. I would probably invest 1/2 of my take home (depending on how much it was) on investment properties and just let them appreciate. At our rate of appreciation where I live the values would double every 14 years. And, I would have income coming in monthly from the renters. But, if I didn't do what I do for a living, I would probably do something stupid with the money. So, I don't really blame the people because they've never had any expereince with money. They don't know what to do or how to act. I've learned my lesson though. I had a time in my life where I made a lot of money. It wasn't exactly honest work (ok, it wasn't honest at all-lol), but I would make 5k a week sometimes. And, I would blow it all just as fast as it came in. Mostly I blew it on partying and clothes and trips. People ask "how the heck do you blow that much money that fast?". I'd say, "come out with us one night and see." Me and my partners were like the kings of ATL for a few years there. I think the reason I was so dumb with the money is I had never had it before. Well, now I can say I know what it's like and if I ever get there again I know what to do with it. Some people, myself included, have to learn the hard way.

[crombie09]

TweetThe last 2 comments are exactly what I'd do too. You guys are very smart!

[T-Man007]

Tweet

wow, people are so dumb now a days when it comes to money. if i were to win, i'd pay off every single bit of debt, put a fat chunk in the checking account, and the majority would be in sound investments. sure, i'd take some time off work/quit work (dependent on how much it was...only a million, i'd still work, 20, 30+million, i wouldn't work). i've learned alot about money in the past 5-6 years, i know i wouldn't be one of those people.

I'm with you bro! I think I would still work though but I would find ways to do stuff that allowed me to make money, do very little and be able to provide jobs for other people. Good jobs. Jobs that teach people how to be their own boss so they can move on to bigger and better things. I think I would spend a lot of time with the boys and girls clubs and at homes for orphans. You know, take the orphans on trips that they would never get to take and stuff like that. I'm too much of a simpleton to go buy a multi million dollar home with Ferraris and all that. I would get waymore joy out of life putting smiles on peoples faces than driving down the road in a Ferrari. But, that's me.

[crombie09]

Tweet

I'm with you bro! I think I would still work though but I would find ways to do stuff that allowed me to make money, do very little and be able to provide jobs for other people. Good jobs. Jobs that teach people how to be their own boss so they can move on to bigger and better things. I think I would spend a lot of time with the boys and girls clubs and at homes for orphans. You know, take the orphans on trips that they would never get to take and stuff like that. I'm too much of a simpleton to go buy a multi million dollar home with Ferraris and all that. I would get waymore joy out of life putting smiles on peoples faces than driving down the road in a Ferrari. But, that's me.

Id probably take off work for a while, take my girl to some tropical island for a little vacation and live it up. I would for sure continue to work though. Im 25. Maybe after a lot of studying and advice start my own custom car shop. I love cars, turcks, bikes, anything with a motor. I'd but a new 911 turbo and a badass Muscle car, prob a Yenko Camaro. Maybe get another crotch rocket. Using some of the money I make off investing would be good to give to the less fortunate, good idea.

[T-Man007]

Tweet

Id probably take off work for a while, take my girl to some tropical island for a little vacation and live it up. I would for sure continue to work though. Im 25. Maybe after a lot of studying and advice start my own custom car shop. I love cars, turcks, bikes, anything with a motor. I'd but a new 911 turbo and a badass Muscle car, prob a Yenko Camaro. Maybe get another crotch rocket. Using some of the money I make off investing would be good to give to the less fortunate, good idea.

I'm with you to some degree on the toys but I would go Hummer H1, dirt bikes, ATV's, and that route. I live in Colorado and with all the rocks on the road and hail storms that come out of no where, a sports car woudl just stress me out. I would never geta crotch rocket here, but that's me. If anything, I would get a Hog with loud ass pipes. That way dumb ass drives would hear me coming and at least be looking for me. There are so many people killed on crotch rockets here but very very rarely is there ever fatal accidents with Hogs. But then again, the guys on the crotch rockets are the ones who usually are weaving in and out of traffic where as the guys on the Hogs just chill and ride.

[DJDIGGLER]

Tweet

I noticed you said 'old' best friend. Did the money change that?

No he became addicted to drugs and hung out with the drug crowd in high school so we stopped hanging out. I can't stand druggies!

Later after his parents won we ran into each other and starting hanging out again. One night on the way home from a club he pulled out a bag of cocaine and started snorting it with money while I was driving his SUV because he was smashed. When I saw what he was doing I grabbed the bag and threw it out the window, then said that he's a piece of shit for doing that with me in the car. And I stopped hanging out with him from then on.

[T-Man007]

Tweet

No he became addicted to drugs and hung out with the drug crowd in high school so we stopped hanging out. I can't stand druggies!

Later after his parents won we ran into each other and starting hanging out again. One night on the way home from a club he pulled out a bag of cocaine and started snorting it with money while I was driving his SUV because he was smashed. When I saw what he was doing I grabbed the bag and threw it out the window, then said that he's a piece of shit for doing that with me in the car. And I stopped hanging out with him from then on.

Man, I wish I had been friends with you when I went through my phase. It would have done me good to have someone do to me what you did to him. I survived it, but it wasn't easy and all my friends were cool with it. Sometimes people in those situations need someone like you to tell them like it is. If he's friends with you he will respect your point of view. Anyways, glad to hear you never got sucked into that life. It's a messy thing, that's for sure.

[mick-G]

TweetIts about ppl that don't know how to spend their money reguardless the amount. Ive actually seen some younger ppl have more dicipline when winning big then older folks. Its alot easier if you earn it, and makes you realize the value of things. It also depends on how much you win. I saw a documentary about a yr ago or so about the ppl that won large sums in the lottery. One guy about ah...id say 45-50yrs old won like 60 million. He said that every hr that goes by, hes making like 5k just in interest. He had like a 20k sq ft house all furnished with antiques, large pool, about 10 cars all either sports, exotic,or customized, a small plane etc., then married his gf of 10yrs. Said he could prob find any girl he wanted now, but she stood by him all those yrs, so he finally married her. Now all he does is fly into NY every month to talk to his financial ppl and broker. Now on the other hand if you only win 3-5 million its a totally dif story. You really have to invest if you want a good income off it. Buy what you want that you can afford in a home and hell buy that sports car or vehicle you always wanted, but then stop..and invest the rest. Most ppl, when they get that much $ and never had anything,its like they can't stop spending. 3-5 million is not really that much if you want to live large. Best thing is to wait a few months, put the check in a safe deposit box and think about what you want to do first, because once you cash it, you have to put it somewhere, and even banks FDIC is only up to 100K and you have to pay taxes on the interest. Better to leave it alone till you talk to some financial ppl or if you have a good cpa. I always talk to my cpa, because he is better than some financial ppl, because they are always pushing their products and services and dont really have a personal interest in you. He has saved me alot over the yrs.

[DJDIGGLER]

Tweet

Man, I wish I had been friends with you when I went through my phase. It would have done me good to have someone do to me what you did to him. I survived it, but it wasn't easy and all my friends were cool with it. Sometimes people in those situations need someone like you to tell them like it is. If he's friends with you he will respect your point of view. Anyways, glad to hear you never got sucked into that life. It's a messy thing, that's for sure.

It's funny so many parents thought I was a troublemaker when I was younger. Now that we're older they realize I was the only good influence they had. I always tried to stop my buddies from doing drugs, and I always tried to motivate them to choose a career, workout, and do good for themselves. Some of them came out of the pits, some of them never left the pits. But it's great to see people use the potential they have. I hate to see people waste their gifts away!

[TURBO3000]

Tweet

It's funny so many parents thought I was a troublemaker when I was younger. Now that we're older they realize I was the only good influence they had. I always tried to stop my buddies from doing drugs, and I always tried to motivate them to choose a career, workout, and do good for themselves. Some of them came out of the pits, some of them never left the pits. But it's great to see people use the potential they have. I hate to see people waste their gifts away!

Reps to you, I wish I would have had a friend like you. All my friends were bastards, that turned out not to be my friends when I left that life behind. They are still 24-28 living in mom's basement with no job and not attending school.

[daved150]

TweetYEA...I'D LIKE TO HAVE THE OPPORTUNITY TO SEE IF I TOO COULD BE SO STUPID AS TO BLOW A FEW MILLION IN LOTTO WINNINGS!!!
I'M BETTING I COULDNT