Accused Kansas Lottery cheats agree to pay state $28,000

Two Kansas Lottery players accused of cheating the game have agreed to pay about $28,000 in damages and fines, according to Attorney General Derek Schmidt, whose office negotiated the settlement.

The pair are alleged to have cashed in rigged winning tickets and split the money with a former multistate lottery security official who manipulated a computer to turn the tickets into winners.

The lottery official, Eddie Tipton, is serving a prison term in Iowa in connection with the case, according to Schmidt.

The Kansas defendants are Amy Demoney and Christopher McCoulskey.

They're accused of cashing in tickets that Tipton bought in Emporia and Overland Park and walking out with $44,000 they didn't actually win. Schmidt filed a false-claims suit seeking to recover their share of the proceeds.

"Those tickets, the lawsuit alleged, had been rigged to win by Tipton’s software manipulation at the multi-state lottery," said a statement by the attorney general.

Neither of the defendants have admitted guilt; they agreed to pay to settle the case, court documents said.

Demoney will pay $14,400, including $9,402 in damages, $2,500 in civil penalties and $2,500 to reimburse the state's attorney fees and court costs. She'll pay that off in monthly installments of $1,200, according to court documents.

McCoulskey will pay $14,000, including $7,402 in damages, $4,097 in civil penalties and $2,500 for costs and fees. He'll have 60 days to pay his share of the settlement, the records said.

"Both defendants are paying damages in the amount they collected from the Kansas Lottery and retained after giving a portion of the winnings to Tipton," Schmidt said.

Dion Lefler; 316-268-6527, @DionKansas