The Victims

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In 2018 the founders of Lottery.com allegedly raised over $50 million promoting a "Sweepstakes" crypto token. Every investor seemingly lost essentially all their money. For example, Ed Noel lost $100,000. Rich Regius lost $50,000. It was later disclosed the technology promoted to investors to run the sweepstakes allegedly never existed on a scale that would support the sweepstakes as detailed to investors.  A former CFO of the company noted this missing $50 million as "dubious" in a letter to shareholders (see below).

In 2018 Lottery.com purchased a lottery data company that had been built by scratch by John Brier and Bin Tu over the course of 12-years of work.  Lottery.com used the purchase of this company to raise money and promote Lottery.com, and to take it public on NASDAQ in 2021.  Brier and Tu were never paid for the company as promised and had their life's work stolen from them. A lawsuit is pending.

From 2019 into 2022 an investigation determined that Lottery.com was allegedly selling lottery tickets illegally across state lines in an illegal  scheme allegedly run by one of the founders.  The operation was allegedly run out of Texas, resulting in 100's of thousands of illegal Powerball and MegaMillions tickets being sold in alleged violation of State and Federal laws. This alleged scheme seems to have defrauded multiple state lottery organization out of lottery revenue while unjustly increasing Texas Lottery revenues.

Lottery.com went public on Nasdaq on November 21, 2021.  At the time the company had close to a $900 million market cap. It would soon be disclosed that one of the founders had fraudulently deceived auditors with a $30 million check kite scheme, and that the company had been engaging in illegal lottery ticket sales out of Texas for over 2-years. The founders also transferred over $27 million out of the company in 2022 that was never recovered. Employees stopped getting paid and operations ceased in July of 2022.  The company has lost over 99% of its value. The current management has issued themselves millions of shares in the company, further diluting the shareholders, while operating as a "void" company for failure to pay Delaware corporate tax fees.

When Lottery.com stopped paying employees in July of 2022 hundreds of thousands of dollars where due for work performed.  To date none of the employees have been paid their past due wages. Many have filed law suits. Close to 50 people lost their jobs and had their lives devastated when the company abruptly shuttered operations and the financial and operational fraud was exposed. Despite the company spending millions of dollars since July of 2022 none of the former employees have been paid any money towards their past due wages.

The three original founders of Lottery.com swindled a church out of $2.7 million in a fraudulent "7-day" loan scheme according to a pending law suit. The church was deceived in a scheme where they were promised a loan from one of the founders, and then were conned into lending another Lottery.com founder $2.7 million for 7-days, with the promise to be repaid $3 million in a week.  All three founders signed the loan document and supported the loan with their supposed stock holdings in Lottery.com they claimed where worth millions of dollars. The church's lawsuit says they never heard from them again after wiring $2.7 million into the Lottery.com bank account.

Sharon McTurk, a Florida resident, has filed a lawsuit against Lottery.com and its CEO and Chairman Matthew McGahan.  McTurk allegedly invested $1.8 million into Lottery.com in 2022 and 2023 through a scam organized by Ron Farah and Matthew McGahan according to the lawsuit. McTurk was to receive shares in Lottery.com that were never delivered and her money was used by Ron Farah and the company for personal expenses, self-gain and to pay bills for the company according to the pending lawsuit.

Phillip Gourian, a Florida resident, signed documents to allegedly invest $1.3 million into Lottery.com in 2023 as part of a loan agreement with conversion terms for stock in Lottery.com. A lawsuit has been filed in Delaware by Gourian claiming Lottery.com took the money and has not given any shares nor have they repaid the money. Gurian also has complaints pending regarding an additional $450,000 he allegedly  wired to the escrow account of a Lottery.com attorney in 2024 that he claims had also simply been stolen.

Tim Gulla, a Florida resident, allegedly wire transferred $100,000 in 2024 into the escrow account of a Lottery.com attorney under the guise he was investing in the company through a convertible loan deal.  Gulla has produced an email from Lottery.com telling him to wire the funds into the attorney escrow account ASAP.  Gulla has allegedly received no information from the company or the attorney as to what has happened to his $100,000.  He has filed a complaint regarding this loss of $100,000.

Mark Gustavson - After being hired as transactional CEO, Mark was tasked with the herculean reconstruction of Lottery.com’s financials, a strict requirement for the company retaining its Nasdaq listing.  This included a reconstruction of all financial statements, a full 2022 year audit, a reinstatement of 2021, three Form 10-Qs, managing three separate accounting firms combined working over 24-hour increments, and leading all interaction with the SEC and NASDAQ.. The promise of a full underwriting with capital to restart operations was contingent upon the financials being restated and certified.  As Mark worked through the financial certification process, the promised funding was not being delivered, making it challenging to operate.  In the spring of 2023, Mark was astonished to see his name was forged on a 10Q filing with the SEC, and he immediately objected to the Board.  He then soon discovered other irregularities he found to be in violation of the rules and regulations pertaining to public companies, and in July of 2023, he notified the Board in writing of his concerns, with specific detail.  Mark also terminated a member of the company’s legal team for cause, in writing.  The result of Mark’s confronting the Board and terminating an employee for cause was for him to be removed as CEO by the Board within 48 hours.  Mark had devoted 7-months of his professional career, largely without compensation, to Lottery.com and was unjustly terminated when confronting the Board with the improper actions he deemed them and certain employees to be engaging in.  Since that time,  the company has lost millions of dollars in capitalization, and operations have widdled down to being practically non-existent.

Steve, a Florida resident, allegedly wire transferred $200,000 to Lottery.com  in 2023 and allegedly invested an additional $200,000 through Ronald Farah. Steve has allegedly  received no shares, no documentation, and Lottery.com  allegedly will not tell him what was done with his money. He has contacted the company in writing and contacted the CFO of the company and has allegedly gotten no tangible feedback as to how his money will be returned.

In April of 2023 Lottery.com allegedly participated in a plan where virtually every possible combination in the Lotto Texas lottery were printed. The $95 million lottery, the highest in the U.S. at the time, was won by a ticket printed in this operation and $57.7 million lump sum prize was awarded. Two of the Lottery.com founders where allegedly present with family members during the ticket printing operation and QR codes and Ipad devices where allegedly used to interface with the Texas Lottery terminals to print the tickets.  The tickets were allegedly not paid for ($26 million +/_) until the following week, after the jackpot was won.  This prize money came from millions of Texas citizens who had played the Lotto Texas lottery in the preceding months hoping to win.