Texas Lottery Chief Resigns in Wake of Jackpot Scandal
Ryan Mindell has stepped down from his position as executive director of the Texas Lottery Commission (TLC), following accusations related to alleged anti-money laundering (AML) violations connected to a contentious jackpot from 2023. His resignation coincides with ongoing legal challenges, including a class-action lawsuit that has emerged from the operations of the Texas Lottery. Sergio Rey, who serves as the deputy executive director, will assume the role of acting executive director while the commission board plans to initiate a search for a permanent replacement during its upcoming meeting on April 29.
Mindell’s tenure at the commission began in 2016 when he joining as deputy general counsel. He later advanced to become deputy executive director before succeeding Gary Grief, who retired the previous year. His resignation comes in the wake of allegations first reported by the Houston Chronicle regarding a consortium of investors, known as Rook TX. This group reportedly spent $25.8 million to purchase every possible ticket combination for a $95 million jackpot, raising concerns about the integrity of the lottery system.
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The class-action lawsuit brought forth by Texas lottery players asserts that the actions of Rook TX and certain lottery retailers diminished the value of the May 2023 jackpot. Led by London-based trader Bernard Marantelli, Rook TX is accused of collusion, while the Texas Lottery Commission faces scrutiny for allegedly neglecting potential money laundering risks. Additionally, Grief has also been named as a defendant in the lawsuit, with claims suggesting that the Texas Lottery was susceptible to manipulation and the sale of tickets outside of Texas and even the United States.
In light of the ongoing investigations conducted by the Texas Attorney General’s Office and the Texas Rangers, there is a specific focus on third-party courier apps employed to purchase tickets. One of these apps was previously implicated in a contested $83.5 million jackpot earlier this year. As a response to the investigations and the lawsuit, the state has enacted a ban on lottery ticket couriers. This ban, mandated by Governor Dan Patrick, will take effect on April 29.
