Archive for Tuesday, February 6, 2001

Ticket fraud case ends in guilty plea

Technician faces prison time, fines

February 6, 2001

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— Richard Lee Knowlton, the computer technician accused of stealing nearly $63,000 from the Kansas Lottery, pleaded guilty Monday.

As part of the plea agreement, Knowlton, 56, acknowledged he was lying when he claimed he had rigged only 12 "scratch tickets" and that the thefts were part of a personal campaign to expose lax security at the lottery.

Richard Lee Knowlton, right, faces up to 2 1/2 years in prison and
thousands of dollars in fines after pleading guilty to charges he
rigged Kansas Lottery tickets. Knowlton, shown Monday with his
defense attorney Joel Jay during a court hearing in Topeka, pleaded
guilty to 80 felony counts, admitting he altered computer records
and tickets to steal prize money from the agency.

Richard Lee Knowlton, right, faces up to 2 1/2 years in prison and thousands of dollars in fines after pleading guilty to charges he rigged Kansas Lottery tickets. Knowlton, shown Monday with his defense attorney Joel Jay during a court hearing in Topeka, pleaded guilty to 80 felony counts, admitting he altered computer records and tickets to steal prize money from the agency.

"What he told the media were lies," said Stephen Maxwell, assistant attorney general assigned to the case.

Knowlton, who showed no emotion during the 45-minute hearing, left the courtroom without comment. He now faces up to 2 1/2 years in prison and several hundred thousand dollars in fines.

Knowlton's sentencing is set for March 5.

In the agreement, Knowlton pleaded guilty to 40 counts of computer crime, 39 counts of theft and one count of official misconduct. All 80 counts are felonies.

Initially, Knowlton was charged with 240 felonies and 28 misdemeanors.

Maxwell said the state dropped all of the misdemeanors and 160 of the felonies as part of the plea negotiations. But Knowlton's plea, he said, applied to all of the criminal activities outlined in the case.

"People aren't allowed to plead guilty unless they're guilty," Maxwell said.

Maxwell said no one else is suspected of helping Knowlton or falsifying other lottery tickets.

As part of the plea agreement, Knowlton gave Maxwell a cashier's check for $28,217. Knowlton also forfeited his claim to the more $27,000 he has posted in bond or that was seized during searches of his home and a safe deposit box. He is scheduled to pay another $7,000 on the day of his sentencing.

These payments, representing the $62,932 he is accused of stealing, will be returned to the Kansas Lottery.

Knowlton also agreed not to contest the findings of a KBI investigation that accused him of using his access to lottery computers to turn losing tickets into winners, asking others to help cover his tracks and destroying evidence.

Included in the investigation was a list of each store grocery stores, mostly known to have cashed a bogus ticket between Nov. 27, 1998, at a convenience store in Neodesha, and Feb. 29, 2000, at a Hy-Vee in Overland Park.

Seventeen were cashed at Dillons, Hy-Vee and Kwik Shop stores in Lawrence.

Knowlton's thefts came to the attention of lottery officials on March 13, 2000. After admitting that he had rigged five tickets, he resigned March 16.

Lottery Executive Director Ed Van Petten said the plea agreement vindicates the agency's version of events.

"I think it's a very just outcome," Van Petten said. "I'm glad it's over, and I think the KBI did an excellent job in its investigation."

Maxwell said the Legislature which is deciding whether to renew the lottery's operations past July 1, 2002 and the general public shouldn't be worried about security at the lottery.

"This case was never about the security of the lottery," Maxwell said. "This was about one person's criminal acts."