Dominican immigrant wins $338MM USD lotery jackpot

[pollogringo]

Great article on the ugly and tragic side of winning and how some have made it work:

WINNING the lottery can be a launchpad to financial security or a recipe for disaster.

They say a big lottery win is a curse in disguise - but that does not need to be the case for Australia's latest multimillionaire.
The South Australian mother - who has claimed her $24 million prize from Tuesday night's monstrous Oz Lotto draw - follows countless lottery winners across the globe who have blown their winnings and fallen into bankruptcy.
Many have managed to invest their money well and become far wealthier in the process, or simply not splurged to the point of debt. But most stories are tragic and hard to believe.
Pennsylvania man William Post blew $16.2 million on cars and speedboats within months after his win in 1988 - once confiding to the media he was much happier broke.
Others have committed suicide after their winnings dried up due to huge spending sprees and heavy gambling or drug addictions.
Some have been spotted living in trailers and - in the most drastic of cases - have even been charged with murder.
Even the best of intentions have gone wildly out of control.
South Korean immigrant Janite Lee walked away with $18 million from the Missouri Lottery in 1993, but eight years later - after contributing chunks of her wealth to educational programs, community services and political groups - filed for bankruptcy with just $700 left in her account.
But the most infamous story is that of successful West Virginia businessman Andrew "Jack" Whittaker, who pocketed $114 million after tax on his $315 million jackpot on Christmas Day in 2002. But four years later he lost it all, with his winnings drained by his generosity, legal cases against those demanding money, as well as his subsequent alcohol addiction and brushes with the law for his drunken behaviour.
This, however, was nothing compared to the tragedy of his daughter, 17, being found dead at Whittaker's home after a suspected drug overdose, two years after his jackpot win.
His other daughter was also found dead in 2009.
Seven years later, Mr Whittaker said he regretted winning the lottery.
"Since I won, I think there is no control for greed," he said. "I think if you have something, there's always someone else that wants it. I wish I'd torn that ticket up."
Within months of his win, Mr Whittaker handed wads of cash over to the community - even forming his own foundation - but it all soon turned sour.
"Any place that I would go they would come up," he said. "I mean, we went to a basketball game and we must have had 150 people come up to us and straight out ask for money, saying they were poor or had sick family members."
Mr Whittaker eventually spent more than $4 million on lawsuits alone.
"Don't give any money away because the more money you give away, the more they want you to give. And once you start giving it away, everybody will label you an easy touch and be right there after you," Mr Whittaker said.
But while the jackpot wins can bring hard times, they are not all bad.
Many lucky winners have been able to turn their newfound fortunes into much - sometimes millions - more.
Idaho gym owner Brad Duke, 34, struck a $225 million Powerball jackpot in 2005, but after taking a lump-sum payout of about $85 million, he was determined to make his fortune last. He hired a team of financial advisers to help him reach his ultimate goal: becoming a billionaire.
Mr Duke reportedly put $45 million of his winnings into low-risk investments and bonds, while he used another $35 million for aggressive investments in oil and real estate.
He paid off his $125,000 mortgage and laid out a plan to give each of his family members about $12,000 annually.
Two years after his win, Mr Duke was still a wealthy man.
"I (was) looking at statistics where (lottery winners) in 10 years have nothing," he said in 2007.
"In 10 years, I wanted to be worth about 10 times as much. I've always handled responsibility well. If you accept that cheque, you accept an amazing responsibility to yourself.
"I was quiet about the money for a month before I decided to come out. During that time, I was getting as much research as I could on existing lottery winners and what their stories were."
UK man Joe Johnson took a completely different route, using his new-found wealth to find romance.
Mr Johnson hid a $16.2 million lottery fortune he had won in 1998 that he had turned into a booming investment portfolio and string of luxury properties.
The reason was simple: he wanted to make sure the woman he began dating in 2000 - Lisa - was not a gold digger. He wore poor clothes, drove a lemon of a car and gave his new flame a cheap ring for Christmas.
The love-struck millionaire eventually divulged his secret to his eventual fiancee.
"It was the only way I could ever tell that I was truly loved for who I was, not because of the money," Mr Johnson said.

Cookies must be enabled | Herald Sun

 

[LTSteve]

I think I am somehow related to him. I hope he doesn't return to the DR. He will either have spent it all in a year or he will be held for ransom. Line up the Presidentes and let the fiesta commence!

LTSteve

 

[Koreano]

Hell. He's even asking for it. This cannot end well.

Yup. With that quote he have now just given all that $338 millions to those in need of help. If I was him, I would find some quite place with guards where nobody knows me and hide for awhile. Nothing good ever comes form saying you now have stupid amounts of money and likes giving away money.

 

[pollogringo]

Yup. With that quote he have now just given all that $338 millions to those in need of help. If I was him, I would find some quite place with guards where nobody knows me and hide for awhile. Nothing good ever comes form saying you now have stupid amounts of money and likes giving away money.

It's only $151 million after taxes are taken off the $211 million lump sum.

 

[Koreano]

it never does. getting free money, and managing it well, are horses of different colors

Managing the money is the key. You can always give away from investment returns and get tax breaks. Those that have never have managed large sums of money doesn't usually end well. I hope he does have learned few things in US and grew some kind of brain on his shoulder because if he doesn't he will end up on a tv show about those lottery winner that lost all or got killed.

 

[Koreano]

It's only $151 million after taxes are taken off the $211 million lump sum.

Yup that is the way I think. But it won't be the way people will think. The guy have really won $151 millions after taxes and all but people will remember him as being $338 million dollar winner. This will make him that much difficult. I hope he isn't planing to give away like $1 million dollars each to his own family because he will be taxed to wazoo. Giving away $20k to college grad had turned ugly once and I know how giving away money can get ugly.

 

[JMB773]

But don't we all say Dominican Republic is a great place to live if one has money? He could by a home in Casa de Campo if he worried about people bothering him. I sure he want to go back home and spend time with his friends and family now that he has more money then Sammy Sosa now LOL!!!

I think he will the richest man in DR with a 151 million cash, most rich people have so much money tied up in investments, but this is all CASH.

 

[the gorgon]

Managing the money is the key. You can always give away from investment returns and get tax breaks. Those that have never have managed large sums of money doesn't usually end well. I hope he does have learned few things in US and grew some kind of brain on his shoulder because if he doesn't he will end up on a tv show about those lottery winner that lost all or got killed.

Koreano, there was a tv show recently about professional athletes who had made a fortune during their playing days. the show revealed that close to 70 percent were flat broke, and oftentimes bankrupt, 4 years after they retired. yes, it's not the money; it's how you spend it. sadly, African American athletes were the worst culprits, throwing away thousands of dollars at a pop on topless dancers in go-go clubs.

 

[bronzeallspice]

I hope he uses the money wisely.I would like to hear about him 5 years from now.One lottery winner in less than 7 years spent all his winnings partying,buying expensive cars for family and friends and ended up on food stamps.

 

[pollogringo]

Some describe feeling the money as a weight of sorts. So they burn through it quickly on homes, boats and cars to feel "lighter", like they did before.

 

[bronzeallspice]

How the Lives of 10 Lottery Millionaires went Disastrously Wrong | money.co.uk

 

[bronzeallspice]

What To Do When You Win The Lottery | Money and Risk

 

[pollogringo]

How many think at this moment he's reading advice on how to manage his windfall or meeting with an advisor?

Nah. He's on the phone with Tia Esperanza from Los Mina and she's reminding him how much he used to like her arroz con leche when he was a little boy.

 

[PeterInBrat]

The moral of the story is don't take the lump sum or bury it in a trust fund.

 

[Africaida]

In France, you have the option to keep your anonymity (and many people choose to do so). In the US, you can't, that would be my biggest problem.

 

[bronzeallspice]

How many think at this moment he's reading advice on how to manage his windfall or meeting with an advisor?

Nah. He's on the phone with Tia Esperanza from Los Mina and she's reminding him how much he used to like her arroz con leche when he was a little boy.

And family members he never knew existed!

 

[RonS]

I just had a thought: if there is a question regarding his status as a legal immigrant in the US, would he nontheless be entitled to the money?

 

[PeterInBrat]

He owns a bodega, so he must(or better) have some paperwork to back up his status.

 

[Africaida]

He owns a bodega, so he must(or better) have some paperwork to back up his status.

He works in a bodega.

In any case, with 250,000 to invest in the US, you could get a green card.

 

[Hipocrito Mejia]

In France, you have the option to keep your anonymity (and many people choose to do so). In the US, you can't, that would be my biggest problem.

Actually, in the US it varies by state. In NJ, winners can not remain anonimous.

His first mistake was immediately acknowledging publicly that he was the winner. He should have validated and signed the ticket, then sought financial and legal advice, so as to figure out what to do with the money for maximum benefit and reduced tax liability, and to limit his obligations to the lottery for public exposure to a minimum.

I hope that things turn out well, but it doesn't look promising.