Winner of $590million Powerball is Suing Her Son over Claims of Mismanagement

Back in 2013, Gloria Mackenzie, an 84-year old woman scooped a mega $590 million on the Powerball. After usual tax deductions, the lucky winner took home $278 million, but less than seven years down the line and Gloria has announced she will be suing her son; Scott, and his financial advisor for ‘mismanaged winnings’. Now aged 90, Gloria alleges the pair mismanaged her winnings, with the lawsuit stating she has suffered damages in excess of $10,000,000 – hardly puts a dent in the originally winnings, but it’s a loss, nonetheless.

Greg Anderson, Gloria Mackenzie’s attorney stated; “The money was earning between .02% and .08%. then Gloria was charged $2million in fees.”

Gloria had split the winnings with her son after he helped her buy the ticket to the largest Powerball in history (at that present time), but having control over her money meant he could turn over her share to a financial advisor, one which hosted a local radio show which Scott tuned into. Harry ‘Hank’ Madden in the advisor named in the lawsuit; a certified financial planner and owner of Madden Advisory Services in Jacksonville (Florida).

Blame Game

Many allegations are stated in the lawsuit, along with claims that Madden had no experience in managing huge sums of money, plus he is accused if investing the money too conservatively, which has resulted in low returns.

Scott has filed a motion to dismiss his mothers’ claims, stating that the investments have led to no loss of money and that his mother; Gloria, wanted the winnings to be invested conservatively. Lee Wedekind III, Scott Mackenzie’s attorney, said in statement; “Although he strongly disagrees with the allegations that have been made, he will respect his family’s privacy by reserving any further comments until the case has been concluded.”

Greg Anderson, Gloria’s attorney, has voiced his concerns on how important it is to vet your financial advisor before handing over huge swathes of money to manage. Just because you know someone within the investment word, doesn’t mean that person is experienced or knows what to do. Greg said; “Your stockbroker friend down the street may have some good advice, but how fiscally responsible are they if they’re wrong?”

Step Right Up

Talking of big Powerball winnings, the winner of the $768.4million Powerball jackpot from March 27th still hasn’t come forward to claim their winnings! The lucky ticket was purchased in New Berlin, Wisconsin and is the 3rd largest in U.S lottery history. The winnings numbers were;

  • 16, 20, 37, 44, 62 plus 12 being the Powerball.

The winner has but two options, should he or she come forward; receive the full amount paid out over the next 29-years or $477 million in cash.