Florida’s biggest Powerball winner sues her own son after winnings squandered
Gloria C. Mackenzie was the biggest sole lottery winner in U.S. historical past in mid-2013 when the then 84-year-old took house about $278 million after taxes on a $590 million Powerball price ticket she purchased at a Zephyrhills Publix grocery store.
Five years later she sued her son Scott Mackenzie, who used to be her caretaker and the one that had “total control” over thousands and thousands of greenbacks in winnings, pronouncing he and his funding supervisor every lived off the cash whilst poorly making an investment the proceeds, consistent with her lawsuit filed by means of legal professional Gregory Anderson.
The 40-page lawsuit, which used to be revisited in court docket this week in Jacksonville, calls for a pass judgement on and jury establish and maintain Gloria Mackenzie’s Powerball winnings, pronouncing she suffered damages in way over $10 million because of negligence, conspiracy to misrepresent and breach of fiduciary accountability. It additionally says her son and his movements weren’t carried out in excellent religion, breaching his felony tasks as energy of legal professional in addition to receiving unjust enrichment and exploiting a inclined grownup.
This disadvantaged his mom of beneficial properties she will have to have earned that will have generated “tens of millions of dollars” after he employed a Jacksonville funding adviser who Anderson stated wasn’t certified to maintain the account. While the ones investments “just sat there earning nothing,” Anderson stated the investor overcharged for his products and services whilst the son by no means checked on any of it.
“You don’t have to know anything more than a branch manager at a bank to come back with some significant returns,” he stated. “At the same time, he [the investment manager] was charging my lady, age 90 and in ill health, $2 million in fees.”
It’s no longer transparent how a lot of her winnings she has left.
The preliminary lawsuit used to be pushed aside Feb. 14, and an amended model used to be filed March 6. Tuesday in Jacksonville, Judge Virginia Norton heard a 20-page movement to brush aside the amended lawsuit, filed by means of legal professionals Lee Wedekind III and Dell Chappell, representing Scott Mackenzie.
It has no longer been dominated on but. But the movement says the lawsuit is just in line with allegations that Scott Mackenzie offered his mom to an funding adviser who put her in “conservative investment vehicles, in accordance with her chosen investment objectives, and effectively preserved her wealth.”
“That Gloria’s accounts did not increase in value as much as plaintiffs, in hindsight, would like is not a proper basis for a lawsuit,” the movement says. “… Rather than pleading ultimate facts to support their claims, plaintiffs continue to pursue legal theories that are unsupported by the facts they allege.”
Wedekind launched a observation including that his consumer is “deeply disappointed” along with his members of the family’ selections and their motivations in bringing this lawsuit however is similarly assured that the reality will be triumphant.
“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,” Wedekind stated.
Gloria Mackenzie married Ralph L. Mackenzie in 1951, then they moved to a Zephyrhills trailer park till his 2005 demise, residing on Social Security, the lawsuit stated. On May 18, 2013, issues modified when she purchased the profitable Florida Powerball price ticket.
She purchased a 6,300-square-foot, five-bedroom house in Glen Kernan Country Club, recently assessed at $1.13 million, consistent with Duval County belongings information. The Tampa Bay Times reported the deed to the house used to be transferred to her daughter and trustee Melinda MacKenzie in June 2013. But Duval County information now display the house indexed in her son’s identify.
Anderson stated the mum can have “hired and afforded nannies, nurses and housekeepers,” however she sought after circle of relatives to maintain her. Scott Mackenzie satisfied his mom that he had given her part of the $10 she used to shop for the price ticket and subsequently used to be entitled to part the winnings, the legal professional added.
“It is confusing whether he gave her $5 or worked around the house for the $5, or just happened to have it and handed it to her and she handed it to the Lotto ticket dealer,” Anderson stated. “… Gloria is fairly sharp, but she is 90. She was really concerned about being taken care of and this was an activating factor for her to help her son, because she wanted someone to take care of her.”
The mom did give some price range to her different kids, Anderson stated. But the lawsuit stated the son positioned part of her winnings in more than a few trusts and entities designed to “foster tax savings and advance Gloria’s philanthropic aims,” then Anderson stated he satisfied her that she will have to “give him half of it.” Since he additionally had energy of legal professional, which gave him “the authority to conduct investment transactions” on behalf of his mom, he started searching for an funding corporate.
Scott Mackenzie, an assistant supervisor at a shoe retailer on the time, did not select a big funding company. For causes that “escape virtually everyone who examined this,” Anderson stated he selected Hank Madden of Madden Advisory Services, who hosts a neighborhood call-in Saturday morning monetary recommendation display at the radio.
The lawsuit says Madden had by no means treated any account the scale of the Mackenzie’s. It additionally says a few of Madden’s prior shoppers had complained about him, and he have been fired for “commingling funds by an investment firm that employed him.”
“Scott failed to perform the proper due diligence to investigate and understand the person being considered to handle his mother’s nine-figure portfolio,” consistent with the lawsuit. “… Having had little money to her name and being a widow well into her 80s, Gloria had no knowledge or experience with which to judge the veracity of the representation or the performance of her son Scott or Madden.”
Anderson stated Scott Mackenzie transferred thousands and thousands into Madden’s keep watch over, a person who “failed to invest the funds in an appropriate mix of investments” and did little or no buying and selling. Yet Madden additionally used to be charging “outrageous amounts and fees totally untied to any actual performance,” Anderson stated.
“Scott did not protect his mother, failed to properly discharge his duty to her and instead eventually banished her from the house they shared together because she was no longer able to care for herself,” the lawsuit says.
That befell after Gloria Mackenzie fell and harm herself, but wasn’t moved to a nursing house, Anderson stated.
“She… ends up living with another of her children outside of Jacksonville,” Anderson stated. “The sad thing is Gloria could buy every assisted-living facility in Jacksonville.”
In the tip, it took Gloria Mackenzie years to keep in mind that her son and Madden had “poorly served her,” the lawsuit says.
If the amended lawsuit isn’t pushed aside, it might be heard ahead of a jury this autumn or early 2020, Anderson stated.
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