Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 3, 1992                   TAG: 9203030259
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO 
SOURCE: WARREN FISKE and THOMAS HUANG
DATELINE: RICHMOND                                LENGTH: Medium

SYNDICATE'S BIG WINNING TICKET MAY BE INVALID

Thorson said the ticket sale could be declared invalid if it was paid for at the corporate headquarters of the Farm Fresh grocery chain, rather than at the store in Chesapeake's Western Branch where it was issued. That would violate lottery regulations, he said.

There is evidence strongly suggesting that the block purchases were paid for in advance at the chain's front office.

A Feb. 13 memorandum sent out from Farm Fresh officials to store managers states that a "group of investors will be in our stores purchasing on-line lottery tickets. These people will pay the home office directly for these tickets."

The effort, U.S. and Australian officials believe, was spearheaded by Anithalee Alex, an Illinois businessman known for selling high-risk investments, and Stefan Mandel, a lotteries guru in Melbourne.

Mandel denies involvement and claims he no longer manages the International Lotto Fund, an Australian-based syndicate believed to be behind the block purchases.

Should the winning ticket be declared invalid, the $27 million would be returned to the pot for a future drawing, said Paula Otto, a lottery spokeswoman. The Lottery Board would decide whether there would be a special drawing for the pot or several drawings for portions of it.

Thorson would decide whether to refund any money spent by the Australians for invalidated tickets, Otto said.

More than two weeks after the record jackpot was drawn, the winner has yet to step forward, and the FBI and state police continue to look into the matter.

Susan Mayo, a Farm Fresh spokeswoman, declined comment Monday. But in at least one published report, in the Feb. 22 Washington Post, Mayo said the investors paid for all the tickets in advance at Farm Fresh's corporate offices.

A retailer found violating lottery regulations could lose its license to sell lottery tickets, and the 5 percent commission it received for selling the tickets could be in jeopardy, Otto said.

At issue is a lottery regulation that states: "Tickets shall be sold only at the location listed on each retailer's license from the department." Lottery officials interpret that to mean that the ticket must be paid for at the location it was issued. The intent was to "make sure we're certain about who is selling the tickets," Otto said.