A 90-year-old Florida woman who won a Powerball jackpot has sued her son and his financial advisers, claiming that they placed the lottery winnings into poor investments.
Gloria Mackenzie took home about $278 million in 2013 after winning the $590 million jackpot, making her the largest solo lottery winner in American history.
According to a lawsuit filed in late 2018, she gave half of her winnings to her son, Scott Mackenzie, who told her he would take care of her for the rest of his life, reported the Jacksonville Business Journal.
After his mother asked him to find a wealth manager to manage the winnings, he hired Harry “Hank” Madden, co-host of a radio show called “Smart Money” and principal and COO of Madden Inc.
In 2013, Gloria Mackenzie won a $590 million Powerball jackpot. Six years later, she no longer lives in her million-dollar Jacksonville home and a lawsuit claims her son and others mismanaged her money.
Posted by The Florida Times-Union on Wednesday, April 10, 2019
Gloria’s millions were “the largest account, by far, that Madden had ever handled,” the suit alleged. Over three-and-a-half years of managing the money, Madden Inc. charged more than $2 million in fees despite earning a return of less than 1 percent. According to the suit, Madden and Scott Mackenzie worked together to exploit Gloria Mackenzie.
Gloria Mackenzie suffered damages in excess of $10 million because of her son’s negligence, her lawyer Gregory Anderson claimed in the suit.
“You don’t have to know anything more than a branch manager at a bank to come back with some significant returns,” he said, reported the Florida Times-Union. “At the same time, he [the investment manager] was charging my lady, age 90 and in ill health, $2 million in fees.”
An initial suit was dismissed on Feb. 14 and an amended version was filed on March 6. A judge heard a motion to dismiss the amended lawsuit on April 9.
In the motion for dismissal, Scott Mackenzie’s attorneys said that all the son did was introduce his mother to the investment adviser. The investor then put the money 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 motion stated. “Rather than pleading ultimate facts to support their claims, plaintiffs continue to pursue legal theories that are unsupported by the facts they allege.”
According to News 4, after Gloria Mackenzie won the money, her son bought a 6,300 square-foot, five-bedroom house inside a country club in Jacksonville for $1.2 million and his mother moved in. But court documents indicate that she currently lives in Pennsylvania while her son lives in the house.
Anderson told the broadcaster that concerns among family members mounted when the elder Mackenzie showed up at a relative’s house and needed help after her son kicked her out.
“The other children and grandchildren started asking questions because here is Gloria who had enough money to buy every assistant living center in Jacksonville if she wanted to, and yet she was looking for a relative to live with to take care of her,” Anderson said.
“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,” Anderson told the Times-Union. The banishment happened after Gloria fell and hurt herself. She ended up living with another of her children.
Lee Wedekind III, one of Scott Mackenzie’s attorneys, said that his client was “deeply disappointed” with the suit.
“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 said.
