In December 1996, Denise Rossi was part of a workplace lottery pool in California when her group hit the jackpot, a $6.68 million prize. Her share came to $1,336,000, paid out in 20 annual installments of $66,800.
She had been married to Thomas Rossi for 25 years. Eleven days after winning, she filed for divorce.
She didn’t tell him about the money. Not during the filing, not during the proceedings, not when both spouses were legally required to disclose all assets. She consulted the California Lottery Commission on how to keep the winnings from Thomas, used her mother’s address for all lottery correspondence so nothing would reach him, and signed divorce paperwork warranting full financial disclosure without mentioning a word of it.
The divorce went through. Thomas had no idea.
For about two years, Denise collected her annual checks in secret. Then, in 1999, a letter arrived at Thomas’s address, addressed to his ex-wife. It was from a company that buys out lottery winnings, offering her a lump sum in exchange for her future payments. Thomas read it, scratched his head, and called his lawyer.
He took her back to court. The judge was not sympathetic. Under California law, spouses owe each other full financial disclosure during divorce proceedings.
Intentionally concealing a community asset is fraud, and the penalty is severe. The judge awarded Thomas 100% of Denise’s lottery winnings, every dollar of the remaining installments, as punishment for the concealment.
Her own attorney said that if Denise had simply been honest, he could have argued the winnings were her separate property, and she might have kept all of it.
She Won $1.3 Million, Filed for Divorce 11 Days Later, and Hid the Money — Then Her Ex Found Out
