The economist from Romania established a“number-picking algorithm” by employing a methodology he called "combinatorial condensation"
Stefan came to the realization that in certain lottery draws, the cost of purchasing enough tickets to cover every possible combination was actually lower than the jackpot prize.
As an example, if a game required the selection of six numbers from a range of 1 to 40, there would be 3,838,380 possible number combinations.
If tickets cost £1 each and the jackpot was £10 million, he stood to win a massive profit.
He gathered a group of friends, formed a syndicate, and purchased a large number of tickets, covering all possible combinations.
Their strategy paid off, as they won the top prize with an impressive sum of over £15,000 (7,700 Lei).
He then paid his fellow teammates, he found himself possessing a modest £3,000.
Subsequently, he moved on to a new chapter of life in Australia during the 1960s, where he lived with his wife and two children.
Using this method, he managed to secure the lottery jackpot an astonishing 14 times, all while strictly adhering to the law.
Stefan skillfully persuaded a group of investors to pool their funds to create a larger lotto syndicate.
In a lottery syndicate, individuals contribute money into a shared pool designated for the purchase of lottery tickets.
A designated syndicate manager is then responsible for acquiring the tickets, and any winnings obtained are shared among the members.
As his operations continued to thrive, Stefan invented an automated system with printers and computers to automatically generate tickets containing every possible combination of numbers.
The group won 12 lotteries, amassing hundreds of thousands of smaller prizes spanning both Australia and the UK.
However, the authorities eventually caught wind of Stefan and his syndicate, prompting an investigation into their activities.
Then the lottery authorities took action by implementing a new rule change: they banned the purchase of tickets and the use of computer-generated entries.
Despite these obstacles, Stefan remained undeterred and demonstrated his unwavering determination.
He then deployed scouts across the US to identify opportunities with substantial profits, often at least three times higher than the total of all possible combinations.
He then relocated to the United States and decided on the Virginia Lottery which was his next target.
During that period, there were 7.1 million potential number combinations available in the lottery pool, and the ticket cost was a mere $1 (AUD $1.50). Mandel successfully persuaded 2,500 Australian investors to contribute $2,500 (AUD $3,743) each to the endeavor.
Two years later, in 1992, the jackpot swelled to $27 million (AUD $40.4 million), prompting Mandel and his team to acquire every single ticket. This massive win led to a protracted four-year legal dispute, during which both the CIA and FBI conducted investigations into his activities.
However, Mandel ultimately evaded legal repercussions. In 1995, he filed for bankruptcy.
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