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A Special Investigations Unit Report Regarding the Texas Lottery Commission

July 2005

Report Number 05-041

Overall Conclusion

On June 28, 2005, the Public Integrity Unit at the Travis County District Attorney's Office obtained an indictment for former Texas Lottery Commission (Commission) employee Taneil Gage. The indictment charged Ms. Gage with one count of theft by a public servant over $500 but less than $1,500. This offense is a state jail felony.

In September 2003, executive management of the Commission contacted the State Auditor's Office Special Investigations Unit (SIU) and requested assistance with the investigation of an alleged fraud scheme involving Ms. Gage, who was employed in the Commission's Licensing Division. The SIU assisted Commission investigators with the investigation.

The investigation revealed that Ms. Gage, in her position as a retail services specialist with the Commission, allegedly defrauded several retailers who had applied to become Texas Lottery vendors.

Ms. Gage was terminated, and the Commission referred the matter to the Travis County District Attorney in October 2003.

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