Powerfall

For David Lee Edwards, winning the lottery was a wild rocket ride

In the fall of 2006, David Lee Edwards and his wife, Shawna, decorated their front door for Halloween. But if trick-or-treaters made it to the couple's home, a storage unit in Riviera Beach, no plastic ghost was as scary as what they'd have found inside: two pale, withered junkies from Kentucky living amid dirty clothes, rotting food, and their own filth.

And these were lottery winners.

Today, with David on what could be his deathbed and much of his $27 million prize squandered on big-boy toys and drugs, the saga of the Edwards clan is like the Beverly Hillbillies replayed as tragedy.

To a modern-day Euripides, the point would be that those whom the gods wish to destroy, they first make suddenly rich.

The Edwards' story is all the more compelling because of the distance the family traveled, like a rocket that shoots into space and, slowly at first, then faster and faster, tumbles back to Earth.

Liftoff happened toward the end of the summer of 2001, as much of the country was gripped by Powerball mania. Eighteen drawings had failed to produce a winner in 21 states and the District of Columbia. The Powerball pot had swelled to more than $280 million, the third-biggest in U.S. history.

On Saturday, August 25, David walked into Clark's Pump 'n Shop, a convenience store and gas station in Westwood, Kentucky. He was 46, a high school dropout, an ex-con who had robbed a gas station 20 years before. He'd spent a third of his life behind bars. Now he was on unemployment and owed child support. He had chronic back pain from a 1988 car accident. He lived nearby in Ashland, Kentucky — a fading steel town, population 25,000 — in a home without running water.

He spent $7 on lottery tickets.

That night, when winners were finally drawn, David was one of four, scoring $73.7 million. He could have taken that in annual payments of $2.9 million over 25 years — but that was perhaps too safe, too conservative. Instead, he took a one-time payout of $27 million.

On Monday, August 27, David appeared at the Louisville Slugger Museum in Louisville, Kentucky, to receive his ceremonial check. He had his long hair pulled back in a ponytail and was doing his best to look natural in a suit. Reporters peppered him with questions.

Yes, he'd made some mistakes in life, he said, speaking slowly, trying not to sound too country. Yes, he was no stranger to the inside of a jail cell — but from now on, folks could leave poor out of poor white trash when they referred to David Lee Edwards.

Shawna Maddux, his 27-year-old girlfriend, stood by his side. The mother of three boys, she had her own demons — she already had a history of substance abuse — but under the TV lights at the museum, she looked plump and healthy, if awkward.

"You know, a lot of people, they're out of work. Doesn't have hardly anything," David said solemnly.

"And so I didn't want to accept this money by saying I'm going to get mansions and I'm going to get cars, I'm going to do this and that. I would like to accept it with humility.

"I want this money to last, for me, for my future wife, for my daughter and future generations."

Then he said he had his eye on a Bentley. And Shawna wanted a Ferrari.

"We need a new everything," they said, one repeating after the other.

"We're going to be the new and improved David and Shawna," Shawna predicted.

The day he heard he'd won the lottery, David said, his ex-wife, Gail, remarried.

"Congratulations, hon!" he said, gloating.


The Edwards rocket was accelerating. David sought advice from lawyers in Ashland and hired James Gibbs, a 31-year-old Morgan Stanley broker, as his financial adviser. The first thing Gibbs did was arrange a $200,000 loan so David could celebrate in Las Vegas while awaiting the Powerball payment.

After six days in Vegas, David was broke, says Gibbs, speaking by phone from Ashland. (David Lee Edwards could not be reached to comment for this article.)

When his lottery payment came, on September 10, 2001, David was like a kid in a candy store — that is, a kid whose favorite treat was OxyContin, the narcotic painkiller.

When long-lost acquaintances turned up asking for money, David was generous.

His pals "went hog-wild," Gibbs says. "He actually had I don't know how many friends OD once he won the money, from him giving them money and them going and buying so much and doing so much drugs that they died. Then he would pay for their funerals. I would just sit there and cringe."

David decided he needed a new home, in a place where his wealth wouldn't be so conspicuous. So in November 2001, he bought a 6,000-square-foot house in a gated golf and tennis community in Palm Beach Gardens. Price: $1.5 million.

David began to travel back and forth from Florida to Kentucky. On several occasions, he spent $8,500 for a private flight. He sometimes brought an entourage.

This was torture for Gibbs: "I'd be over there grittin' my teeth, with the calculator, saying, 'David, you gotta stop this.'

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  • Trey 01/26/2012 8:33:00 AM

    Lloyd, it's nice to know some people have friends no matter what happens to them or what may take place in their life's no matter how bad or how big. I'm glad to know there are still people like you in this world. God Bless

  • Pinkytuskadoro 10/30/2011 12:15:00 AM

    David if you read this "how stupid can you really be" people would give anything to win the lottery but only "stupid people like you win it"   CB  from nky

  • 06/18/2011 6:58:00 PM

    I bookmarked this story and return to it from time to time and still have difficulty wrapping my brain around blowing all that cash in such a short amount of time. Without placing blame on anyone involved, it just shows how if one were to win a large amount of money, it's best to not tell anyone except those directly involved (State, IRS and close money managers). To have the ability to draw close to $85,000/month as return for seven dollars worth of lottery tickets is mind boggling, to say the least. I do hope that Mr Edwards, somehow comes to grips and writes a book about his journey. I'll bet there was some background not included in this article that will probably curl ones hair. I wish David and Shawna good luck and peace of mind.

  • 03/24/2011 4:37:00 AM

    There are a lot of sob stories like these littered all over the internet! Hopefully the program on TLC called How the Lottery Changed my Life will breathe a new life into Lottery winners! Can't say I feel sorry for David Lee... with a financial planner by his side, he should've exercised extreme caution.. the same caution he spoke about during the press interview.

  • Sal mParadise 11/26/2010 10:02:00 PM

    Poor Edwards. Geex, give the guy a break. Seeing his fall from grace is one thing, but beating up on him as an ignorant Red Neck in the Long Tradition of Drunken Failure in the south yet another. He made his own bed, and his drug addiction sealed the deal. Edwards said he was a Republican but was unable to vote due to his record. He spent years in and out of the big house. Prior to winning Edwards was dealing drugs and was without steady work. Today Big Dave is in hiding, probably back in Ashland, Kentucky, his hometown. Last word was that he had beat his health problems and was not in any legal trouble for the first time in years. Still hope he, as noted above, does write that book so we can all see what went down with his lottery windfall. Best of luck to him.

  • Dan Shook 02/13/2010 10:38:00 PM

    I remember reading about the program he used to pick the numbers called The Lottery Picker from McCracken Software. http://powerfall.com It is the best program and does everything as far as picking the best numbers to play to comparing your number with past drawing numbers and totaling up your winnings, to printing your play-slips. It's just the best lottery software you can buy.

  • J 08/28/2009 10:00:00 PM

    Hot damn! He must be the world's most idiotic person! WOW!

  • David Johnson 08/20/2009 4:48:00 AM

    Anyone can hit the lottery on a regular basic if you use the correct. This software was used: "The Lottery Picker" sold at PowerFall.com. I've hit many pots using it just never the big one like this guy did. I been close though...

  • david dixon 10/31/2008 5:22:00 AM

    I too had powerball tickets on that lottery in 2001. I live in kentucky and work on the east coast on the water. To you David Edwards,Iam unemployed as you were and 1 year younger from you. You did sabotage your finances as I read about you but no one can see the people you helped, that you did start your own business and trusted the wrong people. I do recognize in life that people thrive on bad news about other people leaving out the good parts. The Internet has unmasked your unmorality as a person but you know david , no one is without sin, and if so may cast the first stone. I never met you but you do have a friend out here.

  • billie riffe 09/20/2008 6:32:00 PM

    well i hardley think ashland is the armpit of america,to whomever u r.but yes when young,knew the gril shawna well,use to babysit,i hate that her life turned out so bad,BUT SHIT all that money,gone thats crazy.i feel this man did not have someone to help him right,i know his ex wife well,sweet grl,whom has a drug problem herself,u know this couple needed help for drugs,why didnt they buy reall good help,.i dont really feel sorry for them,BUT i know how drugs can mess your judgment up,so bad.i hope the best for them,but dont think this will end good,.but dont judge everyone for his mistakes in ashland.

  • billie 09/20/2008 6:29:00 PM

    well i hardley think ashland is the armpit of america,to whomever u r.but yes when young,knew the gril shawna well,use to babysit,i hate that her life turned out so bad,BUT SHIT all that money,gone thats crazy.i feel this man did not have someone to help him right,i know his ex wife well,sweet grl,whom has a drug problem herself,u know this couple needed help for drugs,why didnt they buy reall good help,.i dont really feel sorry for them,BUT i know how drugs can mess your judgment up,so bad.i hope the best for them,but dont think this will end good,.but dont judge everyone for his mistakes in ashland.

  • Chris 07/26/2008 2:31:00 AM

    Although we did not know David Lee Edwards personally, we did know Jeff Chandler, the person who embezzled millions of dollars from him. After Edwards met Chandler, most of Edwards' worst problems started. When David Lee Edwards took Chandler to court, Chandler talked him into settling -- his reasoning: "If I am in jail, you will never get your money back." Well, guess what? He never got it back anyway. Jeffrey DeWayne Chandler of Stuart, FL has been scamming people for over 20 years, but you do not see articles written about him. He uses the money he obtains from his scams to hire the best attorneys to keep him out of jail. One of the people he scammed was my client, an investor from Monaco. Chandler scammed him out of $4.5 million and hid his assets rather than give him a dime. Chandler is still out there scamming people on a daily basis. Beware of him. His last scam occurred after the 3 hurricanes occurred in Florida in 2004 & 2005. He bilked millions from unsuspecting homeowners throughout Broward, Palm Beach, Martin and St. Lucie County in a roof replacement scam. We have to wonder if things would have been different for Edwards if he had not met Chandler.

  • Angelle 01/25/2008 7:36:00 PM

    I didn't know this guy personally, but I do know some of his acquaintances. One of the oldest and well known Dr.'s of this area had his license revoked for prescribing illegal drugs who was a friend of David's. Mr. Holbrook who is mentioned in the article is a known felon and crimminal himself. He has a lot of nerve criticizing this guy when he is no better himself. It's hillarious that he can loan thousands of $$ to this man and even boasts about it, but cannot pay his restitution to the victims family for a shooting he was involved in. This man is known for having a convicton for accessory to murder. These people deserve each other and I do not feel one bit sorry for them. This is the reason why there are stereotypes in this world. Ashland is the armpit of America. Corruption and Drugs!!

  • Mr Wonderful 12/26/2007 7:38:00 AM

    I just saw this clown on this lottery show in TLC. It is completely obvious that this guy had no clue what he was doing, bragging about how he spent $8k on some stupid statues and some stupid swords. Swords!?!? Is is any surprise this guy is now got one foot in the grave? This guy is a scab on the knee of humanity and I sincerly doubt that anyone will miss him when he finally gives up what is left of his pathetic and miserable life. Excrement in the storage area when there was a working restroom. Classic!

  • Mr Wonderful 12/26/2007 7:37:00 AM

    I just saw this clown on this lottery show in TLC. It is completely obvious that this guy had no clue what he was doing, bragging about how he spent $8k on some stupid statues and some stupid swords. Swords!?!? Is is any surprise this guy is now got one foot in the grave? This guy is a scab on the knee of humanity and I sincerly doubt that anyone will miss him when he finally gives up what is left of his pathetic and miserable life. Excrement in the storage area when there was a working restroom. Classic!

  • Tamme 09/15/2007 9:10:00 PM

    Shawna and David.........if you're reading this, drop me a line.... Shawna, you were a fun roommate in the Boo. Tamme

  • rick 09/12/2007 7:05:00 PM

    I'm not supprised of all I've read,I bearly knew him,and of all his millions, he is never was worth a red penny.

  • Lloyd VanHoose 09/10/2007 6:22:00 AM

    I am an old friend of David's. I don't know his wife or kids. Growing up, I would see him every few years. It's true David spent a lot of time behind bars. I could see how that changed him. I can also truthfully state David was always well dressed, well mannered, articulate and came from a very good family. I never knew of him to put anyone down or go out of his way to hurt anyone. I truly believe and this is a good example of how the drug Oxycontin and Crack Cocaine ruins peoples lives. The person writing this article seems more concerned about how someone can loose millions of dollars than the human aspect and suffering of the individuals involved. There is more to life than money and I pray that David's health improves and I will always consider him a friend, regardless of his circumstances. Lloyd VanHoose

  • rita 09/07/2007 11:25:00 AM

    I am so surprised by Jimmy's comment and I think he is probably somebody very close to Edwards...I know them both and worry that the kids have seen and been a part of so much of this lifestyle that they will be tainted by it and not be able to recover. It is usually the innocent that suffer in this instance of overindulgence. I know he helped some of his friends with business ventures and loaned many others money that have never paid him back. I hope they are not too ashamed to be at his side now and at least be a friend to him somehow. He is to blame for his indulgences,and his wife too. But please--lend a little hand if you are close by them...

  • Ella 09/04/2007 5:18:00 PM

    This is one of the saddest tragedies I've ever read. While drugs probably are the bottom line for their failure, ignorance played the biggest role. I am so sorry for them. I struggle every day to get by. Guess that's why I don't buy lottery tickets. I can't afford them.

  • Jimmy 08/20/2007 8:34:00 PM

    Hello me. If only I had the chance at that kind of bread, I would piss it away in a mannor to make David & Shawna look conservitive. I love herion and crack, I want to party with those two.

 

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