Scandal brings down another Texas Lottery chief

Liz Austin

Monday, July 11, 2005 | 9:12 a.m.

DALLAS -- Controversy brought down the first three executive directors of the Texas Lottery, and advertising jackpots the agency couldn't afford to pay has now cost the fourth his job as well.

Reagan Greer resigned Friday evening, two weeks after he admitted he'd approved a staff report proposing an $8 million advertised Lotto Texas jackpot for the June 8 drawing even though that report stated estimated sales could cover only $6.5 million. Two other jackpots in October and February also were inflated.

The Texas Lottery Commission is expected to name an acting executive director at its Monday meeting. In the meantime, Deputy Executive Director Gary Grief will oversee day-to-day operations at the nation's third-largest lottery, lottery spokesman Bobby Heith said Friday.

Other top lottery jobs also may be on the line on Monday. A posted agenda says the panel may meet behind closed doors to discuss the reassignment of Grief and four other influential staff members.

Legislative leaders who chastised the agency for misleading the public will be watching the commission's actions closely.

"I think there needs to be a real shakeup," said state Sen. Jane Nelson, R-Lewisville, who has sponsored a bill that would make the commission subject to truth-in-advertising laws. "If the advertised jackpots were inflated, heads need to roll."

Members of the commission either were unavailable for comment or declined to discuss Greer's resignation.

The commission hasn't hesitated to hold executive directors accountable in the past.

Nora Linares, the agency's first chief, was fired in 1997 after commissioners learned that her boyfriend, whom she later married, had been employed as a consultant for the lottery's main contractor, GTECH Holding Corp. Linares said she didn't know he worked for GTECH until shortly before the arrangement became public.

While Linares was never directly accused of wrongdoing, the commission said she couldn't be an effective leader because she'd been so damaged by the scandal.

Lawrence Littwin, Linares' replacement, was fired about four months after he joined the agency. He contended lawmakers and GTECH pushed for his ouster because he'd told lottery security officers to research whether lottery vendors made any improper political contributions. But former commissioner John Hill said at the time that the panel wasn't confident in Littwin's ability to lead the agency.

Linda Cloud, Littwin's successor, resigned in 2002 after admitting she lied to a newspaper about her knowledge of accusations that a former lottery commissioner had harassed and bruised a female lottery employee during a lunch meeting.

Cloud testified during a legislative hearing that she'd discussed the case with Mike McKinney, who was Gov. Rick Perry's chief of staff at the time, and said he'd told her to keep quiet.