Las Vegas Sun NewsBankrupt Las Vegas businessman must still repay casino markers
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27 July 2012
5 p.m.
A Las Vegas businessman who declared personal bankruptcy must still repay the worthless markers he wrote at two casinos, the Nevada Supreme Court has ruled.
The court refused to set aside the bum check convictions of Martin R. Brown, who wrote $20,000 in worthless markers at Wynn Las Vegas and a $25,000 bogus marker at the Bellagio.
Because of a downturn in his business, Brown, who was described as a lover of gambling, filed for personal bankruptcy. He then wrote the worthless checks on his M&I Bank account, which was closed.
The casinos filed criminal charges against him. Brown was convicted after trials of passing the bad checks. He was placed on five years' probation and ordered in each case to make a $21,625 payment to each casino.
He was also ordered to stay out of casinos for the purpose of gambling. Brown was directed to perform 16 hours a month of community service unless he was a full-time worker or student.
Brown appealed, arguing the state's bad-check law was unconstitutional because it violates his federal right to declare bankruptcy. He maintained the state could not prosecute him after his debts had been discharged in bankruptcy.
The Supreme Court said the federal law does not prevent a state from beginning or continuing a criminal action after an individual has filed a petition for bankruptcy.
The court said Brown failed to show that criminal prosecutions violated the federal Supremacy Clause.
The court also rejected Brown's argument that the criminal prosecution in the two cases was improper debt collection and the casinos were barred by the bankruptcy discharge of the debt.
The two decisions upheld the rulings of District Judge David Barker.
In a third case, the Supreme Court rejected the petition of New York-New York for a pre-trial summary judgment in connection with a shooting in July 2007 in which four people were injured.
The resort was sued by Carrie Zeravica on grounds it was negligent in permitting the shooting by Stephen Zegream, who said at the time he was despondent,
The court said the New York-New York failed to show "extraordinary relief is warranted" at this time in the suit.
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Comment removed by moderator. Name Calling
Must be nice to be able to use the State and the threat of prison to enforce your debts.
Casinos have it made out here in Nevada and the Courts have absolutely NO shame in doing their dirty work.
What a disgrace.
Vegas Delight,
Check the laws, those laws are not just in place for casinos. You write a bad check to anyone in this state and the courts are involved if the person you write the check to presses the matter.
I know many feel it is fun to pick on the industry that pays your way of life in this state but they are not just the selected ones in this type of matter.
Those who gamble live in shambles. He should have been at the $5 table instead of the $500 table. You aren't going to beat the casino. Gamble, but keep it light. I love gambling for entertainment purposes but i cant in good conscience gamble the equivalent of a mortgage payment on a weeknight. This guy obviously was trying to win meaningful money. I see a lot of locals who gamble..and that's fine, but if you are in there 2-3 days a week you will lose by years end. Don't gamble too much money.
Hey vegas delight...walk into a casino and ask for a marker genuis..they will laugh you out of the place...its a civil debt not a criminal one. Repeat that sentence over and over...the wynn made this guy show bank statements, brokerage accounts and pulled special credit report before extending him credit...kinda just like a bank does when you buy a car or house?????? The man signed his name, just like you and thousands and thousands of vegas degenerates sign a morgage...the wynn took a risk based on his history and wealth the same way a bank does based on a credit report..could u imagine if bank of america could use the courts as debt collecter..lol there might be 5 people in vegas left..the rest in jail
VegasInc, please get input from a BK law expert. If he wrote bad checks after filing the BK petition, those debts can't be discharged in bankruptcy because they are "post-petition" and not because the debt is nondischargeable as based on fraud, correct? On what basis is the guy claiming the debts were discharged? If he had written the checks before filing for bankruptcy, would he have a better argument?
From this ruling, it is unclear how the court would view the collectability of a marker obtained legally. If a person robbed a bank would they still be required to pay restitution if they filed for bankruptcy? It seems unlikely that the courts would tolerate the use of the law to shield a convicted person from his criminal sentence.
The taxpayers should not pay to collect Republican Steve Wynn's debts. Hey Steve I thought you want "less government" then collect your own debt. You were the one that lent the money, it is your problem, not the taxpayers.
Let's see, the jerk wrote bad checks in the amount of 45 thou. Hm, I wonder how much his lawyers cost to fight making them good? Aside from that, he's a prime example of just how far down the slime pit some citizens have fallen. Make deal? Sign a contract? Incur a debt? No problem. Just renege on it and walk away. How we have fallen as a society! When I was younger, a handshake was as good as the written word for most of us. All we had was our reputations and they were precious to us. Not so today. Today, it's acceptable to be a cad, to lie, to cheat and to run out on ones obligations. Honor? Integrity? Morals? They count for little today, it seems!
I agree with vegaslee. This ruling protects all those small and large businesses in the state who accept checks. And, consider the alternative, my friends. If the court would have given an opposite result, people would know they could write bad checks to a business after declaring bankruptcy with no consequences. What if it were YOUR business involved in such a scam?
Is this the "free stuff" Mitt Romney talks about? Free debt collection for billionaires by the government.
I think Laws should apply equally to People AND Corporations. Since Corporations are now People why should They be able to walk away from their obligations (You Do Remember Wall Street Banks) and Individuals Not?
There is something very weird about Republican Logic wanting it both ways - Like blowing smoke out of .........
Good, just because you file bankruptcy should not relieve you of your financial responsibility. Beware, if you walked away from your home, do not be surprised if the past catches up with you, you will still owe everything associated with that home, and I hope counties do not let these delinquent ex home owners off the hook.
BTW, this law does not just apply to writing checks to businesses.
If someone writes you a bad check and won't pay up, turn it over to the D.A. They will collect it or take the person to court.
We are NOT the only state with this law. Ca. has ha it for over 30 years and I am sure there are other states that do also.
Why exactly do people in las vegas have such a hard time with comprehension??? All these morons compare this to themselves. You know how you write a personal check and then say all states have these laws?? Of course they do moron, we get that. There is a whole nother way some people (rich) live. Lets get this straight morons. This man did not whip out his checkbook like you do to pay for diapers at walmart. In fact wynn printed the check on wynn paper. They just asked him to sign and they'll give him cash. The devil was in the details when he signed the credit application that says nevada is a debtors prison (my words). This does not go on in other states. So stop comparing your personal checks to nevada gaming laws criminally written
Boo Hoo..Boo Hoo....poor Baby !! This guy is something else. I think the casinos have to be MORE aggressive with the markers they give out...and for sure do a better background check. They need to get title to their homes,cars,boats...anything worth a dime they can claim and hold until jerks like this cough up the money they owe. The casinos seem to be shooting themselves in the foot lately what gives?
First, I agree no one should write a bad check. A few things concern me about this situation. First, in the day and age we live in why does anyone even take checks? Did the casino verify funds? It seems they did not, if they had they would have discovered that the acct was closed. Maybe, the casino should examine its business practices. Second, some years ago I along with over 50 emplyees were issued bad checks by a former employer. The state and local police in Washoe county did nothing to the guy who owned the company that issued the worthless checks. This law needs to be applied and enforced equally.
We have one appellate court in this state -- and its' time has been taken from other matters. Sanctions against counsel seem appropriate. First, the bankruptcy statute which provides for stays of state court actions expressly excludes state criminal proceedings from the bankruptcy stay (11 USC 362(b)(1)). Second, existing case law in the 9th Circuit and nationally has held that the bankruptcy stay does not apply to prevent state criminal prosecution (In re Gruntz [9th Circuit 2000], 202 F. 3d 1074, and Kelly v. Robinson [1986] 479 US 36.