On behalf of Law Offices of Mark M. Kratter, LLC on October 27, 2011
Some Connecticut residents may have been a bit surprised to learn that one a Fry's Electronics official filed for Chapter 7 bankruptcy back in July 2011. The filing stated that the man had assets of about $7 million and liabilities of more than $136 million, which included millions of dollars in gambling debts.
Now, the Palms Casino in Las Vegas is suing the man in order to recover some $2.66 million in gambling debt that the casino says he owes them. And if the Chapter 7 bankruptcy filing and current lawsuits are not enough, the man was also indicted in December 2008 for playing a part in a kickback scheme.
In regards to what the IRS is calling a kickback scheme, the man, working as Fry's vice president of merchandising and operations, demanded more than $65 million from vendors in kickbacks to put their merchandise on the electronics store's shelves. According to the government, this money was spent supporting a lavish lifestyle as well as was used to pay for his gambling excursions. He is scheduled for sentencing on this case in December.
In his bankruptcy filing the man listed numerous gambling debts. They included money possibly owed to numerous casinos both in the United States and in the United Kingdom. One of those listed was the Mohegan tribe in Connecticut.
Filing for Chapter 7 bankruptcy can be complicated, as this case shows. Even when he is released from prison for his involvement in the kickback scheme, he will be facing millions in debts that need to be repaid. Working with an experienced attorney may make the process easier. A qualified attorney may be able to answer questions and assist in a variety of ways when individuals need a fresh start financially.
Source: Vegas Inc., "Palms suing to recover ex-Fry's executive's gambling debt," Steve Green, Oct. 17, 2011
