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.