December 15, 2017

Another Lottery Story with a Bankruptcy Angle

cash windfall and bankruptcyI ran across an interesting lottery story with an interesting bankruptcy twist.  This story took place in Syracuse, New York where a down and out maintenance worker named Robert Miles bought a scratch off lottery ticket in a quick mart in 2006.

Addicted to drugs at the time, Mr. Miles took his ticket to the proprietors of the Green Ale Market to find out if he had won.  The owners of the Market responded that yes, he had won $5,000.  In reality, the winning ticket was worth $5 million.  The store owners gave him $4,000, keeping $1,000 of the “winnings” for themselves as a fee(!).  The store owners then waited six years to submit the winning $5 million ticket.

Officials at the state lottery office launched an investigation because they were suspicious that the purported winner had waited six years to come forward and that the winner owned the store where the ticket was sold.

When he read about the store owners’ stroke of luck, Mr. Miles – now sober – came forward to say he had been ripped off.  The store owners ended up in jail and Mr. Miles was awarded his deserved $5 million.

The news story also reports that in 2008, Mr. Miles filed bankruptcy, “knowing that he should have been a millionaire five times over.” [Read more…]

Will Bankruptcy Issues Affect Georgia Governor’s Race?

Nathan Deal under scrutiny for financial woesIf you have been reading your local newspapers, you may be aware that Nathan Deal, the Republican candidate for Governor of Georgia, is facing scrutiny about his personal finances and about the bankruptcy filings of his daughter and son-in-law.

According to the Atlanta Journal-Constitution, Mr. Deal personally guaranteed bank loans totaling over $2 million that was used to build and finance a sporting goods store owned by his daughter and son-in-law called Wilder Outdoors, located on Highway 365 near Gainesville.   Unfortunately for the Wilders, the sporting goods business failed, leaving about $2.5 million due.  Mr. and Mrs. Wilder filed Chapter 7 bankruptcy in 2009, discharging their obligations on the outstanding bank loans, leaving Mr. Deal exposed as the guarantor.

Mr. Deal and the Wilders were able to refinance the business loan several years ago prior to the closing of the business but now, a $2.5 million debt will come due in February, which would be about a month after he takes office if he wins. [Read more…]

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