BESSEMER, Ala. (WIAT) -- The City of Lipscomb has regained control of some of its money following a two-week asset freeze.
The freeze stems from a lawsuit filed by the Alabama attorney general that alleged the city failed to enforce gambling regulations and illegally profited from gambling operations.
Last week, the city rescinded all of its bingo ordinances, which the Alabama deputy attorney general said resolves the nuisance side of the lawsuit.
“Looking forward, that’s not going to be an issue if they are not allowing the gambling bingo there,” said Alabama Deputy Attorney General John Kachelman.
Kachelman said his office and the city will come to an agreement and then enter into a consent judgment regarding the illegal gambling lawsuit. He also said the attorney general's office has released some of the city’s assets, allowing them to make payroll and pay bills.
“What remains is whether or not this court will rule condemn and forfeit the remaining funds that are currently being held in the bingo account as illegal gambling,” Kachelman said.
The bingo account has $71,000 in it -- money that the attorney general's office maintains was illegally obtained from gambling operations. The money is currently in the city's "bingo account," which remains frozen.
Lipscomb’s general counsel said it is not ready to comment on Monday's hearing or the future of the city's bingo account.
