The attorney general’s office is releasing funds to Lipscomb for payroll purposes

BIRMINGHAM, Ala. (WBRC) – The city of Lipscomb will be able to process payroll this week, according to court documents. The Alabama Attorney General’s Office last week froze Lipscomb’s assets through an injunction over alleged illegal gambling in the city.

This week, the AGO and the state attorney general agreed to jointly determine how much money the city needs to meet its immediate financial obligations.

The AGO confirmed it returned $107,000 to the city on Wednesday to cover costs.

Court documents confirm that the AGO authorized the Regions to transfer $71,735.75 in “disputed funds” from the general fund account back to the city’s bingo account. The general fund was then returned to the city to be used for payroll and other expenses.

During a hearing Monday, Assistant Attorney General John Kachelman confirmed that the city transferred more than $200,000 from the bingo account to the general fund last month. He argued that the bingo proceeds were criminally obtained dollars and doesn’t believe the city should be able to keep them.

“These are ill-gotten gains,” Kachelman said of the bingo-related funds. “They shouldn’t be able to take advantage of the ones they have year-round.”

The bingo account will remain suspended until the city and prosecutors return to court next week to finalize the litigation.

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