Lipscomb City Council repeals bingo ordinance, some city assets remain frozen

BIRMINGHAM, Ala. (WBRC) – The Lipscomb City Council called an emergency meeting Monday to repeal a bingo ordinance that’s been in place for some time. The action came hours before a hearing over whether to extend a restraining order filed by the state last week that froze the city’s assets following multiple attempts to shut down what the AG’s Office calls illegal gambling operations in Lipscomb.

“We want to comply, that’s why the city repealed its ordinance so it wouldn’t be an issue going forward,” stated Lucien Blankenship, Lipscomb’s city attorney.

Blankenship argued the restraining order should expire given the city’s good faith action and looming financial deadlines like payroll and managing federal infrastructure funds, which must be spent in the next two weeks.

“We have the clerk’s office crunching numbers right now, we’ve got to get rid of [the federal infrastructure funds] or we have to give it back to the federal government,” Blankenship explained.

Deputy Attorney General John Kachelman told the judge the state has already released the majority of the funds back to the city. The bingo fund and another operational fund used to make payroll remain frozen.

The issue – the city moved at least $200,000 from the bingo fund to the operational fund. The state calls the money from bingo proceeds criminally-derived dollars and doesn’t believe the city should be able to keep it.

“Those are ill-gotten gains,” Kachelman said of the bingo-related funds. “They shouldn’t be able to profit from those, which they have all year long.”

Kachelman argued the judge should extend the restraining order so they could sort out the funds, agreeing to release enough to make payroll.

“We want to get the city on the right course, that’s what the state wants,” Kachelman added. “We don’t want to shut down Lipscomb, our goal is to make sure they follow the law.”

Jefferson County Circuit Judge David Carpenter agreed to extend the restraining order for a week with the understanding the state would release enough money so city employees would be paid.

Kachelman confirmed Lipscomb has less than $100 left in the bingo fund. The nearly quarter million dollars that was transferred to another account is now in question. That account reportedly only has a balance of about $17,000 right now.

WBRC asked the city attorney to confirm what happened to that money and who has access to it, but he couldn’t answer.

“I’m legal counsel, I’m not the accountant,” Blankenship responded.

The restraining order is scheduled to expire on December 9.

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