BIRMINGHAM, Ala. (WBRC) – The City of Lipscomb will be able to make payroll this week, according to court records. The Alabama Attorney General’s Office froze Lipscomb’s assets last week through a temporary restraining order over what it calls illegal gambling in the city.

This week, the AGO and the city attorney agreed to work together to determine how much money the city needed to meet its immediate financial obligations.

The AGO confirms it released $107,000 dollars back to the city to cover the expenses Wednesday.

Court records confirm the AGO authorized Regions to move $71,735.75 of ‘disputed funds’ from the general fund account back to the city’s bingo account. Then the general fund was released back to the city to be used for payroll and other expenses.

During a hearing Monday, Deputy Attorney General John Kachelman confirmed the city transferred more than $200,000 from the bingo account to the general fund last month. He argued those bingo proceeds were 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.”

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

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