- Associated Press - Tuesday, September 30, 2014

MONTGOMERY, Ala. (AP) - The Alabama Supreme Court has sided with a bank in a fight over the troubled finances of jailed casino developer Ronnie Gilley.

The ruling Tuesday involved a $100,000 check that Ronnie Gilley Properties wrote to Cile Way Properties in December 2010.

Cile Way deposited it at Citizens Bank in Geneva. Citizens Bank only encoded the check for $1,000 when it presented the check to Gilley’s bank, Troy Bank, for payment.

Citizens Bank discovered the error in January 2010 and sent a $99,000 adjustment notice to the Federal Reserve. The Federal Reserve transferred the money out of Troy Bank’s funds, but by that time, Gilley’s account in Troy had dropped from nearly $200,000 to less than $600.

Troy Bank sued Citizens Bank for its $98,436 loss. A Geneva County judge initially sided with Citizens Bank. The Alabama Supreme Court reversed that ruling.

“The damage Troy Bank incurred was the result of Citizens Bank’s encoding error. Had Citizens Bank properly encoded the check, Gilley’s account would have contained sufficient funds to cover the full amount of the check when it was first presented to Troy Bank,” Justice Tom Parker wrote.

Gilley developed Country Crossing casino in Dothan. He pleaded guilty in 2011 to offering bribes to legislators to support gambling legislation and was sentenced to more than six years in federal prison.

He at the federal prison in Atlanta and is due for release in June 2018.


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