Miami Beach Millionaire Forks Over $1.2M Gambling Debt to Mohegan Sun
After allegedly trying to weasel out of his $1.2 million debt to the Mohegan Sun from a May 2009 blackjack session, Jerry Powers, the co-chairman and CEO of Plum TV, finally agreed to pay up the money, reported the New York Post.
For the past 18 months, Powers waged a legal battle trying to get a Connecticut court to throw out the ruling that would allow the Uncasville, Connecticut-based casino, owned by the Mohegan Tribe, to seize his assets. Connecticut Judge Robert Leuba also attached the potential for an American Indian board seat on Plum TV if Powers lost, stated the Post. The Mohegan Sun first sued Powers to reclaim his gambling debt in civil court in November 2009. Powers did not deny the accrued debt, but he claimed the credit agreement he signed was void under state law since the casino is owned by a sovereign nation, reported the Associated Press. He also claimed the Mohegan Sun engaged in an illegal gambling contract by granting him a seemingly unlimited line of credit, reported the Post.
"Jerry is currently in settlement discussions with Mohegan Sun to drop his appeal and pay his gambling obligations in full," a spokesman for Plum TV told Media Ink, reported the Post.
According to court papers, Powers stopped payment on a $465,000 check, and other checks were returned because they were written from closed accounts, reported the Post.
The board of Plum TV intervened and convinced Powers to settle, according to the Business Insider. A Plum TV spokesman tied the incident to a “dark period” in Powers’ life two years ago in which he struggled with substance abuse, the Insider stated.
Powers fortune stems from selling Ocean Drive Magazine with his partners to the Las Vegas-based Greenspun Media Group for $33 million, according to the Post. He invested in Plum TV five months ago and was named co-chairman and chief executive officer, expanding the TV cable operation into the regional luxury magazine world.