North Dakota Wants RSI Bankruptcy Case Dismissed

A North Dakota judge has been asked by state Attorney General Wayne Stenehjem to dismiss the Racing Services Inc. bankruptcy case filed by owner Susan Bala because the wagering-company was under the control of a state-appointed receiver at the time of the filing.

Stenehjem mailed the motion last Friday and it was expected to be filed Monday in U.S. Bankruptcy Court in Fargo, the Fargo Forum reports.

Bala, who had not seen the document as of Friday, disagreed with the claims.

"Obviously, it wouldn't have been accepted and it wouldn't have gone forward had it not been proper," Bala said.

Stenehjem said "in effect Bala is attempting to utilize the bankruptcy process as a means to renege on her agreement with the state of North Dakota in its entirety."

RSI was placed under the receivership of Wayne Drewes Aug. 21 after Stenehjem alleged RSI underreported $99 million in bets and owed $6.3 million in state taxes and fees.

Federal and state charges have been filed against Bala, RSI, vice president Raymundo Diaz, and his company, Global Contact Inc.

The motion to dismiss also points out Bala filed for bankruptcy in Delaware, which is "an overt attempt to remove the oversight of her management of RSI from any judicial body with the state of North Dakota."

A federal judge has since moved the case to North Dakota.

Bala is scheduled to meet with creditors March 25 and have several motions heard by the court April 8.

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