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Money Centers of America Files for Bankruptcy

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Money Centers of America, which operates check-cashing services in American Indian casinos, filed for chapter 11 protection on Friday amid continuing legal disputes with several American Indian groups, the Wall Street Journal reported on Saturday. Last year, a federal judge in Minnesota ordered the suburban Philadelphia company to pay the Mille Lacs Band of Ojibwe Indians $5.6 million. That judgment now exceeds $6.7 million, according to court papers. The case involved Money Centers’ soured deal with the Corporate Commission of the Mille Lacs Band. The tribe would advance cash to Money Centers for use in its transactions with gamblers at two casinos. Money Centers was to repay the advances but, when it fell behind, the tribe sued. Money Centers has appealed the ruling.