PeterSidorkiewicz
HFWF Tourney Undisputed Champion
It's time for the Mohegan Sun to put Melnyk's bounced check up on the wall of their casino.
![T1vXrnG.png](/proxy.php?image=http%3A%2F%2Fi.imgur.com%2FT1vXrnG.png&hash=357c025e4145cf14dbd09b617c0b7625)
This is what I want to know. I've never seen one and the court documents look like cheques to me. Someone that has seen bank drafts, do they normally look like cheques? I imagined they would look more like deeds. No idea why I thought that.
As far as I know, a TD Bank draft looks more like this:This is what I want to know. I've never seen one and the court documents look like cheques to me. Someone that has seen bank drafts, do they normally look like cheques? I imagined they would look more like deeds. No idea why I thought that.
This is textbook derailment.
I tend to agree with @Silencio, the instruments in question don't look like any bank draft I have seen or can find examples of online.
Yes, this is the same format every TD draft our office has received in all my time here.As far as I know, a TD Bank draft looks more like this:
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That's not me necessarily saying the image in the suit is NOT a draft. Just that I've never seen one like that.
Regarding the first point, I would assume so. The second part is where it gets interesting.I fully acknowledge different instruments are likely in play with the types of wealth and accounts, bank drafts for us plebes usually like serial numbers on them and then transit/branch/ account numbers at the bottom like a regular cheque, do they not?
I knew from the outset he couldn't possibly have been receiving "traditional" bank drafts at that time of night, I'll be curious to learn if they were in fact bank drafts or rather some kind of different cheque sent electronically from a private account.
I briefly reviewed the complaint and the exhibits. What seems to be the case is that:
1) Melynk applied for a $1,000,000 casino credit account in 2012 (see exhibit 1 in the case details linked above)
The casino credit account is basically a credit line payable through a chequing account. If you're a frequent big money gambler, you don't want to have to be running to the ATM while you're playing or bringing in wads of cash or cheques every time. So, what you do is apply for the casino credit account and they'll advance you funds while you're playing and then you pay the casino back later. Depending upon how much you have outstanding with the casino you have different amounts of time to pay the money back (the Mohegan Sun website states that amounts over $5000 must be paid back within 45 calendar days). More info on the Mohegan Sun Credit program here: Casino Credit Form | Mohegan Sun
2) Sometime in 2017, Melynk must have taken casino credit while gambling. Given the amounts, he was required to pay this money back within 45 days. The actual time of day that the drafts probably doesn't correlate to when he was gambling because we now know that he had 45 days to pay the money back (and let's be honest, we all know Melynk isn't paying anything early). What it seems to me is that the 45 day time limit probably expired on March 19, 2017, which is why he was issuing the drafts late at night. He needed to beat the deadline or risk having his casino credit privileges revoked.
3) The "draft" issue is tripping a lot of people up. The complaint references "drafts (as defined in the Connecticut General Statutes s 42a-3-104). What this means is that they are using "draft" as a term of art (i.e. it has a specific meaning as defined in the statute). This meaning may or may not correlate to our common understanding of what a "bank draft" is.
The precise language of the statute is available here: 2012 Connecticut General Statutes :: Title 42a - Uniform Commercial Code :: Article 3 - Negotiable Instruments :: Section 42a-3-104 - Negotiable instrument.
The relevant language is:
(e) An instrument is a “note” if it is a promise and is a “draft” if it is an order. If an instrument falls within the definition of both “note” and “draft”, a person entitled to enforce the instrument may treat it as either.
(f) “Check” means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier’s check or teller’s check. An instrument may be a check even though it is described on its face by another term, such as “money order”.
(g) “Cashier’s check” means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(h) “Teller’s check” means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank.
(i) “Traveler’s check” means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term “traveler’s check” or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(j) “Certificate of deposit” means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
So, as we can see, multiple different types of instruments are called "drafts" under Connecticut law.
4) The terms and conditions of the credit account specifically state that the Casino can go after Meylnk. The relevant language:
I understand that if my check or marker is dishonored by a financial institution because of insufficient funds in the account, because the account was closed, because of a stop payment order or for any other reason, I may be exposed to criminal penalties in addition to any civil remedies that the MTGA may have against me.
tl;dr: Melynk had a credit account at the casino. He need to pay the $900,00 by a certain deadline or risk having his credit account revoked. Under Connecticut law "drafts" can, but don't always mean "bank drafts" within the common understanding of the word. The "drafts" Meylnk issued were dishonoured by the bank for reasons that are as of right now unknown, and the Casino wants it's money from Meylnk.
The one part that stands out to me is the "drafts", for lack of a better term, don't have a line for the signature of a bank employee. The signature appears to be that of the Euge himself, which doesn't make a lot of sense if we are talking about a bank drafts where the bank is the one guaranteeing the amount.
I briefly reviewed the complaint and the exhibits. What seems to be the case is that:
1) Melynk applied for a $1,000,000 casino credit account in 2012 (see exhibit 1 in the case details linked above)
The casino credit account is basically a credit line payable through a chequing account. If you're a frequent big money gambler, you don't want to have to be running to the ATM while you're playing or bringing in wads of cash or cheques every time. So, what you do is apply for the casino credit account and they'll advance you funds while you're playing and then you pay the casino back later. Depending upon how much you have outstanding with the casino you have different amounts of time to pay the money back (the Mohegan Sun website states that amounts over $5000 must be paid back within 45 calendar days). More info on the Mohegan Sun Credit program here: Casino Credit Form | Mohegan Sun
2) Sometime in 2017, Melynk must have taken casino credit while gambling. Given the amounts, he was required to pay this money back within 45 days. The actual time of day that the drafts probably doesn't correlate to when he was gambling because we now know that he had 45 days to pay the money back (and let's be honest, we all know Melynk isn't paying anything early). What it seems to me is that the 45 day time limit probably expired on March 19, 2017, which is why he was issuing the drafts late at night. He needed to beat the deadline or risk having his casino credit privileges revoked.
3) The "draft" issue is tripping a lot of people up. The complaint references "drafts (as defined in the Connecticut General Statutes s 42a-3-104). What this means is that they are using "draft" as a term of art (i.e. it has a specific meaning as defined in the statute). This meaning may or may not correlate to our common understanding of what a "bank draft" is.
The precise language of the statute is available here: 2012 Connecticut General Statutes :: Title 42a - Uniform Commercial Code :: Article 3 - Negotiable Instruments :: Section 42a-3-104 - Negotiable instrument.
The relevant language is:
(e) An instrument is a “note” if it is a promise and is a “draft” if it is an order. If an instrument falls within the definition of both “note” and “draft”, a person entitled to enforce the instrument may treat it as either.
(f) “Check” means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier’s check or teller’s check. An instrument may be a check even though it is described on its face by another term, such as “money order”.
(g) “Cashier’s check” means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(h) “Teller’s check” means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank.
(i) “Traveler’s check” means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term “traveler’s check” or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(j) “Certificate of deposit” means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
So, as we can see, multiple different types of instruments are called "drafts" under Connecticut law.
4) The terms and conditions of the credit account specifically state that the Casino can go after Meylnk. The relevant language:
I understand that if my check or marker is dishonored by a financial institution because of insufficient funds in the account, because the account was closed, because of a stop payment order or for any other reason, I may be exposed to criminal penalties in addition to any civil remedies that the MTGA may have against me.
tl;dr: Melynk had a credit account at the casino. He need to pay the $900,00 by a certain deadline or risk having his credit account revoked. Under Connecticut law "drafts" can, but don't always mean "bank drafts" within the common understanding of the word. The "drafts" Meylnk issued were dishonoured by the bank for reasons that are as of right now unknown, and the Casino wants it's money from Meylnk.
One minor quibble, I think he applied in 2004, he listed his title as CEO of Biovale on the application and had already left Biovale by 2012 which leads me to believe the date format used was Month-Day-Year which I understand is the norm in the states.
So... did the bank NSF him on all of the checks, or did he stop payment?
This certainly looks like a "bank draft" Eugene printed out on his computer, and not something that would have been issued by TD...
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https://www.tsn.ca/radio/ottawa-1200/the-drive-september-16-2019-hour-1-1.1366534This story has legs, no doubt in my mind.
His Lawyer has apparently responded saying it will be dealt with swiftly
God I hope it gets worse for him.This story has legs, no doubt in my mind.
I'm surprised it even had to get to this point, if I'm being honest.
Like... This is a pretty extreme measure to have to take.
I'm surprised it even had to get to this point, if I'm being honest.
Like... This is a pretty extreme measure to have to take.