Judge dismisses bankruptcy petition by California woman who won $1.3 million jackpot

Thursday, Feb. 10, 2000 | 10:27 a.m.

U.S. Bankruptcy Judge Vincent Zurzolo dismissed a Chapter 13 filing by Denise Rossi of Long Beach on Wednesday and also barred her from filing any other bankruptcy petition. Chapter 13 allows a person pay back creditors with available earnings.

Zurzolo also gave permission to Thomas Rossi's lawyers to return to court with the bankruptcy court ruling. Rossi previously won a Superior Court ruling giving him all the money from his ex-wife's lottery win.

Ms. Rossi, 49, and five co-workers in a now-defunct clothing design firm pooled their money to play Super Lotto in December 1996 and won a share of a $6.6 million jackpot. She filed for divorce 11 days later.

Her husband found out in May 1997 when he received mail from a company that pays lump sums for lottery winnings.

On Dec. 16 Superior Court Judge Richard Denner ordered Ms. Rossi to pay her ex-husband all of her 20 yearly lottery installments of $66,800.

Under California's community property laws, had she disclosed the money during the divorce, her husband would have been entitled to half.

Bankruptcy court trustee Howard Ehrenberg testified Ms. Rossi filed bankruptcy as a way of usurping Judge Denner's order.