Lottery Winner Cashes $80,000 Prize Despite Court’s Order

A Newport Beach woman cashed her $80,000 California Lottery prize Friday for traveler’s and cashier’s checks despite a court-ordered freeze on her winnings.

Larry Finnegan, vice president of New City Bank in Orange, told Orange County Superior Court Commissioner Thomas Keenan under oath late Friday that Sharon Nunez, her husband and her father-in-law presented the check at the bank about 10:30 a.m. He said he issued her three cashier’s checks for $20,000 and one each for $13,000 and $6,000 and $1,000 in traveler’s checks.

But Finnegan said he had read about the freeze on Nunez’s lottery prize and had first called her attorney, Paul Mast.

“He (Mast) indicated to me if I followed normal banking procedures . . . we would not be putting ourselves in the position of violating the court order,” Finnegan told the commissioner.

Keenan had said that Nunez, who won the California Lottery Monday night, could receive $4,000 of her prize money only if she first deposited the state check in a protective custody account pending a Dec. 19 hearing.

On Friday, Keenan granted the Perry Morris Corp. of Costa Mesa--which is suing Nunez’s husband for alleged debts--the right to have a marshal seize the money from Nunez or anyone who has it.

Nunez, 29, a homemaker who said Monday night that she planned to buy a new house and invest in a new restaurant with her winnings, could eventually be held in contempt of court for cashing the lottery check.

Sharon Nunez was not actually served with the Thursday court order. Efforts to give it to her lawyer also failed.

Chris Blank, attorney for Perry Morris Corp., told the commissioner that on Friday “we staked out the house, we staked out the restaurant (which her husband owns); we staked out the parents’ house” Friday, Blank said. “Mrs. Nunez was never served with the order of the court.”

However, Blank said he “felt sure” Nunez knew about the court order because her father-in-law, Raul Nunez Sr., was in court for the ruling Thursday and accompanied her to the bank Friday.

The Nunezes could not be reached for comment all day Friday, and Mast did not return phone calls.

Although Sharon Nunez is not named in the lawsuit against her husband, the temporary order to freeze her lottery winnings was based on the grounds that the money could be considered community property.

She actually won $100,000 in the televised lottery spin, but $20,000 was automatically taken out for taxes.

On Thursday, Keenan had asked Mast what harm the mother of two boys would suffer if the money were placed in an untouchable account.

“She shouldn’t be under court order on what she should do with her money . . . and her life,” Mast answered.

But Blank argued that “if she’s not bound, she can cash the check, she can take the money and she’s gone.”

The suit against Raul Nunez Jr. by Perry Morris Corp. alleges that Nunez and Darama Inc., of which he is named as president and sole shareholder, failed to make $250,000 in rental payments on leased equipment used in Nunez’s three Kaplan’s restaurants.

James M. Duarte, representing New City Bank at the Friday hearing, said the bank has an interest in the suit and the lottery winnings because Raul Nunez Sr., who is named as Darama’s chairman of the board, owes the bank $100,000. He is not named in the Perry Morris suit.

According to federal court documents, Raul Nunez Jr. filed for bankruptcy in 1983 and received permanent protection from creditors. The Darama Corp. filed for Chapter 11 reorganization in September.

Duarte said that bank representatives might attend a hearing Tuesday in federal bankruptcy court “involving Nunez and several banks.” Some of the corporation’s 30 creditors will request that a trustee be assigned to run the Kaplan’s restaurants, Duarte said.