A federal bankruptcy judge has ruled that the state must pay back more than $13 million it collected in taxes and potentially millions more in interest.

FARGO, N.D. (AP) — A former North Dakota federal prosecutor is defending his decision to prosecute the founder of a Fargo-based company for illegal gambling.

Susan Bala served 17 months in prison before her conviction was overturned. Bala operated Racing Services Inc., a business that handled bets for closed-circuit horse race gambling sites.

Former U.S. Attorney Drew Wrigley tells KFGO it was a very complicated case. Wrigley says Bala and her attorney had the opportunity to come down to his office and tell her side of the story before she was indicted.

A federal bankruptcy judge has ruled that the state must pay Bala and others more than $13 million it collected in taxes. Interest payments could add millions more to the total.