Large-Scale Fraud Uncovered at ARC Gaming and Technology
LISTEN TO THIS ARTICLE:ARC Gaming and Technologies, previously known as Lucky Bucks, has initiated a RICO lawsuit against former high-ranking officials in the company. These former executives are accused of conducting a large-scale fraud operation, allegedly draining about $200 million from the organization prior to its bankruptcy declaration.
Executives Illegally Diverted Funds from Lucky Bucks
On January 2, the lawsuit was made public, claiming that these individuals were involved in a deliberate scheme to defraud Lucky Bucks. This scheme reportedly involved misdirecting funds through various illegal methods. Lucky Bucks, a key entity in Georgia's coin-operated amusement machine sector, declared Chapter 11 bankruptcy in June 2023, attributing it to growing competition and challenges in the gaming regulation.
The plaintiffs, ARC Gaming and Technologies assert that the defendants, including founder Anil Damani, Tony Kassam, and Imran Ali, devised an elaborate ruse. This involved fraudulent transactions, misusing trade secrets, and violating fiduciary duties. The lawsuit further accuses the former executives of using shell companies and competing firms they controlled to redirect contracts and assets from Lucky Bucks.
The complaint outlines how Damani and his colleagues borrowed vast sums from lenders and then distributed most of these funds among themselves. It also highlights instances where customer contracts were resold to Lucky Bucks at excessive rates and how serial numbers were removed from machines before they were sold across various states.
Related: Andy Sanborn to Lose Concord Casino as Fraud Charges Loom
Lawsuit Result of Forensic Investigation
This lawsuit follows an in-depth investigation undertaken by industry experts, who were hired by the new shareholders in September 2023 to examine Lucky Bucks' operations. The efforts of forensic investigators and litigation case analysis, along with staff interviews, were pivotal in the filing of this lawsuit.
Even though Lucky Bucks successfully re-emerged from Chapter 11 bankruptcy in October 2023, ARC Gaming and Technologies is adamant about holding the former executives responsible for their purported criminal acts. The firm aims to recuperate the misappropriated funds and assets, which include $200 million categorized as “fraudulent and illegal dividends”.
Anil Damani, the company's founder and ex-owner, has denied all the charges, labeling them as groundless and trivial. Damani's legal representatives insist he is a successful entrepreneur and respected community member, expressing their confidence in overcoming these accusations in court.
As the legal process progresses, ARC Gaming and Technologies continues to concentrate on its future prospects. Having completed an effective restructuring, it now stands as a competitive force in Georgia's coin-operated amusement machine market. The company will soon announce new appointments to its executive team, ensuring a leadership committed to ethical management and continued growth.
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