\u2018Illegal Dividends\u2019<\/strong><\/h2>\nLucky Bucks was rescued by its primary lenders, who have injected fresh capital and rebranded it as Arc Gaming and Technologies. Its Chapter 11 plan was approved by a Delaware bankruptcy court in July last year.<\/p>\n
The new owners claim that Lucky Bucks\u2019 founder and former owner, Anil Damani, and his team engaged in a scheme to borrow hundreds of millions of dollars from lenders and share the proceeds among themselves.<\/strong><\/p>\nA state regulator prohibited Damani from being involved in the company\u2019s operations in June 2020, according to the lawsuit.<\/p>\n
In all, it names nine former high-ranking employees, one contractor, and a dozen associated entities. It accuses them of defrauding the company by diverting $200 million in \u201cillegal dividends\u201d before declaring bankruptcy.<\/p>\n
Methods included redirecting contracts away from Lucky Bucks before selling them back at marked-up rates, and simply chiseling serial numbers off machines before selling them, the suit says.<\/p>\n
\u2018Baseless Claims\u2019<\/strong><\/h2>\nThe plaintiffs also claim the defendants attempted to conceal their activities by communicating through an encrypted messaging app and by deleting files and business records from the company\u2019s computers.<\/p>\n
The alleged fraud was pieced together by the new management team\u2019s investigators, who analyzed IT systems and conducted interviews with employees, according to the lawsuit.<\/p>\n
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An attorney for Damani, Scott R. Grubman, told Bloomberg<\/em> that the allegations were \u201cbaseless\u201d and described his client as \u201ca successful businessman and a pillar of his community.\u201d<\/p>\n<\/div>\nGrubman added that his client looked forward to defeating the claims in court.<\/p>\n","protected":false},"excerpt":{"rendered":"
Former employees of the Georgia-based slot machine operator Lucky Bucks fraudulently siphoned \u2018illegal dividends\u2019 out of the company before its recent bankruptcy. That’s according to a RICO lawsuit filed by the company\u2019s new management. The suit, filed last Thursday, accuses 10 individuals and a dozen associated entities of looting the company of approximately $200 million […]<\/p>\n","protected":false},"author":36,"featured_media":305965,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,60,69293,86436],"tags":[89404,89403,89405],"acf":[],"yoast_head":"\n
Lucky Bucks RICO Suit Filed Alleging $200M Fraud<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n