Lucky Bucks RICO Suit Filed Alleging $200M Fraud

Former employees of the Georgia-based expansion slot simple machine operator Lucky Bucks fraudulently siphoned ‘illegal dividends’ out of the accompany before its recent bankruptcy. That’s according to a RICO lawsuit filed by the company’s new management.

The suit, filed last-place Thursday, accuses 10 individuals and a dozen associated entities of robbery the companionship of just about $200 million before it collapsed into bankruptcy lastly year.

Lucky Bucks operated around 2,300 gaming machines inward 345 locations throughout Georgia. These weren’t Las Vegas-style slots, but “COAMS” (coin-operated amusement machines), as they’re known locally. These are “skill-based” gaming terminals that bid vouchers or drawing tickets as prizes.

Lucky Bucks filed for Chapter 11 bankruptcy shakeup in June 2023. The companionship declared more than $500 one thousand thousand in debt, citing increased competition, rising stake rates, an economical environment that reduced consumer usage of one-armed bandit machines, and an escalation of regulatory enforcement against the COAM industry in Georgia.

‘Illegal Dividends’

Lucky Bucks was reclaimed past its primary quill lenders, who hold injected overbold great and rebranded it as Arc Gaming and Technologies. Its Chapter 11 program was sanctioned past a Delaware River bankruptcy courtyard inward July in conclusion year.

The young owners exact that Lucky Bucks’ founder and former owner, Anil Damani, and his team meshed inward a connive to borrow hundreds of millions of dollars from lenders and portion out the proceeds among themselves.

A nation regulator prohibited Damani from beingness involved inwards the company’s trading operations inward June 2020, according to the lawsuit.

In all, it names 9 former high-ranking employees, unity contractor, and a dozen associated entities. It accuses them of defrauding the accompany by diverting $200 1000000 in “illegal dividends” before declaring bankruptcy.

Methods included redirecting contracts aside from Lucky Bucks before marketing them rearward at marked-up rates, and simply chiseling serial numbers sour machines before selling them, the fit says.

‘Baseless Claims’

The plaintiffs also claim the defendants attempted to hold back their activities past communicating through an encrypted electronic messaging app and past deleting files and business organization records from the company’s computers.

The alleged put-on was pieced together past the new direction team’s investigators, who analyzed IT systems and conducted interviews with employees, according to the lawsuit.

An attorney for Damani, Robert Falcon Scott R. Grubman, told Bloomberg that the allegations were “baseless” and described his client as “a successful man of affairs and a pillar of his community.”

Grubman added that his client looked frontwards to defeating the claims inward court.

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