Lucky Bucks Alleges Former Executives in $200 Million Fraud Scheme

ARC Gaming and Technologies, formerly known as Lucky Bucks, has filed a RICO lawsuit against its former executives, accusing them of orchestrating a massive fraud scheme that allegedly siphoned off around $200 million from the company before its bankruptcy. 

Lawsuit Unveils Alleged Systematic Looting of Lucky Bucks by Former Executives

The lawsuit, which was announced on January 2, alleges that the accused individuals engaged in a systematic looting of Lucky Bucks, diverting funds through various illicit means. Lucky Bucks, a major player in Georgia’s coin-operated amusement machine industry, filed for Chapter 11 bankruptcy in June 2023, citing increased competition and regulatory pressures.

ARC Gaming and Technologies claims that the defendants, including founder Anil Damani, Tony Kassam, and Imran Ali, orchestrated a complex scheme involving fraudulent transactions, misappropriation of trade secrets, and breaching fiduciary duties. 

The lawsuit also alleges that the former executives utilized shell companies and competing businesses under their control to divert contracts and assets away from Lucky Bucks.

The company accuses Damani and his associates of borrowing hundreds of millions of dollars from lenders, only to distribute the majority of the funds among themselves. The complaint further details instances of selling customer contracts back to Lucky Bucks at inflated rates and the removal of serial numbers from machines before selling them in various states.

ARC Gaming Seeks Redemption After Restructuring Triumph

The lawsuit was initiated after a comprehensive investigation by industry professionals hired by new shareholders in September 2023 to review Lucky Bucks’ operations. Forensic investigators and litigation case analysis, combined with employee interviews, contributed to the formal complaint being filed.

Despite Lucky Bucks successfully emerging from Chapter 11 bankruptcy in October 2023, ARC Gaming and Technologies is determined to hold the former executives accountable for their alleged criminal activities. The company aims to recover the stolen funds and assets, including $200 million in what they describe as “fraudulent and illegal dividends.”

Anil Damani, the founder and former owner, denies all allegations, stating that the claims are baseless and frivolous. Damani’s attorneys assert that he is a successful businessman and a pillar of the community, expressing confidence in defeating the claims in court.

As legal proceedings unfold, ARC Gaming and Technologies remains focused on its future, having completed a successful restructuring process and positioned itself as a strong contender in the Georgia coin-operated amusement machine industry. The company is set to announce new appointments for key executive positions, ensuring a dedicated management team committed to responsible governance and growth.