Elaut USA files a lawsuit in New Jersey state court alleging that its former CEO Jack Guarnieri, former Elaut USA CFO Michael Carle, and Guarnieri's current company Jersey Jack Pinball, Inc. diverted more than $1.6 million from the company coffers.
The lawsuit claims Guarnieri transferred the money to himself and his company through so-called "accounting tricks", diverting over a million dollars in company money. Guarnieri has reached out to RePlay Magazine (whom he is a writing contributor for) to deny the lawsuit allegations.
Guarnieri's statements is as follows:
"I left the employ of Elaut USA more than three years ago. The complaint alleges that I, while employed at Elaut USA, took money for myself and for Jersey Jack Pinball, Inc., to which I was not entitled. I have categorically denied these allegations in response to this complaint, and I categorically deny them now. The complaint is utterly without merit. I intend to vigorously defend this matter and anticipate that when the truth emerges, I will be fully vindicated as to each and every allegation."
Michael Carle, former CFO of Elaut USA, has also denied the allegations. Elaut USA CEO Glenn Kramer told RePlay he could not comment on the ongoing lawsuit.
Despite plans to fight the allegations, this could not come at a worse time for JJP, as there has been whisperings of financial issues getting the business off the ground, leading to delays with game releases (The Hobbit pinball was supposed to have released back in December). This kind of claims can take years to sort out and can be financially draining, which could damage the company beyond repair. This is all just speculation though and we will have to wait for the outcome of the lawsuit before we know the fate and future of JJP.
News via: Replay Magazine