Former Executives at Lucky Bucks Accused of $200 Million Fraud Scheme

ARC Gaming and Technologies, previously known as Lucky Bucks, has officially initiated legal action against its former executives with a RICO lawsuit. The lawsuit accuses the former executives of orchestrating a fraudulent scheme that resulted in the misappropriation of approximately $200 million from the company prior to its bankruptcy.

The lawsuit, announced on January 2, alleges that the accused individuals engaged in a systematic looting of Lucky Bucks, diverting funds through illicit means. Lucky Bucks, which was a significant 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 founder Anil Damani, Tony Kassam, and Imran Ali were involved in a complex scheme involving fraudulent transactions, misappropriation of trade secrets, and breaching fiduciary duties. The lawsuit also accuses the former executives of utilizing shell companies and competing businesses under their control to divert contracts and assets away from Lucky Bucks.

The company further accuses Damani and his associates of borrowing hundreds of millions of dollars from lenders, distributing the majority of the funds among themselves. The complaint also 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.

The lawsuit came 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.”

Founder Anil Damani denies all allegations, stating that the claims are baseless and frivolous. His 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.