Lottery.com Exec Under FBI Investigation, Chairman Leaves Company
The scoop opera house that is Lottery.com (NASDAQ:LTRY) continued this hebdomad as Chairman of the Board Richard Kivel left wing the keep company spell noting Chief Compliance Officer Dennis Ruggeri is below FBI investigation.
In a alphabetic character to what remains of the gaming company’s board, Kivel highlights a variety of events that made it nearly insufferable to do his duties as an independent director and aid right wing the ship at the sinking feeling online drawing outfit. Those include the company’s unfitness to secure needed financing from an investor, reimburse pecuniary resource from another investor and allegations of double-dealing by some executives.
Lottery.com’s playground slide into the abyss commenced in solemn earlier this twelvemonth when inward a regulatory filing with the Securities and Exchange Commission (SEC), the society raised doubts about its power to proceed as a sledding concern. The operator came public inward Oct 2021 following a merger with special intention acquisition companion (SPAC) Trident Acquisitions Corp. Its portion out are down feather 95.57% year-to-date.
Due to its unstable financial position, Lottery.com needs capital. Woodford Eurasia was supposed to ply emergency $61 meg inward various forms, but Kivel told the plank there’s no signalize that money testament arrive.
Members of the Woodford Eurasia Assets organisation including Nasib Piriyev, a partner at PNN-Group, which controls Woodford and other entities, make made sour and misleading promises to the society and statements to third parties which have created perturbation within the business and deprivation of decisive staff,” he wrote inward his resignation letter.
Lottery.com proclaimed today it prescribed St. Matthew Leslie Howard Stainer McGahan as chairman of the table and that Barney Battles and Naila Chowdhury are filling 2 of the late created vacant theater director spots.
Kivel said inward his letter that McGahan has “taken ended control” of the room and forced him out.
FBI Investigation non Immediately Disclosed to Board
As noted above, Chief Compliance Officer Dennis Ruggeri is beingness investigated by the FBI — material information for the plank and investors of any in public traded company.
However, Kivel asserts lag CEO Sohail Quraeshi unexampled well-nigh the FBI testing and didn’t tell him or the breathe of the directors, extending Lottery’com’s reputation for dubious practices.
“I was made aware that the Chief Compliance Officer Dennis Ruggeri, prescribed past Sohail Quraeshi is currently below investigating past the FBI. i wheel spoke with Mr. Ruggeri and he confirmed that this is true and exact information. This demonstrates a crystalize lack of sound mind by Sohail Quraeshi, who was inwards possession of these facts and did not expose them to the Board prior to the designation of this individual,” wrote Kivel inwards his letter.
Kivel’s missive and media accounts ut not particular exactly wherefore the FBI is looking for into Ruggeri.
Double-Dealing at Lottery.com
Further compounding woes associated with Lottery.com’s lightheaded retrieval hopes are allegations brought by Kivel that investors and other parties are double-dealing.
For example, he claims some investors are aligning themselves with fired CFO Ryan Dickinson. Additionally, Kivel wrote that CEO Quraeshi is “negotiating behind the scenes with J. Streicher, without Board commendation or the knowledge of our legal counsel.” Streicher is under court dictate to pay off the troupe $16.5 billion and the unfluctuating has spent $400,000 inwards sound fees trying to attain that money.
“The actions of Mr. McGahan and Mr. Quraeshi hold position this companionship inward serious jeopardy and get caused the loss of important partners and top side employees. The inactions and rugged promises of the investiture groups led by Nasib Piriyev have got farther damaged the fellowship and hindered its ability to do and recover,” noted Kivel.