Online Gaming Company CFO Siphons Off Rs 250 Crores, Invests In F&O But Ends Up With...
The CFO is apparently the most trusted pair of hands with finance. But this company that offers real-money gaming experiences such as Ludo and Rummy may have been scammed by a CFO.
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A First-Information Report registered recently with law enforcement officials in Bengaluru found the complainant alleging that its Chief Financial Officer had siphoned off Rs 250 crores over the last five years. Gameskraft Technologies, the complainant, reportedly filed the FIR naming Ramesh Prabhu, a former Group CFO of the company.
GamesKraft that previously hosted games such as Rummy and Ludo last week filed an FIR and alleging "serious breach of trust" with its CFO siphoning off Rs 250 crores. The FIR lists multiple charges upon Ramesh Prabhu under the Indian Penal Code, including criminal breach of trust, theft, forgery, falsification of accounts.
Apparently, the company initiated a fact-finding review which unearthed financial transactions to the tune of ₹ 231.39 crore between FY20 and FY25. The company grew suspicious and found that transactions of ₹ 211.53 crore were wrongly highlighted as ‘investments’ in company’s books. Subsequently, an additional amount of Rs 19.86 crore was recorded as investments in FY25, taking the collective value at ₹ 270.43 crore which had to written-off from financial statements.
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The CFO meanwhile, is reported as having voluntarily emailed the company in March this year. The CFO's email informed GamesKraft that no other employees were complicit or aware of his scheme. So far, there are no details on whether the CFO made any money from siphoning off the company books. The email only details that investments were made in F&O markets. Prabhu is reportedly untraceable.
After India's recent ban on real money games, the business of companies like GamesKraft and Dream11 has been disrupted.
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