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Updates on Intrade Shutdown
Wednesday March 13,2013 : INTRADE SHUTDOWN LATEST - PAYMENTS TO FOUNDER QUESTIONED (Update)
Auditors expressed concerns on $2.6 million in payments
It may be difficult to get to the root of Intrade's "financial irregularities" which caused the shutdown of the company earlier this week because its founder, and the subject of some of the financial questions that have arisen, died almost two years ago whilst trying to conquer Mount Everest.
The UK business newspaper The Financial Times has reported on the latest development in the online prop betting company's trials and tribulations, revealing that prior to the closure the firm's auditors had flagged some questionable financial payments, allegedly to the now-deceased founder John Delaney and totalling $2.6 million.
Intrade's financial records filed in Ireland apparently indicated that there had been insufficient financial recording over the year 2011, and that payments made to Delaney and other, unnamed, "third parties" had not been properly documented, the auditors noted.
The Dublin-based auditors reported that $1.2 million in 2010, and a further $1.4 million in the following year had been paid to Delaney’s accounts without correct documentation and recording. The current directors of the company had all been appointed after the payments, and were therefore unable to assist in explaining the payments, the auditor reported.
What they must have aware of was that the company posted losses of $1.6 million for 2011.
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