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Nevada bankruptcy trustees sue Australian gaming firm
Written On 5/7/11 By Recentpoker.com staff writer Lenny Wasman :
According to reports on TMC.net, the administrators of a bankrupt Las Vegas mobile gambling firm have launched litigation, demanding at least $1.2 million from the Australian company eBet Limited, and alleging that it failed to honour promises of financing, with the possibility that a conflict of interest may be involved.
The mobile company, Sona Mobile Holdings Corporation filed for bankruptcy in a Las Vegas court two years ago with liabilities of $6.2 million and assets of $2 million, having lost over $26 million over several years as it developed software for gambling and mobile devices over wired, cellular and Wi-Fi networks.
The bankruptcy filing described the software as "real-time, multiplayer wagering on games that accommodate an unlimited number of players" on cell phones or any carrier.
The report notes that similar technology was developed by rivals for "on premises" mobile gambling at major land casino operations in the United States, and that Sona had been involved in a strategic alliance with Shuffle Master on products of this nature branded mCasino and mWager.
The latest action against eBet and its CEO, Anthony P. Toohey, claims that in terms of a master services agreement, eBet committed to paying a $2.5 million licence fee to Sona Holdings.
eBet allegedly agreed to provide advisory services and software development and maintenance services, and Sona Holdings agreed to pay for those services, with eBet reimbursing Sona Holdings for these costs through a chargeback arrangement, the complaint says.
eBet was also allowed to designate the CEO of Sona Holdings, and from late 2008 Toohey served as chief executive of both Sona Holdings and eBet Ltd.
By early 2009, relations between the companies had soured, with arguments over finances, staff deployment and transfers to the eBet payroll
With his eBet hat on, Toohey is alleged to have "failed to authorize and direct eBet's reimbursement of Sona's chargeback costs under the MSA and failed to authorize reimbursement to Sona for its employee costs resulting from eBet's refusal to assume and transition Sona's technical employees."
This constituted a conflict of interest, the administrators claim, along with breach of contract; breach of the implied covenant of good faith and fair dealing; and breach of fiduciary duty by Toohey.
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It was a hard fight around the bubble, culminating in the elimination of Georgios Drakakis in 46th place. He received a surprise consolation entry into the next MPNPT stop in Sunny Beach, Bulgaria (5-8 July), which softened the blow of missing out on a €900 min-cash.
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Dorey Captures Chip Lead After MPNPT Bratislava Day 1b Triples 1a Field Size. The second flight of the €550 MPN Poker Tour Bratislava Main Event is in the bag, and so are the chips of 97 players who will be returning along with the 26 Day 1a survivors to fight to the money and beyond today
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