source : the age
Embattled online gaming mogul Laurence Escalante faces more legal troubles, with a writ lodged in the WA Supreme Court revealing he is being sued for up to $60 million over an alleged breach of contract.
Escalante is the owner of the Virtual Gaming Worlds empire, which operates a network of casino-style online games in the United States, and is currently facing a number of criminal charges, including persistently engaging in family violence and criminal damage or destruction of property, as well as drugs charges.
However, Escalante and his company are now being hauled to court by investment firm Akru Jessy Capital Pty Ltd and its principal, Perth investor Jasveer Jessy.
At the heart of the dispute is an alleged breach of corporate mandate agreements, fee contracts, buyback deeds, and dividend distributions entered into between 2015 and 2020 relating to capital-raising and financial advisory services provided to VGW Holdings, in the sum of almost $20 million.
Jessy and AKRU allege they are owed a capital buyback principal based on 2.6 million VGW shares valued at $4.60 per share and collectively worth $11.96 million, in addition to unpaid historical dividends valued at $6.77 million, unpaid options at $286,800, and unpaid bridge capital fees of $147,000.
However, the investment firm is also seeking an alternative claim allegedly valued at $59.86 million based on damages for breach of contract arising from an alleged failure to deliver 6.6 million performance shares or options as agreed, calculated at market value.
Jessy and AKRU also proposed a secondary alternative claim, based on damages for an alleged breach of a binding settlement agreement made in 2020 that was allegedly rebuffed by Escalante.
Under that agreement, they seek 500,000 company shares and 500,000 personal shares transferred by Escalante, and “a cash sum exceeding $500,000”.
According to the writ, Jessy and AKRU are also seeking payment of fair market remuneration on a quantum meruit basis – also known as fair pay – for work including financial advice, option structuring, and capital raising of more than $10.9 million between 2014 and 2018.
VGW Holdings has been contacted for comment.
