200 posts by midnight

So which company is going to make the first lawyer-themed pinball??

yikes.

forensic accountant's rule!

Looks like Jack and Elaut have a difference of opinion on what he was entitled to.

It's possible, from the wording of his explanation, that he wasn't disputing taking the funds, just the notion that he wasn't entitled to those funds.

I'd love to get some further clarification, but understandably he can't do much more commenting.

I believe this is the first time that's ever been said. Trademark time.

Probably not enough people know what Elaut is to click on this thread in the first place or it would already be there.

For anyone wondering who Elaut is

http://www.elaut.com/amusement/USA/games_new.php

Thumbs up for posting before Pinside hit the fan.

Wow. Sorry to hear this.
Hope it gets straightened out quickly.

Great...more money spent on lawyers that could have been spent on game development and other products.

I am totally done with pre orders from any alleged manufacturer. Who knows how bad something like this could affect a start-up company? Jack is not new to any of this, but it still sucks to see him have to go through it. And obviously, it will affect how much cash future customers throw at him.

Most large-ish companies have a line item in their budget for legal expenses for "rainy day" scenarios. I wouldn't worry too much so long as it doesn't drag out for an extended period of time. I imagine the two companies will file a few motions back and forth, attending a hearing, and possibly get a preliminary ruling. It might end there, but if not, then they may go back and forth some more, and either eventually drop the case, settle, or go to trial.

It's all about insurance

Well it's a civil lawsuit, not criminal. So that says a lot. Likely it's Elaut's attorney threading a needle with some vague contract language.

Until forensic accountants from the Feds get involved. This kind of number will attract them for sure. If you doubt me better brush up on how the federal criminal division picks its cases.

If there is even a hint of impropriety in the books or the accusation of shifting they will be involved oh yes they will.

When accusations of this nature are thrown around they will investigate. Once they start well they will ncover what ever there might be to uncover. Maybe nothing maybe something but they will have people look. Lots of time civil cases are thrown out only to have people thrown in cuffs in the lobby of the courthouse. Not saying that this is the case here but it could happen. Let's hope not.

These are not chump accusations. They are accusing him of embezzlement or cooking. With those sort of phrases being thrown around the Feds would be negligent to not invitagate.

A line item on the budget is one thing. Cash flow is another.

Insurance covers errors and omissions. It does not cover criminal acts. If that's what the court rules.

Okay. I'm not a lawyer, but why would this start as a civil action if there's a possibility of criminal wrongdoing? Is it just that Elaut is trying to get their $$ before the Feds step in? Why didn't they ask the Feds to investigate?

This. Old political trick

Nor am I but to think you can accuse someone of embezzlement aka accounting tricks for 1.6m and not have fed action is crazy. This is gonna get messy

This thread would have exploded by now if the headline had the word lawsuit in it. Thread title is rather mundane and not at all indicative of the seriousness of the matter.

There's not enough popcorn for this.

Grabbing my rooster.jpg and popcorn.jpg

Should I take the word diverted to mean stole? If so I'd bet the claim is Elaut owns JJP! I would advise JJP to actually pay for real legal counsel and not a 3rd rate attorney forget "free labor" in this matter. Those are some very serious claims and no matter what this is going to get real expensive $$$$$!! I'd bet someone at Elaut had an Audit done and the final results show someones hand in the "Cookie Jar" for sometime! This happens all the time with companies, most keep it quiet because it shows a lack of oversight and poor business. What Karma? The guy that runs around pinball claiming "I'll sue" gets sued for a Million six Plus!! The retainer is going to be a big one.. I'm sure this will be why your games are being delayed!! Great day!!!

If it had been this big it would have been discovered before 3 years. Jack tried to leave earlier but they did not have anybody to run the American office. Elaut is based in Europe, I can't remember if tt the Netherlands, somebody from the area can give more info about Elaut from over there. Jack helped bring over the WOZ coin pusher which earns big bucks for the operators and the company. Pinball sales and Elaut shared floor space in Lakewood before JJP moved to their current location. JJP was never at Tobin or Tobbin avenue. This is not over JJP. Neil took over at Jack and he is no longer at Elaut, maybe things promised from the company where not carried out lime bonuses. They have yet another co now.

Only if it has this as the match noise -

Totally incorrect! As posted the accounting issues clearly hid the issues until an Audit most likely. 3 years is nothing. The Audit could have taken a year just to track down the issue. Elaut has made a very serious claim don't kid yourself. The tax issue a lone is huge, think about it.

.

Never a dull moment in pinsletown eh!

Audits provide assurance that the statements are reported fairly, or that the internal controls are working. They do not seek to find or detect fraud, waste, or abuse. That is forensic accounting. We don't know any of the history or details here so we really can't speculate.

This thread arouses you?

I hope that there is a silver lining somewhere in all of this that will move pinball forward.

many civil suits are settled by insurance companies

I heard about this a long time ago. Always wondered if anything would come of it. The complaint lists jjp. Someone will post the details at some point.

I agree. But insurance also specifically lists criminals acts or intentional deception as a reason they will not pay. Insurance companies pay to settle to avoid the cost of a defense. If Elaut proves their case the insurance company won't pay a dime. If Elaut does not prove their case insurance won't pay a dime. Why would they settle?

odd...one litigious guy trying to fan the flames on another litigation that concerns someone else yet he does not like when other discuss his current 'pot meet kettle' case...

How is your case going chessiv. Dropped yet? When are you releasing the open source portion of Nucore code which was used to build your for profit software?

So did I.At the time I thought it was strictly a rumor .Damn, not good for a co.,any co.,that needs support(cash) at a critical point in their history.remember this is a young start up that needs positive #(in the black) to keep going.

REALLY? Key here word is accounts and used to transfer money or assets. This is why it can take years to find out a company has or had an issue.

Auditing is a systematic examination of books,accounts, documents and vouchers of a business to ascertain how far the financial statements present a true and fair view of the concern. It also ensures that the books of accounts are properly maintained by the concern as required by law. The main object of Audit is to find out whether the financial statements of a particular concern show a true and fair view of the earning and financial position of a business. It is considered as review function.

Embezzlement:

Embezzlement is defined as the misappropriation of items with which a person has been entrusted. Embezzlement differs from larceny in that the perpetrator of embezzlement comes into possession of property legally, but fraudulently assumes rights to it. Charges of embezzlement can even be levied if the embezzler intended to return the property later.

BTW when you've done nothing wrong you can always comment!

Yup. Heard the same thing. If this involved Jack, it'd be one thing but it involves JJP, the company. Money isn't exactly "flowing" at JJP, so it'll be interesting to see what happens.

Are WOZ's still being cranked out at the factory?

With all due respect, commenting is the wrong thing to do even when you are completely innocent. Do a Google search on this. It is clear that comments will do nothing but harm you and can't really help in any way.

I would suggest that we respect Jack and let this play out in the court rather than create a lynch mob here. Speculation is pretty idiotic when you have no concrete information to speculate from.

If there is something there, the court will find it; if not, then there is nothing to see.

Sorry to hear this, Jack. I hope everything gets worked out soon.

What is this comment doing on Pinside?!

With all due respect, you're batshit crazy. The thread was created by Jack of all people for crying out loud. The apologist here on pinside leave me scratching my head sometimes.

One thing Pinside needs is a policy for mods to merge similar threads rather than lock them up to fade away such as this one:

https://pinside.com/pinball/forum/topic/elaut-jersey-jack-embroiled-in-lawsuit#post-2220324

yes, jack tried to get out in front of this one, however, when you try to get out in front of things, that doesn't mean that you aren't going to get "feedback"....

also, the title could be MUCH clearer...

i would agree... i think i understand why they are locking threads though, they don't want this issue to devolve into a massive pissing match...

Obfuscation of the title was intentional IMO and a nice attempt to reduce impact. It won't work but you have to try.

Wow, what on earth is with all the "Sorry Jack" comments? You don't even have any idea if he's guilty or not, or to what degree. Seems a bit premature.

yup... and imo, typical of the person in question... "pay no attention to the man behind the curtain"...

agreed...