(Topic ID: 117276)

Elaut USA, Inc.


By JerseyJack

4 years ago



Topic Stats

  • 512 posts
  • 183 Pinsiders participating
  • Latest reply 1 year ago by vireland
  • Topic is favorited by 16 Pinsiders

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    There are 512 posts in this topic. You are on page 1 of 11.
    12
    #1 4 years ago

    I called RePlay today to make them aware of this. I cannot comment more but there is no fact that will support their claims.

    Thanks,

    Elaut, Jersey Jack Embroiled in Lawsuit; Guarnieri Denies Allegations
    Elaut USA has filed a lawsuit in New Jersey state court alleging that its former CEO Jack Guarnieri, former Elaut USA CFO Michael Carle, and Guarnieri's current company Jersey Jack Pinball diverted more than $1.6 million from the company coffers.

    The lawsuit claims Guarnieri transferred the money to himself and his company through so-called "accounting tricks." Guarnieri, a columnist for this publication, reached out to RePlay to deny the lawsuit allegations.

    Guarnieri said in a statement to RePlay. "I left the employ of Elaut USA more than three years ago. The complaint alleges that I, while employed at Elaut USA, took money for myself and for Jersey Jack Pinball, Inc., to which I was not entitled. I have categorically denied these allegations in response to this complaint, and I categorically deny them now. The complaint is utterly without merit. I intend to vigorously defend this matter and anticipate that when the truth emerges, I will be fully vindicated as to each and every allegation."

    Carle has also denied the allegations. Elaut USA CEO Glenn Kramer told RePlay he could not comment on the ongoing lawsuit.

    10
    #2 4 years ago

    200 posts by midnight

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

    #3 4 years ago

    yikes.

    #4 4 years ago

    forensic accountant's rule!

    #5 4 years ago

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

    #6 4 years ago

    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.

    #7 4 years ago
    Quoted from DevilsTuner:

    forensic accountant's rule!

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

    #8 4 years ago
    Quoted from metallik:

    200 posts by midnight
    So which company is going to make the first lawyer-themed pinball??

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

    #9 4 years ago

    For anyone wondering who Elaut is

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

    12
    #10 4 years ago
    Quoted from JerseyJack:

    I called RePlay today to make them aware of this. I cannot comment more but there is no fact that will support their claims.
    Thanks,
    Elaut, Jersey Jack Embroiled in Lawsuit; Guarnieri Denies Allegations
    Elaut USA has filed a lawsuit in New Jersey state court alleging that its former CEO Jack Guarnieri, former Elaut USA CFO Michael Carle, and Guarnieri's current company Jersey Jack Pinball diverted more than $1.6 million from the company coffers.
    The lawsuit claims Guarnieri transferred the money to himself and his company through so-called "accounting tricks." Guarnieri, a columnist for this publication, reached out to RePlay to deny the lawsuit allegations.
    Guarnieri said in a statement to RePlay. "I left the employ of Elaut USA more than three years ago. The complaint alleges that I, while employed at Elaut USA, took money for myself and for Jersey Jack Pinball, Inc., to which I was not entitled. I have categorically denied these allegations in response to this complaint, and I categorically deny them now. The complaint is utterly without merit. I intend to vigorously defend this matter and anticipate that when the truth emerges, I will be fully vindicated as to each and every allegation."
    Carle has also denied the allegations. Elaut USA CEO Glenn Kramer told RePlay he could not comment on the ongoing lawsuit.

    Thumbs up for posting before Pinside hit the fan.

    #11 4 years ago

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

    #12 4 years ago

    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.

    #13 4 years ago
    Quoted from playernumber4:

    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.

    #14 4 years ago
    Quoted from ForceFlow:

    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

    -4
    #15 4 years ago

    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.

    #16 4 years ago
    Quoted from swampfire:

    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.

    #17 4 years ago
    Quoted from ForceFlow:

    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.

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

    #18 4 years ago
    Quoted from ek77:

    It's all about insurance

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

    #19 4 years ago

    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?

    #20 4 years ago
    Quoted from Sjsilver:

    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.

    This. Old political trick

    #21 4 years ago
    Quoted from swampfire:

    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?

    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

    #22 4 years ago

    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.

    #23 4 years ago

    There's not enough popcorn for this.

    #24 4 years ago

    Grabbing my rooster.jpg and popcorn.jpg

    -8
    #25 4 years ago

    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!!!

    #26 4 years ago

    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.

    #27 4 years ago
    Quoted from metallik:

    200 posts by midnight
    So which company is going to make the first lawyer-themed pinball??

    Only if it has this as the match noise -

    #28 4 years ago
    Quoted from doughslingers:

    If it had been this big it would have been discovered before 3 years.

    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.

    #29 4 years ago

    .

    #30 4 years ago

    Never a dull moment in pinsletown eh!

    #31 4 years ago
    Quoted from 2RustyBalls:

    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.

    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.

    #32 4 years ago
    Quoted from Collin:

    Grabbing my and

    rooster.jpg 58 KB

    popcorn.jpg 14 KB

    This thread arouses you?

    #33 4 years ago

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

    #34 4 years ago
    Quoted from chessiv:

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

    many civil suits are settled by insurance companies

    #35 4 years ago
    Quoted from doughslingers:

    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.

    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.

    #36 4 years ago
    Quoted from ek77:

    many civil suits are settled by insurance companies

    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?

    #37 4 years ago

    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?

    #38 4 years ago
    Quoted from chessiv:

    I heard about this a long time ago.

    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.

    #39 4 years ago
    Quoted from Methos:

    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.

    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.

    -5
    #40 4 years ago

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

    #41 4 years ago
    Quoted from chessiv:

    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.

    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?

    19
    #42 4 years ago
    Quoted from 2RustyBalls:

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

    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.

    11
    #43 4 years ago

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

    17
    #44 4 years ago
    Quoted from statsdoc:

    Speculation is pretty idiotic when you have no concrete information to speculate from

    What is this comment doing on Pinside?!

    #45 4 years ago
    Quoted from statsdoc:

    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.

    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.

    #46 4 years ago

    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

    #47 4 years ago
    Quoted from Skins:

    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.

    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...

    Quoted from DCFAN:

    One thing this forum needs is a policy for mods to merge 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

    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...

    #48 4 years ago

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

    13
    #49 4 years ago

    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.

    #50 4 years ago
    Quoted from chessiv:

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

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

    Quoted from Frax:

    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.

    agreed...

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