The cost of the alleged fraud uncovered by the directors of the company that operates the arcade and casino business, Dr Quirkey’s Good Time Emporium, has risen to €2.56 million.
This follows new accounts showing Dublin Pool and Juke Box Ltd fell victim in 2020 to another alleged €543,758 fraud.
The alleged fraud of €543,758 in 2020 comes on top of directors calculating the alleged fraud perpetrated against the firm between 2019 and 2018 at a total of €2,026 million.
The long-established business in Dublin is owned by 75-year-old businessman and manager, Richard Quirke, who is the father-in-law of Rosanna Davison.
The new 2020 accounts show that the €543,758 alleged fraud perpetrated against the firm in 2020 was made up of €427,387 in embezzled cash and €116,371 in embezzled bank payments.
The 2020 alleged fraud now brings the total of embezzled cash to €2.22m for 2020, 2019 and 2018 and the alleged embezzled bank payment fraud to €342,764 over the three years.
After directors discovered the alleged fraud at the company in December 2020, the company appointed external financial consultants to conduct a thorough and comprehensive forensic investigation of the company’s systems and processes.
The directors state that “this led to the identification of unpaid tax liabilities and interest that have been fully accrued in the company’s accounts.”
The new accounts show that a further €495,355 appears under the heading of “interest due taxes” and this leads to a total of €946,952 paid in interest due taxes during 2020, 2019 and 2018.
The firm’s auditor, Colm Malone, on behalf of Clonshaugh Business Park-based Rush Malone and Co, has qualified his opinion in respect of the financial statements on total misappropriated cash in 2020 of €427,387.
Malone said that “with respect to the amounts deemed to have been embezzled of €427,387, the information available was limited to determining the exact nature of the embezzlement.”
Mr. Malone states, “During the year, the business did not do regular cash counts and did not have a proper system in place to record all cash movements.”
It added: “Due to the nature of the company’s records, we were unable to obtain sufficient appropriate audit evidence in respect of all cash movements during the period through the use of other audit procedures.”
Dr Quirkey’s business on Dublin’s O’Connell Street closed in the spring of 2020 and did not reopen until December 2021 due to Covid-19 lockdown measures.
This contributed to revenue decreasing by 4.75% from €10.06 million to €9.58 million in the 12 months to the end of June 2020.
The €543,758 cost of the suspected fraud and €495,355 in interest on back taxes in 2020 contributed to a 27% pre-tax loss at the company to €1.61 million for the year. fiscal year 2020.
The 2020 loss resulted in Dublin Pool and Juke Box Ltd’s balance sheet taking a further hit with shareholder funds falling from €33.6m to €31.93m.
The accumulated benefit of the firm stood at 24.45 million euros with a treasury of 3.93 million euros.
The newly filed 2020 accounts were closed on the same day in March this year as the 2019 accounts that were filed last week and first revealed the suspected fraud.
In response to the alleged fraud, the directors state that “the company has implemented an extensive and extensive program of operational and governance improvements at all levels within the organization.”
Dr. Quirkey’s Good Time Emporium has been contacted for comment.