A case has been registered against the former chief financial officer (CFO) of Bengaluru-based online gaming company Gameskraft Technologies, Ramesh Prabhu, for allegedly diverting company funds to invest in futures and options (F&O) trading, leading to a whopping loss of Rs 250 crore.
The Bengaluru city police registered the case on September 9 after Gulshan Yadav, assistant vice-president of Gameskraft, approached the Marathahalli police and filed a complaint.
According to the First Information Report (FIR), a copy of which is with The Indian Express, on March 5 this year, Prabhu addressed the company in an email where he admitted that he had misused company funds for personal equity and derivatives trading over the last 3-4 years.
“He further stated that the total loss from such Equity F&O Trading as per his estimate exceeded Rs 250 crore. A reading of the said email also makes it clear that these activities were carried out without any disclosure or approval,” the FIR states.
According to the police, Prabhu has not reported to work since March 1 and is untraceable after sending the email.
“The accused stated that he would take full responsibility for his conduct, including for breaching the trust reposed to him in his capacity as Group Chief Financial Officer of the complainant company and claimed that none of the current or former employees of the complainant company were aware of his conduct,” the FIR adds.
The company commissioned a fact-finding review, which revealed that Prabhu had executed unauthorised financial transactions totalling Rs 231.39 crore from 2019-20 up to 2024-25, according to the FIR.
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In view of the above, the company was required to write off Rs 270.43 crore in its financial statement for the financial year 2024-25. “The accused closely controlled this particular account and diverted/misappropriated funds through this account for his personal use. These funds were transferred without any authorisation from the complainant,” the FIR states.
The Marathahalli police have registered a case under sections 316(4) (criminal breach of trust by employee), 318 (4) (cheating and dishonestly inducing delivery of property), 335 (making a false document), 344 (falsification of documents), 336 (2) (forgery) of the Bharatiya Nyaya Sanhita (BNS).
Prabhu, a chartered accountant, joined Gameskraft as CFO in 2018. He was the co-founder and CEO of fintech company, Three Wheels United.