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Gamestop executive sentenced to four years for fraud

While we might often talk about the demise of the high street video game retailer here at KitGuru, it isn’t always the fault of outdated business practices. GameStop at least, can place some of its problems, squarely at the feet of one ex-vice president of corporate communications, who defrauded the chain just under $2 million.

Now Frank Olivera has been sentenced to a total of 51 months in jail. His crime involved the setting up of a fake company known as Cloud Communications LLC, which he used as a stopgap for the GameStop money, before sending it over to his personal bank account.

GameStop stores have been hit by a decline in high street sales almost as much as GAME and HMV

Olivera defrauded Gamestop by submitting false and fraudulent invoices for vendor services from a fictitious company, ‘Cloud Communications LLC,’ which he owned and controlled,” reads a statement from the US Attorney’s Office. To date Olivera has paid back most of what he stole (the final total was $1,965,900 (£1,315,334)) though he’ll also be required to pay additional fees to Gamestop of $77,275 (£51,000).

As part of his scheme, Olivera not only made up the fake business, but also a fake person, known as Jennifer Miller. She acted as the go between for Cloud Communications and GameStop.

KitGuru Says: I really hope Olivera rang people up using a fake female voice. If he did, someone has to have a recording of it. How bad do you think it would be?

[Thanks Eurogamer]

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