Following irregularities in his use of the company card, PokerTek CFO is on leave
Tuesday 28th August 2007
Until the news that the company’s Chief Financial Officer Christopher Daniels had been abusing the company’s credit card, PokerTek had seemed to be doing well. Distribution of its automated poker tables has increased hugely in the last year, and they are now available on major cruise lines, in Macau, Australia, South Africa, the UK and Europe as well as the United States.
Chief executive Lou White said 'PokerTek continues to make steady progress in our casino business. We are also excited about entering the amusement business with the launch of our Heads-Up Challenge product, which we anticipate rolling out to bars and restaurants in the near future.'
The tables offer the speed and accuracy of online poker as screens display cards, bets and chips, eliminating dealer errors and simplifying split pots. Whatever the punters’ view, the benefits to the casinos are clear; no dealer to watch or play, and the tables are expected to keep selling.
The irregular purchases, which took place between August 20th and 22nd were uncovered during a routine external gaming review, and have prompted a report to the Securities and Exchange Commission as well as an internal audit. Daniels will be on paid leave until the two days in question have been fully investigated.
Despite this and the revelation that rising staff and production costs have prompted a $600,000 increase in second-quarter losses, PokerTek shares have continued to do well. Profits also rose and are expected to keep doing so. The company trades as PTKE and shares had risen by 13 cents at close of play on Friday.
