Casino supplier disputes B of A lawsuit allegations
The CEO of Las Vegas casino supplier Galaxy Gaming Inc. on Monday denied lawsuit allegations against the company leveled by Bank of America, calling them "erroneous."
Bank of America filed suit Oct. 1 against Galaxy and a trust benefiting the daughter of the company's CEO.
The suit claimed that in a 2007 $1.25 million loan application, “false and misleading statements” were made about the ownership of Galaxy Gaming LLC, a predecessor company to Galaxy Gaming Inc.
The bank lawsuit also charged that a transfer of assets from Galaxy Gaming LLC to Galaxy Gaming Inc. "was fraudulent against Bank of America."
Galaxy Gaming Inc. CEO Robert Saucier was the manager of Galaxy Gaming LLC and the president of Galaxy Gaming Inc. at the time of this transfer.
The bank separately on Oct. 3 initiated foreclosure proceedings against Abyss Group LLC, a company that it says shares the Las Vegas address of Galaxy Gaming Inc.
Galaxy Gaming disclosed in 2010 it was leasing Abyss Group space at that address for $18,565 per month. More recently, it has been leasing 6,200 square feet of space there for $10,359 per month.
According to an April 2010 Galaxy Securities and Exchange Commission filing, Abyss Group LLC was controlled at that time by Robert Saucier's wife and the trust benefiting his daughter.
In a letter to shareholders posted on the Galaxy Gaming website on Monday, Saucier made his first public comments about the lawsuit and disputed the bank's allegations.
"You may have seen news reports regarding a dispute between us and our former bank, Bank of America (B of A). This disagreement involves a commercial loan entered into by a predecessor company. We previously acquired valuable assets from that company and are making monthly payments in accordance with the asset purchase agreement. To this day, we have never failed to make a single payment," his letter said. "We were directed by them to make these payments directly to their bank (B of A), to satisfy their commercial loan obligation. Our unwavering position is that we have fulfilled each and every one of our obligations and we do not have, nor have we ever had, any agreement with, or obligation to, B of A."
"We believe that B of A is simply mistaken and we presently are in discussions with their representatives. We are encouraged that the bank will soon recognize their prior conclusions were erroneous resulting in a amicable resolution," Saucier's letter said.