A company that operates arcade and casino business, Dr Quirkey’s Good Time Emporium on Dublin’s O’Connell Street, has been the victim of an alleged fraud.
The shock disclosure is contained in new consolidated accounts for Dublin Pool and Juke Box Ltd, which show an alleged misappropriation of funds at the arcade and casino operator totalled €1.017m in 2019 and €1.009m in 2018.
The business is owned by Richard Quirke, who is Rosanna Davison’s father-in-law and has been long associated with €480m plans for a major development, including a casino, at Two Mile Borris in Co Tipperary.
Read more: Gardai concerned for wellbeing of missing Meath teenager
The 75-year-old has built up a sizeable fortune from his Dublin-based casino business, with shareholder funds totalling €33.6m and most of the company's wealth concentrated in property with a book value of €34.3m at the end of June 2019.
But in the newly filed 2019 accounts, the directors in their report reveal that “in December 2020, the company discovered that it was the subject of a fraud in the business”.
The company calculates the cost of the alleged fraud at €1.017m in 2019 and €1.009m in 2018 and has written off the amounts.
The breakdown of the alleged fraud in 2019 is made up of €887,000 under alleged ‘misappropriation of cash' and alleged ‘misappropriated bank payments’ of €130,190.
Under the heading of ‘exceptional items’ the breakdown of the cost of the alleged fraud in 2018 is €912,000 under alleged ‘misappropriation of cash’ and €97,203 under alleged ‘misappropriated bank payments'.
A note attached to the 'exceptional item’ states that “in December 2020, the directors uncovered a financial fraud perpetrated on the company by fraudulent bank payments. The payments have been written off in the financial statements as an exceptional item”.
Concerning the alleged misappropriation of cash, the directors state that “in December 2020, directors also uncovered activities involving cash misappropriation".
Outlining the company response to the alleged fraud, the directors state that after the alleged fraud was discovered “a thorough and comprehensive forensic investigation led by external financial consultants into the company’s systems and processes was carried out”.
The directors state that “this led to the identification of unpaid taxation and interest liabilities which have been fully accrued in the company's accounts”.
The accounts disclose €296,813 interest was paid on overdue tax in 2019 and €154,784 was paid out under the same heading in 2018.
The directors state that following the investigation by the external financial consultants "the company has implemented an extensive and wide ranging programme of governance and operational improvements at all levels within the organisation”.
The directors state that these include new manual and electronic systems to manage cash handling in the business; new security measures around cash handling and cash collection and new management control systems.
Other improvements include new stringent recruitment processes and enhanced training programmes for employees in all roles and at all levels within the company and new employment and management appointments in key areas such as human resources, accounts and operations.
The directors state changes also include new directors being appointed to the board and on February 4 of this year, Debbie Lawrence, Andrew Quirke and Austin Kenny were appointed to the board.
The firm’s annual return lists Ms Lawrence as a ceo and Mr Kenny as an accountant.
They, along with director, Andrew Quirke join Richard Quirke and Anne Quirke on the board.
In a separate development under the heading of ‘contingent liabilities’, a note states that the company “is currently the subject of a Revenue investigation, the outcome of which is uncertain at present”.
The note states that “the directors have provided for additional liabilities and interest in the financial statements but have not provided for potential penalties which may arise".
The end of June 2019 accounts were due to be filed in 2020 but were only signed off on March 8th this year.
The alleged fraud contributed to the firm recording pre-tax losses of €1.27m in the end 12 months to the end of June 2019 and this followed pre-tax losses of €1.03m in fiscal 2018.
The company's post tax loss in 2019 was €1.45m and in 2018 was €1.26m. The 2019 loss also takes account of combined non-cash depreciation and amortisation costs of €1.2m and and a €117,558 loss on the sale of tangible fixed assets.
This firm's pre-Covid performance show that its revenues increased by 33pc from €7.57m to €10.106m in 2019 as the business expanded.
The 2019 loss also takes account of a non-cash €700,000 write down in the firm’s investment property portfolio.
Numbers employed increased from 57 to 86 as staff costs rose by 40.5pc from €4.3m to €6.04m. Directors' pay totalled €213,000 for 2019.
During 2019, the business’s cash funds increased from €2.37m to €3.99m.
On the Covid-19 impact the directors state that the pandemic had a severe impact on the company and as a result, the business was unable to generate revenues.
They state: “Now that Covid-19 restrictions have been lifted, the directors are confident that the business will fully recover and result in strong liquidity.” The directors state that the company promotes responsible gambling.
A Garda spokesman said on Sunday that “An Garda Síochána does not comment on named entities” when asked if a complaint has been received concerning the alleged fraud.
Dr Quirkey’s Good Time Emporium did not respond to a request for comment on Sunday.
Read more: Van crashes into Luas causing suspension but passengers escape serious injury
Read more: Huge lorry smashes level crossing gate as Dublin accounts for most incidents
Sign up to the Dublin Live Newsletter to get all the latest Dublin news straight to your inbox.
