The cost of the alleged fraud uncovered by directors at the firm that operates arcade and casino business, Dr Quirkey’s Good Time Emporium has increased to €2.56 million.
This follows new accounts showing that Dublin Pool and Juke Box Ltd was the victim in 2020 of a further alleged fraud of €543,758.
The alleged fraud of €543,758 in 2020 is in addition to the directors calculating the alleged fraud perpetrated on the firm from 2019 and 2018 at a combined €2.026 million.
The long-established Dublin based business is owned by 75-year-old businessman and director, Richard Quirke who is Rosanna Davison’s father-in-law.
The new 2020 accounts show that the €543,758 alleged fraud perpetrated on the firm in 2020 was made up of €427,387 in misappropriated cash and €116,371 in misappropriated bank payments.
The alleged 2020 fraud now brings the misappropriated cash total to €2.22 million for 2020, 2019 and 2018 and the alleged fraud from the misappropriated bank payments to €342,764 over the three years.
After the alleged fraud on the firm was discovered by directors in December 2020, the firm appointed external financial consultants to carry out a thorough and comprehensive forensic investigation into the company’s systems and processes.
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 new accounts show that a further €495,355 appears under the heading of "interest on overdue tax" and this brings to a total of €946,952 paid out in interest on overdue tax across 2020, 2019 and 2018.
Auditor for the firm, Colm Malone on behalf of Clonshaugh Business Park based Rush Malone and Co has qualified his opinion concerning the financial statements over the alleged misappropriated cash 2020 total of €427,387.
Mr Malone said that "with respect to amounts considered to have been misappropriated of €427,387 the information available was limited to determine the exact nature of the misappropriation".
Mr Malone states: “During the year, the company did not undertake regular cash counts and did not have an adequate system of recording all cash movements."
He added: “Owing to the nature of the company’s records, we were unable to obtain sufficient appropriate audit evidence regarding all cash movements during the period by using other audit procedures."
Revenues declining
The Dr Quirkey's business on Dublin's O'Connell Street shut down in Spring 2020 and did not re-open until December 2021 due to Covid-19 lockdown measures.
This contributed to revenues declining by 4.75 per cent from €10.06 million to €9.58 million in the 12 months to the end of June 2020.
The €543,758 cost of the alleged fraud and €495,355 arising from interest on overdue taxes in 2020 contributed to pre-tax losses increasing by 27 per cent at the company to €1.61 million for fiscal 2020.
The 2020 loss resulted in the balance sheet of Dublin Pool and Juke Box Ltd taking a further hit with shareholder funds reducing from €33.6 million to €31.93 million.
The firm's accumulated profits stood at €24.45 million with cash funds of €3.93 million.
The newly filed 2020 accounts were signed off on the same day in March of this year as the 2019 accounts that were lodged last week which first revealed the alleged fraud.
In response to the alleged fraud, the directors state that "the company has implemented an extensive and wide-ranging programme of governance and operational improvements at all levels within the organisation”.
Dr Quirkey’s Good Time Emporium has been contacted for comment.
