SEGG discovers $9M circular revenue fraud spanning 2020-2021, to restate financials

The 8-K discloses that former executives executed a circular transaction scheme: $9M in restricted escrow funds were falsely recorded as revenue from a fake Datassure customer-data sale in December 2020, then used to purchase Global Gaming at an inflated $10.6M acquisition cost in June 2021, with funds returning to their source. Former CEO Komissarov was sentenced to three years in prison (June 2026); co-founder DiMatteo and former CFO Dickinson pleaded guilty to securities fraud. The company now states it must restate annual and quarterly financials for 2023-2025 to correct the $9M bogus reve

Former executives at this company fabricated a $9 million fake sales transaction using borrowed money held in a lawyer's escrow account, recorded it as real revenue, then used that money to buy another company—a scheme that has now led to prison time and guilty pleas. The company must now rewrite its financial statements from 2023-2025 because the fake revenue was never corrected.