Case Filed Against Ex-CFO Of Online Gaming Company For Diverting Funds
A case has been registered against the former Group Chief Financial Officer of an online gaming company for allegedly diverting company funds to invest in future and options trading, leading to an estimated loss of Rs 250 crore, police said
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Ramesh Prabhu, who joined the company in 2018, has been absent from work since March 1. (Representational)
Bengaluru:
Police have registered a case against the former Group Chief Financial Officer of an online gaming company for allegedly misappropriating company funds to invest in futures and options (F&O) trading, resulting in an estimated loss of Rs 250 crore, authorities confirmed on Tuesday.
The complaint was filed against Ramesh Prabhu (47) on September 9 at Marathahalli police station by the company's Assistant Vice President Gulshan Yadav. Charges were filed under various sections of the Bharatiya Nyaya Sanhita including criminal breach of trust by employee, cheating, and forgery, officials stated.
The gaming company, which previously offered online gaming services, has suspended its operations following the recent enactment of the Promotion and Regulation of Online Gaming Act, 2025 by the central government.
"In compliance with the promotion and regulation of online gaming act, 2025, ...has discontinued its operations until further notice," according to the company's website.
The FIR reveals that on March 5, Prabhu sent an email to the company voluntarily confessing that he had misused company funds for personal equity and derivatives trading over the past three to four years.
In his admission, he estimated that the total losses from his Equity F&O Trading activities exceeded Rs 250 crore.
"In the email, the accused accepted full responsibility for his actions, including breaching the trust placed in him as Group Chief Financial Officer, and claimed that no current or former employees were aware of his activities," the FIR stated.
Prabhu, who had been with the company since 2018, has not reported to work since March 1 and has been untraceable since sending the confession email, according to police.
Following his disclosure, the company conducted a comprehensive investigation, which revealed that the accused had executed unauthorized financial transactions amounting to Rs 231.39 crore from fiscal year 2019-20 through fiscal year 2024-25, as detailed in the FIR.
The complainant further mentioned that as a result, the company was forced to write off Rs 270.43 crore in its financial statement for the fiscal year 2024-25.
"The company determined that these transactions were carried out in an unauthorized and unilateral manner by the accused," the report concluded.